Apple is almost ready to make its debut in the advertising business. Its mobile advertisement platform dubbed iAd will be used to display ads inside applications available in the Apple App Store.
As with all things Apple, iAd won’t come cheap. Publishers interested in leveraging the new platform will have to shell out close to $1 million. In fact, Apple could charge a lot more (as much as $10 million) to be part of a handful of marketers at the launch. These rates are substantially higher than the $100,000 to $200,000 paid by Ad executives for other similar mobile deals.
Apple will allow developers to choose if they want to display ads or not. Developers participating in iAd will get 60% of the revenue generated, while Apple will hold on to the rest. What sets iAd apart as a platform is its interactivity. One of the examples cited by Apple is an ad for Nike’s Air Jordan basketball shoe. This ad appears as an animated banner at the bottom of the screen, accompanied by an iAd logo. If the user taps on the ad, it will be expanded to display a video, interactive store locator and special offers on local stores.