Are you using the right app revenue model?
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 developer service, AdMob dominates (65%)
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.
Does Cross-Promotion Work?
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?
How to Optimise Ad Revenue
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...
How Much Is An Active User Worth?
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...