Attack of the iPhone Ads

Have you been noticing more and more advertisements while using your favorite apps or while browsing the net on iPhone optimized sites?

According to AdMob, a company that provides advertising solutions that are created for the iPhone:

“Ads on the iPhone deliver strong engagement for advertisers with triple, on average, the already high click-through-rates seen on mobile devices. The company’s new rich media ad units designed for the iPhone have been live for just over a month and now has a reach of more than 100 million impressions worldwide each month."

That seems like big business if indeed true:

Pay-per-click ads start at 30 cents; AdMob expects the market to settle around 40-50 cents per click, and is offering developers a 50% cut. Brand ads cost a minimum $30 per 1,000 impressions (CPM), and AdMob takes a 40% cut.

What does this all mean? Be ready to start seeing more ads on our iPhones. Now if Apple implemented a way for users to try apps before they buy, instead of forcing the developers to make two versions, one free and one paid, maybe all these ads would not be necessary. Personally, I do not mind the ads as long as they do not interfere with the main function of the app or web site. On the other hand, if it's free, can you really complain about a few ads?

The developers are not getting much in the way of compensation, so it is only fair for the them to get some cash in their pockets for their efforts. They deserve it.

[Via TUAW]

Jeremy

Community editor. Tech enthusiast. All-around geek.

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Reader comments

Attack of the iPhone Ads

3 Comments

This could be a big business, but I think their revenue share is silly. If you're going to provide an ad network, you're taking a cut from every person who shows your ads. You should not be taking %50. Google can demand that kind of premium because they have a dominant position.
An iPhone developer, however, can easily switch networks or possibly sell their own advertising.
A more appropriate cut would be %30, like apple's cut of revenue. This is a huge margin for a company that is simply showing ads and would be very profitably, while being fair to the developer who gets to keep %70 of the revenue.

I have clicked through on a Twitteriffic Free ad. Getting income from both versions of the Twitteriffic app, Chockenberry probably is keeping numbers close to his chest, but he still, I beleive, seems to favor people paying for the ad free version.
In the short run, buying the app probably brings him more income, in the long run, the ads will eventually surpass income from the paid ad-free version.

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