Apparently Apple just isn’t making enough money off the iPhone. In addition to making at least a little on each unit sold, Apple also gets a cut on the apps and other media sold for the device.
But they want more. The Wall Street Journal reports on a rumor that the new iAd network will come with a hefty price tag—possibly $1M to join the program, and $10M to be among the first. Additionally, Apple’s split of the ad revenue is 40%, and the price tag “comes with initial demands for greater control over advertisers’ marketing campaigns.”
It’s often routine to charge a premium to participate or especially launch a new platform, but even established advertisers are surprised by the price tag. Says the WSJ, “Ad executives say they are used to paying between $100,000 and $200,000 for similar mobile deals.”