What’s a week without an iPad story? This week we approach the iPad from two perspectives -- from the purview of the mobile advertisers and magazine publishers. Both stand a great deal to gain from both the iPad itself and its proposed advertising model, iAd.
Driving Revenue and Hopes
The last time we wrote about Apple’s creation of iAd, we introduced their debut mobile advertising platform. Since then, there’s been some talk. Namely, about how much such an endeavor will cost.
Recently, the folks at PaidContent reported that CPMs -- the industry standard for cost per thousand impressions -- "will be highly variable but in some some cases could wind up being triple what marketers are used to paying for banners, and double the price of a video ad on mobile.”
To put it plainly, people are anticipating that iAd could not only dominate the mobile advertising market, but may stretch others’ budgets in an effort to keep up. For the sake of mobile advertising, whose revenues have remained steadily low, the hope is that iAd will help the industry soar.
Apple’s model plans to charge marketers based on a hybrid of CPMs and click-through rates, rather than one or the other, as is the standard. Apple is likely to charge 1 cent per impression and $2 per click.
A chart by PaidContent that calculates the CPM, assuming a marketer spends no more than $1 million.
Maintaining the Boon
While the outlook for the digital magazine once looked gloomy, thanks to Tablets and the iPad, digital magazines are anxious for a boon. Magazine publishers have more than a few choices when it comes to marketing digital, e-reader and mobile versions of their titles.
Many are creating mini-sites, mobile apps and using traditional bookstands, like Amazon and Barnes & Nobles to highlight their offerings. As we look towards 2011, a few new platforms are on the horizon, promising publishers that readers won’t have to waste precious time looking for content elsewhere. Instead, they can find it within the device or interface they currently use.
New platforms will also tackle pricing, which to some has been a bit ridiculous, considering that cheaper print versions are available. While developing and designing for the iPad is still expensive, consumers expect digital magazines to cost less. Finding the right price point is crucial and publishers are scrambling to come up with options.
For now, at least users of the iPad and other e-readers seem to be loyal to experimenting within the digital magazine genre. The real challenge however, is stepping outside the market for brand loyalists and convincing the penny-pinching consumers the value of digital publishing.