Apple’s tent poles for iPhone OS 4 looked somewhat aimed at getting back markets in which 3rd parties have been filling the role so far: one of these is iAds. The dominating platform for mobile ads is currently AdMob, which provides a complete platform for advertising on mobile devices through web sites and mobile apps with CPM (impressions) and CPC (clicks) models. AdMob has been acquired by Google after the talks with Apple stalled for some unknown reason. Apple ended up acquiring Quattro Wireless.
Steve Jobs has presented iAds as a way to monetize free iPhone Apps by integrating interstitial, multimedia reach, interactive ads developed using HTML 5 technologies, much like the recently added iTunes LP for music and iTunes Extras for movies.
Free apps get downloaded zillions of times: a lot more then commercial apps. There are plenty of different estiamtes on the ratio between free and paid apps. In our experience, free apps can get even more then 10 times the downloads then a similar paid app priced over the 0.99 USD tier. We’re speaking of pure stability in the range of 50-150 downloads per day after you loose the initial visibility on the app store for a very niche targeted free app.
A new study by Chitika Research claims that “despite its hype, iPhone OS 3.0 had very little to offer iPod Touch users. Push notifications? MMS? Tethering? Essentially useless on a device that relies on WiFi for a connection. iPod Touch users are essentially asked to pay for copy/paste, in-app purchases, and the ability to buy a segment of the latest apps from the app store.”
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