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March 2015


Mobile App Banner Advertising

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Apple now has over 775,000 apps available in their App Store. As for Google – well the Android based smartphone has grown incredibly with an estimated 700,000 apps in Google Play. With over 60 billion app downloads between the two of them, its fair to say the demand for apps is increasing exponentially.

More apps attract more customers. More customers mean more traffic. High volume traffic naturally generates advertising opportunities.  And this is what creates a great opportunity for your app to make money – banner advertising.

Why is this important? Due to all the competition many app developers are now providing their apps for free, however they’re monetising their app through banner advertising. Essentially, they’re opening up their apps to advertisers to place specific ads in front of the app developers target audience.

Now consider this – think of the recurring income you could earn if your app achieved 10,000+ or even 100,000+ downloads within 12 months? Subject to the agreement between you and the ad network, you could generate money every time someone views and/or clicks on the banner advertisement within your app.

The advertiser benefits from generating revenue from their ad and you, as the app owner, earn revenue from the clicks or impressions on the ad.

So if you’re considering developing an app but feel that the competition may cause you to offer your app for free, then don’t despair. There are many different ways to generate a healthy app income.

To discuss your app development requirements get in touch with The App Team.

The App Team is based in Brisbane and specialises in app development for iPad, iPhone & Android. Contact us now 


Making Money from Apps

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As app developers, one of the most commonly asked questions we receive usually relates to “how do I make money from my app”. Whilst there are many variables to take into account, like “target market” and “purpose” for example, it generally boils down to “free apps vs. paid apps vs. freemium apps”.

The common misconception in the marketplace is there is only one way to generate revenue from an app – and that’s with a paid app! However, this is not necessarily the case. There are many ways to generate an income stream from your app and it’s easier than you think!

Firstly, it would be sensible for me to point out here that your app developer should always flesh out the revenue generation strategy before commencing the app development process. I preface this now because iPhone, iPad and Android apps should be uniquely designed and developed to align to the revenue generation strategy (if applicable) – right from the outset.

So which monetisation strategy will work best for you? Unfortunately there is no direct and effortless solution to this question. It generally starts in the initial consultation with your app developer.

In the meantime, let’s take a look at the three most common revenue models.

Paid apps are apps that make you money when consumers download your app from the App Store or Google Play. Whilst the price of an app ranges immensely, generally you will see most paid apps range between $1.29 and $2.99. Whilst there are many variables to consider, paid apps are perceived as the easiest way to monetise your apps.

A free app is exactly that – no cost to the end user to download your app. Free apps exist for many reasons, but they’re generally offered to consumers to keep up with the competition or to generate bulk traffic. Consistent traffic to your app may enable you to place banner advertising within your app to generate an income stream from click throughs and impressions and/or may open up affiliate marketing opportunities for you.

On the other hand free apps sometimes disguise themselves as a “lite version” for a paid app. This means an app developer may construct two versions of the same app. For example, the free app may have limited functionality, banner advertising, push notifications etc. Whereas, the paid version of the same app may contain full functionality, no banner advertising and no/limited push notifications. It’s a great way to cultivate interest and loyalty towards your paid version.

Lastly, freemium apps are widely regarded as the fusion of both free & paid apps. For example, let’s use an app game to describe the freemium model. Firstly, you download the app for free and commence playing the app with full functionality. However, as you become increasingly engaged in the game, progressing from level to level, you finally reach level 4 and it doesn’t allow you to advance further without downloading the paid version of the app by simply “clicking here”. This method is a great way to generate traffic and interest in your app at first, without the price tag, with the view of converting the consumer into a paid customer! This strategy is often referred to as “in app purchasing”.

In closing, choosing your revenue model always needs to be considered and well thought out. Free doesn’t necessarily mean traffic and paid doesn’t necessarily mean profit. The app purpose, target market, and marketing strategy play a big part in formulating the right monetisation strategy for your app.  To find out how The App Team can help you monetise your app idea, get in touch today.

The App Team is based in Brisbane and specialises in app development for iPad, iPhone & Android.

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Level 1, 276 Petrie Terrace, Petrie Terrace QLD 4000

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The App Team is part of the Gcomm.Digital Group.

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