Welcome!

AJAX & REA Authors: RealWire News Distribution, Roger Strukhoff, Bob Gourley, Mark O'Neill, Kevin Benedict

Blog Feed Post

Mobile Monetization Models – Making money out of Apps

Mobile monetization is a problem that usually bothers every mobile developer out there. Creating a cool app is only the first step in the roadmap of creating a successful application that can be monetized. Choosing the appropriate monetization model for an app is usually one of the most difficult decisions to be made. Mobile developers are looking for more revenue without compromising the user experience and the quality of their app.

We will highlight the most important mobile monetization models that exist out there, focusing mainly on mobile advertising models, which seem to be quite popular among mobile developers nowadays.

 

Mobile Advertising

One of the most widely used monetization models is mobile ads. There is a big debate going on regarding ad methods & tactics, compromising user experience level, revenue effectiveness, intrusiveness and users drop-off among different mobile ad platforms. Developers are usually overflowed with terms such as eCPMs, fill rates, CPI, CPA, CTR and others. But what are developers actually looking for? Can a current mobile ad platform bring sufficient enough revenue to a developer? Many developers usually try different mobile ad platforms or even a combination of them to find which ones monetize better their apps.

What a developer is actually looking for is:

1) High and efficient revenue

2) Not compromising app’s user experience

3) Easiness of SDK integration

4) Reduce app’s users drop-off

 

Mobile ad platforms are using a variety of methods and techniques to deliver ads to the users. We will list some of the most important of them here:

Banner Ads

BannerBanner Ads are one of the most widely used mobile advertising methods. A banner is placed somewhere in the UI of the app (therefore it usually requires change of the UI of the app). There are different kinds of banners and different sizes according to the monetization platform used. It’s up to the developer to place them in a place within the app that will deliver better conversion rates. Their content varies from text to rich media. Some types of banners include expandable, floating and interactive banners. A few of the top players in this category are AdMob, iAd and Millennial Media.

Banner Ads

Interstitials

3Interstitials are usually placed between transition points within or while entering or exiting a mobile app (e.g. the change of a game level, app launch, app exit and others) and are usually rendered as full screen or big popup.  Some of them render videos, images or other rich content. They are usually used to drive downloads of another app, visit a website, show a video and others. These kinds of ads are usually more expensive for the publishers, deliver higher revenue when used appropriately by the developers and get more attention by the users. Well known players at this category are TapJoy, Flurry, LeadBold, RevMob and AdColony while Chartboost enables developers to cross-promote directly with other apps, providing them this a way an option to drive installs on their own apps.

4

Offer Walls

Offer walls is a monetization model where users are prompted with a landing page full screen wall of targeted offers that provide users with virtual items/credits/features or levels unlocks in exchange for registration, downloads or others. Some of the key players in this area are Tapjoy,StartApp and {FIKSU}.

5

Notification Ads

Notification Ads are one of the most intrusive models widely used nowadays. Users receive a notification for an ad even without having the app open. This kind of model usually pays better for the developers, however excessive use can really end up with a lot of unhappy users of the app. Some of the key players in this area are Airpush and LeadBold.

 Notification Ads

Surveys

Surveys as a monetization method for mobile is a new and emerging trend with very promising features. Surveys are rendered as an overlay within the apps and therefore developers do not have to change anything in app’s UI and flow. Since surveys are rendered as an overlay, integration ends up as a drag and drop, one line code activation. Developers are paid for each completed survey through their app. Users are prompted to take a survey in order to get into a draw for a prize. The key player in this area is Pollfish, which claims that surveys deliver revenue up to 20 times more than classic ad clicks.

surveys

Lock Screen Ads

Another emerging trend in mobile ads is ads on smartphone’s lock screen. Users can choose either to engage or not with the ad and if they do so they get paid with real money. One of the downsides of this approach is that these platforms can focus only on Android. Some of the key players here are AdLatte and Locket.

lock screen ads

Virtual and Real gifts rewards

Reward app users for achievements, tasks completed or even for using apps with virtual or real gifts.Some of the key players in this area are Kiip and Avocarrot.

virtual and real gifts rewards

Other

There are other monetization models for ads out there that are not listed in this article such as audio ads, capture forms, app icons, caller ads, widget ads etc.

Paid applications

paid applications2Choosing to follow the paid application approach model, developers have to specify a price for the app that the users will have to pay upfront. Higher price for an app does not reflect more revenue. With a paid app a developer gains a new customer, with much higher expectations than a regular mobile app user, who also expects free lifetime updates. Usually for the majority of the apps users get disappointed easily since bug free operation, or quality app experience and updates frequency do not reflect the purchase expectations. Another notable fact here is that users do not pay for apps from new developers and tend to buy from well-established ones. In addition cross-platform wise this is a model more successfully used on iOS rather than Android platform where users seem to prefer staying on free applications. Finally, it worth mentioning here, that app stores keep a percentage of developers’ revenue for each purchase.

paid applications

Fremium models / In-App Purchases

The developer provides the basic features of the app for free and then requests a price to unlock the rest of the app functionality or provide enhanced features. In-App Purchases is a flexible model that can be used with free (fremium) or paid apps. Different types of in-app purchases exist. Users use in-app purchases to unlock/proceed to a new level, receive new features, use a new weapon in a game, receive an update and many others. Only quality, useful or engaged apps can be used with this model.

freemium model

Subscriptions

Subscription model works by distributing the mobile apps for free. User has to login into the app using an account who is usually charged for the service provided. The model works either for delivering live feed data to the user in exchange for a monthly payment fee (e.g. newspapers subscriptions, magazine subscriptions etc.) or for using software as a service. This kind of model is usually used in combination with web solutions, something that usually requires much more effort both on the developer side and on customer/users acquisition.
Choosing the right monetization model for an app, is one of they key choices towards its success. The right choice depends heavily on app’s content, quality and engagement potential. In most cases traction plays a significant role in app monetization. Capitalizing on this traction the right way is one of the major decisions in a mobile app’s monetization strategy.

Read the original blog entry...

More Stories By Sunanda Jayanth

Originally a techie, for over 3 years, Sunanda has honed her skills in industry research and strategic consulting by tracking and analyzing technical trends and competitive landscapes in microelectronics, semiconductors and industrial automation. Having worked in the US and invited as a speaker at international conferences, Sunanda has a very diverse skillset. Amidst the high profile consulting assignments, she discovered a penchant for neat data visualization and can be seen poring over infographics trying to get her head around depicting data graphically with the least amount of fuss.

Cloud Expo Breaking News
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
The Internet of Things is a natural complement to the cloud and related technologies such as Big Data, analytics, and mobility. In his session at Internet of @ThingsExpo, Joe Weinman will lay out four generic strategies – digital disciplines – to exploit emerging digital technologies for strategic advantage. Joe Weinman has held executive leadership positions at Bell Labs, AT&T, Hewlett-Packard, and Telx, in areas such as corporate strategy, business development, product management, operations, and R&D.
SYS-CON Events announced today that DevOps.com has been named “Media Sponsor” of SYS-CON's “DevOps Summit at Cloud Expo,” which will take place on June 10–12, 2014, at the Javits Center in New York City, New York. DevOps.com is where the world meets DevOps. It is the largest collection of original content relating to DevOps on the web today Featuring up-to-the-minute news, feature stories, blogs, bylined articles and more, DevOps.com is where the thought leaders of the DevOps movement make their ideas known.
There are 182 billion emails sent every day, generating a lot of data about how recipients and ISPs respond. Many marketers take a more-is-better approach to stats, preferring to have the ability to slice and dice their email lists based numerous arbitrary stats. However, fundamentally what really matters is whether or not sending an email to a particular recipient will generate value. Data Scientists can design high-level insights such as engagement prediction models and content clusters that allow marketers to cut through the noise and design their campaigns around strong, predictive signals, rather than arbitrary statistics. SendGrid sends up to half a billion emails a day for customers such as Pinterest and GitHub. All this email adds up to more text than produced in the entire twitterverse. We track events like clicks, opens and deliveries to help improve deliverability for our customers – adding up to over 50 billion useful events every month. While SendGrid data covers only abo...
SYS-CON Events announced today that the Web Host Industry Review has been named “Media Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Since 2000, The Web Host Industry Review has made a name for itself as the foremost authority of the Web hosting industry providing reliable, insightful and comprehensive news, reviews and resources to the hosting community. TheWHIR Blogs provides a community of expert industry perspectives. The Web Host Industry Review Magazine also offers a business-minded, issue-driven perspective of interest to executives and decision-makers. WHIR TV offers on demand web hosting video interviews and web hosting video features of the key persons and events of the web hosting industry. WHIR Events brings together like-minded hosting industry professionals and decision-makers in local communities. TheWHIR is an iNET Interactive property.
SYS-CON Events announced today that O'Reilly Media has been named “Media Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. O'Reilly Media spreads the knowledge of innovators through its books, online services, magazines, and conferences. Since 1978, O'Reilly Media has been a chronicler and catalyst of cutting-edge development, homing in on the technology trends that really matter and spurring their adoption by amplifying "faint signals" from the alpha geeks who are creating the future. An active participant in the technology community, the company has a long history of advocacy, meme-making, and evangelism.
SYS-CON Events announced today that Verizon has been named “Gold Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Verizon Enterprise Solutions creates global connections that generate growth, drive business innovation and move society forward. With industry-specific solutions and a full range of global wholesale offerings provided over the company's secure mobility, cloud, strategic networking and advanced communications platforms, Verizon Enterprise Solutions helps open new opportunities around the world for innovation, investment and business transformation. Visit verizonenterprise.com to learn more.
SYS-CON Events announced today that TMCnet has been named “Media Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Technology Marketing Corporation (TMC) is the world's leading business to business and integrated marketing media company, servicing niche markets within the communications and technology industries.
Cloud Computing is evolving into a Big Three of Amazon Web Services, Google Cloud, and Microsoft Azure. Cloud 360: Multi-Cloud Bootcamp, being held Nov 4–5, 2014, in conjunction with 15th Cloud Expo in Santa Clara, CA, delivers a real-world demonstration of how to deploy and configure a scalable and available web application on all three platforms. The Cloud 360 Bootcamp, led by Janakiram MSV, an analyst with Gigaom Research, is the first bootcamp that introduces the core concepts of Infrastructure as a Service (IaaS) based on the workings of the Big Three platforms – Amazon EC2, Google Compute Engine, and Azure VMs. Bootcamp attendees will get to see the big picture and also receive the knowledge needed to make the best cloud decisions for their business applications and entire enterprise IT organization.
"In my session I spoke about enterprise cloud analytics and how we can leverage analytics as a service," explained Ajay Budhraja, CTO at the Department of Justice, in this SYS-CON.tv interview at the 14th International Cloud Expo®, held June 10-12, 2014, at the Javits Center in New York City. Cloud Expo® 2014 Silicon Valley, November 4–6, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading Cloud industry players in the world.
“We are starting to see people move beyond the commodity cloud and enterprises need to start focusing on additional value added services in order to really drive their adoption," explained Jason Mondanaro, Director of Product Management at MetraTech, in this SYS-CON.tv interview at the 14th International Cloud Expo®, held June 10-12, 2014, at the Javits Center in New York City. Cloud Expo® 2014 Silicon Valley, November 4–6, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading Cloud industry players in the world.
"We are automated capacity control software, which basically looks at all the supply and demand and running a virtual cloud environment and does a deep analysis of that and says where should things go," explained Andrew Hillier, Co-founder & CTO of CiRBA, in this SYS-CON.tv interview at the 14th International Cloud Expo®, held June 10-12, 2014, at the Javits Center in New York City. Cloud Expo® 2014 Silicon Valley, November 4–6, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading Cloud industry players in the world.
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity. In his session at Internet of @ThingsExpo, Mac Devine, Distinguished Engineer at IBM, will discuss bringing these three elements together via Systems of Discover.
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at 15th Internet of @ThingsExpo, Chad Jones, Vice President, Product Strategy of LogMeIn's Xively IoT Platform, will show you how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
All too many discussions about DevOps conclude that the solution is an all-purpose player: developer and operations guru, complete with pager for round-the-clock duty. For most organizations that is not the way forward. In his session at DevOps Summit, Bernard Golden, Vice President of Strategy at ActiveState, will discuss how to achieve the agility and speed of end-to-end automation without requiring an organization stocked with Supermen and Superwomen.