According to reports in the digital media press, iAd is contacting UK agencies about changes in their pricing policy and structure. In the US, the minimum spend has already been reduced from $1m to $100k, but it seems there will be even further developments. Currently iAd uses a ‘hybrid’ (or double) pricing model of both CPM and CPC for its advertising, which is a major barrier for advertisers. Apple are also expected to increase payouts to developers in order to create further distribution of ad content.
The expected changes come at a time when the mobile advertising market is hotting up. Google’s Admob has moved closer to the Adwords model and Facebook are likely to launch a major mobile ad initiative before the spring. Back in June 2011, I wrote that Apple seemed to be losing interest in iAd and a report by The Digital Times suggested that the recent moves are a last-ditch attempt save the project. Apple have driven the consumer market in mobile, but have failed to ignite the world of advertising. With the amount of profit they’re making, I suspect they’re not too worried about it.