Marketers’ demand to be a part of Thursday’s launch of Apple’s iAd mobile ad platform has been so high some advertisers may face difficulty making it on to the system. Apple (NSDQ: AAPL) boasted of selling $60 million worth of app inventory just a few weeks after iAd’s creation was announced. But Ad Age suggests marketers can expect to wait weeks, even months before having their campaigns on iAd.
One of the things that has tended to hamper the growth of online advertising in general is the lack of uniformity between websites’ ad units, though industry groups like the Interactive Advertising Bureau and the Online Publishers Association have made strides on solving that issue.
The iAd system is so different from what already exists, marketers and their agencies will have to completely adapt their creative offerings to fit into the iAd platform, which is being managed internally by Apple. As a result, agencies are being told it will take six to eight weeks to create an ad following its initial production for other websites and digital environments.
Pricing is another hurdle for most marketers. Naturally, with demand so high and supply limited, at least for the moment, Apple is able to command at least $1 million just to be considered for entry on iAd. Some marketers are supposedly paying more than $10 million to get exclusivity in a given ad category, such as autos or packaged goods. Some examples of exclusivity deals noted by AdAge include “presenting” or “charter” sponsors like Nissan, the sole car company on iAd right now, and Citi, the sole bank ad on the platform. In terms of specific formats, Apple has set CPMs at $10 per banner impression and a $2 cost-per-click.
Apple doesn’t appear to be playing any favorites either. For example, even though Apple CEO Steve Jobs is Disney’s single largest shareholder, the company’s movie studio has an ad ready to go on iAd, but it’s not the exclusive film advertiser.