Bloomberg reports that Apple has reduced its iAd prices by up to 70%. The reason behind the huge cut is that as some exhibition area clients are using Apple rival services.
Bloomberg on their site mentioned that a year ago when Apple launches iAd, companies like Citigroup Inc. (C) and J.C. Penney Co. were being priced at $1 million or more to carry out ad campaigns. Now these days those companies are not using iAd and Apple was forced to reduce the packages for more or less as $300,000 as reported by some people to the site and request not to be named because the prices are confidential.
Apple even after reducing the rates, some companies still draw back at the cost of an iAd programs as mentioned by Bloomberg. Here Mobclix also revealed that about 5 to 15% of ad space on iOS application is being covered up iAd. Still the company has the great benefit of providing the largest selection of mobile applications.