In this article we explore how you can turn your mobile app into a revenue stream using in-app advertising, a quickly growing sector. Is in-app advertising more effective than traditional, web-based advertising?
Companies are using mobile apps to expand their market reach and to create revenue, some by offering their app for an initial cost in the app store, and others with in-app advertising. While some may view apps as more of a platform for marketing a product or service, it is possible to make money by allowing advertising within your app.
The Huffington Post reports that, “from the top fifty apps, only twelve generate revenue through in-app purchases. So where is the catch? The short answer is that mobile apps can on their own act as a marketing channel for an online or even offline business.”
By capitalizing on the reach of your mobile app, you can sell advertising space to other companies and turn your app into a revenue-producing aspect of your overall business model.
But that doesn’t necessarily mean that you should you charge for your app’s initial download. When “unpaid downloads...account for 91 percent of all app downloads”, according to Houston Chronicle, there is a gap between just creating and publishing an app and monetizing it, or rendering it profitable.
It can be quite effective to offer your app for free and provide either in-app purchase options or advertising opportunities for companies to market their products.
Another Houston Chronicle reports, “some developers include in-app purchases to bring in money from their apps, but advertising plays an important role in cashing in off app sales.” In fact, in-app advertising is growing fast, much faster than other forms of mobile advertising.
According to VentureBeat, “spending on in-app advertising is expected to reach $17 billion by 2018, according to a report by Juniper Research. This amount is up dramatically from the $3.5 billion spent in 2013, and makes in-app advertising the fastest growing sector of the mobile advertising market.”
This explosive growth is good for app developers and indicates the growing popularity of in-app advertising, which is actually much more effective than traditional web-based ads.
An analysis of recent studies on mobile ads in Forbes reveals that in-app advertising is growing in part because of how effective it can be. “Mobile ads draw not only clicks, no small number of which advertisers reasonably suspect might be accidental, but conversions,” writes Robert Hof.
In fact, people will do things on their mobile phones that they would not do on their home computers, prompting app makers to offer ad space within their mobile apps.
In order to reach people on their mobile phones, companies need to exploit the direct access that apps offer to mobile users. Hof continues, “ads on apps get much higher click-throughs than ads on the mobile web: 0.58% on apps vs. only 0.23% on the mobile web. ” This is striking data in a competitive advertising atmosphere, as companies are struggling to figure out how best to reach potential users and customers.
Build Your Own Mobile App
The question is, why not build a mobile app? With in-app advertising proving to be a potentially profitable option for companies marketing their products--as well as a lucrative revenue stream for your company--there is simply no reason not to.
Especially with services like AppMakr, which make developing an app easier than ever, and with no coding required, app development is something that companies of every size should be involved in. It’s time to take your company into the mobile age!