MoPub: Apple's UDID Ban Translates to 24% Less Ad Revenue for App Developers
According to a study conducted by the mobile ad server MoPub, by rejecting apps which use unique device identifier (UDID) data, Apple is essentially cutting roughly 24% of developer ad revenue. It was stated that mobile advertisers previously used UDID data to track an ad’s effectiveness to create pricing models as well as measure performance and monetization. The ad companies were basically testing an advertisement’s effectiveness and value to decide how much to pay app publishers for ad space.
Jim Payne, the CEO and co-founder of MoPub feels that “the move away from UDIDs threatens advertising revenue that many publishers depend on in order to support their content creation and business.” He firmly believes that Apple needs to address the issue with an appropriate alternative because the damage to a publisher’s bottom line will likely be material if UDID data actually disappears. A three month study conducted by MoPub found that the disparity between publishers which use UDIDs compared to those who did not is an eCPM (effective cost per mille) average of 0.18 cents with app makers pulling in 0.76 cents and 0.58 cents respectively.
The whole issue of UDID data usage has been a hot topic as mobile privacy issues have been in the limelight because of consumers and lawmakers. A means of transmitting sensitive personal information without the knowledge or consent of users raised quite a bit of attention and caused Congress members of the U.S. House Committee on Energy and Commerce to send a series of letters to Apple CEO Tim Cook asking about what the company was doing to ensure the security of their iOS devices. It even went as far as requesting that Apple send a representative to Washington for a briefing on the company’s app developer policies and practices.
The Cupertino California company previously addressed the UDID issue in August 2011 when it announced plans to remove app publishers’ access to the data in iOS 5, but the functionality still has yet to be removed and currently remains in the latest version of iOS 5.1.