Apple’s iAds, which brings ads to iPhones and iPads, is set to debut in Europe imminently with L’Oreal, Nestle and Renault among its early adopters.
But media agencies are already warning that hassles in dealing with Apple over content could deter many potential advertisers. It does appear though that Apple is prepared to reduce its $1m minimum campaign spend for the launch in Europe.
Reactions to the new service in the US have been mixed with some advertisers including Adidas and Chanel pulling campaigns due to implementation problems and consequent delays.
Others are happier, Campbell Soup noting that iAds delivered a 0.8 per cent click-through rate, three times the industry average. Those clicking away spent an average of more than a minute on some of the ads, particularly those incorporating game elements.
Industry forecasts say that Apple is due to bank just over $100m from iAds this year (the service only went live in the US in July). Google’s Android is set to clear $400m.
$100m is a drop in the ocean for Apple leading some analysts to speculate that the company will lose interest in the mobile market if its cost of sales rises through competition and the need to discount to match Android.