About three-and-a-half years ago, Apple launched a new service to allow advertising inside apps, games, magazines, and books. The iAd service has not caught on with advertisers over the past few years and Apple is hoping to do something about it. The company will roll out full-screen video ads that will automatically play at certain times during your in-app activity.
According to Ad Age, unnamed sources claim that Apple will roll out the full-screen video iAds as “interstitials.” That means the ads will automatically begin playing at certain times as opposed to a user clicking on a banner, likely between levels or after finishing an article.
The sources don’t have official information regarding how Apple plans to sell the advertisements. However, it is possible that the company will sell the units through its brand new ad exchange, which rolled out only a couple of weeks ago.
Ad Age notes that iAd has never quite made a connection with advertisers. When it first launched in 2010, the company asked advertisers for $1 million. Since then, the price has dropped significantly to only $100,000.
While Apple does not report ad revenue, Ad Age notes that research firm IDC quoted the iPad maker as earning $125 in advertisement sales in 2012. In comparison, Google earned $243 million for that same year. Researchers predict that Apple will earn three percent of mobile ad revenue this year with Google taking 49 percent and Facebook taking 15 percent.
It is possible that Apple will strengthen its iAd program with full screen interstitial videos. The company earned $10 million for the same type of advertisement for its launch of iTunes Radio last year.