How much $ from iAds?

So the big question that I've had since iAds was announced was, "How much $ will developers get for using iAds?" Because, if it is not more than what they currently get, there's not much incentive to switch to iAds. A recent MacRumors article says that Apple is charging advertisers $0.01 for each Ad impression and $2.00 for each click. With this information, we can get an idea of what this means for developers.

Taking some data from my Egg! app which is ad-supported by the banner Ads at the top, this is what I have for the past 30 days.

209,697 impressions & 6,507 clicks for a click through rate (CTR) of 3.1%

To get the revenue from these numbers using iAd prices:

209,697 ($0.01) + 6,507 ($2) = $15,110

Of this total, Apple takes 40% and developers take 60%, so:

$15,110 (60%) = $9066

If the numbers being reported are correct, then this is a significant increase over the $158.21 that I actually received (or will receive) from my current advertisers. What would I give up if I switched to iAds? Analytics & custom ads that promote my other apps. What do I gain, over 57 times my current ad revenue. This could be a real game changer. I guess now would be a good time to start integrating iAds into Egg!.

My calculations assume that I will get the same fill rate and CTR that I get now. This may be affected by how many advertisers actually sign on with Apple. If only a few companies sign on, then people will only see those same advertisements over and over again and the CTR will likely drop. If you notice, the revenue from clicks makes up 86% of the total revenue. With impressions alone, I will still get close to 8 times my current revenue; $1257 vs. $158. Not bad at all.

Posted via email from Chili Dawg Software