Before April 1st, developers earned 60% of the iAd revenue they generated within iAd-supported apps. Now developers will receive 70% of iAd revenues, according to Apple’s Developer Center. Developers will now receive this higher percentage for both app download and iAd revenues. This is likely to be a rather large boost in income for developers that use iAd as their primary source of revenue for their free apps.

ZSpawl explains that this increase in iAd revenue may have to do with previous feelings about how Apple charged for both ad impressions and clicks.

“…advertisers no longer have to pay Apple for clicks on Ads, only for displaying them (also known as impressions). This has been a common complaint against iAds, and other banner middlemen…To some, this feels like being charged twice.”

Apple also lowered the price for advertisers to buy into the program to $100k from the previous $500k (and $1M even farther back). Previously Apple asked for a minimum of $1M, then $500k to place an ad on iAds. It seems the lowering of the minimum buy-in for an ad and the removal of paying for clicks is a way to quell the complaints about some of the iAd policies. And since advertisers are no longer paying for clicks, developer ZSprawl believes that the 10% revenue hike is because developers will now no longer be paid for clicks.

[via 9 to 5 Mac]

Share