Mobile App Ads
By: Alexis Medina - November 28, 2018
These days, there are millions of mobile applications for iOS and Android available to download at the App Store and Google Play. Perhaps you have noticed the majority of these apps are free – you can use them without having to pay a cent. So, how do the developers behind these apps make any money? Or are they just so generous they develop these apps for free? Perhaps, but not in every case. In fact, the majority of apps that are free contain promotional advertisements, and advertisements can be quite profitable. According to statistics, people with access to a smart phone or tablet spend around three hours a day on their devices, and 84% of their time is spent navigating apps. The opportunities to serve your ads to these potential consumers on an app are just too good to not take advantage of.
So, how can you generate income with a mobile app?
The different ways to generate profits with a mobile app are:
- Paid Applications
These are apps that you have to pay to download. If you don’t, you simply cannot use the app. Paying for the app gives you access to everything the app has to offer. However, in order to make a profit on this kind of app, it has to be innovative, and it should include exclusive features that attract buyers. A great disadvantage of this kind of application is that the developer can only profit from a one-time purchase. An example of this kind of app includes apps that deliver seismic alerts.
- Subscription Applications
These apps are free wherever you purchase your apps. That means you can download them without a problem. However, in order to access exclusive content, you must pay a subscription fee. Lately, these kinds of apps have become the most lucrative. As opposed to a paid application where the user makes a one-time purchase, subscription apps deliver monthly or annual income. Examples of this kind of app include many video and music streaming apps.
- Purchasing Applications
Like subscription apps, these apps are free wherever you get your apps. You can download them without a problem, but certain features are not accessible or must be activated by purchasing them before you can use them. However, if you decide not to purchase the features, you can continue using the app. This kind of app can generate more income than a paid application because the income is re-occurring. Over time, more features can be made available for purchase, so users have incentives to spend more money on the app. Some examples of this kind of app include financial apps, or photography apps that offer filters and photo-editing features.
- Applications with Advertising spots
These kinds of apps are also free wherever you get your apps, and they grant you access to all kinds of great features. However, they can become annoying for users because they can include any number of advertising spots, some of which can be quite intrusive.
The types of advertising in apps are:
- Banner
The banner is the most common across all kinds of mobile applications. According to current data, this trend is on a downward curve since banners do not offer very much income. This type of ad is paid by the number of times it appears on a screen. As such, a mistaken tap on the banner represents some income to the provider of the app, but many users ignore them.
- Intrusive
These kinds of ads are large images that cover the entire screen. These ads are mostly annoying because they show up in the middle of the app’s navigation, making it difficult to continue using its features. These kinds of ads are frustrating for the user, but represent a good source of income for app developers, making them a double-edged sword. The trick in making use of intrusive ads, is in integrating them into the flow of the app in a way that annoys the user as little as possible.
- Intrusive Video
This kind of intrusive ad features videos that cannot be clicked out of like in the case of intrusive images. The user is forced to wait a few seconds while the video plays entirely. This can be pretty annoying, but this kind of ad does fetch the highest price for the developer of the app. As with regular intrusive ads, the trick in using an intrusive video is in knowing where and when to place it so the user does not get frustrated and remove the app from their device.
As you can see, there are many different ways to generate income with a mobile app. In my opinion, the best way is to earn income through ads because, unless a big company is behind the app, users are reluctant to spend money on an app they haven’t tried out yet. As a matter of fact, most paid applications started out as free apps until they claimed their spot on the market. When they re-launched the app as a paid app, many people were already aware of the features, and willing to pay money to access them.
If you are interested in getting a quote for an app you are thinking of developing, we are more than happy to help. Keep in mind that there are ways to make a tidy return on your investment. We would love to hear your ideas and get to know your project. Use our quoting system to tell us about the project, and you will hear back from us.
