Apple has lost ground to Google in the fast growing mobile ad space, and is changing its approach as it tries to bring more advertisers to its mobile advertising platform, iAd. The Wall Street Journal reports on the new approach Apple is taking to gain market share.
iAd was launched in July of last year, and was championed by former CEO Steve Jobs. iAd is Apple’s system for selling ad space inside apps on its line of iOS devices.
Response so far has been less than overwhelming as marketers say they’ve been turned-off by Apple’s high price tag, and its “My way, or the highway” attitude. Apple has so far demanded tight control over the creative process for all ads ran inside of the iAd system.
Ad executives say that Google’s AdMob service is more reasonably priced, and is also available on other devices, such as Android, unlike iAd which is restricted to the iOS line.
In response to these issues, Apple is showing some willingness to bend.
Originally Apple asked marketers to spend at least $1 million, an amount later reduced to $500,000. According to informed sources, Apple is now willing to consider commitments of as little as $400,000.
Apple has also expressed a willingness to make its pricing structure more flexible. Apple has been charging every time a user tapped an ad. This often led to ad budgets being quickly exhausted. Apple has said it is willing to put a cap on charges for taps.
While there have been complaints about how Apple controlled iAds, there have been advertisers very happy with the results they’ve received through the ads they’ve placed, and will be renewing their deals.
Unilever has advertised their brands, including Dove soap, and Ben and Jerry’s ice cream, through iAd, and reports that consumers spend an “amazing” amount of time interacting with the ads. An average of 68 seconds in the U.S.
On the developer end, those that have activated iAds in their apps say that Apple hasn’t sold enough ads to make any meaningful revenue for them. Mobile app company App Cubby report that they’ve earned $320 from iAds in the past 30 days, and only around 13 percent of their in-app ad requests are filled.
Apple has one major challenge; the company only sells ads on Apple devices. So, advertisers have to go elsewhere in order to push their ads out to users of other devices, and make sure they reach broader audiences. Karsten Weide, IDC analyst says, “Apple we believe will, over time, fade into the background. It was attempted to make sure that even consumers advertising experience on Apple devices was perfect, but it hasn’t really worked.”
