Apr 13 AT 1:42 PM Guest Blogger 5 Comments

Monetization in the Android App Marketplace

Everywhere we look, there are reports touting the soon-to-be dominance (or at least, spectacular growth) of the Android App market. The latest, from mobile ad network-turned metrics guru, AdMob, boasts that Android’s share of the app market has grown 12 fold in the last year, from 2% in February of 2009 to 24% in February 2010, mainly at the expense of Symbian.

These are tremendous statistics, and sure to give every Android app developer the warm and fuzzies, but there is a stark reality to this growth, as well as the statistic from Mobile Entertainment’s Guide to Android that there are 2-3X as many free Android apps as there are iPhone apps, which are now or eventually will be ad-supported. As any freshmen Economics student will tell you, that kind of dramatic increase in supply, without a similar increase in demand, results in significant downward pressure on price.

That’s the bad news. The good news is that there are three major developments in the mobile advertising market that will help to secure the future of ad-supported Android apps well into the future.

The first is that, according to Nexage Metrics, application inventory is selling at a substantial premium to mobile web inventory. In the month of January 2010, application inventory, on average, sold for 50-75% more than mobile web inventory. It’s an engaging environment for the user, and offers a great branding and direct response atmosphere for the advertiser… a winning combination that’s translating into more ad dollars.

The second is that the nature of mobile advertising selling and buying is shifting in favor of the publisher and app developer. Ad mediation and optimization services are creating both scalable and effective solutions for app developers to monetize their content without diverting resources and focus from their core competency — developing great apps.

The ad network business model didn’t fit the size or scalability of most app developers who were forced to choose between low fill rates, albeit with little resource investment, or decent fill rates earned at the expense of a dedicated team member’s time and attention.

Ad mediation companies have taken the best parts of the ad networks — huge amounts of targeted, global inventory — but made them scalable by offering a single point of integration and reporting.

Further, the optimization layer goes one step further than traditional ad exchanges to enhance the yield of app inventory. Rather than finding a price match for the inventory, an optimization platform will select for the highest yielding ad network to fill the inventory, exacting upward price pressure and staving off eCPM erosion… all without diverting resources from actual app development.

The third development is yet to be realized, but with the rate of change in the industry, it will likely be the standard by the time you’re reading this article. When utilized appropriately, data enhancement overlaid on a mobile ad impression will take targeted advertising to a new level, creating as yet untapped value for all participants in the value chain — from the consumer who will receive relevant offers and be more apt to respond to the publisher, advertiser, and ad networks, who will see increased returns on their investments. To date, online behavioral and re-targeting strategies have largely been successful in a handful of verticals, such as automotive, telecom, retail, and travel. Mobile has the unique advantage and capacity to tie elements such as location, time, and past interests/purchases together which are game changing ingredients for both consumers and advertisers.

There’s no question that the continued growth of the Android app market is going to have an enormous impact on mobile advertising — bringing huge quantities of targeted, global inventory into a burgeoning marketplace. However, in order to make it a truly vibrant and sustainable marketplace, it’s requisite that the sellers of that inventory have the tools and the knowledge to capitalize on their asset and investment, generating capital to fuel the next generation of great Android apps.

This article was submitted by Nexage CEO, Dev Gandhi.

From time to time we invite guest bloggers to contribute articles about various Android topics. This is one of those times...

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  • http://Website Eddy Reveran

    Just read about Android updating the Droid site. Honestly, I never use them for apps as there are better marketplaces out there like RawApps. Even AppBrain is okay (very sloppy tho) in comparison to the actual Android market. Very sad!

  • http://marketplace.adsmediamobile.com Adsmedia Mobile Advertising Marketplace

    Adsmedia Mobile Advertising has launched its advertising MarketPlace. It’s a self-service platform for mobile Internet advertising campaign, aimed at both agencies and advertisers who may employ their campaigns, as developers and creators of mobile Internet portals offer advertising space. You can see it in http://us.marketplace.adsmediamobile.com

  • http://www.mobiledevelopersummit.com swagat barman

    Hi Guys,
    Thanks for the informative Post. Here is the another way to monetize your Application. If you are Mobile App Developer, Here is a chance to showcase your App in front of 1000+ live audience only at Mobile Developer Summit 2010 in Bangalore, India by just sending a small pitch which will offer you a chance a glory, fame and the potential to meet the people that can take your App to the next level. For details log on to mobildevelopersummit.com

  • http://Website salma khan

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    802.11b/g/n Wi-Fi (802.11n 2.4GHz only)
    Bluetooth 2.1 + EDR wireless technology
    Size and weight
    Height: 4.5 inches (115.2 mm)
    Width: 2.31 inches (58.6 mm)
    Depth: 0.37 inch (9.3 mm)
    Weight: 4.8 ounces (137 grams
    Capacity3
    16GB or 32GB flash drive
    Color
    White or black
    Camera, photos, and video
    Video recording, HD (720p) up to 30 frames per second with audio
    5-megapixel still camera
    VGA-quality photos and video at up to 30 frames per second with the front

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    LED flash Photo and video geotagging
    Display
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    3.5-inch (diagonal) wide screen Multi-Touch display
    960-by-640-pixel resolution at 326 ppi
    800:1 contrast ratio (typical)
    500 cd/m2 max brightness (typical)
    Fingerprint-resistant oleo phobic coating on front and back
    Support for display of multiple languages and characters simultaneously
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    Sleep/wake
    Ring/silent
    Volume up/down Home
    Sensors
    Three-axis gyro
    Accelerometer
    Proximity sensor
    Ambient light sensor
    Location
    Assisted GPS
    Digital compass
    Wi-Fi
    Cellular
    Power and battery
    Built-in rechargeable lithium-ion battery
    Charging via USB to computer system or power adapter
    Talk time:
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    Up to 14 hours
    Standby time: Up to 300 hours
    Internet use:
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    Video playback: Up to 10 hours
    Audio playback: Up to 40 hours

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  • http://Website Rolandas

    How to increase xperia x10 2.1 camera frames per second?

  1. Eddy ReveranGuest 5 years ago

    Just read about Android updating the Droid site. Honestly, I never use them for apps as there are better marketplaces out there like RawApps. Even AppBrain is okay (very sloppy tho) in comparison to the actual Android market. Very sad!

  2. Adsmedia Mobile Advertising MarketplaceGuest 5 years ago

    Adsmedia Mobile Advertising has launched its advertising MarketPlace. It’s a self-service platform for mobile Internet advertising campaign, aimed at both agencies and advertisers who may employ their campaigns, as developers and creators of mobile Internet portals offer advertising space. You can see it in http://us.marketplace.adsmediamobile.com

  3. swagat barmanGuest 5 years ago

    Hi Guys,
    Thanks for the informative Post. Here is the another way to monetize your Application. If you are Mobile App Developer, Here is a chance to showcase your App in front of 1000+ live audience only at Mobile Developer Summit 2010 in Bangalore, India by just sending a small pitch which will offer you a chance a glory, fame and the potential to meet the people that can take your App to the next level. For details log on to mobildevelopersummit.com

  4. salma khanGuest 5 years ago

    For sale: phone and 4G 16GB and 32GB available
    iPhone 4 Specifications
    Cellular and wireless
    FHSDPA/HSUPA (850, 900, 1900, 2100 MHz)
    GSM/EDGE (850, 900, 1800, 1900 MHz)
    802.11b/g/n Wi-Fi (802.11n 2.4GHz only)
    Bluetooth 2.1 + EDR wireless technology
    Size and weight
    Height: 4.5 inches (115.2 mm)
    Width: 2.31 inches (58.6 mm)
    Depth: 0.37 inch (9.3 mm)
    Weight: 4.8 ounces (137 grams
    Capacity3
    16GB or 32GB flash drive
    Color
    White or black
    Camera, photos, and video
    Video recording, HD (720p) up to 30 frames per second with audio
    5-megapixel still camera
    VGA-quality photos and video at up to 30 frames per second with the front

    camera
    Tap to focus video or still images
    LED flash Photo and video geotagging
    Display
    Retina display
    3.5-inch (diagonal) wide screen Multi-Touch display
    960-by-640-pixel resolution at 326 ppi
    800:1 contrast ratio (typical)
    500 cd/m2 max brightness (typical)
    Fingerprint-resistant oleo phobic coating on front and back
    Support for display of multiple languages and characters simultaneously
    External buttons and controls
    Sleep/wake
    Ring/silent
    Volume up/down Home
    Sensors
    Three-axis gyro
    Accelerometer
    Proximity sensor
    Ambient light sensor
    Location
    Assisted GPS
    Digital compass
    Wi-Fi
    Cellular
    Power and battery
    Built-in rechargeable lithium-ion battery
    Charging via USB to computer system or power adapter
    Talk time:
    Up to 7 hours
    Up to 14 hours
    Standby time: Up to 300 hours
    Internet use:
    Up to 6 hours on 3G
    Up to 10 hours on Wi-Fi
    Video playback: Up to 10 hours
    Audio playback: Up to 40 hours

    All are brand new original in their sealed box, unlocked, Sim-card free, with 1 year international warranty made by apple manufacturing company U.S.A.

    Email: neilreal12@gmail.com

  5. RolandasGuest 4 years ago

    How to increase xperia x10 2.1 camera frames per second?