Considering that there are over 4.3bn mobile phones worldwide there's no doubt that there is a huge target market for anything that uses a mobile phone. For years service providers have been taking advantage of SMS marketing, ring-tone downloads and other simple services to monetize this market. The smartphone enables richer, more exciting applications and after a few years of stuttering, the market for Smartphones is starting to take off. Apple led the way with the iconic iPhone and the Android platform has moved us on to another level. Microsoft's Windows 7 for mobile brings the operating system giant back into the market and Nokia haven't given up with their Symbian based offerings. Of course, don't forget RIM and the Blackberry. This increase in competition together with rapidly advancing technology, better and cheaper mobile data networks, have helped Smartphone penetration to grow. There were some 41m Smartphones sold in Q3 of 2009.
Back to the apps. In 2009 there were 7bn apps doanloaded according Bitsmedia with 50bn downloads expected in 2012. By 2014 Chetan Sharma Consulting predict a Smartphone apps market worth $25bn per annum... Want some?
Before you get too excited remember that this is already a very congested and competitive market with around 30,000 registered developers providing apps via the Apple iTunes appstore. Of course not every developer wants to monetize their apps and many apps are free to use (about 75% of those on iTunes are free). This is because apps can be monetized in a number of ways and not just through payments for download. Apps can generate up-sell revenue opportunities for other core products, leading customers to web sites or increasing footfall in high street stores for example.
Revenue from Downloads
This is an attractive market as we've seen, but it's also a competitive market that is difficult to break into. There are killer apps out there but like all great inventions it's not that easy to generate the idea in the first place and even harder to develop and promote it to realise its potential. With over 170,000 apps on iTunes alone, your app can easily get lost in the crowd. Like the battle for rankings in Google, you need to know what you're doing to ensure your app is visible.
You also need to look beyond the iPhone and develop versions of your app for other Smartphone platforms. 79% of South-East Asian Smartphones are Symbian devices. Android is growing quickly and as stated Microsoft is back in the fray. Blackberry is popular amongst businesses. Building, supporting and promoting different versions of your app on different app stores is a costly and difficult trick to pull off.
That said, if you get all the aspects right, there's money to be made with some apps making $500,000 within days of publication on an app store and the Peppa Pig app (a collection of games and images based on a popular UK chidlren's TV programme) in the UK grossed £125,000 in its first week).
Other Ways to Monetize your App
Build in purchase opportunities for other products and services within your app. Maybe ring tone or backdrop downloads or even ordering products or services to be home delivered.
Advertising is starting to gain momentum, largely driven by Google Ads on the Android platform and iAds on the iPhone. You've probably notices banner adds appearing at the top of apps recently and this will continue to be the norm. As for ads on search engines and web sites, ads earn money per click.
Also subscription services provide opportunity to develop revenue. The ft.com app, for example, provides 10 free page views per month. You then have to subscribe to be able to view more financial news alerts.
Summary - What Makes a Good Monetized App?
Back to the apps. In 2009 there were 7bn apps doanloaded according Bitsmedia with 50bn downloads expected in 2012. By 2014 Chetan Sharma Consulting predict a Smartphone apps market worth $25bn per annum... Want some?
Before you get too excited remember that this is already a very congested and competitive market with around 30,000 registered developers providing apps via the Apple iTunes appstore. Of course not every developer wants to monetize their apps and many apps are free to use (about 75% of those on iTunes are free). This is because apps can be monetized in a number of ways and not just through payments for download. Apps can generate up-sell revenue opportunities for other core products, leading customers to web sites or increasing footfall in high street stores for example.
Revenue from Downloads
This is an attractive market as we've seen, but it's also a competitive market that is difficult to break into. There are killer apps out there but like all great inventions it's not that easy to generate the idea in the first place and even harder to develop and promote it to realise its potential. With over 170,000 apps on iTunes alone, your app can easily get lost in the crowd. Like the battle for rankings in Google, you need to know what you're doing to ensure your app is visible.
You also need to look beyond the iPhone and develop versions of your app for other Smartphone platforms. 79% of South-East Asian Smartphones are Symbian devices. Android is growing quickly and as stated Microsoft is back in the fray. Blackberry is popular amongst businesses. Building, supporting and promoting different versions of your app on different app stores is a costly and difficult trick to pull off.
That said, if you get all the aspects right, there's money to be made with some apps making $500,000 within days of publication on an app store and the Peppa Pig app (a collection of games and images based on a popular UK chidlren's TV programme) in the UK grossed £125,000 in its first week).
Other Ways to Monetize your App
Build in purchase opportunities for other products and services within your app. Maybe ring tone or backdrop downloads or even ordering products or services to be home delivered.
Advertising is starting to gain momentum, largely driven by Google Ads on the Android platform and iAds on the iPhone. You've probably notices banner adds appearing at the top of apps recently and this will continue to be the norm. As for ads on search engines and web sites, ads earn money per click.
Also subscription services provide opportunity to develop revenue. The ft.com app, for example, provides 10 free page views per month. You then have to subscribe to be able to view more financial news alerts.
Summary - What Makes a Good Monetized App?
- The idea has to be new, fresh and fulfils a key need - differentiate from the competition
- The GUI needs to be easy to use and take advantage of Smartphone benefits
- Get the price right - make it free if you need to shift lots of them to generate up-sell revenue
- Address all the important platforms and all the popular app stores and download sites
- Market the product effectively
- Keep your app up to date and provide customer support. Respond to reported bugs with rapid fixes. Check the opposition regularly and keep your app evolving to ensure it remains better.
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