Publishers land lucrative ad deals for iPad launch

Big names pay up to $300,000 for advertising

Magazines and newspapers are planning to launch special editions for the forthcoming Apple iPad, with the support of millions of dollars in revenue from advertisers.

With the US launch of the much-hyped tablet computer less than two weeks away, publishers have signed lucrative deals to carry interactive advertising from some of the world's largest corporations.

With the price of exclusive ad deals reportedly ranging from $75,000 to $300,000, publishers are able to defray the costs of developing downloadable versions, or apps, that package their content specially for the new device.

The New York Times, whose iPad app was featured in Apple's launch presentation for the device in January, has sold exclusive rights to ads on its iPad editions for the first 60 days to a credit card company. The Wall Street Journal said it has signed up a slate of advertisers including FedEx and Coca-Cola to take advertising space at $100,000 a month.

And media buyers for the major advertising agencies have been competing for access to the early iPad editions of magazines such as Time, Newsweek and Men's Health. Demand has far outstripped publishers' hopes, although industry experts say that prices have been driven by the kudos of being associated with a high-profile new device, rather than because anyone yet has any idea of the audience they might reach.

Apple hopes that the iPad, designed as a larger version of Apple's iPod Touch, with additional features, will carve out a new niche halfway between the smartphone and the laptop computer. It is being marketed as a device for watching video, listening to music, surfing the web and playing games, as well as an e-reader for books, magazines and newspapers.

Customers in the US have been able to pre-order the device since last week, and an estimated 200,000 orders have already been received, but it is impossible to predict how many eventual purchasers will download magazine and newspaper apps. Some, like The New York Times, will be free, while magazines are planning to charge per issue and The Wall Street Journal is believed to have set a subscription fee of $17.99.

A recent report by the market research agency comScore provided succour to publishers who hope that the iPad will generate a significant new revenue stream. It found that one third of likely buyers of the iPad were likely to read magazines and newspapers on it.

However, the iPad will also be connected to the internet, where similar content is available for free, suggesting that publishers will have to fill their apps with exclusive content to woo users.

"The tablet and e-reader market is developing at a breakneck pace right now, and Apple's entry into the market is sure to accelerate mainstream consumer adoption," said Serge Matta, comScore executive vice-president. "Only time will tell exactly how consumer behaviour will change, but there are substantial opportunities for those in the digital content ecosystem."

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Sales Executive / Foreign Exchange Dealer - OTE £40,000+

£16000 - £40000 per annum: Recruitment Genius: A Foreign Exchange Dealer is re...

SThree: Experienced Recruitment Consultant

£20000 - £40000 per annum + OTE + Incentives + Benefits: SThree: Established f...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE 40/45k + INCENTIVES + BENEFITS: SThree: The su...

Recruitment Genius: Collections Agent

£14000 - £16000 per annum: Recruitment Genius: This company was established in...

Day In a Page

The long walk west: they fled war in Syria, only to get held up in Hungary – now hundreds of refugees have set off on foot for Austria

They fled war in Syria...

...only to get stuck and sidetracked in Hungary
From The Prisoner to Mad Men, elaborate title sequences are one of the keys to a great TV series

Title sequences: From The Prisoner to Mad Men

Elaborate title sequences are one of the keys to a great TV series. But why does the art form have such a chequered history?
Giorgio Armani Beauty's fabric-inspired foundations: Get back to basics this autumn

Giorgio Armani Beauty's foundations

Sumptuous fabrics meet luscious cosmetics for this elegant look
From stowaways to Operation Stack: Life in a transcontinental lorry cab

Life from the inside of a trucker's cab

From stowaways to Operation Stack, it's a challenging time to be a trucker heading to and from the Continent
Kelis interview: The songwriter and sauce-maker on cooking for Pharrell and crying over potatoes

Kelis interview

The singer and sauce-maker on cooking for Pharrell
Refugee crisis: David Cameron lowered the flag for the dead king of Saudi Arabia - will he do the same honour for little Aylan Kurdi?

Cameron lowered the flag for the dead king of Saudi Arabia...

But will he do the same honour for little Aylan Kurdi, asks Robert Fisk
Our leaders lack courage in this refugee crisis. We are shamed by our European neighbours

Our leaders lack courage in this refugee crisis. We are shamed by our European neighbours

Humanity must be at the heart of politics, says Jeremy Corbyn
Joe Biden's 'tease tour': Could the US Vice-President be testing the water for a presidential run?

Joe Biden's 'tease tour'

Could the US Vice-President be testing the water for a presidential run?
Britain's 24-hour culture: With the 'leisured society' a distant dream we're working longer and less regular hours than ever

Britain's 24-hour culture

With the 'leisured society' a distant dream we're working longer and less regular hours than ever
Diplomacy board game: Treachery is the way to win - which makes it just like the real thing

The addictive nature of Diplomacy

Bullying, betrayal, aggression – it may be just a board game, but the family that plays Diplomacy may never look at each other in the same way again
Lady Chatterley's Lover: Racy underwear for fans of DH Lawrence's equally racy tome

Fashion: Ooh, Lady Chatterley!

Take inspiration from DH Lawrence's racy tome with equally racy underwear
8 best children's clocks

Tick-tock: 8 best children's clocks

Whether you’re teaching them to tell the time or putting the finishing touches to a nursery, there’s a ticker for that
Charlie Austin: Queens Park Rangers striker says ‘If the move is not right, I’m not going’

Charlie Austin: ‘If the move is not right, I’m not going’

After hitting 18 goals in the Premier League last season, the QPR striker was the great non-deal of transfer deadline day. But he says he'd preferred another shot at promotion
Isis profits from destruction of antiquities by selling relics to dealers - and then blowing up the buildings they come from to conceal the evidence of looting

How Isis profits from destruction of antiquities

Robert Fisk on the terrorist group's manipulation of the market to increase the price of artefacts
Labour leadership: Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea

'If we lose touch we’ll end up with two decades of the Tories'

In an exclusive interview, Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea