Apple has continued to lose ground to Google in online advertising after the launch of iAd. The Wall Street Journal is reporting that Apple is trying to make its iAd platform more attractive to potential advertisers.

Having originally asked marketers to commit to spend at least $1 million—an amount later dropped to $500,000—Apple is now discussing ad deals with a minimum commitment of just $400,000, according to a person familiar with the matter.

Apple has also introduced more flexibility to a pricing structure that had befuddled advertisers, ad executives say. Instead of charging marketers every time a user taps on an ad—a policy which often led to ad budgets quickly being exhausted—Apple is willing to put a cap on what it charges for the taps, according to the person. Advertisers pay $10 every time an ad is viewed a thousand times and $2 every time it is tapped on.

This new pricing structure will hopefully give iAd a fighting chance against Google’s AdMob service.

  • That’s still absurdly high. Why do that when you can route those funds to a television or print budget?

    • Anonymous

      Because mostly kids watch TV which do not have the power to buy the product and Newspapers are pretty much dead. (In my opinion) so ads on mobile platforms is the perfect compromise?

      • Yes, but they still need to make it less expensive. At this rate, they’ll never get close to Google’s adoption rates for mobile advertisements. Apple realizes this, but in my opinion they aren’t dropping the prices fast enough.

      • Anonymous

        That’s very true Apple’s products/programs are expensive but are quality items (most of them)