Apple’s iAd platform has been a very successful way to monetize Apps in the App Store. Recently Apple has been declining Apps which use a devices UDID for advertising tracking purposes. While this was a privacy concern, I think Apple may have found a way to use this to their advantage…
Today Apple has announced they will be upping their share to developers through iAd from 60% to 70%. That’s a pretty big increase and a great incentive for developers to switch to the iAd platform. Apple has always given 70% of download revenue to developers but this change in advertising money is a big one.
Apple noted this change in their Developers Agreement:
(a) Apple Campaigns. Developer shall receive seventy percent (70%) of the Net Advertising Revenue derived from the sale of advertising on the Developer’s Mobile Properties (“Developer Revenue Share”) net of any applicable taxes as provided in Section 6 of this Agreement. The Developer Revenue Share percentage may be adjusted from time to time at Apple’s sole discretion. Notice of material changes to the Revenue Share percentage will be posted on the Company Portal. “Net Advertising Revenue” is defined as gross advertising revenue recognized through the delivery of ads by Apple less: a) any allowances actually made or taken for returns, credits, cash discounts and promotional allowances; and, b) Agency and agent fees, discounts, commissions and referral fees.
Now correct me if I’m wrong but since Apple has been rejecting apps which use the UDID for a device to track targeting, developers need to find a way to better serve ads within their apps. Since the advertising world has yet to come up with a new unified solution, I wonder if Apple is using this to boost their iAd users. Since Apple has ultimate authority on how Ads are served, why wouldn’t the developer go straight to the source?
Apple has also since slashed their buy-in for iAd from up to $1,000,000 to $100,000. This is insight to how bad their ad platform was doing, but since the recent changes in app approval, I wonder if Apple is going to see a major jump in those who use iAds in their apps.
What do you think?