PMG Digital Made for Humans

Apple increases iAd Revenue to Developers

2 MINUTE READ | April 2, 2012

Apple increases iAd Revenue to Developers

Author's headshot

Chris Alvares, Head of Technology

Chris Alvares has written this article. More details coming soon.

Apple Inc today updated its revenue model to give developers 70%, up from 60% of the revenue coming from ads. The change was made to entice more developers to stick with iAds, even with the shrinking ad fill rates for apps.

Apple iAd Revenue Agreement

Apple’s closed system approach to serving ads is not appealing to businesses, who are required to foot a 300K bill to buy iAds, nor is it giving developers the ad revenue they need with average fill rates of less than 20%

When iAds started, there was a 1 million dollar buy in for Advertisers, and developers received 60% of Ad Revenue. Revenue was also based on clicks instead of impressions. It seems that the Apple tax is not working for the advertising industry, whom seem to be investing in Google’s AdMob platform.

With AdMob’s fill rates in the 99%, it is a no brainer for developers to use the Google service. The irony is when Google first wanted to buy out the AdMob startup, the Federal Trade Commission halted the purchase until an investigation was done, but when Apple introduced iAd, the investigation was quickly wrapped up as the FTC decided that with Apple’s introduction into the industry, there was enough competition to allow Google to purchase AdMob. However, Google’s much expertise in the digital world has shown that it knows online marketing.

Stay in touch

Bringing news to you

Subscribe to our newsletter

By clicking and subscribing, you agree to our Terms of Service and Privacy Policy

Personally, I feel as Apple is moving in the correct direction, however, it is not worth it for me to switch away from AdMob. The fill rates at iAd are terrible, and I can not see it succeeding until they open up the system to be self served, where large and small advertisers can bid on ad space. If only 15-20 percent of customers of my apps see ads, then I am not getting my moneys worth for using iAds.

Related Content

thumbnail image

AlliPMG CultureCampaigns & Client WorkCompany NewsDigital MarketingData & Technology

PMG Innovation Challenge Inspires New Alli Technology Solutions

4 MINUTES READ | November 2, 2021

thumbnail image

Applying Function Options to Domain Entities in Go

11 MINUTES READ | October 21, 2019

thumbnail image

My Experience Teaching Through Jupyter Notebooks

4 MINUTES READ | September 21, 2019

thumbnail image

Working with an Automation Mindset

5 MINUTES READ | August 22, 2019

thumbnail image

3 Tips for Showing Value in the Tech You Build

5 MINUTES READ | April 24, 2019

thumbnail image

Testing React

13 MINUTES READ | March 12, 2019

thumbnail image

A Beginner’s Experience with Terraform

4 MINUTES READ | December 20, 2018