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iPhone Developer Kenneth Ballenegger has put Apple’s iAd network into a bit more context today after a report came out earlier, saying that…

Iad Marketing

iPhone Developer Kenneth Ballenegger has put Apple’s iAd network into a bit more context today after a report came out earlier, saying that one app was able to generate a jaw-dropping $1,400 in revenue in its first day.

Ballenegger, who has created such applications as iLaugh, said all of the numbers released today on Hacker News, and reported by BusinessInsider.com, need to be put into perspective. In particular, he said you have to consider Apple’s cut and the ridiculously low fill rates. He wrote in a blog post, “the reality is iAd generates less revenue than my previous first option, Google (NSDQ: GOOG) AdSense for mobile.”

First, let’s look at Jason Ting, who built an app that turns an LED camera flash into a flashlight. In a screenshot posted online, he made in $1,372.20 in iAd revenue on 9,300 ad impressions with an impressive click-through of 11.8 percent in one day. Therefore, his effective cost per thousand impressions (eCPM) was a shockingly high $147.55.

Now let’s examine what Ballenegger reports. He has been running iAd on “relatively high traffic since day one,” and says his eCPM is between $10 to $15, which is much lower, but still extremely high. Of course, both may be getting a lift because of the novelty factor of iAd right now.

Ballenegger also makes a couple of strong points that makes iAd look disappointingly average. He said the $1,400 in revenues reported by Ting likely includes Apple

  1. mocoNews wrote:
    “4 hours ago
    From Twitter via BackType One more retweet from paidContent +URL for the above article.
    Always plenty of action on any story shi+ing on Apple.

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  2. This writing is a bit neurotic, it has heading something, starts some where, ends up some where, contradicting all along. Is this some writing phobia or outright incompetence.Goshhhhhhh

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  3. Good article that provides real insight into reality. Reality being that some developers will get phenomonally high eCPM, most will get very good eCPM, most will also get low fill rates. Therefore, the final point is the key take-away. Developers should take advantage of high paying ad sources, but have a fallback. Mediation providers, such as Nexage, provide that fallback in a strategic and optimized solution, allowing developers to capture these high CPM campaigns while still participating in the volume and revenue of the bulk mobile advertising.

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  4. From the advertiser’s perspective, the cost is only going to go down as the platform moves past its launch/honeymoon-phase and volume increases. The fact that only select agencies/brands with $1m+ budgets were invited to even participate in iAds from the start guaranteed the rates were going to be exorbitant to start. Assuming Apple actually wants to scale the platform (i.e., make $$$ from it) they’re going to have to open the doors up a bit wider and that’s when costs will start to rapidly drop.

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  5. Wow; that’s amazing! We display about 500,000 AdMob ads a day, but our eCPM has been sliding for months, to below 50c. The $250 / day we get, isn’t worth getting out of bed for! Jason Ting’s eCPM is 300 times higher than we’re getting. Whoah! Grab it while you can Jason.

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  6. I’ve certainly been experiencing less iAd revenue than indicated by this story, but I’m hoping the all important fill rates will increase with time. Some figures:

    http://iphone-game-blog.blogspot.com/2010/08/iphone-app-developer-reveals-iad.html

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