Apple is quick to advertise their new iAd platform for iOS devices as a way for App Store developers to get more exposure for their apps. In theory, it’s a great way to set your app apart in a market saturated with more than 250,000 apps. In practice, the numbers tell a different story.
David Smith, the founder and owner Cross Forward Consulting reported that the results of a recent ad campaign that they ran for their most popular app, Audiobooks Premium, were underwhelming and economically unsustainable.
Cross Forward Consulting spent a total of $1251.75 ($0.25 cost per click) on iAds over the course of six days that displayed 2,052,929 ads, generated 5,007 clicks (a clickthrough rate of 0.24%) and a grand total of 84 in-ad sales. The cost per acquisition comes out to a staggering nearly $15; in other words, for a $0.99 app they paid around $14 for every sale.
TUAWiAd economics may not pay off for app sales originally appeared on The Unofficial Apple Weblog (TUAW) on Tue, 31 Aug 2010 09:00:00 EST. Please see our terms for use of feeds.
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