Apple Increases iAd Payout to Developers to 70%

[MacRumors]

Over the weekend, Apple informed developers that the company has now increased iAd payouts from 60% to 70% of revenue.

We have made the following changes to the Developer Advertising Services Agreement for the iAd Network, effective immediately.

- The revenue share for the iAd Network is now 70% to the Developer.

This move had been previously predicted in mid-February by AdAge and confirmed by Apple the following day, but went into effect as of April 1. While the 10% increase is expected to further entice developers to use the iAd service, AdAge reports it is also to compensate developers for decreasing ad revenue.

The extra money will compensate for lower ad rates and serve as added incentive for developers to build businesses on Apple devices, even though they may grab a bigger audience or more ad revenue creating apps for Google's Android devices, which now outnumber Apple smartphones in the U.S.

Apple has repeatedly cut the minimum advertising expenditure for iAds, and most recently has removed the per-click fees from ads, now relying on impressions alone, according to the original report.

Article Link: Apple Increases iAd Payout to Developers to 70%

 

[miles01110]

So basically iAd is a flop.

 

[Peace]

So basically iAd is a flop.

That combined with android devices leapfrogging IOS devices.

If apple doesn't change IOS drastically they really are doomed.

 

[Inakto]

Alright!

Fill rate is still kind of low...

they pay much better than AdMob.

Can't have your cake and eat it too :0

 

[Matthew Yohe]

That combined with android devices leapfrogging IOS devices.

If apple doesn't change IOS drastically they really are doomed.

You forgot the sarcasm tag.

 

[ansJailbreak]

One reason android devices are out doing Apple's device's is because they are very cheap, and the economy is no help for Apple.

 

[Comeagain?]

You forgot the sarcasm tag.

His username IS the sarcasm tag.

 

[chris7777]

Why is it that this make me what to call AF?

 

[Peace]

His username IS the sarcasm tag.

I'll overlook that.

But this should be worisome for Apple,Inc.

"The extra money will compensate for lower ad rates and serve as added incentive for developers to build businesses on Apple devices, even though they may grab a bigger audience or more ad revenue creating apps for Google's Android devices, which now outnumber Apple smartphones in the U.S."

 

[Reason077]

Not exactly breaking news!

The fact that developer revenue share was increasing to 70% from April 1st has been in the iAd developer documentation/FAQ at itunesconnect.apple.com for the past 1-2 months:

What is the revenue share for the iAd Network?
Until March 31, 2012, developers receive 60 percent of iAd Network revenue. As of April 1, 2012, developers receive 70 percent of iAd Network revenue.

 

[ChazUK]

Flop or not, anything that helps a developer monetize and make more from their app is a good thing.

 

[KingJosh]

That combined with android devices leapfrogging IOS devices.

If apple doesn't change IOS drastically they really are doomed.

gotta agree with you on this. iOS is getting rusty it needs an overhaul instead of bandaging it with new features.

 

[jicon]

I think the solution is to introduce a cheaper iPhone.

 

[Imbalance]

While the story of "raising developers share from 60% -> 70%" sounds good, the reality is quite the opposite. They've stopped paying for clicks. I've seen about a 50% drop in revenue since this has been introduced. Not happy.

 

[HiRez]

I'm getting ready to release my first iOS app, which will be free and advertising-supported (although only in the menus, not in the main app content). Was planning on implementing iAd but I've heard nothing but depressing stories about the low fill rate and now, decreased revenue (more than the 10% this change will compensate for). I hope Tim Cook can turn this iAd fiasco around because it's a hugely important option for developers.

 

[Lone Deranger]

Here’s the one Apple product I don’t mind failing.

 

[CFreymarc]

So basically iAd is a flop.

In short, yes. Revenue on free apps with ads are pitiful. This is a good thing. Shows that most iPhone users have money and are willing to pay for apps. Hence the iPhone millionaire crowd of Camera+, Angry Birds and others. These are the ones that build the future and not socialists.

 

[MentalFloss]

Here’s the one Apple product I don’t mind failing.

You actually prefer ugly "standard" ads over iAd? May I ask why?

----------

While the 10% increase is expected to further entice developers

I know, I will get hated for this, but it is either a "10% point increase" or a "16.7% increase". A "10% increase" would have made the percentage go from 60% to 66%.

 

[japanime]

While the story of "raising developers share from 60% -> 70%" sounds good, the reality is quite the opposite. They've stopped paying for clicks. I've seen about a 50% drop in revenue since this has been introduced. Not happy.

Same here — and at a time when more people than ever before have been downloading my free app. More users and more impressions, but less ad revenue.

 

[axonic labs]

iAd is not the only choice for iOS developers, there are other ad networks that might be better. You could support all of them if you wanted to.

I'm getting ready to release my first iOS app, which will be free and advertising-supported (although only in the menus, not in the main app content). Was planning on implementing iAd but I've heard nothing but depressing stories about the low fill rate and now, decreased revenue (more than the 10% this change will compensate for). I hope Tim Cook can turn this iAd fiasco around because it's a hugely important option for developers.

 

[Zxxv]

Wirelessly posted

Can't stand ads on the internet and on mobile Devices. Never click unless by accident. Be happy to see no adds.

 

[axonic labs]

Not to mention that mobile ads cost users money in terms of bandwidth (small amount but non-zero) and shorter battery life (see http://www.theverge.com/2012/3/19/2884902/android-apps-battery-efficiency-study).

Wirelessly posted

Can't stand ads on the internet and on mobile Devices. Never click unless by accident. Be happy to see no adds.

 

[tatonka]

I have yet to see an iAd .. and I am not particularly interested in changing that.

You actually prefer ugly "standard" ads over iAd? May I ask why?

An ad is an ad is an ad .. nothing particularly beautiful about either of them.

T.

 

[nick_elt]

Wirelessly posted

I think the solution is to introduce a cheaper iPhone.

Like the 3gs? 3rd best selling handset?

 

[HiRez]

iAd is not the only choice for iOS developers, there are other ad networks that might be better. You could support all of them if you wanted to.

Yeah, I'm investigating alternatives. AdMob, AdWhirl, ChartBoost, and AdColony are a few. Just too bad iAd can't be successful; it's easy to set up and monitor because it's already tied to your Apple Developer account and associated bank accounts and so forth, and automatically gets installed and updated because it's included in the iOS SDK you're already using for development.