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The App Developer Business Kit: Different Ways to Monetize an App
June 18, 2014
There are a variety ways for app developers to monetize. In the
App Developer Business Kit
by AdMob, we cover the different monetization models and when to use them. We encourage developers to think about monetization as they’re creating the app, not something they plan to figure out later.
Choosing a monetization model depends on the type of content that an app is offering and how users are engaging with it. Two ways to measure this are frequency of use and potential download volume. For example, an app that’s opened weekly for a very brief amount of time probably won’t monetize well with ads. An upfront payment (paid download) may be a better solution. On the other hand, a gaming app used often will monetize well with ads since revenue grows as impressions increase.
A popular monetization option to consider is in-app purchase, which is forecast to account for 48% of app store revenue by 2017 [Gartner, Sept 2013]. The growth of in-app purchases can be attributed to the growing popularity of games. AdMob surveyed game-playing smartphone users to ask them what percentage of their recent spend on gaming apps could be attributed to in-app purchases. Respondents in the US indicated that it was as high as 89%, and other markets surveyed were at a comparable level.
Advertising is a versatile and reliable way to earn revenue and can be the cornerstone of a monetization strategy, as app developer Fingersoft discuss
in this video
. Ads can also be a complementary option to an in-app purchase model, helping to monetize non-paying users.
To find out more about app monetization, check out
Chapter 4: Making Money
on the AdMob website and stay connected to AdMob by following our
Google+
page.
Posted by Henry Wang, Product Marketing, AdMob
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