Apple to Charge Close to $1 Million for iAds on the iPhone

Apple aims to charge close to $1 million for ads on its mobile devices this year and as much as $10 million to be in the handful of launch marketers, according to a WSJ report.

Ad executives say they are used to paying between $100,000 and $200,000 for similar mobile deals.

"It's a hefty sum," says Phuc Truong, managing director at Mobext. "What Apple is trying to do is certainly above and beyond what's been done in the past."

Despite the high price, ad executives are crowding into conference rooms to listen to Apple's pitch for iAd.

Apple is planning to charge advertisers a penny each time a consumer sees a banner ad, ad executives say. When a user taps on the banner and the ad pops up, Apple will charge $2. Under large ad buys, such as the $1 million package, costs would rack up to reach $1 million with the various views and taps.

Marketers will be able to target ads to users based on download preferences collected by iTunes. They will also be able target ads by geolocation.

Apple is seeking high quality ads from big-name marketers for the launch and after an approval process, Apple will build the ads itself. Eventually, Apple will release a developer kit so that agencies can make their own ads.

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