Greystripe unveils 99 cents per download program for iPhone developers

In its efforts to compete with AdMob (now part of Google (NSDQ: GOOG)), Greystripe has introduced a 99 cents per download program to guarantee iPhone application developers downloads of their free apps. The problem is that current CPC system leads to low conversions because there are a significant number of accidental clicks on banner ads that do not lead to downloads. Greystripe argues that app developers are paying as much as $10 per download with this model, hence they have something better to offer – pay only for actual downloads.

There is a catch, however – they want only the big boys, who need to agree on a minimum of $10,000 spend. Moreover, Greystripe says this is offer for the first 200 developers only, though I doubt they’ll refuse a “big society” check from the 201st company.

Anyway, it’s good to see the iPhone ad market evolving and I’m eager to see how/whether Google/AdMob responds to this. Additional details are available from this page.

And for the record, Greystripe has recently run campaigns to drive downloads for brands such as Gap, Sirius and Axe.