iPhone advertising platform, AdWhirl, released the above report today showing just how much money free applications in the App Store are pulling in a day from advertising. I’ll give you a hint. Applications that crack the top 100 in the Free Apps list make $400-$5000 a day or a minimum of $12,000 a month. Wow.
AdBrite CEO Iggy Fanlo predicts that within 6 months, half of their ad inventory will be sold on a cost-per-click (CPC) basis instead of cost-per-impression (CPM).
AdBrite serves 25 BILLION ad impressions per month across 85,000 sites. Average CPM is between 50 cents and $2.
This isn’t surprising. CPM ads have been generally looked upon to serve a brand awareness function, creating an ROI that is near impossible to track. Direct-response CPC is much more straightforward.
A drop in CPM rates doesn’t neccesarily indicate a slowdown in ad spending — CPM relies on supply and demand, and a constant influx of new sites keeps the supply of ad space going up and up.
MTV has built an ad network around its core properties outside of just MTV.com
The new network will help advertisers with demo-targeting, geo-targeting, day-parting and contextual targeting MTV’s youth following that is ’so hard to reach’.
Publishers with a similar demo to one of MTV’s existing sites, will be placed in that properties’ ‘tribe’ (a tribe is a group of similar sites that advertisers will target to).
MTV had 9.4m visitors in August. They have yet to say how much CPM rates will be across the network or how much they will pay out to publishers.
Pepsi has already signed on to be the premier sponsor.
If you were MTV, would an ad network have been a top priority for your online strategy?