Apple expands iAd platform to iPhone developers

Apple (NASDAQ:AAPL) launched iAd for Developers, enabling the iPhone application development community to promote their software inside of other apps. Details on iAd for Developers are scarce--on its website, Apple indicates developers can now purchase iAd inventory to market their applications, adding "It's easy to get started, contact us today and learn how you can drive more downloads of your app." A FAQ adds developers can exclude ads from competitors or other unwanted advertisers based on specific keywords, URLs and Apple IDs. Apple also guarantees iAd will optimize campaigns to ensure the right audience is viewing and interacting with ads.

Apple has not disclosed pricing, but according to Business Insider, the computing giant will initially charge developers 25 cents per click, compared to the $2.00 per-click fee for brand advertisers. Apple recommends developers contact the company directly to explore iAd creation options.

Apple officially introduced iAd on July 1. Most marketers are spending a minimum of $1 million to launch on the iAd network, with some paying more than $10 million for levels of exclusivity within their respective industry vertical--for example, Nissan is the sole automaker advertising on iAd, and Citi is the lone bank. Apple is charging $10.00 per thousand impressions for each iAd banner.

iAd could yield developer revenues reaching $825 million this year, according to a research note published by Bernstein Research analyst Toni Sacconaghi. Estimating that iPhone developers presently generate $1 billion to $1.8 billion in annual App Store sales, Sacconaghi notes that iAd revenues will herald an annual increase between 40 percent and 80 percent. Sacconaghi anticipates Apple will collect about $815 million from iAd this year: $550 million from apps and $265 million from media providers like publishers and television networks. He adds Apple will generate roughly $58 billion in total worldwide sales this year.

For more on iAd for Developers:
- read this Business Insider article

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