New York
– Apple (NASD:  AAPL) may seek as much as $1 million from advertisers looking to utilize its
new iAd format for the iPhone, and $10 million from those wishing to be launch
partners for the format, The Wall Street Journal reported. Apple announced the
iAd format earlier this month, saying it would serve the ads to iPhones itself,
and provide 60% of revenue to the developers whose applications the iAds will
appear alongside.

Ad executive sources told The Journal that Apple will charge
a penny for every time one of the 85 million owners of its iPhone and iPod
touch devices view an iAd, and $2 for each time a user clicks to expand the

Advertisers will reportedly be able to target ads based on preferences
gleaned from past downloads at the iTunes Store, as well as by location down to
the city level.

During "the first couple of months," Apple will
create all iAds itself, "to make sure they work well and attain a certain
aesthetic and functionality," ad executives told The Journal.


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