Deconstructing Apple’s iAd Business

If Apple charges 1 cent per impression and $2 per click, and mandates a budget of $1 million, here’s how the various click through rates map out:

Assumed Click Through Rate	1%	1.25%	1.50%	1.75%	2%	2.25%	2.50%	2.75%	3.00%
Total Impressions	33,333,333	28,571,429	25,000,000	22,222,222	20,000,000	18,181,818	16,666,667	15,384,615	14,285,714
Total Clicks	333,333	357,143	375,000	388,889	400,000	409,091	416,667	423,077	428,571
CPM (per impression)	$30.00	$35.00	$40.00	$45.00	$50.00	$55.00	$60.00	$65.00	$70.00

Reported by Tricia Duryee
Produced by Amanda Natividad
Source: WSJ
Published: Apr 30, 2010