Greystripe Monetizing iPhone Games With Ad Platform

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The current iPhone App Store revenue share model – a 70/30 split for the sale of apps, generally in the $0.99-$9.99 range – doesn’t exactly reward developers for producing addictive games. Greystripe, an advertising network for mobile games, has stepped in to compensate developers for every time their games are played, not just for when those games are initially sold.

Greystripe has actually been distributing free games and applications for about 1,400 handset models since 2006, mainly through its consumer site GameJump. The site offers mobile gamers a catalog of 800 games from 120 game publishers that can be downloaded directly to phones through mobile browsers. GameJump has experienced 75 million downloads so far, a big jump since last summer when they reached 14 million.

Now the company is turning its attention to the iPhone by providing developers with pre-, interstitial and post-roll ads from advertisers like Best Buy, eBay, Yahoo!, New Line Cinema, the US Army, Wal-Mart and Subway. Greystripe claims it will deliver a 10.1% click-through rate (CTR) when other mobile advertisers are averaging a 1-2% CTR.

To begin competing in a competitive mobile ad market, Greystripe is offering iPhone developers 100% of their in-game ad revenue until they reach $10,000. If you’re an iPhone developer, you can register for the network here.

Other iPhone ad networks include: AppLoop, a recently launched location-based iPhone ad network; AdMob, a browser-based ad network with iPhone-specific advertisements that has served almost 250 million ads; and new-comer Medialets.