Advertising on mobile apps

We’ve reported on the advantages of freemium marketing and the in-app purchase model before and, with smartphones outnumbering television sets by a margin of three to one, it’s no wonder that advertisers are considering the smartphone as the Next Big Thing when it comes to peddling their products.  A number of studies show not only that freemium apps are wildly popular – they’re expected to constitute 81% of total app downloads this year – but they’re also incredibly effective advertising platforms, given that traditional advertising functions best at “peak” hours, whereas mobile apps work around the clock.

It’s wonderful that all these advertisers are exploiting mobile real estate to their advantage, of course, but how can developers cash in on the mobile app advertising trend?  If you’re thinking about putting a mobile app in the store, you’ll want to look into one of two mobile app advertising services: AdMob for Google Android devices, and iAd for Apple devices.

Short for “advertising on mobile,” AdMob appeared in 2006 and was effective enough to motivate Google to outbid Apple for its purchase.  It’s proven to be a particular boon for Android developers, considering that Android users are notoriously skittish when it comes to purchasing apps from the various Android app stores.  According to the recent figures from Distimo, 80% of paid Android apps have been downloaded fewer than 100 times.  As a result, developers have been turning to the considerably more effective method of in-app advertising in order to monetize their mobile apps.

Not to be outdone, in 2010 Apple shrugged off its loss in the bidding war for AdMob and developed its own in-app advertising service called iAd.  While Apple pockets 40% of the ad revenue generated through the service, one of the advantages of incorporating iAd into an Apple mobile app lies in the display.  Whereas other advertising software leads the user away from the app that’s running in order to open the ad in the device’s browser, iAd opens a full-screen ad within the app itself, thus allowing the user to return to what they were doing before they clicked on the ad.

In any event, if you’re considering developing a mobile app, the in-app advertising provided by these two services is considerably effective when it comes to monetization.  Drop us a line if you have any questions about in-app advertising, or visit our home page for three free quotes for your mobile app.

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Mark M. Stetler is CEO of AppMuse and its related businesses: iPhoneAppQuotes.com, iPadApplicationQuotes.com, AndroidAppDevelopmentQuotes.com, and BlackberryAppDevelopmentQuotes.com. AppMuse is the Internet's leading provider of free app development quotes from experienced, pre-screened app developers for iPhone, iPad, Android, and Blackberry smart phones.

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