Apple is becoming more flexible on pricing for the iAd, the Wall Street Journal says. Instead of charging an advertiser every time someone taps on an ad, Apple is now putting a cap on taps, a source told the Journal. Marketers now only pay $10 per thousand views and $2 for each tap.

Signs of Discontent from the Start

Almost from the beginning, there have been suggestions that iAd would not be the success that Apple originally hoped it would be. Marketers were displeased with the tight control Apple had over the creative process, which adds weeks to the process.  Also, iAd for the iPad took longer to debut than expected as developers needed more time to adjust their apps to accommodate the various sizes of banners.

Then, around the same time Verizon began selling the iPhone, reports surfaced that the fill rates for iAds had begun dropping dramatically.

The CPA Model

Another problem for Apple is that advertisers are becoming more accustomed to CPA, or cost-per-action style pricing, thanks to initiatives by Google and other vendors.

All of these trends, though, have been long-brewing. The tipping point for Apple is likely the growing competitiveness of tablet market–and the intensifying debate over whether interactive and immersive ads and apps are really as effective as once thought.

Tablets Driving M-Commerce

One development that is trending Apple's way: the steady growth of m-commerce, particularly retail purchases from the iPad.

One study, from the etailing group and Coffee Table, found that tablet users who spend $250 or more online annually are more likely to engage in online buying/browsing behavior than smartphone users who spend this amount.

In addition, more than 50% of tablet users say tablets are ideal for researching products before making final purchases and ideal for browsing catalogs and retailers.