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Advertising in iPhone and iPad Went Down in Value

According to Bloomberg, Apple has reduced the cost of advertising in the mobile advertising system (iAd). The minimal price for participating in the iAd is now $300,000. In July 2010 when the advertising system was launched, the price was starting from $1 mln. The first discount for adverts Apple made in February having reduced the price up to $500,000.

Having reduced the price, Apple hopes to return several biggest clients that have left for the companies-competitors, informed Bloomberg, such as Citigroup and the American retail network J.C. Penney Company. The analytics interviewed by the magazine informed that apart from the high price the former iAd clients were not satisfied with the fact that adverts were seen only by the owners of iPhone, iPad and iPod touch.

The representative of Apple, Natalie Kerris, said that for one year of the iAd existence about one hundred advertising campaigns have been conducted in seven countries. For the last month about 20 advertisers have been used the services of iAd, including Walt Disney Company, AT&T and the insurance company Geico.

The advertising system iAd from Apple was announced in April 2010. The basis for iAd was the mobile advertising operator Quattro Wireless, which was purchased by Steve Jobs in 2010. The main competitor of iAd at the market is the advertising service Google AdMob.

With the help of iAd, advertisers can place their adverts inside iPhone, iPod touch and iPad software applications. Mobile apps developers get 60 % of the profit from advertising and 40% goes to Apple.

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