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Free iPhone apps doing well with ad model

From TechCrunch (good piece; read it all): AdWhirl, an iPhone advertising platform, has released data that suggests the ad model on the iPhone is better than analysts had thought. From the TechCrunch article: “According to co-founder Sam Yam, one of the fundamental flaws in the Pinch Media report is that it assumes that applications only show a single ad impression per user interaction (in other words, every time you open a free app, you only see one ad). Yam says that applications actually tend to serve 3-5 impressions each time a customer interacts with them, with even higher figures for some especially engaging applications. And when you divide that $8.75 CPM by 5, things become much more reasonable. The AdWhirl report says that applications that crack the top 100 in the Free Apps list make $400-$5000 a day - a wide range to be sure, but even at the low end that works out to around $12,000 a month. Among these top apps, AdWhirl is reporting an impressive $1.90 eCPM and 2.6% CTR.”

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