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Apple Adds iAds for Developers

iad_on_apple.gifApple launched their iAd mobile advertising platform with much fanfare a couple of months ago, and has spent a lot of effort getting major brands to support it.
(see First iAd Campaigns Come To iPhone)

Now, Apple has made the iAd platform available for app developers who wish to generate leads for their iPhone apps.

Early reports from Apple have said that many major brands have signed up for iAds, including companies such as Walt Disney, Citigroup, Nissan, AT&T, Unilever, Target, and Best Buy. The price charged for this advertising was reportedly a hefty $10 CPM plus a $2 per click fee, with a minimum campaign commitment of $1 million.

For the developer of an iPhone app who wants to increase distribution, it is clear that advertising to iPhone users by placing ads within an app is a great idea, but the prices shown above just as clearly make it financially impossible.

Pricing: So Apple has released iAd for Developers. This allows developers to place ads within other iPhone apps at a much reduced price, reported to be just a $0.25 per click fee with no CPM charge at all. This puts it well within the budget range of many developers. There is no “cost per acquisition” pricing option available yet as there is with some other ad networks, but that may well be a future direction for the program.

Customer Experience: The other key benefit of this program is that iAd will provide a more seamless customer experience – the customer will be able to download the advertised app without leaving the app they are currently in.

Targeting: At the moment, the developer does not have the option to target where their ad appears, but as it is a PPC model (pay per click), this is arguably less important. However, a developer that has chosen to display iAds within their app is able to block competitor ads from appearing.

What they look like:

It is always interesting to see what an new advertising looks like, so below are some screen shots of ads from this new program.
(note: these screen shots are from Business Insider).




in general, this program seems like a very good idea from Apple. It gives the developer better distribution for their app, thereby generating more downloads from the iTunes App Store and increasing the overall iPhone eco-system.

Once again Apple is working to make life easier and more profitable for their developers, something that the other mobile platform companies should look at and try to emulate.

10.08.2010    Tags: , , ,
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