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The Apple Incorporation recently made an announcement about revamping the iAD, which is their mobile advertising service. There are many changes coming that have been made to benefit various advertisers. Apple will be lowering the fee that the various advertisers have to pay for the advertising services and they will also be increasing the amount of commission that is paid to those who develop different apps that are used by thousands of people in areas all around the world.
When iAd was first developed in 2010, marketers were spending at least $1 million on their mobile advertisement campaign. However, with these new changes in store, marketers will be able to spend much less, at about $100,000 for their mobile advertisement campaigns. The mobile app developers will also be receiving a commission of nearly 70 percent of the amount of money earned through advertisements that are featured on the apps that they have developed. This is an increase of just about 60 percent.
On Wednesday, Apple was sure to confirm these changes that are being made for advertisers and developers. In fact, Apple said that they are making sure that iAd is even better than it was before, increasing the revenue share for developers by 60 percent, up to 70 percent. These changes will be in effect by April 1st for the developers of apps. These changes are coming shortly after Apple recently hired Todd Teresi of Adobe to run the advertisement network.
A managing partner for MEC Global, Adam Schlachter, is excited for the development and believes that this will open a lot of doors for advertising to take place on the iOS. He says that by drastically lowering the price, there are a lot of new advertisers that will have access to having their advertisements featured throughout mobile services. When iAd first started, it was a lot more exclusive and expensive but now, it is much more affordable, which allows all different types of brands to set up advertising campaigns, even those who have set budgets. He also says that when Apple was charging millions for advertising campaigns, it simply was not as attractive. Advertisers do not want to have to pay millions of dollars, especially if they are on a budget. With fees being drastically cut, it proves that Apple was willing to listen to advertisers and make necessary changes that would benefit various advertisers.
Some people, however, are still skeptical about the changes. There are many analysts that argue that iAd is still growing and is in second place, directly behind Google, when it comes to the market of mobile advertising. Analysts also fear that the expectations are higher than what the company will actually provide to advertisers, especially when it comes to the advertising market.
Advertising Resources is a weekly column authored by AdvertisingCrossing, the nation's leading advertising jobsite dedicated to getting jobs for advertising professionals.
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