Apple iAd ads are cool and could be the leading frontier in the mobile advertising industry. Having watched the demos, we did not question its effectiveness.
Instead, we question (1) how clients are able to sign up for it and (2) the cost of getting an ad aboard. Would it be as easy and affordable as Google Adwords?
Apparently not, given that Apple is helping iAd early adopters code and programme their ads. In other words, the ads can’t be self-served. About the cost, the WSJ has reported (through ad executives) that Apple will charge 1 penny for each ad viewed and $2 for each ad clicked.
iAd’s Cost In CPM & CPC
Can’t do a proper comparison with other digital ad platforms? Maybe this would help: $10 CPM (Cost per thousand impressions) and $2 CPC (Cost per click)!
Yes, it’s expensive and only big corporations can afford it. In fact, Apple could charge as much as $10 million for each campaign, a figure that would exceed most businesses marketing budget.
iAd, for now, isn’t “user friendly for small businesses”.
Target Based On App Downloads
It was also revealed that advertisers are able to target users based on the apps they have downloaded. “For instance, a marketer could choose to show its ads to people who have downloaded financial applications or reggaeton music, horror movies or comedy TV shows.”
It remains to be seen if the iAd’s targeting method is accurate. Having paid a hefty sum, the least that advertisers would wish for is to spend money on unqualified users.
So, would advertisers shun the iAd and invest on Facebook or Google instead? Let us know your thoughts via comments.
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