AdAge doesn't like iAd's pricing scheme
AdvertisingAge confirms today what the Wall Street Journal pointed out last week: advertising with Apple's iAd service won't be cheap. Most advertising agencies charge either a flat rate per thousand impressions (CPM) or a small amount each time a user clicks an ad (CPC). With iAd, Apple will do both.
Under Apple's arrangement, advertisers will pay US$10 per 1,000 impressions, $0.01 for each ad displayed, and $2 for each ad clicked.
By comparison, AdMob reportedly charges $10 to $15 CPM (on average). Customers opting into CPC campaigns will pay $0.15 to $0.30 per click. AdAge's Kunur Patel and Michael Learmont dislike Apple's deal, saying "Apple is reinventing mobile ad pricing, and not in a good way."
Fortune notes that Apple has not yet released an iAds developer's kit, meaning that customers will have to work with Apple when creating campaigns. Again, the price tag is high: Apple will charge $50,000 to $100,000 to agencies spending less than $1 million on iAd buys, according to agency executives.
In related news, Google is currently hoping to convince the FTC to allow its intended purchase of AdMob. They're using Apple's forthcoming iAds service as evidence of competition in the mobile advertising market.
