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Apple has cut its iAd fees to a tenth of its original amount, increased its revenue share for developers and dropped its hybrid pricing model, according to reports.

The technology company has cut its minimum iAd spend from $1m (£636,000) to $100,000 (£63,000) after it launched a year and a half ago following two similar cuts in the intervening period.

Accompanying the cut in the required minimum spend is Apple’s abandonment of its controversial hybrid pricing model, which was unpopular with media agencies.

Apple had previously charged on a CPM basis but also on CPC every time a user clicked on an iAd. However, advertisers will now only be charged on a CPM basis when booking on iAd.

The reports also asserted that Apple is increasing the amount of ad revenue it shares with developers who run iAd units on their apps from 60% to 70%.

This is deemed to have been carried out to keep developers interested in using Apple’s ad solutions in the face of growing competition from Google’s rival network AdMob and its Android ecosystem.

The reports initially emerged from the US yesterday although Apple was unable to respond to new media age requests to verify if the amendments will also apply to the UK by time of publication.

More to follow


Published 15 February, 2012 by NMA Staff

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