Early iAd pay rates high, perhaps unsustainable

July 11, 2010

Smoke ‘em if ya got ‘em, boys! Some of the earliest implementers of Apple’s in-app advertising platform, iAds, are reporting stellar results with at least one dev saying he earned more than fourteen-hundred on the first day. However, the good times may not last

Wall Street Journal is reporting on chatter from the Hacker News forums indicating that initial iAds pay are quite high. Further, the guys keep spinning and respinning both the short and long-term numbers with very, very encouraging results.

The short-term iAd eCPM (effective cost per thousand impressions) has been calculated at up $148, which put more than $1,400 in his pocket on the first day on the platform. That’s vastly greater than anything I’ve personally seen from Google Adsense.

Further, devs are estimating long-term eCPM could be $6.28 compared to roughly $1.00 per thousand, give or take, for Adsense and other advertising networks.

Over the rainbow

Folks on Hacker News are saying eCPM rates will fall once iAds novelty wears off. They’re saying Apple faces huge challenges in delivering a high volume of compelling ads that will continue to engage users.

However, Justin Siegel, CEO of Mocospace summarizes well the hope for iAds going forward in saying, “they’re gorgeous, and there’s no comparison in the mobile ad world.”

And, that’s exactly what Apple said we should expect — great ads and a great experience that will keep iOS device owners clicking and advertisers paying…

What’s your take?

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