We knew iAds weren’t going to be cheap, with some companies forking over as much as $10 million to be among the first iAdvertisers next month. However, what we didn’t know up until now, was how Apple’s iAd pricing was broken down.

According to AdvertisingAge, Apple will charge $10 per 1,000 impressions, $0.01 for each ad displayed, and $2 for each ad clicked. This is highly unusual and not well received, as most ad agencies currently pay either a flat rate per thousand impressions or each time someone clicks on an ad but never both, as with the iAd service. Does the word ‘double dipping’ come to mind?

Furthermore, until the iAds developer’s kit is released, iAd clients will have to work closely with Apple to create their iAd campaigns. Given the high price tag of the iAd service, one wonders how much creative freedom clients will have to give up because they will have to succumb to Apple’s advertising model.

With Apple’s high prices, small businesses will just have to find a much cheaper way to get their advertising out to the masses.

[TUAW]

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