Google and Facebook have good app install ad formats:
<a href="http://www.wordstream.com/blog/ws/2013/03/01/mobile-app-advertising" rel="nofollow">http://www.wordstream.com/blog/ws/2013/03/01/mobile-app-adve...</a>
<a href="https://developers.facebook.com/blog/post/2012/10/17/drive-installs-and-discovery-with-mobile-app-install-ads/" rel="nofollow">https://developers.facebook.com/blog/post/2012/10/17/drive-i...</a>
As others have said, make it free. If it's paid now try to approach appgratis and pay them back with cross promotion.<p>While your game is free make sure they spread the word on any of the social sites and also get the players who like your game rate it in the AppStore.<p>Also try to get in contact with other indie game devs and cross promote with them.
- Make it free. Seriously there is no other way to enter the market unless you have ton of money to burn.<p>- Have in app purchases.<p>- Facebook Ads. First test out multiple versions of ads for Facebook and see which one gives you best results and then spend more money on it.
Facebook ads can get you great installs, and very targetted too...but can go upto $1.50 CPA. If you want lower costs look at Millenial Media or Tapjoy.<p>I would put the $1000 purely into getting direct downloads as opposed to any brand/awareness building campaigns.
I don't think Marketers should work with a fixed budget like you have described. Check out some of the applications on octopus.org, most of them have free trials and free functionality. See what works before you spend any serious money.
Save that money and market for 'free'.<p>Embrace online communities that might like your app. Market to them.<p>Use Twitter to spread the word. Tumblr is also a great place to help something go viral.