Technology is a fully integrated feature of peoples everyday lives and some of the largest names in gadgets this day is Apple and Google. Often times consumers only see Apple and Google (or Android actually) battling it out for the top smart phone, however there is another war that is being waged between the two that goes unnoticed by consumers; ads.
You see, on top of making a massive profit off of the devices that they sell, these companies also integrate ads into their apps and other features of the devices so that they can generate more revenue. Advertising companies understand the value of being exposed to such a large group of people so they will often pay an arm and a leg to get in on the advertising programs for mobile devices.
So what exactly is the war going on you ask? Well, Apple decided to up the prices that advertisers had to pay to be included on their devices while other companies, such as Google, kept the fees that advertisers had to pay rather reasonable. For marketers looking to advertise on Apple products they actually paid about both arms and legs (which roughly translates to about $1million). Yes you read correctly, one million at the least is what Apple was requiring marketers to commit to.
Unfortunately Apple’s greedy move has not paid off. Marketers did not like how much Apple was charging and they also disliked how strictly they controlled the creative process with the ads, however advertisers did enjoy Google’s AdMob service. Google graciously allowed advertisers to pay a reasonable price to be featured on their apps and devices, and on top of that AdMob was available on a wide variety of devices unlike Apple.
After the revenue shares were estimated for the year it showed that Apple only had 15% of the display-ad revenue, however Google claimed the highest percent at 24%. Now that Apple has learned its lesson they are revising their tactics.
First, Apple slashed the prices for advertisers in half – now they only have to pay at least $500,000 and there are even talks about Apple agreeing to drop it another $100,000. Next they fixed their pricing structure and made it much easier to understand: $10 every time an ad is actually viewed and only $2 when the ad is tapped on.
Lastly Apple has decided to be gracious hosts to their advertisers and put them through a training program that is located at their headquarters. The program is designed so that Apple designers and product teams lead informational sessions that will educated the advertisers. Once the group is done they are then taken to an Apple store where they can purchase items with a significant discount.
So will their new enticing techniques work for next year? This has yet to be known. There are a few who are glad Apple is finally giving in and realizing the error of their ways, however many still believe that Apple’s strict control over their devices will eventually lead to Apple fading into the background like so many others have before.