Wall Street Journal reports this evening that Apple isn’t see the success they’d like with their iAd platform. The company, who deploys iAd as an advertising platform throughout their iOS devices, is making changes in hopes of attracting more developers and ad spending to in the program. First off, Apple is reportedly lowering the entry level cost for marketers to $400,000 — bringing it down from $500,000 and even lower from the original $1 million when the platform first launched. Apple is also reportedly putting new caps on what it charges for clicks on ads, letting advertisers pay $10 every time an ad is viewed every 1,000 times (CPM) and $2 every time the ad is specifically tapped on.
So why is Apple making these changes? Apple had tied for the lead in ad market share last year but has reportedly fallen back to 3rd in advertising market share in 2011, behind Millennial Media and Google, who holds the number one spot, research firm IDC found.
In hopes of gaining more market share, Apple is launching a training program to bring in more advertisers onto the network. Apple is partnering with OMD to educate new advertisers on iAd. In recent weeks, execs from Pepsi, Clorox, and JC Penny have visited Apple’s campus to talk. ODC also hopes to bring more companies in next February.