Apple is cutting down on the minimum amount of money the company charges advertisers, for running campaigns on its iAd mobile ad system. The Cupertino based tech giant will be giving a boost to the money it pays to mobile app developers, too.
Advertisers will have to spend $100,000 for mobile campaigns that are run on iPad and iPhone apps, this amount was reduced from $500,000 and also $1 million, from when the service was launched in the year 2010.
App developers will now receive 70 per cent ad revenue from iAds that run on their apps. Apple also has plans to reconstruct the method of charging for the ads, which might dissatisfy few advertisers, as well as agencies.
From the time iAd launched the company charged double for advertisements, where the new decision by the company will see them charging very low and a reasonable rate.
Interestingly, the company was able to secure 24 per cent of the total $630 million market for displaying mobile ads in the U.S.A, in 2011. This was up by 19 per cent in the year 2010, states research firm IDC to Ad Age Digital.