Apple iAds Developer Makes Almost $1,400

If you're an MSP, or an SMB and you're still waffling on how to make cash in the mobile market, there's some optimistic news afoot. Jason Ting, an App Store developer who created a simple iPhone 4 LED Flashlight app made $1,372 in revenue using iAds. That's not a ton of money but Ting's example offers an interesting case study for those who want to understand how to potentially generate mobile app revenue. Here's the deal...

The image below (originally here from Jason Ting's initial post) shows the breakdown, and a tip of the hat goes to for explaining the breakdown in more plain English.

The key focus here is the eCPM number which translates as such...

CPM, which stands for "cost per mille" ("mille" = "thousand" in Latin), is a commonly-used metric in advertising used to benchmark the relative cost of ads per thousand "impressions"... "Effective CPM" (eCPM) is a modified metric which takes into account the usage...[of]...users engaging the ads in some way, from simply clicking on ads to learn more to filling out personal requests for more information to actually making purchases. In essence, eCPM is simply the total revenue obtained from an advertising campaign through its various payment schemes per 1000 ad impressions.
Quite simply, since Tang hit an eCPM of $150, that's apparently above and beyond good performance of an advertisement, but many chock that up to the novelty of the app, the novelty of iAds interactiveness and its sudden exposure in the App Store.

Worth noting, however, is that there's a premium base CPM of $10 for the iAds platform, and then an additional $2 tacked on for click through by users. Sixty percent of that revenue gets passed on to the developer. Again, it should be noted that this seems like an exceptional example of iAds in work, but certainly not typical. Conversely, this is simply a flash light app -- this revenue gained could be huge given a bigger company utilizing iAds with a much more popular app.

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