There have been questions as to whether iPhone developers can make significant revenue from ads on the iPhone, mainly because the supply of advertisers can’t keep up with the demand for iPhone apps. Others say that developers actually can make quite a bit from ads on free apps. Mobile game advertising network Greystripe is in that camp and it is launching a new CPM Protection Program designed to guarantee ad revenue to iPhone app developers.
Greystripe says that the various mobile ad networks, including competitor AdMob, are undercutting each others’ CPMs (cost per thousand impressions) when competing for advertising dollars, thus leaving iPhone app developers with lower CPMs overall. Greystripe’s CPM Protection Program offers to beat any other ad networks’ eCPM by at least 25% for 60 days.
Greystripe claims that their rates are higher because of their rich media ad formats that use a Flash ad format, giving advertisers more creative options when it comes to developing interactive ads. Another explanation for Greystripe’s higher CPMs is that they are trying to buy market share.
Greystripe’s eCPMs come in at around $1.50 to $2.00, which the company says is higher than the average CPM delivered by other networks. In a guest post written by an iPhone developer on TechCrunch, the developer reported CPMs of $0.23 with ads powered by AdMob. But this data is anecdotal and based on one developer’s circumstance. I find it hard to imagine that the CPM of $0.23 is an average for AdMob. We contacted AdMob to see what their average eCPMs are and they fall into a similar range as Greystripe’s: $1.00-2.00.
It’s clear that Greystripe is trying to provide an incentive for developers who are using other ad networks to switch over (the program requires that developers have used another ad network). But the issue with switching ad networks is that developers have to change the code of ads and then reapply in the App Store, which we all know can be a hassle. Also, while Greystripe promises to lock in ad rates for developers for 60 days, it’s unclear what happens following that time period to rates. Once the 60 days are up, eCPMs could fall dramatically.
It’s definitely interesting to see Greystripe’s approach to competing against mobile ad platforms like AdMob, Videoegg and others. Widely popular and well-funded AdMob is a formidable competitor in the space.
Photo credit/Flickr/WilliamHook
Hi Leena,
Its really great news for App developers. Greystripe is working in their favor.
Thanks for the great post.
Mani Raj
Havoc Marketing
Mani Raj, the new spammer on TC. Welcome!
Just because somebody posted a comment with a website’s name doesn’t mean that they are Spammers. Don’t be so ignorant, Some!!
Actually, from what I’ve seen passed around, I don’t think the $.23 CPMs from AdMob are that far off. Rich media ads generate a higher response rate and consumer engagement so it follows that they command higher CPMs.
Totally unrelated, i’m sorry, but what theme is being used in the picture for this article? I seem to remember using it and can’t remember the name any longer.
The theme is called the Deep by toffeenut
The Greystripe ads are very different from the AdMob ads… flash ads that takes up to 10-15s to finish playing. Would expect them to pay more than $1.50-$2 per CPM since it wrecks the user experience (which AdMob ads does not do).
“Greystripe claims that their rates are higher because of their rich media ad formats that use a Flash ad format”
I thought the iPhone doesnt have Flash? Or does this mean something different?
In other news Greystripe accelerates its decent into the deadpool.
You can register for the CPM Protection Program at http://www.octa...ystripe_cpm.htm.
Excellent incentive to encourage switching from previous ad networks. How will they fare when Google throws its weight around though?
I’ve been using Greystripe for my game and my eCPM has been higher than the numbers reported here. While it certainly varies over time, my average eCPM has been over $4 this past month, and I’ve been using them since mid January – so this isn’t some short-term promotion.
And while it’s true that the ads can take over 10 seconds from start to finish, users can skip the ad at any time by touching the screen and selecting “skip” if it’s something they’re not interested in or have seen before. Admittedly, not everyone knows to do this, but I think a lot of people figure it out.
I can confirm the low CPM’s from AdMob. My eCPM with admob is $0.13 right now, and has been below $0.30 for months.
On the other hand, with Greystripe I’m over $4.00 eCPM, so the choice is easy really. The only reason I don’t have all of my iPhone games with Greystripe is that apple takes months to review my games. All of my Midp games use Greystripe and have been for years.
I’ve been with Greystripe for years, and they have almost always had the highest paying eCPM.
before going for iphone OS 3.0 update you might want to look here
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We have been using different ad networks for different iPhone applications since last year and Greystripe has clearly performed the best.
Be careful comparing eCPMs. Make sure you are being quoted consistent numbers, either the net to the developer or the gross paid by the advertiser.
Dave Yonamine
MobilityWare
“Greystripe’s eCPMs come in at around $1.50 to $2.00″
Anyone buying mobile CPMs at this price deserves to lose every penny for being a moron. I’d say 23 cents is more reasonable.
$1-2 CPM with AdMob? Haha no. $.20 is typical. That’s what we’re seeing and that’s what everyone else is seeing. That AdMob would report such a preposterous number to you is troubling.
The trouble with both Admob and Greystripe is that they try to please the publishers, and look at CTR and eCPM – while the money is actually paid by Advertisers. What really counts is how effective the ad is for the guy who paid for it. CTR is not important – the action on the advertiser site is. This has to do with optimizing campaigns over time, and being fully transparent to the advertisers. Admob (any marketplace actually) and Greystripe do not provide it. They will be outpaced by Ad networks that serve better the advertisers, not the publishers!
greystripe is paying for the higher CPM from the venture money they have raised through smoke and mirrors, do you really think their little ad sales team is able to sell out all the ad impressions which admob has been selling via their online market.
I can confirm the Admob eCPM numbers others have quoted.
I’ve just released my first ad-powered app onto iTunes, and I’m blogging about my experience here: http://biketool.tumblr.com/
The jist: it sucks, so far.