A report is stating that Apple’s iAds may not be performing as well as it was. According to several developers, their “fill rates” have dropped substantially since the New Year started. Fill rate is the percentage of the ad inventory is actually filled with an ad. The report suggests that one issue could be pricing stating:
It is confusing to mobile ad marketers because it is based on a combination of both impressions and performance. There is a floor CPM (cost per thousand impressions) for every time an ad is displayed, and then an additional cost for each time an ad is opened up (known as an “expand”). Lots of people mistakenly hit the ads who really aren’t interested, meaning advertisers are paying for unwanted engagements, driving up the effective CPM sky-high to as much as $50 or $60 in some cases (more typically it is a fraction of that, but still well above the low-single digit CPMs of most mobile ads).
A recent report states that iAds are twice as effective than TV ads. Perhaps Apple charges more for that value. Either way, it seems Apple has some improvements it can make to its advertising platform and we’re sure it will improve over time.
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