Apple the giant in electronics and the most famous company in the world is going to use a new combined way for its iAd platworm that was designed for mobile advertising.
First release of the Apple’s iAd platform was in July 2010. Nevertheless due to the high prices for mobile ad campaigns it didn’t attract so many advertisers. Normally the price for a mobile campaign costs 1 million of dollars, but now Apple reduces it to 400 thousand of dollars to bite the competitor AdMob service by Google. The fact that Google service has become more popular because of the affordable price and the opportunity to run ads not only on Apple devices.
Comparing to estimated share of US mobile revenue this year we can find that Google AdMob service takes 24% of revenue from mobile advertising campaigns where Apple has only 15% (source: IDC). Apple loses to Google in the growing mobile advertising industry.
To win this mobile ad game Apple introduces more flexible pricing policy to attract advertisers, where advertisers will pay $10 for thousand times the ad appears and $2 every time it is tapped on. According to rumuors more than 30 marketers from the world giants like PepsiCo, Dove and others have visited Apple’s headquarters in Cupertino to check the new opportunities for mobile advertising. Some marketers are pleased with results from their Apple mobile advertising campaigns and wish to continue deal using iAd.
Some says that Apple hopes to get back the piece of cake it lost to Google in the fast growing mobile market. But there is another thought that maybe Apple not only want to expand the iAd usage to attract new advertisers but also involve developers for its platform who will develop and update it like they do now for Google’s Android.