Earlier this year, in February, Apple promised its iAd developers that they would increase their payouts later on in the year. This would give the developers who use the iAd service a 10% increase from the current 60% of total earnings. Apple’s decision to raise the payouts isn’t all that surprising, when considering that Apple currently pays its iOS app developers 70% of the total revenue, 30% of which Apple keeps for themselves.
Now, the iAd platform is on the same level of iOS development in terms of profit for both the developers and the Cupertino based company. During iAd’s initial launch, it gained only a small network of advertisers willing to put up with Apple’s higher than usual prices, and a number of restrictions by which they must comply. The minimum buy-in for the mobile ad platform was decreased by Apple from $1 million to $100,000 since its launch in July 2010 with iOS 4.
This new price is down from a $300,000 minimum which took effect last July. AdMob is the leading mobile ad service of choice, particularly on the Android platform, because of its abilities to support multiple platforms at once, and with its substantially higher adoption and usage than Apple’s iAd. With this increase in payouts, Apple may increase the number of developers in its iAd program, however, the company still has much improvement before the service experiences increased adoption.