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What revenue model should you choose for your Mobile App?

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What revenue model should you choose for your Mobile App?

So you are planning to launch a mobile app on the app store. How do you plan to monetize it, to ensure the Return on Investment made on your mobile application development? Here are some options to consider:

Option 1: Free – Ad Revenue

Price: Free
Audience: Mass Market
Model: Advertisement Supported
Example: Facebook, Yelp, etc.

The main goal is to deliver content in multiple formats and extend reach.

Pros

  • It is advantageous to have an established brand name and established sales team, as that can help package sponsors within the free application to generate incremental revenue.
  • It is easy to build traffic initially for a free app, although may not be long lasting
  • Ratio of downloads for free to paid apps is 400:1, or 95% of apps downloaded are free

Cons

  • New companies looking to follow the straight advertising model may have a challenge as ad budgets are have been sliced across the board. eCPMs are very low, so to get profitability the traffic has to be extremely high.
  • Companies in this category should have scaled back expectations as a profit center.

Advertisement Type:

  1. Independent Ad PlatformAds and Revenue managed independantly
  2. 3rd Party Ad Platform, e.g. iADs / Ad mob services
    • Ads are rendered through the 3rd Party.
    • Revenue based on impressions, clicks etc.
    • Better option if one doesn’t have big advertisers or own ads inventory
  3. Ad Exchange
    • Hybrid option to use both of the above
    • Increase in development costs

Option 2: Free – Alternate Revenue

Price: Free
Audience: Mass Market
Model: Alternate revenue
Example: Urbanspoon, etc.

The main goal is to create a huge buzz around their product by offering it for free and getting it into as many hands as possible, in order to promote an alternate business or an alternate revenue model

Examples of alternate revenues:

  • Data collection/business intelligence/analytics
  • Re-direction to sales on another site (e-commerce)
  • Ads/deals/ coupons can pushed using tools like www.appoxee.com

Option 3: Paid – Low Price

Price: Paid applications, at a low price point
Audience: Mass Market
Model: Direct Revenue
Examples: Sim City, etc.

  • Range from 99 cents up to 4.99
  • In the short term, getting hundreds of people to try it out for uniqueness factor, can lead to quick revenue.
  • However, long term revenue is achieved by apps that provide clear value, amazing utility or function that the target market cannot live without.
  • Important to have a very good growing traffic source.
  • Potential to lose out on a lot of potential customers.

Option 4: Paid – Freemium

Price: Paid applications, at a low price point, with free trial version/in app purchases
Audience: Mass Market
Model: Ads on Free Trial Version, Direct revenue on paid version
Examples: StickTennis, Angry Birds etc.

Two options:

  1. Separate App Freemium
    • Free trial provision for limited time or limited use
    • Can be upgraded by purchasing a separate paid app with all features
    • E.g. Only 3 sports are available in the free version, and users can pay for the full version
    • Need to develop and manage 2 separate apps
    • Free version can have ads, while premium version can be ad-free
  2. In-App Freemium
    • Additional Features or Content can be purchased within the app
    • E.g. Only 3 sports are available in the free version, and users can pay per additional Sport
    • If a betting feature is created, it can work on a virtual currency model, which can be another source of revenue
    • In-App upsells usually convert better overall
    • In-App purchases are successful when the flow for purchasing feels natural to the App.

Option 5: Brand Takeover

Price: Free
Audience: Mass Market
Model: Free to Users, Brand buys or sponsors the app

  • The entire App is essentially one big brand campaign.
  • For this strategy to be successful, the audience for the application has to be segmented and have a well-defined niche in order to attract brands and marketers, who can then offer targeted, branded ad campaigns.
  • The app can either be sold to a brand, or sponsored by the brand

Statistically, Option 4 has proved to be the most lucrative model.[/vc_column_text][/vc_column][/vc_row]

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TheAppLabb CEO Kundan Joshi Receives 2016 Transformation Award in Innovation

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TheAppLabb CEO Kundan Joshi Receives 2016 Transformation Award in Innovation

On Saturday, June 4, our CEO Kundan Joshi was honoured to receive the 2016 Transformation Award in Innovation at the Transformation Awards Gala presented by Diversity Magazine.

Alongside fellow Transformation Award recipients including Olympic gold medalist Donovan Bailey, Global News meteorologist Anthony Farnell, 2015 Pan Am Games CEO Saad Rafi and others, Kundan walked the red carpet prior to the awards reception at the historic Fairmont Royal York Hotel in downtown Toronto.

During the ceremony, Kundan gratefully accepted the Innovation Award on behalf of his family and his team at TheAppLabb, stating “Such great honours are rarely individual achievements. They are a testament to being blessed with great people supporting and believing in you.” He promised to continue enabling innovation, saying “Our passion lies in harnessing the power of technology to make people’s lives better, be it through mobile apps or cognitive computing. And this recognition is a great validation for us to continue working harder and keep getting better at fostering innovation.” Kundan ended his speech with a reminder to the audience about the power of innovation, declaring “Today we are at a stage where technology has progressed to a point where our only limitation is our imagination. So let’s extend ourselves, imagine, think creatively about the problems in the world that really need to be solved, for the greater good of humanity and the world. If you can imagine it, with technology, we can achieve it.”

Presented by Diversity Magazine, the Transformation Awards celebrate the achievements of distinguished individuals in twelve categories. Through cross-cultural celebration, they reward community leaders who demonstrate leadership, excellence and innovation. Past recipients include Hazel McCallion, former Mayor of Mississauga; Hakimi Karimi, founder of Hakim Optical; and World Vision President Dave Toycen, to name a few.

Please join us in congratulating Kundan on this tremendous achievement![/vc_column_text][/vc_column][/vc_row]

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TheAppLabb is now a member of the LBMA

[vc_row type=”in_container” full_screen_row_position=”middle” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″ shape_divider_position=”bottom”][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” width=”1/1″ tablet_text_alignment=”default” phone_text_alignment=”default” column_border_width=”none” column_border_style=”solid”][vc_column_text c_id=”.vc_1466534381555″]We are proud to announce that we are now a member of The Location Based Marketing Association – LBMA, with the Startups & Innovators Membership.

The Location Based Marketing Association is a international group dedicated to fostering research, education and collaborative innovation at the intersection of people, places and media. Their main goal is to educate, share best practices, establish guidelines for growth and to promote the services of member companies to brands and other content-related providers.

The LBMA is also a community of interest around all avenues of advertising and marketing as it relates to location-specific opportunities. This community is comprised of mobile, out-of-home, digital and print advertisers. Members of the LBMA include retailers, agencies, advertisers, media buyers, software and services providers, and wireless companies.

TheAppLabb offers TheLocateApp, a mobile app platform that mobilizes and empowers customers to locate the listings nearest to them. According to (add reference) 76% of shoppers & 59% of smartphone owners use their mobile device to locate a store. This platform allows them to filter the location as per their needs, as well as allowing users to check reviews.

We are very excited to explore more opportunities in the location-based industry with LBMA!

For more information about LBMA, visit http://www.thelbma.com/home/[/vc_column_text][/vc_column][/vc_row]

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The Mountain

[vc_row type=”in_container” full_screen_row_position=”middle” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″ shape_divider_position=”bottom”][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” width=”1/1″ tablet_text_alignment=”default” phone_text_alignment=”default” column_border_width=”none” column_border_style=”solid”][vc_column_text][nectar_dropcap color=”#1e83ec”]S[/nectar_dropcap]eparated they live in Bookmarksgrove right at the coast of the Semantics, a large language ocean. A small river named Duden flows by their place and supplies it with the necessary regelialia. It is a paradisematic country, in which roasted parts of sentences fly into your mouth. Even the all-powerful Pointing has no control about the blind texts it is an almost unorthographic life One day however a small line of blind text by the name of Lorem Ipsum decided to leave for the far World of Grammar. The Big Oxmox advised her not to do so, because there were thousands of bad Commas, wild Question Marks and devious Semikoli, but the Little Blind Text didn’t listen. She packed her seven versalia, put her initial into the belt and made herself on the way. l using her.Far far away, behind the word mountains, far from the countries Vokalia and Consonantia, there live the blind texts. Separated they live in Bookmarksgrove right at the coast of the Semantics, a large language ocean. A small river named Duden flows by their place and supplies it with the necessary regelialia.[/vc_column_text][/vc_column][/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” scene_position=”center” text_color=”dark” text_align=”left” top_padding=”30″ bottom_padding=”30″ overlay_strength=”0.3″ shape_divider_position=”bottom”][vc_column column_padding=”padding-2-percent” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” width=”1/1″ tablet_text_alignment=”default” phone_text_alignment=”default” column_border_width=”none” column_border_style=”solid”][split_line_heading]

But nothing the copy said could convince her

and so it didn’t take long until a few insidious

Copy Writers ambushed her

[/split_line_heading][/vc_column][/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″ shape_divider_position=”bottom”][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” width=”1/1″ tablet_text_alignment=”default” phone_text_alignment=”default” column_border_width=”none” column_border_style=”solid”][vc_column_text]The Big Oxmox advised her not to do so, because there were thousands of bad Commas, wild Question Marks and devious Semikoli, but the Little Blind Text didn’t listen. She packed her seven versalia, put her initial into the belt and made herself on the way. When she reached the first hills of the Italic Mountains, she had a last view back on the skyline of her hometown Bookmarksgrove, the headline of Alphabet Village and the subline of her own road, the Line Lane. Pityful a rethoric question ran over her cheek, then she continued her way. On her way she met a copy.[/vc_column_text][/vc_column][/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″ shape_divider_position=”bottom”][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” width=”1/1″ tablet_text_alignment=”default” phone_text_alignment=”default” column_border_width=”none” column_border_style=”solid”][vc_column_text]Separated they live in Bookmarksgrove right at the coast of the Semantics, a large language ocean. A small river named Duden flows by their place and supplies it with the necessary regelialia. It is a paradisematic country, in which roasted parts of sentences fly into your mouth. Even the all-powerful Pointing has no control about the blind texts it is an almost unorthographic life One day however a small line of blind text by the name of Lorem Ipsum decided to leave for the far World of Grammar. The Big Oxmox advised her not to do so, because there were thousands of bad Commas, wild Question Marks and devious Semikoli, but the Little Blind Text didn’t listen. She packed her seven versalia, put her initial into the belt and made herself on the way. l using her.Far far away, behind the word mountains, far from the countries Vokalia and Consonantia, there live the blind texts. Separated they live in Bookmarksgrove right at the coast of the Semantics, a large language ocean. A small river named Duden flows by their place and supplies it with the necessary regelialia.[/vc_column_text][/vc_column][/vc_row]