Pay to Play on Apple

The Wall Street Journal recently reported that while advertisers want a presence on the iPad and iPhone, it doesn’t come cheap. Marketers are being charged a premium to maintain a presence on Apple’s new iAd platform.

Inaugural rates are being set at 5-10 times higher than typical mobile ad rates and marketers who want to participate in the launch of the platform could pay up to $10 million. Apple has stated that it plans to maintain a sizeable amount of control over how the creative is delivered, and this is ruffling the feathers of some creative directors.

The good thing, though, for publishers is that higher rates will also trickle down to them, keeping 60% of the revenue generated.

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