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Apple cuts iAd prices in its struggle to win clients

Apple has cut the price of the iAd rate card by 70 per cent.

For the second time since it's release in 2010, Apple has cut the price of the iAd rate card by 70 per cent.

In February, Apple halved the price of its mobile advertising platform. The company has now cut rates by up to 70 per cent, according to reports from Bloomberg. Unnamed sources have said that this price drop indicates that Apple is "struggling to parlay its technology leadership into success in the ad industry."

Even with such reduced costs, some advertising agencies are still unhappy with Apple's pricing of iAd, due to the fact that the promotions only reach iOS users. The price tag is still higher than its competitors, and the more popular choices for advertisers seem to be Google's AdMob, Millennial Media and Greystripe, as the audience is much wider.

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

The unnamed sources referenced by Bloomberg said that Apple has cut the minimum ad purchase by as much as 70 per cent if the advertiser brings together multiple campaigns.

Head of marketing at Greystripe, Dane Holewinski, has said that by using iAd "You're cutting your potential audience in half by focusing on a single platform."

Despite Apple's apparent struggle, Noah Elkin, an analyst at the New York research firm EMarketer, said: "iAd may have receded into the background, but it's too early to assume it's not going to come back."


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