New Report Probes The Future of App Monetization

New Report Probes The Future of App Monetization 300x199 New Report Probes The Future of App MonetizationApp Annie and IDC are exploring the future of app monetization in a new report – “Mobile Advertising and Monetization Spotlight 2012-2017: The Economics of Free.”

Once again, the freemium model remains the optimal way for app developers to make the most money off of their creations (with the implentation of in-app ads, of course).

As the app market matures, app publishers continue to look for the monetization models that will work best for them. However, there is no “one size fits all” strategy, and so it’s critical for developers to think about which markets they plan to enter before deciding on how to generate revenues.

We are already aware that freemium is the best way to monetize an app today, but the report shows in-app advertising outpacing both mobile and PC browser-based ads in revenue growth, making it the next important growth model, but not in every market.

freemium New Report Probes The Future of App Monetization

“Unsurprisingly, the United States and Japan lead the way in mobile app monetization, with revenue growth occurring across several countries,” observes Karsten Weide, Program Vice President of Digital Media and Entertainment at IDC.

“However,” Weide concludes, “most device growth will come from emerging markets moving forward, which significantly influences the app monetization profile in aggregate. India is a prime example with 8.7x revenue growth from 2013 to 2017, which appears to be largely driven by rapid smartphone adoption.”

To learn more about the new report and its findings, check out the full report from App Annie here.

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2 comments
AminGorji1
AminGorji1

There are lots of great in-app advertising platforms out there and it is complicated to find out which one is really suitable for you. finding a platform which not affect your UI and support my App expenses. do you have any suggestion? 

shuey03
shuey03

I was at ad tech last week and I actually had a conversation with someone at the App Annie booth about this. Freemium works great, but as you mentioned, in app advertising is also a powerful way to monetize your app. I ran into a couple app monetization companies there as well, one of which, http://www.youappi.com, had a really cool technology that makes it possible for apps to monetize like facebook does. At least, that was their pitch. It looked really cool.