Apple Looking To Charge 10X The Normal Amount For iAds

steve jobs iad

Photo: Associated Press

Apple is pitching its iAds to marketers around the country, the Wall Street Journal reports.Like all things with Apple, the iAds have a hefty premium. Apple is saying it wants $1 million for ad buys, when a normal campaign would cost $100,000 to $200,000.

Like all things Apple, the ads are supposed to look good and grab people’s attention. Advertisers are interested.

Here’s all the pertinent details about the iAds, via WSJ:

  • Apple wants to charge $1 million this year for ads on its iPod Touches and iPhones (We assume iPad is in there, too, but the Journal doesn’t mention it).
  • If your company wants to be one of the first companies to participate in the iAds, it could cost as much as $10 million.
  • Advertisers usually only spend $100,000-$200,000 for similar deals.
  • In the first few months Apple will build the ads itself, just to make sure they work well. Later on Apple will have a developer kit for ad agencies so they can build ads on their own.
  • Apple will sell and serve the ads, keeping 40% of the revenue. Developers that use iAds in their apps get 60% of the revenue.
  • Every time a user sees a banner ad from Apple, it will charge advertisers a penny. If the user taps the banner and the full ad expands Apple charges $2. Large ad buys would reach $1 million from the taps and views.
  • Apple says users spend 30 minutes a day using apps. Apple has sold 85 million iPods and iPhones.
  • Marketers can target ads based on people’s iTunes download history. Apple will serve different ads if you download financial applications, heavy metal music, or gaming applications.
  • Ads can also target based on location, but not ultra specifically. Think New York City, not 119 5th Ave., New York City.

BONUS: 10 Burning Questions About Apple’s iAds

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