Apple makes changes to bring on more partnerships for iAd

Jake Smith | Dec 12 2011 - 6:19 pm PT

The Wall Street Journal reported this evening that Apple isn’t seeing the success they’d like with their iAd platform. The company has deployed iAd as an advertising platform throughout their iOS devices in the summer of 2010 and is now making changes in the hope of attracting both more developers and ad spending. First off, Apple is reportedly lowering the entry-level cost for marketers to $400,000 – down from $500,000 and even lower from the original $1 million when the platform was launched. Apple is also reportedly putting new caps on what it charges for clicks on ads, letting advertisers pay $10 each time an advert is viewed every 1,000 times (CPM) and $2 every time it’s specifically tapped on.

So why is Apple making these changes? Apple had tied for the lead in ad market share last year, but has reportedly fallen back to the third place in 2011 advertising market share, behind Millennial Media (#2) Google (#1), per IDC. Hoping to re-gain lost share, Apple is also launching a training program to bring in more advertisers onto the network, partnering with its media buying agency OMD, part of Omnicom Group Inc. to educate new advertisers on iAd, a standard practice providers of digital advertising platforms such as Google and Yahoo! have been exercising from the onset. In the recent weeks, executives from Pepsi, Clorox and JC Penny have reportedly visited Apple’s campus to talk about iAd. OMD also hopes to lure more advertisers in February 2012.

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