Welcome!

AJAX & REA Authors: Rajesh Lain, Sebastian Kruk, RealWire News Distribution, Harald Zeitlhofer

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 Latest Stories
With the explosion of the cloud, more businesses are transitioning to a recurring revenue model to generate reliable sales, grow profits, and open new markets. This opportunity requires businesses to get to market quickly with the pricing and packaging options customers want. In addition, you will want to take advantage of the ensuing tidal wave of data to more effectively upsell, cross-sell and manage your customers. All of this is possible, but only with the right approach. At 15th Cloud Expo, Brendan O'Brien, Co-founder at Aria Systems and the inventor of cloud billing panelists, will lead a panel discussion on what it takes to launch and manage a successful recurring revenue business. The panelists will offer their insights about what each department will need to consider, from financial management to line of business and IT. The panelists will also offer examples from their success in recurring revenue with companies such as Audi, Constant Contact, Experian, Pitney-Bowes, Teleko...
Planning scalable environments isn't terribly difficult, but it does require a change of perspective. In his session at 15th Cloud Expo, Phil Jackson, Development Community Advocate for SoftLayer, will broaden your views to think on an Internet scale by dissecting a video publishing application built with The SoftLayer Platform, Message Queuing, Object Storage, and Drupal. By examining a scalable modular application build that can handle unpredictable traffic, attendees will able to grow your development arsenal and pick up a few strategies to apply to your own projects.
Come learn about what you need to consider when moving your data to the cloud. In her session at 15th Cloud Expo, Skyla Loomis, a Program Director of Cloudant Development at Cloudant, will discuss the security, performance, and operational implications of keeping your data on premise, moving it to the cloud, or taking a hybrid approach. She will use real customer examples to illustrate the tradeoffs, key decision points, and how to be successful with a cloud or hybrid cloud solution.
The cloud provides an easy onramp to building and deploying Big Data solutions. Transitioning from initial deployment to large-scale, highly performant operations may not be as easy. In his session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, will discuss the benefits, weaknesses, and performance characteristics of public and bare metal cloud deployments that can help you make the right decisions.
Over the last few years the healthcare ecosystem has revolved around innovations in Electronic Health Record (HER) based systems. This evolution has helped us achieve much desired interoperability. Now the focus is shifting to other equally important aspects – scalability and performance. While applying cloud computing environments to the EHR systems, a special consideration needs to be given to the cloud enablement of Veterans Health Information Systems and Technology Architecture (VistA), i.e., the largest single medical system in the United States.
Cloud and Big Data present unique dilemmas: embracing the benefits of these new technologies while maintaining the security of your organization’s assets. When an outside party owns, controls and manages your infrastructure and computational resources, how can you be assured that sensitive data remains private and secure? How do you best protect data in mixed use cloud and big data infrastructure sets? Can you still satisfy the full range of reporting, compliance and regulatory requirements? In his session at 15th Cloud Expo, Derek Tumulak, Vice President of Product Management at Vormetric, will discuss how to address data security in cloud and Big Data environments so that your organization isn’t next week’s data breach headline.
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.
Is your organization struggling to deal with skyrocketing volumes of digital assets? The amount of data is growing exponentially and organizations are having a hard time managing this growth. In his session at 15th Cloud Expo, Amar Kapadia, Senior Director of Open Cloud Strategy at Seagate, will walk through the essential considerations when developing a cloud storage strategy. In this discussion, you will understand the challenges IT is facing, why companies need to move to cloud, and how the right cloud model can help your business economically overcome the data struggle.
If cloud computing benefits are so clear, why have so few enterprises migrated their mission-critical apps? The answer is often inertia and FUD. No one ever got fired for not moving to the cloud – not yet. In his session at 15th Cloud Expo, Michael Hoch, SVP, Cloud Advisory Service at Virtustream, will discuss the six key steps to justify and execute your MCA cloud migration.
The 16th International Cloud Expo announces that its Call for Papers is now open. 16th International Cloud Expo, to be held June 9–11, 2015, at the Javits Center in New York City brings together Cloud Computing, APM, APIs, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
Most of today’s hardware manufacturers are building servers with at least one SATA Port, but not every systems engineer utilizes them. This is considered a loss in the game of maximizing potential storage space in a fixed unit. The SATADOM Series was created by Innodisk as a high-performance, small form factor boot drive with low power consumption to be plugged into the unused SATA port on your server board as an alternative to hard drive or USB boot-up. Built for 1U systems, this powerful device is smaller than a one dollar coin, and frees up otherwise dead space on your motherboard. To meet the requirements of tomorrow’s cloud hardware, Innodisk invested internal R&D resources to develop our SATA III series of products. The SATA III SATADOM boasts 500/180MBs R/W Speeds respectively, or double R/W Speed of SATA II products.
In today's application economy, enterprise organizations realize that it's their applications that are the heart and soul of their business. If their application users have a bad experience, their revenue and reputation are at stake. In his session at 15th Cloud Expo, Anand Akela, Senior Director of Product Marketing for Application Performance Management at CA Technologies, will discuss how a user-centric Application Performance Management solution can help inspire your users with every application transaction.
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at 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. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridstore delivers vmOptimized™ Storage that self-optimizes to each application or VM across both virtual and physical environments. Leveraging a grid architecture, Gridstore delivers the first end-to-end storage QoS to ensure the most important App or VM performance is never compromised. The storage grid, that uses Gridstore’s performance optimized nodes or capacity optimized nodes, starts with as few a...
SYS-CON Events announced today that Cloudian, Inc., the leading provider of hybrid cloud storage solutions, has been named “Bronze 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. Cloudian is a Foster City, Calif.-based software company specializing in cloud storage. Cloudian HyperStore® is an S3-compatible cloud object storage platform that enables service providers and enterprises to build reliable, affordable and scalable hybrid cloud storage solutions. Cloudian actively partners with leading cloud computing environments including Amazon Web Services, Citrix Cloud Platform, Apache CloudStack, OpenStack and the vast ecosystem of S3 compatible tools and applications. Cloudian's customers include Vodafone, Nextel, NTT, Nifty, and LunaCloud. The company has additional offices in China and Japan.
SYS-CON Events announced today that TechXtend (formerly Programmer’s Paradise), a leading value-added provider of server and storage virtualization, and r-evolution will exhibit at 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. TechXtend (formerly Programmer’s Paradise) is a leading value-added provider of software, systems and solutions for corporations, government organizations, and academic institutions across the United States and Canada. TechXtend is the Exclusive Reseller in the United States for r-evolution