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Apple makes deep cut in iAd mobile ad pricing

Published on .

Cupertino, Calif.—Faced with increasing mobile ad competition, Apple Inc. has reduced the minimum amount it charges for iAd campaigns that run inside mobile apps, to $100,000 from $500,000. That previous minimum was itself a significant reduction from the $1 million budget required for an iAd campaign when the product was first introduced by Apple in 2010. Also, Apple will now charge advertisers only for CPM impressions, and will drop the added click-through fee it had been charging. In addition, Apple has also sweetened the deal for app developers, who will receive 70% of the revenue from ads running on their apps instead of the 60% Apple previously offered.
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