WSJ: Apple to charge a premium to put ads in mobile apps

LOL. Advertising! SJ, had REALLY hit the jackpot. That is where the real money is at. Did anyone know that VERIZON'S advertising budget is over 1 BILLION dollars. Yes, I said ONE BILLION DOLLARS!!! Advertising is where the money is at. They have huge budgets and since they are saving now from TV ads, they really have money to invest in the internet and any project SJ can come up with. In my opinion, SJ doesn't make dumb moves, he is a man with a serious plan! Buying that mobile ad company was a SMART MOVE.He will be named CEO of the CENTURY soon.

If you don't believe me about VERIZON, do a search...Just put VERIZON's advertising budget and you will see. They are not the only one, but they are one of the biggest spenders!

This is absolutely huge for developers like me. My paid app does 2000 sessions per day and if I did a free+ version I could easily bump that up to 10k/day. With a 1% click through rate (which, I think, is very conservative for these kinds of entertaining/high quality ads) I can easily do $180 a day. For a one-man team like me, that's a good $64k/year—way better than what I'm doing right now.

And its a win-win. Users get to try out high quality apps for free (and opt-out of the ads by paying a buck or two) and developers get a revolutionary new way to generate consistent revenue from their apps.

I made a bunch of money during my apps launch since it got prominently featured by Apple twice but currently there is no way I could be making that much per year unless my app stayed in the top 100. With iAds, it is not only possible but I think it would be fairly easy to make that much. I've outlined why in my blog: http://tapity.com/iphone-app-marketing/a-cent-per-impression-and-2-per-tap/

I know some developers who's ad revenue would go from hundereds to thousands per day (and over a million per year). This will be truly revolutionary for app monetization if they can pull it off.

Wow, what a high-stakes gamble!

Ladies, Gentlemen, place your bets...

I wouldn't bet against Cupertino, though.

My my, the times they have swung around dramatically.

I just sit here applauding, my eyes like saucers.

Somebody shake me, wake me...

Good thing there's no Flash, all those ads were so annoying

oh wait...

I am sure they will outsource it to some other company.

It's not like they have an internal team that do their flash animation anyways.

most informative part of this piece is that the guys name is "Phuc Truong". how awesome must his days be..

@Joanna: Advertisers hire camera crews, actors, directors, producers, make-up artists and more all the time. Its not as though they suddenly have a burden on their hands - Spend some money, make your ad attractive, and it pays off in the end.

iAds has the potential to help even developers who don't use them. Think about it, if all these $0.99 apps went with a free ad-supported model that was financially more attractive, it frees up the App Store for developers to showcase better, more exciting applications and charge a fair rate for it. Yes, this means the overall price of Apps goes up, but if a developer isn't able to recover development costs, they stop making them.

Rolando 3 was cancelled because ngmoco couldn't figure out a way to make the game financially viable given the App Store's "race to the bottom" trend. This could change that.

Hopefully less advertisers support this. I want my screen space back.

I think it is fantastic that they are charging high prices. One of the problems with web advertising is that its too cheap thus publishers have a hard time making revenue with it. I just hope the precedent Apple is setting spreads.

I can just see the flood of iCrap with nothing but iAds after 4.0 comes out in the App Store...