With over 196 billion downloads, across five million unique mobile apps combined in both the Apple store and Google Play store, the level of competition can seem daunting to smaller, independent developers. It is for this reason that these developers need to capitalise on every viable revenue stream available.
There are two predominant strategies adopted when it comes to monetising apps: Freemium, offering both a free download and free gameplay with the option of in-app purchases; or, in-game advertising, typically through banner ads and interstitials. Both can generate some form of income as a stand-alone revenue strategy, and together they offer some revenue diversification.
A third revenue generator is monetising data analytics for third party companies such as data collection firms. Developers can work with a data SDK (Software Development Kit) partner to implement a data analysis strategy to provide chunks of data, at a price, to the Big Data marketplace.
Currently, rough estimates suggest big data is worth in excess of $203 billion annually, and large companies such as Facebook, Google and WhatsApp have already taken advantage of data analysis as one of their many revenue streams. Despite such monolithic companies operating in the industry, the barriers to entry are almost non-existent as virtually any data is of value if analysed correctly, and the data is simple to collect.
What sort of data? Information of a greater value typically includes non-personal data such as location and network information. With several data analytics partners available, it is imperative that developers connect with ones that prioritise user security and privacy on its handling of the data.
With 20% of users only ever accessing an app one time after its initial download, and an eye-watering 63% of all apps being churned through within the first month, developers need to consider an additional stream of revenue. The benefit of data monetisation is that it’s simple to get started and can be run concurrently with other monetisation methods. However, it is worth considering whether an app’s appeal stands to gain by cutting out intrusive and unsightly ads and shifting focus to data monetisation to improve retention percentages.