Apple has always provided 70% of application download revenues to developers, but has only provided 60% of the revenue for iAd clicks. Now, Apple has boosted the iAd revenue share to 70%. In this long run, this may mean a major boost in income for developers who rely on the iAd platform for their income. (While today is April 1/Fools day, this comes direct from Apple’s developer iTunes Connect website.) Apple notes the change in an updated developer agreement:
(a) Apple Campaigns. Developer shall receive seventy percent (70%) of the Net Advertising Revenue derived from the sale of advertising on the Developer’s Mobile Properties (“Developer Revenue Share”) net of any applicable taxes as provided in Section 6 of this Agreement. The Developer Revenue Share percentage may be adjusted from time to time at Apple’s sole discretion. Notice of material changes to the Revenue Share percentage will be posted on the Company Portal. “Net Advertising Revenue” is defined as gross advertising revenue recognized through the delivery of ads by Apple less: a) any allowances actually made or taken for returns, credits, cash discounts and promotional allowances; and, b) Agency and agent fees, discounts, commissions and referral fees.
While we can’t confirm this independently, a possible explanation for the revenue share increase has been posted by developer zSprawl. According to the developer, Apple – starting today – will only count impressions, not clicks, for developer revenue. If this is true, it can be assumed that Apple is including the extra 10% to make up for the lost click money. Also, advertisers apparently only have to create $100,000 (or up) accounts with Apple, which is down significantly from the former $500,000 and $1,000,000 minimums, according to the developer.