iPhone Developer Kenneth Ballenegger has put Apple’s iAd network into a bit more context today after a report came out earlier, saying that one app was able to generate a jaw-dropping $1,400 in revenue in its first day.
Ballenegger, who has created such applications as iLaugh, said all of the numbers released today on Hacker News, and reported by BusinessInsider.com, need to be put into perspective. In particular, he said you have to consider Apple’s cut and the ridiculously low fill rates. He wrote in a blog post, “the reality is iAd generates less revenue than my previous first option, Google (NSDQ: GOOG) AdSense for mobile.”
First, let’s look at Jason Ting, who built an app that turns an LED camera flash into a flashlight. In a screenshot posted online, he made in $1,372.20 in iAd revenue on 9,300 ad impressions with an impressive click-through of 11.8 percent in one day. Therefore, his effective cost per thousand impressions (eCPM) was a shockingly high $147.55.
Now let’s examine what Ballenegger reports. He has been running iAd on “relatively high traffic since day one,” and says his eCPM is between $10 to $15, which is much lower, but still extremely high. Of course, both may be getting a lift because of the novelty factor of iAd right now.
Ballenegger also makes a couple of strong points that makes iAd look disappointingly average. He said the $1,400 in revenues reported by Ting likely includes Apple