Apple is Trying to Make iAd More Attractive to Advertisers

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.