Apple is planning to ask companies to pony up close to $1 million for advertisements on its mobile devices and possibly even more for those marketers who want to be among the first customers, the Wall Street Journal reports.
Marketers who want to be among the first to buy deals for iAd could be charged as much as $10 million. Similar mobile ad-packages usually cost between $100,000 to $200,00, the article says.
But despite the huge price tag, advertising executives have been packing conference rooms to listen to Apple’s sales pitch for iAd. One example that Apple has demonstrated is an ad for Nike’s Air Jordan shoe, which displays as a banner during an application. If the ad is tapped, a viewer is shown a video, an interactive store locater and exclusive offers. The potential audience for iAd is huge, with Apple having sold 85 million iPhone and iPod Touches. Customers average half-an-hour per day accessing applications on the devices.