More than 80 Associated Press members are now using Verve Wireless white label iPhone apps, according to Jeffrey Litvack, general manager of global product development at AP and head of its mobile initiative. Carol Marie Cropper reports that is a “four-fold” increase in participation since last year.
The program allows media companies to sell local advertising for their apps. Cropper writes that “they are seeing advertiser renewal rates of 60 percent, with an average campaign size of just under $3,800.”
Litvack told attendees at Borrell’s Local Mobile Advertising conference that there is greater ad revenue potential at the local level, where competition has not driven down rates. Cooper writes:
“Borrell Associates, the media consulting firm hosting the conference, predicts that more than half of all online advertising dollars will be spent on mobile ads by 2013, making this a market many media are eager to enter.
“But ad rates remain unenticingly low.
” ‘If you can’t get $15 (per thousand impressions), walk away,’ Litvack advised the audience. The average CPM (cost per thousand impressions) is $14, he said.”
> AP’s Litvack on mobile news: ‘We need to be there first’ (Poynter Online Mobile Media)