My Story, Apple reportedly eases iAd terms to boost interest

Steve Jobs unveiling iAd in 2010.

(Credit:
James Martin/CNET)

Apple apparently has recognized that its mobile advertising platform, iAd, has struggled to gain traction with advertisers and is reportedly making concessions to drum up business.

Launched in the summer of 2010 alongside iOS 4, iAd gives marketers the ability to embed dynamic and interactive ads within a mobile app. The service, which sells ads within mobile apps on iOS devices, was designed to smoothly display ads within an app rather than take the user away from the app to a separate Web page.

iAd was even heralded by then-CEO Steve Jobs at the platform's introduction as a mix of emotion and interactivity, which he said was something existing ad platforms weren't providing to users.

However, that hasn't translated to advertiser interest. During the past year, iAd has fallen from a first place tie with Google's Admob to third place behind Admob and Millennium Media's ad network, leading Apple to offer advertisers more attractive terms, according to a Wall Street Journal report.

Originally setting minimum ad buys at $1 million, Apple is now asking advertisers to commit $400,000, sources familiar with the matter tell the Journal. Apple is also reportedly capping per-click charges, which can quickly exhaust advertising budgets.

To attract new advertisers, Apple is also establishing a marketing training program and offering campus tours to marketing executives, allowing them to make discounted purchases at the company store, ad executives told the Journal.

Apple representatives did not respond to a request for comment.