Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Apple's 'iAd for Developers' May Not Be Cost-Effective
- Thread starter MacRumors
- Start date
- Sort by reaction score
I own an advertising company and I do this stuff for a living. I said when this came out that this was not going to be effective except for people who wanted to waste money on image advertising.
For people who want bottom line results driven impact, like people who advertise on the internet mostly expect, the system is too costly.
That being said, so many factors can impact why an ad doesn't convert or draws in people who are not serious customers that you can not draw enough information from some anecodotal evidence.
I can make campaigns on google etc that have $100 CPA and can make changes and get them down to $.50 per acquisition.
The unfortunate part is this guy spend $1258 to find out it was not worthwhile, which is way more money than you should have to spend in most cases, unless you are in some very tough and vaunted ad space.
Right now iAds is not even selling out their inventory, so they have to be overcharging everyone.
All that being said, there are few pay per click advertising means on the web that could support a $1.00 retail price. It is virtually impossible to get traffic to make such a low retail price point on anything worthwhile.
The problem is higher priced programs are going to see lower conversions based on price alone. Half the people buying a .99 cent app off an ad probably do it as a throwaway, people won't do that on a $20 app.
I am not sure how people thought a world of Free or low cost iPhone Apps advertising on other free or low cost iPhone apps would make money for anyone but Apple.
For people who want bottom line results driven impact, like people who advertise on the internet mostly expect, the system is too costly.
That being said, so many factors can impact why an ad doesn't convert or draws in people who are not serious customers that you can not draw enough information from some anecodotal evidence.
I can make campaigns on google etc that have $100 CPA and can make changes and get them down to $.50 per acquisition.
The unfortunate part is this guy spend $1258 to find out it was not worthwhile, which is way more money than you should have to spend in most cases, unless you are in some very tough and vaunted ad space.
Right now iAds is not even selling out their inventory, so they have to be overcharging everyone.
All that being said, there are few pay per click advertising means on the web that could support a $1.00 retail price. It is virtually impossible to get traffic to make such a low retail price point on anything worthwhile.
The problem is higher priced programs are going to see lower conversions based on price alone. Half the people buying a .99 cent app off an ad probably do it as a throwaway, people won't do that on a $20 app.
I am not sure how people thought a world of Free or low cost iPhone Apps advertising on other free or low cost iPhone apps would make money for anyone but Apple.
What the #$%^?
5007 clicks yields 84 sales? That 1 sale for every 60 clicks, thats an amazing conversion rate. If i received 1 sale for every 60 clicks i would be a millionaire overnight.
The problem is they are selling a damn product for $0.99 With a price that low, after apples 30% taken out, you would have to get 1 sale per every 2.5 clicks, thats impossible..
The problem is the idiot developers trying to spend $0.24 per click for an app that they make $0.65 on...
5007 clicks yields 84 sales? That 1 sale for every 60 clicks, thats an amazing conversion rate. If i received 1 sale for every 60 clicks i would be a millionaire overnight.
The problem is they are selling a damn product for $0.99 With a price that low, after apples 30% taken out, you would have to get 1 sale per every 2.5 clicks, thats impossible..
The problem is the idiot developers trying to spend $0.24 per click for an app that they make $0.65 on...
Developers View
As a developer, i would say iAd is a very good incentive given by Apple to its developers. I have been using both admob(google) and iAd in my iPhone Applications, and i have seen iAd pays me 10 times or even more sometimes than Admob pays me, the eCPM for Admob is 0.25 to 0.30$ but for iAD its 5$ to 10$ , you do the math.
Try my App - MuseBox radio
As a developer, i would say iAd is a very good incentive given by Apple to its developers. I have been using both admob(google) and iAd in my iPhone Applications, and i have seen iAd pays me 10 times or even more sometimes than Admob pays me, the eCPM for Admob is 0.25 to 0.30$ but for iAD its 5$ to 10$ , you do the math.
Try my App - MuseBox radio
You are miss misunderstanding the story. They are talking about developers paying to advertise not developers making money from ads. What you said is precisely why it is not cost effective for developers to advertise on the iAd network.