iAd Might Bust Some Advertising Budgets

May 4th, 2010 by Arjan Olsder Posted in Ad Funded Gaming | No Comments »

There is hope for all those advertising networks on iPhone OS already. As it turns out, iAd will launch with a premium price tag, leaving the price sensitive advertisers where they are satisfied till now.

MocoNews researched what advertising on iAd’s will cost a marketer. According to the numbers they received, CPM’s might double or triple in price (like when you buy a MacBook while all you need is a laptop).

Advertisers that go with Apple need to have an annual budget of at least $1 Million, but marketers have to be aware that Apple combines CPM’s and Clickthroughs which could potentially blow up the bill when consumers actually start generating clicks. Apple is said to be charging a cent per view and $2 per click.

With these amounts, mobile app developers need to consider if Apple will be able to pull in enough advertisers to provide a proper fillrate. It is also interesting to know if Apple will start of with only the US market as it often does.

Check the full breakdown over at MocoNews.

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    Arjan Olsder is the Vice President of Pixalon Studios. Opinions expressed on this publication do not have to represent those of Pixalon Studios.


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