Apple Inc. has reduced the rates for its iAd service by as much as 70 percent in order to not to lose its potential clients to market rivals.
According to Bloomberg, the Cupertino, California-based Apple Inc. has slashed prices of its iAd services by a huge margin, as it is struggling to hold its position in the advertisement market against rising prominence of rival groups including Google.
Apple had begun to offer the advert deal to companies at $1 million initially, which was reduced by half, that is, $500,000 million in February this year, and has now been slashed to only $300 million for companies that sign contract for multiple campaigns. The cut has come to prevent big companies like Citigroup and J.C. Penney Co., shifting to other ad platforms like Millennial Media, Greystripe and AdMob.
“Even with lower prices, some advertising agencies are balking at iAd’s cost, especially because the promotions only reach Apple users. They’re turning instead to platforms which serve a range of devices.” quoted Bloomberg.” Experts believe that advertisement business is expected to generate $2.5 billion revenue in three years time, and Apple is losing its foothold in the market due to its limited ecosystem.
In an official statement made by the company, iAd is said to have launched more than 100 advertisement campaigns across seven countries.