As noted by 9to5Mac, Apple has announced that developers will now start receiving 70% of the revenue generated by iAds in their applications. That’s a 10% increase over the 60% cut they received in the previous arrangement.

The move isn’t surprising considering how much trouble the mobile advertising service has had gaining traction. Apple has even had to adjust the numbers for advertisers, dropping the entry-level price from $1 million to $100,000…

From the updated Developer Agreement:

“(a) Apple Campaigns. Developer should 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 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, commission and referral fees.”

For those of you who aren’t familiar with iAd, the service integrates full-screen, interactive advertisements into App Store applications. Apple launched the platform on July 1st, 2010, shortly after it acquired Quattro Wireless.

  • Great. Finally.

  • Does this mean that we will see more annoying ads in our apps?

    • Maybe you can start spending more time and make you own apps without ads?
      Making apps takes a lot of time and developers have to pay for their apps to be in the App Store , there’s no problem in them earning some money.

      • Anonymous

        Take a chill pill, sir. He asked a question.

      • I was just asking a question. But if you want to reply like this then let me ask, do you make free apps? Maybe you should start charging instead and see if the customer thinks your work is worth paying for or not.

  • Oh, actually, does anyone know why I have an iAd at the top of my springboard after I exit apps with iAds? The app is still running in the background but when I delete it from the “multitask” bar the ad disappears.

    • Maybe some jailbreak app? Regular app store apps would never be able to do that.

      • Yeah, I think it’s because of some jailbreak thing. I’ve jailbroken many times but it started since 5.0.1 jailbreak for me and only on some AppStore apps. I wonder what could have caused this.