10 Top App Developers Who Have Realized The Potential of In-App Advertising
App developers looking to monetize have a few different options. At inneractive, we carefully analyzed the different possibilities and concluded that in-app advertising is the future of app monetization. When developing an app, the easiest choice to make is to charge per download. However, if you think about the results of such a move for a few minutes, you will realize you are setting yourself up for failure.
Put yourself in the shoes of a consumer and think about how many apps you have paid for. Not many, right? The truth is, developers are now starting to understand that people do not like paying for mobile apps. When they first see the price tag, most users will either close the page or search the app store for a free alternative. By putting a price tag on your app, you are essentially scaring away your potential users. The numbers speak for themselves and according to Gartner, 81% of app downloads in 2011 are going to be free. In fact, most of the top grossing apps of the App Store are free apps, how interesting is that?
One more interesting number for you. According to Informa, by 2015, mobile ad revenues will hit $24billion, while paid app revenue will only be at $10billion. Developers, do the math!
OK, I know what you're thinking... If I don't charge users for my app, how do I get paid? Here is the thing about mobile apps. They are the only product that can generate more revenue when given away for free than when sold. Yes, free apps make more money. How? You give users the ability to download the app with zero barriers and you achieve more downloads. That is a fact. By getting more users to download your app, you are increasing impressions and if you have in-app ads, you are making money for those clicks. Sign up now to start monetizing your free apps!!
The thing is, many developers are afraid of integrating ads into their apps. Some have a misconception that ads ruin the user experience of their app. That is simply not the case, assuming the ads are placed and displayed properly. Of course, inneractive ads are highly targeted to the user both in terms of content and location, which we have been told enhances the specific app's user experience in a major way.
In addition, we work with some of the leading names in the world of apps, and are always expanding our portfolio. The following are ten of the biggest app developers who use in-app ads to offer their users free mobile apps:
2: Chillingo and Cut the Rope: The first iOS game to steal the number one spot from the birds... And you can play for free thanks to in-app ads.
3: Outfit7 and the Talking Pets: Find me an iOS or Android user that has not downloaded the talking pets and I will buy you lunch. No, but seriously, the integrated ads do not seem to bother the people who downloaded the pets 100,000,000 times.
5: Digital Chocolate (multiple apps): A mega publisher with apps on mobile, web, and console, Digital Chocolate figured out ages ago that in-app ads are the way to go.
6: Halfbrick and Fruit Ninja: Like many other big names in apps, Halfbrick offers a paid and free version of their wildly popular and addictive game.
7: EA (multiple apps): Possibly the leading cross-platform app developer and a pioneer in the in-app advertising model.
8: Firemint and Real Racing: Recently acquired by EA, that pretty much says it all about Firemint. Many of their apps including the hit Real Racing have free ad-funded versions.
10: Gameloft (multiple apps): Another huge name in app development, working cross platform and offering free ad-funded games that have reached the the hundreds of millions of downloadsÂ cumulatively.
Now, we are aware that the argument "everyone does it" has negativeÂ connotations, but when it comes to developing apps and deciding on a monetization model, these ten developers should be your guiding light.
It is also important to remember that every developer and every app has different needs and what works for one, might not work for others. It is for this reason, we recommend testing out the waters and possibly implementing multiple revenue streams for your app. In our experience though, in-app advertising consistently produces the best results for large and small developers alike.
Have you tried integrating ads into your app? What did you think and how were the results?