ADOTAS – Apple cutting the rates on iAds isn’t really news (Apple halved the $1 million floor back in February), but it was interesting to hear that Apple is offering a minimum spend of $300,000 to agencies that sign up for multiple campaigns. That itself doesn’t smell of desperation even if app fill rates are 5% to 15% and brands aren’t really jumping on board, but taken altogether it doesn’t paint a bright future for Apple’s first foray into mobile advertising.
However, new research from MediaMind could offer a little sunshine to the situation: studying 230 million mobile impressions from Q4 2010 and Q1 2011, the company found that iPhone and iPad ads boasted double the click-through rates of Android devices. The iPhone in particular had the best click-through rates for display ads while Blackberrys had the worst.
It’s a ray of light for Apple because iAd’s greatest problem is that they’re only served on the iOS platform, making it lose luster next to cross-platform solutions (which also tend to be cheaper). Apple can boast that its users are more likely to engage with ads, which could be a decent selling point if the fill rate improves (which probably require more advertisers — this might be a vicious circle).
Still, it’s only a sliver of light because while more impressive than the standard online banner CTR of 0.07%, MediaMind’s research shows mobile ad CTR on average is only 0.61%.