Here’s some good news for publishers reeling from a horrific 2009: Ad units on the iPad are attracting big-name advertisers. The NYT reports that a high-end credit card company has purchased its iPad ad inventory for the device’s first two months on the market, while brands, like FedEx and Buick, are buying ads on the apps of other publications, including the WSJ, Newsweek, Time (NYSE: TWX) and Reuters (NYSE: TRI). The NYT says the going rate is $75,000 to $300,000 “for a few months of exclusivity” on one of these apps.
That sounds respectable since — while there are signs that iPad pre-sales are off to a good start — it’s unclear how popular the device will really be. And, of course, that’s the big caveat here since, in the long-term, whether iPad ad sales can help offset declining print ad and even online ad sales, will depend on the device’s adoption.
One other nugget for iPad watchers in the story: The WSJ’s app may cost $17.99 a month. As Staci points out, that’s a slight premium to the $14.99 a month the WSJ charges for a subscription on the Kindle.
It’s not just publishers and consumers that are getting excited about the iPad… Advertisers are recognizing the potential too! http://bit.ly/brALwt #ipad
FedEx and Buick? What the heck these two companies got coming out this year worth advertising on the iPad about?
Advertising for advertising sake…what a business model in the 21st century….