It is also used to download application software from the App Store for the iPhone, iPad and iPod Touch.
To create the Universal Mobile Ad Package v.2.0, the MMA analyzed hundreds of billions of mobile ad impressions, delivered across the global mobile advertising marketplace in Q2 2011.
According to a story from GigaOM, Apple has reportedly scaled back the up front price for iAd placement in apps on its iOS devices – down to just $100,000.
These ads are perfectly tailored for display in mobile apps or browsers; no pop ups, no video, just Facebook updates given premium space inside a users feed for a price.
Apple is now asking advertisers to commit $100,000 to iAd to become part of the program, down from the original amount of $1 million.
Apple’s iAd platform generated $92.4 million in revenues last year, which translated into a 6.4 percent share of overall US mobile ad revenues.
Previously, that revenue split was 60 percent for developers, now, it’ll go up to 70 percent, as Ad Age Digital reports.
Apple Chief Executive Officer Steve Jobs indicated that Apple would retain 40% of the ad revenue, in line with what he called “industry standard”, with the other 60% going to the developers.
Razorfish, a global marketing company specializing in interactive web ads, apparently began consulting with Facebook about mobile advertising more than two years ago.
But with Android dominating the market and consistently stealing market share from Apple and Millennial, we’ll see if their shares in the mobile ad revenues stay consistent with its domination of the mobile market.
Due to the rapid growth of mobile phones in the world and the advancement of Google’s mobile search advertising business, mobile ad spending is expected to grow past $2.6 billion in 2012 according to eMarketer.
Apple may be cutting the minimum price it’ll charge advertisers to run campaigns on their mobile advertising platform iAd.
In cutting the prices of iAds, Ad Age writes, Apple is hoping to draw developers away from the larger reach of Google’s Android platform for the larger revenue cut and more detailed ads Apple can provide.
Hosted and sold by Apple, the iAd platform is expected to compete with Google’s AdMob mobile advertising service.
Back in 2010, Forbes expected the iAd concept to have a big impact on Apple’s share price.
Two years later, Apple certainly isn’t hurting for money with its record breaking 2011, but it seems there’s more work to be done before the iAd program lives up to the vision that brought it to life.
Christiane Ruston is a business journalist based in Barcelona, Spain. Christiane has a passion for financial markets and breaking news stories and loves writing about business news, stock market, and economic opinions that matters most to its audience. Christiane spends a lot of time discovering and researching latest financial markets and industry news stories in order to make sure the latest and greatest stories are brought to you first on BigBoardNews.com.