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iPhone Dev Reports $9,600 in Monthly In-App Advertising Revenue
by Danny Cowan [Mobile Phone]
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October 6, 2009
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iPhone application developer and publisher Amplified Games has revealed that it earns an average of $9,600 in monthly revenue from advertisements in its free-to-play iPhone games.
Amplified Games was one of the first publishers in Apple's App Store to experiment with ad-supported software. The company released its debut title, Cookie Bonus Solitaire, shortly after the App Store launched in June of 2008, and followed up with Fat-Free Video Poker a month later. Both games include occasional advertisements served by iPhone ad network Greystripe.
Since then, Amplified has earned an average global eCPM of $2.45 from advertisements in its free-to-play games. The publisher averages $9,602 in monthly ad revenue, and generated a total of $53,134 in its best month to date.
These numbers are atypical for the crowded iPhone app market, which often finds developers struggling to earn enough revenue to justify development costs. App Store publishers traditionally drop prices and release free trial versions of software in attempts to increase exposure and spur sales, rather than rely on advertising revenue.
Amplified has also released ad-free versions of its two games, available in the App Store for $2.99 each. The ad-supported versions of Cookie Bonus Solitaire and Fat-Free Video Poker remain significantly more popular than the paid editions, as indicated by each title's quantity of App Store customer ratings.
"Our decision to create a free version of [Cookie Bonus Solitaire] really paid off in terms of driving consumer adoption and generating revenue," said Amplified Games CEO Tom Hubina. "We've been with Greystripe for over a year and they are the best ad network to work with hands down."
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As much as I detest Apple and it's products, I am happy to developers profiting from it. Even though it is from ADs, they are making money and can produce more software.
Yes, but are they atypical because the games are exceptional, or because people have perhaps been looking at the wrong business model?
PC casual games have long tapped into both download sales and ad revenue (among other models). Maybe the iPhone has a different optimal balance?