Apple Cuts iAd Rates By As Much As 70%

Apple Cuts iAd Rates By As Much As 70%

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Apple has cut its iAd rates by up to 70% as some marquee clients are using rival services, according to Bloomberg.

When Apple rolled out iAd a year ago, companies such as Citigroup Inc. (C) and J.C. Penney Co. were being charged $1 million or more to run ad campaigns. Today those brands aren't using iAd, and Apple is offering packages for as little as $300,000, said the people, who asked not to be named because the rates are private.

"Apple's closed ecosystem may have been interesting in the short run for advertisers, but in the long run they priced themselves out," said Thom Kennon of Young & Rubicam.

Even with the lower prices, some agencies are still balking at the cost of an iAd campaign, says Bloomberg. Mobclix reports that only 5-15% of ad space on iOS applications is being filed by iAd.

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Apple Cuts iAd Rates By As Much As 70%

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