The most popular revenue models appear to be those that are easiest to implement. The developers using them tend to have lower revenues. This may be due to greater competition or it might just be a result of less sophisticated app businesses producing less valuable apps. There are some interesting differences between platforms but subscriptions appear to be a relatively untapped gold mine everywhere, although maybe not for everyone.
Advertising is the most popular revenue model, while ads can also act as a promotion channel that facilitates app discovery. With 100+ ad networks and exchanges, there is intense competition, regional specialisation and niche solutions, but out of the fray, one service emerges as a leader: AdMob.
When viewed as just another form of advertising, with a cost-per-action model, in theory Cross-Promotion Networks should work out fairly well for developers. User acquisition costs are predictable for advertisers and those displaying ads have reasonably good targeting built-in before any extra targeting logic used by the cross-promotion network – everyone viewing the ad has a smartphone and downloads apps on it! How does the theory work out in practice?
On the surface, advertising seems like a fairly simple and easy to implement business model for an app. Decide on some places to display ads, integrate one or more third party ad services and wait for the money to start rolling in. If you do this without a clear plan for how and why users will interact with ads in your app you’ll probably find the revenue disappointing. Optimise revenue by growing your user base, increasing engagement…
App store analytics providers have been telling us that almost all of the growth in app revenues in the last year has been through in-app purchases. However is that just because the model has become more popular? Or because revenue has been concentrating at the top of the market, where the strategy is very popular (particularly in free-to-play games)? Probably…
MoPub, a real-time bidding exchange for mobile advertising, recently published a report on their marketplace for the third quarter which shows some strong trends. The effective cost per thousand impressions (eCPM) was steady or rising across platforms through the last quarter. Android eCPM was rising much faster than for iOS. This is in sharp contrast […]
From TechCrunch: App measurement and ad company Flurry has revealed significant traction for its iOS and Android app advertising and targeting platform, AppSpot. The platform was made publicly available in October 2012 and has attracted more than 1,000 app publishers to sign up in just over three weeks, according to the company. Flurry described revenue performance of the first 500 applications […]
This hackpad (a collaborative list composed by 150 people) has an impressive list of web and mobile revenue models, ranging from the classic ad-driven models and pay-per-download to intermediaries and commerce models. For Your Inspiration.
SwiftKey, makers of a third party keyboard for Android, joined up with two technology publications to survey over 17,000 smartphones users about the number of paid applications they have on their devices. Back in 2011, 12% of Android owners said they had zero paid apps on their phone. Only 10% had 20 or more paid […]
Developers have a range of options to choose from when it comes to generating revenue. This choice is, to some extent, dependent on business model, scale and target market. Which revenue models are most popular, and which are most profitable? Key insights and recommendations: Selling your app B2B (commissioned apps or pre-loaded on a handset) […]