Apple Increases iAd Revenue For DevelopersBy: Zach Walton - April 2, 2012
Apple has seen limited success with their iAd program that gives developers a little bit more cash when their apps run ads from the program. Limited success isn’t good enough though so Apple is increasing the amount of revenue developers get from signing with the program.
The Next Web is reporting that Apple has sent out a notice to iAd users that their share of ad revenue will now increase to 70 percent from a previous 60 percent share. The increase was announced last month alongside a reduced buy-in for advertisers to $100,000.
The iAd program was announced in June 2010. At the time, the minimum cost for an ad campaign was $1 million. The revenue was also more balanced with Apple getting 40 percent and developers getting 40 percent. iAd had its starting price reduced to $400,000 last year and developer revenue increased to 60 percent. Today’s change to the program shows an Apple that’s just trying to get people to use the service.
As my colleague Shaylin Clark said last month when the changes were first announced, the problem with iAd is that it’s only available on iOS devices. Google has an obvious advantage with its AdMob service as it’s available not only on Android, but iOS and pretty much any other platform. Apple needs to step up its game if it wants people to adopt iAd and increasing developer revenue is one of the best ways to do it.
Is this enough to increase adoption of iAd? Can Apple do anything else to increase adoption? Let us know in the comments.