|News Limited's national masthead The Australian is believed to be the first newspaper in Australia to sign-up lucrative advertising packages for the iPad, which is expected to garner $1 million in the next few weeks.
The Australian's Apple iPad application is due to launch when the device goes on sale in May.
As reported in The Australian each $250,000 package will include $200,000 of print and digital advertising, with the iPad component accounting for the remaining $50,000 despite the fact that at launch the audience for the app will start at zero.
The iPad itself is expected to sell for between $625 for the WiFi version and $999 for the 3G version. While take-up is expected to be rapid, there are few sales forecasts available.
It costs $43,000 for a casual full-page colour ad in the weekday edition of The Australian newspaper, which has a circulation of 131,246.
"There's a lot of interest based on the fact the technology's hot," News Limited national sales director Tony Kendall said.
"The big opportunity for newspapers is that packaged goods and traditional TV advertisers can now look at print and have the mass reach of the print product plus the high visual impact of the TV ad built into one," Mr Kendall was reported in The Australian as saying. "The Coca-Colas of this world will now be on the hit-list of newspapers worldwide."
Deputy chief executive of The Australian Nick Leeder said it was clear that display advertising on the iPad had impact. "It's the first time in digital you've seen the equivalent of a really high-impact full page ad," he said.
The advertising packages have been closely based on those of The Wall Street Journal, which reportedly sold six, four-month ad packages for $400,000 each to advertisers including Coca-Cola into its iPad app, and whose ads are able to play video. Speculation has emerged The Australian will opt for a much cheaper monthly subscription than The Wall Street Journal's $US17.99 ($19.44), but Mr Leeder said the price had not been confirmed.
Commonwealth Bank chief marketing officer Mark Buckman said the bank was on a journey with The Australian's parent company News Limited to learn about the new technology.
"We're doing this as we believe that this will be a good channel for our brand advertising," Mr Buckman said. "The CBA has a history of innovation in the digital environment."
News Limited will launch an advertising campaign costing more than $1 million to launch the app, which is expected to include full-page wraps on the newspaper. The foundation advertisers will be promoted in the campaign.
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