Wednesday, February 23, 2011

iAd ante drops 1 octave; 12 to go

Apple has reduced the minimum buy-in for its iAd mobile advertising platform from $1,000,000 to $500,000 to attract “smaller” campaigns.

I’m astonished that it was, and is, so high. Since one of the advantages of the platform is location-based targeting, I would expect small local businesses like restaurants to want to advertise. But the buy-in has to be realistic for small businesses—more like $100 to start. And the iAd platform is well below capacity; the fill rate has been under 10% recently.

Google’s AdWords platform, by contrast, has no minimum campaign budget. I’ve played around with it for $10 or $20, just to learn how it works. I wonder why two smart, successful companies chose such different approaches for this parameter.

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