iPhone Ad Network Greystripe Rolls Out Guaranteed Download Program

There continue to be conflicting views as to whether iPhone developers actually make money from ads on the iPhone. One issue is that free app developers who advertise in games end up paying on a CPC basis, in which the click takes the visitor to the App Store. But often times the actual download doesn’t take place, so the developer is left paying for clicks that don’t produce conversions, says mobile game advertising network Greystripe. Now the network is changing its ad network economics around to help developers mitigate this issue.

Greystripe is offering a $0.99 per download program available today to guarantee iPhone application developers downloads of their free apps. Of course, this comes with a catch. Greystripe is offering download program to publishers who spend a minimum of $10,000 and is being offered on a limited basis to the first 200 developers who apply. The first 100 qualifying developers who email techcrunch@greystripe.com will gain instant access to the program.

Greystripe’s says that its rich media full-screen ads generate higher click through rates and are able to generate better revenue to its publishers. Based on this, the network thinks it can run a pay per download program that works for its publishers and advertisers. Greystripe also recently introduced a guaranteed CPC program. Although Greystripe claims its rates are higher, we’ve heard they are on par with AdMob’s rates.

It’s important to note that with Google’s acquisition of AdMob, other mobile ad networks may be left scrambling. Greystripe is not only aiming to make their network for attractive, but is also trying to provide an incentive for developers who are using other ad networks to switch over. Google has high hopes for AdMob and it should certainly continue to be the leader of the pack in the future. That being said, Greystripe has been able to raised several rounds of VC funding and even got a $2 million infusion from NBC. It should be interesting to see how the smaller ad networks like Greystripe, Videogg and others fare against Google-owned AdMob.