Apple Drops iAd Minimum Buy to $100,000

Apple Drops iAd Minimum Buy to $100,000

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Apple has reportedly dropped the iAd minimum buy to just $100,000, much lower than the original $1,000,000 minimum buy when iAd launched, reports AdAge.

In addition, developers will now receive 70% of revenues from iAds running on their apps, up from 60%.

The extra money will compensate for lower ad rates and serve as added incentive for developers to build businesses on Apple devices, even though they may grab a bigger audience or more ad revenue creating apps for Google's Android devices, which now outnumber Apple smartphones in the U.S.

Another big change is how Apple will now charge for ads. Previously, Apple charged advertisers a fixed rate per every thousand impressions and a per click fee. Now Apple will only charge per thousand impressions.

AdAge notes that Apple is likely making these changes due to its declining market share in the mobile ads market. IDC reports that Apple lost 4% of its market share in 2011, going from 19% in 2010 to 15%.

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Apple Drops iAd Minimum Buy to $100,000