Admob has started tracking the conversion rate of ads on iPhone apps and has come up with some interesting points. For me, the most interesting point is that “free applications have an average conversion rate of 10 percent, significantly higher than the average 1 percent conversion rate for paid applications”. I have no idea why this would be—presumably the ads are targeted the same and otherwise are no different, so I guess some people feel obligated to click through an ad in a free app if they’re even slightly interested, and some people are morally against clicking ads in a paid download no matter how interested they are. Since knowing why people do and do not click through ads is pretty important to the industry, I suggest this merits further investigation. Other trends to emerge include games having “up to a 100 percent improvement over non-game applications at similar price points” and the average acquisition cost for free applications being under $1. (Via MobileAdNews)

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