Earlier quoted context omitted.
It used to be much worse. Read this http://rayvinly.com/iad-workbench-campaign-performance-analy... Compared to other mobile Ad networks is this bad? Remember this is not taps, this is actual downloads...
Yes, compared to other mobile ad networks this is bad. People aren't rocketing up the install lists by having their $10 a day budgets not being filled. > We chose to run the ads on apps from the following categories: Photo & Video, Social Networking, Entertainment, Games, Food & Drink and Utilities. Those are some of the very largest targets you can have. Apple was unable to provide enough impressions to meet $10 a d…
(Their average CPC was $.01, and their desired CPA was $.40).
Agreed that $10 a day is not enough to keep their app rocketing up the install lists. However, like any PPC or CPA advertising, iAd is a bidding system - and priority of impressions will go towards those that bid more. Your assertion would be like having a Google AdWords bid of $.01 for a high-performing keyword, and because you aren't featured on page 1 of the SERPs & only get a few impressions, concluding that Google doesn't have the audience to support your budget.