Apple’s iAd to be a Premium Mobile Ad Service

The Wall Street Journal is reporting some interesting, and I think quite exciting, news about how Apple intends to position its iAd service.

I have been saying for quite some time that I believe that Apple’s ad service would have to conform to some pretty high standards for Apple themselves to be happy with it. And because of that I would be very likely to choose them as my ad partner over AdMob if I was going to put adverts into my (free) apps.

This is because not only do I believe that Apple’s iAd service will be tasteful and of high quality in execution, but I also believe that Apple’s advertisers will be of premium quality and pay very well.

This seems very much to be Apple’s aim. The Wall Street Journal is reporting that some advertisers used to paying hundreds of thousands for the kind of ad package Apple is selling are being asked for as much as $10 Million Dollars to be part of Apple’s advertising partners at launch, and around $1 Million Dollars for normal packages after that.

Apple will be charing a penny for every iAd impression (view) a consumer on one of its devices sees. And $2 for each click-through. Ultimately this will all add up and come out of the prepaid $1 Million Dollar, or more package they have bought.

Apple is also said to be being quite picky about who can advertise with them.

For us as consumers this is great news. We are far less inclined to be upset if we get bothered by well executed ads for Movies, Ferraris and Porches in free apps, than if we get hassled for dating and gambling sites.

Likewise as an app developer I would feel more comfortable having a guaranteed level of quality and taste in the iAds I might be foisting on my customers who choose a free version of my app.

Of course, the extra money from these advertisers, who are paying a premium rate to Apple, is also going to filter down to app developers in their cut. Which is very welcome.

Of course the drawback there is that many people may be tempted to put more adverts in their software now. Perhaps even in paid titles. But I think that Apple will be keeping a watchful eye out for that. In fact I wouldn’t be surprised if having iAds in your app is not automatic for all developers or all apps.

Let us know your thoughts on how Apple plans to implement iAd in the comments.



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