Apple to charge premium rates for mobile ads

Apple plans to charge a premium to advertisers wanting to be involved in its mobile advertising launch.

The US giant is expected to charge around $1 million for ads on its mobile devices this year and as much as $10 million to advertisers looking to be part of its iAd launch.

Apple is thought to be seeking high-quality ads from well-known brands for the launch.  The company is reportedly planning to build the ads itself during the initial few months, in a bid to make sure they meet the required standard.

Earlier this month, Apple unveiled its new mobile advertising platform, which runs full-screen video and interactive ad content without making users leave the app they are using and go to a web browser.

Ads are expected to start featuring in applications on the iPhone and iPod Touch in June, with a roll-out to the iPad due later this year, according to reports.

Apple will sell and serve the ads, and developers will receive an industry-standard 60% of iAd revenue, while Apple gets the other 40%.

Industry executives predict that Apple’s entry into the ad market will boost competition and development in the space.