Google Working Hard to Help Developers Monetize Apps with In-App Billing
At inneractive, our main philosophy is that mobile developers, who work hard to create quality apps, deserve to get paid. The problem is there is somewhat of a chicken and egg situation. Charging for apps on iOS and Android automatically means lower download numbers. Yes, people do pay for apps, especially on iOS, but more people do not.
Over 80% of mobile apps today are free, so if there is an app you want and it costs money, your first reaction is to look for similar apps that are free. This is a fact and every study that analyzes app consumer patters, shows this.
Since we see this pattern repeating itself and developers who charge for apps are making less money than they deserve, we offer an alternative solution, in-app ads. That way, a developer can benefit from both worlds. They can offer their app for free and reach mass markets, but they can also monetize the app by serving relevant and non intrusive ads to their users.
Of course, while this method produces impressive results with some of our developers making up to $55k a month from in-app ads, there is another option. In- app purchases might be less common, but based on initial studies, it is yet another effective method of monetizing free apps. Google, apparently knows this and is going to be enabling in-app billing as of next week.
Google announced that developers can already begin testing this new functionality on the Android Market by adding in app purchases, pricing, and catalogues. During this test period, developers can interact with their apps the same way they would if the app was published, but they will not be able to publish the apps to the Market prior to the launch next week.
One of the major issues Android is facing is that studies show consumers are much less willing to pay for apps on Android than iOS. This is a possible solution and if Google does this right, it can take Android from an operating system that is growing fast but not generating sufficient revenue to a platform that trumps all others.