Apple has lowered the minimum amount it charges to advertisers to run campaigns on its struggling iAd platform, it has been claimed.
Ad Age reports that Apple has been desperate to address its falling share of the mobile advertising market and also plans to increase the amount it pays to developers whose apps run the advertising.
The article claims that advertisers will now only have to spend just $100,000 (£63,750) to secure a campaign running in mobile apps on the iPhone and iPad, down from the previous minimum threshold of $500,000 (£318,760).
Previously, app developers only received a 60 percent cut from the ads shown via the iAd platform on their apps, but this has now been boosted to 70 percent, the report states. However, as the ad rates have been dropped, app developers are likely to see their earnings from iAd fall.
Apple has also reportedly upset some advertisers with the way it charges for ads - previously, advertisers would be charged a fixed rate fo every 1,000 impressions, plus an additional fee for a click on an ad. Now it will simply charge only the cost per thousand rate, Ad Age claims.
iAd was introduced in 2010 as a revenue-generation program that was also promoted as a way for application developers to make money. However, it has struggled in recent months, with Apple making changes in December last year in order to make it a more attractive proposition.
However if the Ad Age article is to be believed then it seems Apple has decided to make even more drastic changes in order to boost its market share - it currently has around 15 percent of the mobile advertising market, down from 19 percent at the end of 2010.
Apple appointed Todd Teresi to head up its mobile advertising division late last year. Teresi was formerly the vice president of Adobe's media solutions group.