The current world of app advertising and monetization is growing with respect to its importance. The monetization through advertising, in-app purchases or paid downloads in the stores are a key driver to push the development of apps and new initiatives forward. Keywords like freemium and app advertising are set to dominate a mobile app industry, which surpassed 102 billion annual app store downloads and $26 billion in revenues.
More and more companies are properly leveraging advertising and monetization strategies. They see and will see massive revenue growths over the coming years. App Annie and IDC have released a new report that provides important insight into the current and upcoming mobile advertising and monetization trends that will shape the industry in the three years.
The report states interesting facts on the mobile app industry and provides us with an insight in what to expect and has happened over the past few years. The first example is the mobile device install base, which is skyrocketing worldwide. A massive 49 percent jump in key countries from 2012 to 2013 has taken place accompanied by a rising revenue per mobile device. Both are key factors in making mobile a difficult, but also an extremely lucrative way to monetize.
The freemium’s low-friction adoption model lets publishers get their apps on phones with ease, casting a wide net for monetizing users. From 2012 to 2013, freemium saw 211% revenue growth, while paid and paidmium declined. Developers took note, and in 2013 most games (and increasingly non-games) incorporated a freemium business model with in-app purchases.
The research also shows that not one marketing model fits everywhere globally and that you need to consider different approaches across your monetization model. So consider where your customers are and how to reach them. Some customers may consider app store purchases as their favorite way to acquire a new app or game, others may favor in-app purchases. There are multiple roads to success, it is key to find the correct one for each local area.
The developer community has an excellent view on the current app industry. In the report they say what’s true today may not be true tomorrow. The research shows that for mobile apps, what’s true today will be magnified tomorrow. The report outlines the key points you need to consider so you can position yourself for future success.
According to the report, the US is still a revenue leader when it comes to mobile app-related revenue. It is projected to accelerate through 2017, and the United States will remain the leading source of mobile app related revenues with 3.5 times growth from 2013-2017.
Ad networks are still the primary channel for selling in-app ads with over 80 percent of publishers selling over them, however RTB exchanges were the least common channel, used by only five percent of surveyed publishers.
For more information and a more detailed look, check out the report. You can download the full report in PDF via the link.