In recent years, the growing usage of smart-mobile devices has led mobile pundits to forecast about apps mainly on how they will conquer the world. And, these predictions quickly became reality. Apps and mobile devices were connected from day one so it’s obvious that in 2015 too mobile development and apps will undergo dramatic changes, including drastically shorter development cycles, new mobile app development techniques and latest advancements that will completely revolutionize traditional approaches.
However, it is expected that growth we have seen will continue in hops and bounds. And, there may be multitude of hardware and software developments triggering new and innovative concepts coming to the future. Here are a few things we can expect to happen in the mobile world in 2015:
Small Mobile players can increase their share of market
Small Mobile players can increase their share of market
An interesting incident we saw in 2014 was how passionate and aggressive T-Mobile became for taking business from Verizon and AT&T. Experts were expecting Sprint to follow the T-Mobile suit as it has been seen that were regularly touting the improvements in their processes and networks- these were the areas where Sprint was typically lagged behind. The passion, fierceness and gain competitive advantage, the small business players will create more opportunities in terms of acquiring new customers and retaining old ones.
Who’s going to take the position of number 3?
Who’s going to take the position of number 3
Everyone knows that Samsung and Apple are the top two mobile manufacturers in the industry. Apple has always dominated the high end of the smartphone market, and Samsung has succeeded in capturing the masses. However, in 2014, Samsung has given opportunities to other small and mid-sized manufacturers LG, Xiaomi and Lenovo to step in the market. After acquiring Motorola in October 2014, Lenovo acquired the third position in the industry and has set an expectation for innovation for its consumers. Xiaomi – the largest vendor in China, has also shown good pick up in the market. However, not much people are aware of the brand especially in the US – one of the biggest market of Smartphones and tablets.
Mobile App’s role in business success
Mobile App’s role in business success
In recent years, mobile apps are becoming one of the key factors in any brands and businesses success and we expect the same in 2015 too. Increased usage of smartphones and tablets has open a vast opportunity for mobile apps to help business achieve success. And, that’s why mobile app has become a building block for every business. In past years, mobile apps have been a great way to get started in a new trending market or expand your business and this is going to continue not only in 2015, but also for many more years.
2014 was full of new announcements of gadgets and smart devices like Smartwatches. There was a wide range of options available in the market for Smartwatches like Samsung offered 6 devices and other manufacturers having one or two, but not a single one captured the market’s attention. Why? – Because most options were large, horrible and had low battery life. But in 2015, we are expecting a different scenario. How? – Because of Apple. Apple has always come up in a trend-setting and unique solutions and that we can expect in 2015 too.
Everyone know that Microsoft’s Windows is the number three platform in the race of operating system after Android and iOS. However, in 2015 too it is expected that its ranking will not change, but it’s the share of the market will. Experts are expecting that Sprint will push the Windows phones in the mobile market, especially in the prepaid one. Also, we can see new economical Windows phones models especially in emerging markets.
In 2014 T-Mobile hard-pressed about using Wi-Fi calling – a great and smart way to provide better mobile phone coverage on the places where Wi-Fi access is available. It also offers to make inexpensive calls from airplanes and international travelling mediums to help users in avoid making international calls. This is creating a pressure on all the carriers to not only support but also promote the feature.
We certainly expect a lot of changes from the mobile world in 2015, let’s how much of our expectations become reality.
Marketing and Monetization Models of Mobile Apps
Mobile app marketing and monetization models are becoming pretty popular these days. And, the business of app development has become one of the most fascinating areas. But, developing an app is one thing and getting it downloaded is another. So, how to measure the success of your app? – You need to ensure high-performance development, captivating UI/UX designing and right marketing strategies and tactics. Do you know over 100 billion apps are downloaded in the app store annually? What make them getting downloaded? – High-performance development or user-engaging designs? – The fascinating world of application development does not end when the app is well-developed or well-designed – it should be well-marketed too. It’s high time to focus on the complementary nature of developers’ business models and monetization strategy. However, we’ve have discussed about How to harness your Mobile App Marketing Strategy to Make More Money in our previous article. In this article tet’s take a look on some app monetization models that publishers and marketers choose for their apps:
In-App Advertising Model
A very popular Free, but with Ads, model you’ve probably seen commonly in the apps on your smartphone. In this business model, the cost-barrier on purchase of app is removed and free downloads are allowed. As this app works on the goal of accumulating a sizeable user base and collect information on the users interaction with your app. Many developers sell this information to app publishers who pay them to place targeted ads in their apps.
Facebook does this well. Its huge pool of users doesn’t pay directly to Facebook to download or use its mobile platform. But, Facebook leverages its vast amount of data to run targeted ads. And, definitely this monetization strategy has proven quite effective for Facebook. According to the social behemoth, a 151% increase in Facebook’s mobile advertising revenue is seen during the second-quarter of 2013.
The paid app business model simply means users need to pay for downloading your app. That means if users want to have your app they must first buy it from the app store. Mostly, paid apps cost between $0.99 to $999.99, and brands directly make money through their app with every new user. However, this business model is one of the most difficult medium of earning through your app. Because when user pay, their expectation become high. And, to entice users for downloading your paid app, you need to highlight its key points be it reviews, brand, designs or features, basically anything or everything that differentiates it from similar free or paid apps.
Calendars 5 is a paid productivity app that costs $4.99 in Apple’s app store. Do you know why this app is worth monetary investment? – Because it has emerged as a “smart calendar” that includes tasks, human language, and reminders in a structured and alluring layout. The app’s listing page incorporates fascinating screenshots that showcase its sleek design and high-rated reviews about its great functionalities to entice users.
Like Freemium model, the paywall business model (basically used for subscriptions) allows users to view preset amount of content. But unlike freemium model it focuses on content, not features. Paywalls allows an app user to view a fixed amount of content for free and then entices them by prompting messages of ‘sign up’ for a paid subscription to view or read more content. It’s this offering makes Paywalls best suitable for service focused apps and allows brands to earn revenue on a frequent basis.
Umamo, an app that transforms news stories to podcast, is a good example of this business model. By incorporating this business model, Umano allows users to listen to a limited number of stories until they sign up for a premium subscription. With this strategy, Umamo utilizes its marketing strategy to use all of Umano’s best features for a fixed amount of time, which in turn, entice users to avail its premium services for unlimited use and content.
In-app purchases that let users sell physical or virtual goods in an app. In a nutshell, this app monetization strategy involves selling physical or virtual goods within your app, and then retaining the profits. Retaining profit through this business model is not so popular and include a wide range of consumer products such as clothes, shoes, and accessories. However, in-app purchases can also be virtual goods like extra lives or in-game currency.
MeetMe, a popular social app has incorporated in-app purchases in their app. It’s free to download and let users browse profiles, connect with people through chatting. To enhance their visibility and gain new ways to interact with people, users can purchase credits that is incorporated through in-app purchase business model. The app’s purchase model is profitable because the app is able to clearly highlight the benefits of in-app currency.
Similar to in-app advertising, in the freemium model too, the app offered free to users. But certain features are incentivized and charge money to be unlocked. That means, users can download the app for free and gets access to app’s basic functionalities. But need to pay for getting advance features. The goal of this model is to give users a preview of your app and engage them through your basic features so that they willingly pick your app’s additional premium features.
Angry Birds, is a suitable example of this business model. The app keeps certain features hidden like being able to juice up your bird, additional levels, etc. and can unlock those features by paying a small fee. However, the success of this model depends upon the user’s engagement with the app. Once the app becomes successful in engaging users, then users will pay an initial price for premium features without any hesitation.
One of the newest entrants in the mobile space is the Sponsorship Business model for incentivized advertising. Through this business model, you make brands and agencies pay and become part of an incentive system. In other words, you integrate advertising into your app to augment your app’s ability to engage users. Sponsorship model requires partnering with other advertisers, who reward your users for completing certain in-app actions. As your app earns money by taking a share of the revenue from redeemed rewards.
RunKeeper is an early adopter of this business model. RunKeeper uses this business model to encourage its users to keep track of their running activity so that they can unlock exclusive rewards and promotions. Through this incentivized advertising, RunKeeper monetizes without disturbing its app’s experience with banner ads.
To choose the right mobile app marketing and monetization model, you don’t need to follow what others have done before. In the above-discussed monetization models, we have highlighted the standard business models that brands are using to generate revenue and value from their app. But, it’s always recommended to adapt and iterate app monetization strategy as per your app requirement to make it correctly work for your app.
Need consultation on the best app marketing strategies and monetization models for your business? Get in touch with Parangat Technologies TODAY! You can also reach out to us on [email protected]