Minimum iAd Buy-In Fee Reduced Again

According to a report from Advertising Age, Apple has yet again reduced the price required, at the minimum, for advertisers to opt into their iAd program. Launching back in the Summer of 2010, the program allows developers to signup and add a little bit of code to their applications to in effect support advertising with the ultimate hope of earning some extra money.

Initially, the buy-in fee for the iAd program when it first launched was $1 million for advertisers – a seemingly whopping amount. The program promises some extra revenue when implemented into any software by giving you 60% (now 70%) of proceeds that are generated by the accompanying ads that show up at the desired location inside the UI of your app.

In February of last year, the price for a buy-in was slashed in half at still a large $500,000. It was then again dropped to $300 million. It seems that there’s been a particular lack of support for the program, which has caused the Cupertino-based company again drop the price required for developers to get their share. As we’ve already stated above, the revenue that developers will receive from any money generated from advertising has been upped to 70% of the total, which serves as another incentive for developers or other advertisers to become a part of the program.

Advertising Age notes the following:

“Apple is also planning to change the way it charges for ads, which irked some advertisers and agencies. Since it launched in 2010, Apple has charged advertisers twice: a fixed rate for every 1,000 ad impressions plus an additional fee every time a user clicked on the ad. Apple will now only charge the cost-per-thousand rate”

With the price still fairly high at around the usual budget for a whole game when produced by an indie developer, I’m not quite sure how much light will continue to be shed on the program. Whether or not Apple simply wanted to encourage more advertisers or they weren’t seeing much potential with the previous buy-in prices, we don’t know.