Welcome!

Machine Learning Authors: Amit Gupta, Elizabeth White, Yeshim Deniz, Pat Romanski, Liz McMillan

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.

@CloudExpo Stories
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
SYS-CON Events announced today that CAST Software will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CAST was founded more than 25 years ago to make the invisible visible. Built around the idea that even the best analytics on the market still leave blind spots for technical teams looking to deliver better software and prevent outages, CAST provides the software intelligence that matter ...
SYS-CON Events announced today that Daiya Industry will exhibit at the Japanese Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ruby Development Inc. builds new services in short period of time and provides a continuous support of those services based on Ruby on Rails. For more information, please visit https://github.com/RubyDevInc.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
Is advanced scheduling in Kubernetes achievable? Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, will answer these questions and demonstrate techniques for implementing advanced scheduling. For example, using spot instances ...
As businesses evolve, they need technology that is simple to help them succeed today and flexible enough to help them build for tomorrow. Chrome is fit for the workplace of the future — providing a secure, consistent user experience across a range of devices that can be used anywhere. In her session at 21st Cloud Expo, Vidya Nagarajan, a Senior Product Manager at Google, will take a look at various options as to how ChromeOS can be leveraged to interact with people on the devices, and formats th...
First generation hyperconverged solutions have taken the data center by storm, rapidly proliferating in pockets everywhere to provide further consolidation of floor space and workloads. These first generation solutions are not without challenges, however. In his session at 21st Cloud Expo, Wes Talbert, a Principal Architect and results-driven enterprise sales leader at NetApp, will discuss how the HCI solution of tomorrow will integrate with the public cloud to deliver a quality hybrid cloud e...
SYS-CON Events announced today that Yuasa System will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Yuasa System is introducing a multi-purpose endurance testing system for flexible displays, OLED devices, flexible substrates, flat cables, and films in smartphones, wearables, automobiles, and healthcare.
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
SYS-CON Events announced today that Nihon Micron will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nihon Micron Co., Ltd. strives for technological innovation to establish high-density, high-precision processing technology for providing printed circuit board and metal mount RFID tags used for communication devices. For more inf...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.