iAds and the iAds for develoeprs program has been a boon for developers showing iAds within their apps due to the extremely high CPM rates. The cost for non-developer ads has been said to be as high as $18 CPM while those of AdMob are considerably less than a dollar. The cost for developer ads is 0.25 cents per click.
It’s been suggested that these new ads perform quite well. Personally I’ve been extremely skeptical as even the much lower cost for AdMob ads does not make for easy profit. Fortunately, the developers at Cross Forward Consulting performed a test, and decided to share their results.
The overall results of Cross Forward Consulting advertising their app, Audiobooks Premium, a pretty successful app in it’s own right have shown absolutely dismal results.
The end results were $1251.75 spent on iAds providing 5,007 clicks and just 48 downloads.. The overall cost was $14.90 for each download. There were 2,052,929 impressions.
You can see the full writeup, and further details in the article here:
iAd for Developers
Sure, some might say a more expensive app could do better, but it’s hard to imagine how it could be worthwhile. Considering the extremely high CPM rates non-developers are paying for iAds it looks like the iAds CPM rates are about as stable as a house of cards unless somehow iAds performance were to dramatically improve. Especially given the much lower AdMob rates. Imagine if the test was done at the rate those big-wig advertisers are supposedly paying.. the cost would have been over $750 for a download.
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So far iAds have provided a very high CPM rate although some have complained about the fill rates. Recently Apple announced their iAds for developers program.
Here’s some of the more interesting info about it:
- The cost is 0.25 cents per click, radically lower than the high cost per click paid for brand advertising.
- One developer stated they had a conversion rate of 20%
- Competitors apps can be excluded
- You can’t choose to display specific ads in your app
Overall with the conversion rate and pricing it looks like things are looking extremely good for the new iAds for developers feature.
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[Source: Business Insider]
You may have heard about how some apps have been making a lot of money through advertising.
The eBuddy success story comes to mind, but for most of us it’s a tough way to earn money, and to earn the most money we’ve had to put a price tag on things. It’s really been an up or down thing, and since the early rush from advertisers the payouts went down dramatically and stabilized.
Apple has added their iAds platform into the mix which is supposed to create ads so engaging that the end result for developers is suppose to be much higher ad revenue when compared previously provided. We’ll see if that’s true and how long it lasts.
All over the forums right now I see posts form people having trouble getting iAds to work properly.
Fortunately Ray Wenderlich, the creator of the Space Game Starter Kit and co-author of the Learning Cocos2D book, has posted a complete tutorial and project with actual working iAds.
So if ou’re interested get those iAds into your app fast… if it’s like when the previous platforms first appeared the initial payouts should be at a high CPM rate.
[Source: Ray Wenderlich]