Apple has informed developers that they have bumped the iAd payouts from 60% to 70% of ad revenue. This turn of events had been confirmed by Apple in mid-February, that this new deal would come into effect on April 1.
This 10% increase is to undoubtedly be used as an increased incentive for iOS developers to use iAd over other ad services. Plus the increase in payout will offset the decreased ad revenue that is occurring due to Apple’s habit of lowering advertiser buy-in prices.
On the one hand, Apple has never been in the advertising business, so they are feeling their way. On the other hand, iAd is proving to be more of a dud than what Apple traditionally puts out. Advertisers were not thrilled with the original buy-in price of $1 million. That price has since dropped to $100,000 as some reports claim.
This is another instance of where Apple wants to control every aspect of the user experience. They want ads to behave the way they want them to, and other companies are not meeting their standards. Apple is also claiming that they are doing this to help support developers.
TAGS: Developers, iad