An App-Filled New Year

By Amy Vale

From all of us at Mocean Mobile, Happy New Year! We hope the next twelve months bring you clarity about what matters in life (and business) and strengthen the relationships in your life. Because most of us on the team are unabashed app lovers and depend on them for just about every type of activity, I wanted to highlight some apps that are doing things right (and can offer lessons to developers when building their own apps).

StockTouch

One of the tougher parts of app design , especially for apps that aren’t games or entertainment-related, is simplifying and packaging huge amounts of complicated data so that it’s still beautiful and easy to digest. The StockTouch app lets users seamlessly watch the stock market as it unfolds and uncover insights and trends on companies and sectors. Tapping on a specific stock brings up detailed – but digestible – charts and information.

Just Landed

The Just Landed app helps track inbound flights and plan routes to reduce the complications and stress of airport pickups. For apps like Just Landed with a heavier text-to-image ratio, it’s important that the app has a simple interface and is beautifully designed. That means having clear, crisp and readable typography. Just as with so many other things in life, less is more. Don’t go overboard with using specialty or overly complex fonts, especially when the text is what really matters to users. In this instance, Just Landed helps

Code Year

For those of us who are techies and proud, the Code Year app teaches you coding skills that’ll make you a sought-after programmer. The free app offers lessons each week and covers topics like Ruby, Python and Javascript.

Happy Holidays From Mocean Mobile!

By Amy Vale

From all of us at Mocean Mobile, we’d like to wish you a very Happy Holidays! This is a time to reflect, appreciate and cherish the circle of family and friends in our lives. For us, it’s also a time to think about the positive impact we’ve made in the mobile industry, recognize the lessons learned along the way, and find new ways to improve monetization opportunities for our publishers, app developers and ad networks.

According to a recent PriceGrabberstudy, 82 percent of consumers plan to use mobile apps to save money when purchasing holiday gifts this year. Here are a few holiday apps that will save you money and de-stress the holiday shopping experience.

CouponSherpa

Who doesn’t want to score big savings this holiday season? The Coupon Sherpa free app for Apple and Android makes it easy to do just that by providing hundreds of digital coupons for popular stores like Kohl’s and Macy’s. Simply hand your phone to the cashier and they'll scan the coupon. No clipping required.

Decide

One of the worst feelings is saving your hard earned money, doing all your homework (at least you thought so) and purchasing something, only to find out a few months later that the price of that same item is much less than what you paid. The Decide app for iPhones and iPads helps you determine the best time to buy everything – from cameras to table saws.

Slice

If you do most of your shopping online, Slice will help you organize the receipts in your inbox and track your packages. The app will also show you a breakdown of your online spending habits, and remind you of Groupons, LivingSocial deals, and other coupons you wanted to take advantage of.

Mocean Mobile VP Amy Vale Named ‘Mobile Woman To Watch’

By David Gwozdz

The year is coming to a close and we’re in a bit of a retrospective mood. Looking back at 2012, mobile dominated nearly every conversation that took place – from industry events and client dinners to CMO conversations and mainstream press. For us, it’s been a year of incredible growth, major milestones, lessons learned along the way and a feeling of optimism for what lies ahead in 2013. Because we’re also one of the few organizations with not one, not two, but seven female executives, I’m proud to say that, once again, one of our female executives – Amy Vale – has been named to Mobile Marketer’s list of “Mobile Women to Watch.” We’re all incredibly proud of her accomplishments and what she’s done to elevate our brand as the standard in mobile ad serving technology.

Be sure to check out our customized research and Mobile Memo TV YouTube series for the latest monetization tips and strategies.

Movie Apps That Are Cool and Monetize Too

By Amy Vale

Who doesn’t love movies? In the app-heavy mobile world, it’s pretty clear that developers love movies too. A recent TVGuide.comstudy found that 68 percent of U.S. TV viewers watched between one and five hours of video per week on tablets and mobile phones. And mobile users reported paying for 10 percent of their streamed content.

For the increasingly mobile-dependent consumer who’s attached at the hip to their smartphones, tablets and e-Readers, there’s an endless amount of cool movie apps to help them get their movie fix. And for developers, movie apps are also conducive to long-term monetization. Here are two movie apps that are cool and monetize too.

Crackle brings Seinfeld’s web series to smartphones and tablets

Jerry Seinfeld is an icon in Hollywood. He was among the first to break all the traditional conventions of mainstream television; his show Seinfeld kept audiences amused and laughing for nine seasons despite being about “nothing”; now he’s got a new web-based show called “Comedians in Cars Getting Coffee.”  Thanks to Crackle, a free app for iOS and Android, users can get their entertainment fix with a tiny selection of movies and TV shows, including Monty Python’s “And Now for Something Completely Different,” “The Fifth Element,” “Groundhog Day,” “I Dream of Jeannie”, “All in the Family,” and, of course, “Seinfeld.”

The cool factor of this app isn’t just reserved for movie and TV buffs; developers can make good use of in-app ads to monetize. I’ve said it before, but I’ll say it again. In-app ads need to be aligned with the type of apps people are using. In this case, that means integrating rich media, especially video content, into in-app ads. 

Action Movie FX puts you in the middle of the action (packs a punch)

There’s no shortage of action movie buffs. These folks don’t just love watching action-packed stunts and explosions in the latest Bond movie; they wish they could be in the middle of the action too. Well, there’s a free app that can do just that. It’s called Action Movie FX and requires iOS 4.3 or later and works with iPhone 3GS, iPhone 4, iPhone 4S, iPod Touch (4^th generation), iPad 2 Wi-Fi and iPad 2.

Here’s how it works. You open the app and select one of two free action effects: Missile Attack and Car Smash. This app is particularly conducive to monetization because users with a penchant for cool effects and action can purchase additional effects for 99 cents apiece. Plus, the app offers all the guidance and how-to of creating their own effects and overlaying them into their own video clips. Because of the exceptional user experience and audience associated with this app, in-app purchases are a smart way for developers to monetize.

The iOS Vs. Android App Monetization Debate

By Amy Vale

In an increasingly mobile-first world, apps rule. Apps deliver content to users in a way that’s fast, engaging and relevant to what matters to them. Apps allow users to be “always on, always connected.” Noah Elkin of eMarketer said it best: “Consumer response in terms of adoption and use of apps is a testament to their importance within the marketing ecosystem and the central role they can play when it comes to ongoing engagement.” For developers, the app’s ability to deliver engaging, useful and relevant content instantly directly impacts their monetization strategy. Knowing the monetization opportunities that lie within appvertising, we can’t help but ask that question: Are iOS or Android apps better suited for monetization?

According to Nielsen, US Android and iOS app users spent 101 billion minutes per month with their apps in March 2012, more than double the amount from a year earlier. Clearly, there are benefits to developing apps on both platforms. Here are a few things developers should keep in mind to monetize their iOS and Android apps. 

Design for optimization.

Apple’s release of the iPhone 5 this year offered up many new improvements to the design, functionality and experience of the device. Among these many improvements, the screen size is about 4 inches larger than previous models, putting it in direct competition with Android screens which can be as big as 4.8 inches. What this means for apps that were developed for the smaller screens of older iPhone models will require some form of recoding and redesign to accommodate the pixel resolution and aspect ratio of the new iPhone 5.

The ad-supported model works.

A recent study by CambridgeUniversity found that 73 percent of apps in the Android marketplace were free, and of those, 80 percent relied on advertising as their main business model. The study goes on to reveal that free applications are far more popular in terms of downloads. Only 0.2 percent of paid apps get more than 10,000 downloads, compared to 20 percent of free apps having 10,000 or more downloads.

Repurpose existing and archived content.

One of the key benefits of smartphones and tablets is the ease, speed and immediacy with which media content can be delivered to users. This is especially true for news, music, video and entertainment-related apps where content plays an integral role in user engagement, CTRs, downloads, video plays and, of course, sales. By offering live recordings from music artists or even archived issues of newspapers as in-app purchases, developers can effectively monetize their apps.

Communicate the value of in-app purchases (and upgrades).

In-app purchases are one of the most attractive ways to monetize apps on both the iOS and Android platform. But one big mistake that’s often made by developers is not communicating the value of in-app purchases (and upgrades) to users. Leaving users in the dark will only hinder your opportunity to generate revenue from an app. Do whatever you can to communicate and encourage users to make in-app purchases and offer upgrades that will enhance their overall user experience.

Upsell at the right time.

We’ve seen this time and time again with many gaming apps. As with any form of advertising, upselling at the right time is crucial to ensure you attract and retain users who will become loyal. The more loyal these users become with an app, the more likely they’ll be to click on an ad within the app or purchase a virtual token, especially if it gives them a competitive advantage or advance to the next level of the game.

The Mobile Essentials of Marketing & Monetizing CPG Apps

By Amy Vale

At this year’s Mobile Marketing Summit: Holiday Focus, hosted by Mobile Marketer, Kraft made a definitive statement about their mobile plans. The CPG brand, soon to be renamed Mondalez, will move 10 percent of its media budgets to mobile. While that’s a big move for a brand that’s become a household name among millions of consumers worldwide, there’s still a lot of mobile learning that needs to take place. Here are two mobile essentials that will help developers market and monetize their CPG apps.

Immerse with creative

For many consumers, mobile acts as a natural extension of the traditional TV experience. Smartphones and tablets aren’t used at one single point in the day. They’re used morning, noon and night repeatedly; they support long-form media content; they often complement other media consumption via TV, print and online. To effectively monetize CPG apps, it will come down to creating a rich, immersive user experience that’s both entertaining and informational. One way to create this ‘entertaining’ effect is mobile video. 

Recent research from Nielsen found that mobile video ads for CPG brands generated a significantly higher level of awareness, favorability and purchase interest on mobile, compared to TV and online video. The engagement and ROI potential is clearly there; so app developers should partner with rich media providers to ensure integrations are seamless for their advertisers’ creative executions to be delivered to mobile users. CPG app users will be far more receptive to see, and act on, ads when they are packaged creatively in rich media formats like expandable banner ads, in-banner video, etc. 

Follow your audience 

Just as with any smart mobile strategy, it’s important to identify your audience, their primary devices, the type of content (and ads) that will gain their attention and where they’re using their mobile devices. Then follow your audience using targeted ads. 

According to a recent Wall Street Journal article, a growing number of U.S. food makers are using mobile games to entertain, engage and ultimately, sell their products to kids on smartphones and tablets. As can be seen in Mojiva’s recent Parenting MAG, parents are increasingly becoming reliant on their smartphones and tablets to entertain their kids. In fact, 56 percent of parents reported giving their mobile devices to their kids for entertainment purposes at least once a day and 57 percent have previously downloaded or added an application or web page on their mobile device for their child to use. The lesson for developers is pretty simple - the best mobile gaming experience possible will inevitably bring users back to the app, repeatedly. The more frequently these users get comfortable with and use the mobile gaming app (and share it across their social network), the more likely they’ll be to make in-app purchases.

No matter what monetization route you follow, be sure to partner with an advertising network that has strong reach and scalability across multiple platforms to generate a consistent stream of revenue from your CPG app. 

A Guide For Restaurant Publishers & App Developers To Beef Up Their Monetization

By Amy Vale

Do you order take-out three nights a week on your smartphone? Have you used your mobile device to locate a nearby restaurant? Do you often look up a restaurant’s menu while on-the-go? If you answered yes to any of these, you’re not alone. According to a recent report from eMarketer, the mass availability of mobile devices is making mobile dining that much more common among U.S. consumers. In fact, 32 percent of U.S. millenials reported checking menus on their phones and nearly one-quarter of U.S. smartphone and tablet users used their mobile devices to order ahead (typically at quick-service or fast-casual restaurants). Here are three ways for restaurant publishers and app developers to beef up their monetization strategies.

Re-engage beyond initial “install”

For utility apps that aren’t centered around games and entertainment, it’s all about re-engaging users (time and time again) past the initial “install.” That’s where in-app purchases can help make monetization become much more plausible and a reality for publishers and app developers. A new Gartner study reveals that apps where users can buy extra items, levels or services are expected to reach 30 percent of all apps in 2016 – that’s up from only 5 percent in 2011. And the revenue coming from in-app purchases will grow from 10 percent to 41 percent over the same period. Getting these types of non-gaming users (i.e. foodies) interested in making in-app purchases is very beneficial – users are rewarded for their brand and app loyalty, while publishers and app developers get revenue.

Be relevant and reward loyalty

This past summer, Denny’s restaurant chain launched its “50State Check-In Challenge” in conjunction with the release of its first mobile app. But the casual restaurant chain’s goal wasn’t to increase brand awareness; it was to make the experience relevant and useful for its customers. If you ask me, Denny’s CMO made a smart decision to design their own app because they mirrored the app’s user experience and functionality to their audience – who they are, what devices they use, what types of content matter, and of course, where they are.

Knowing that not every Denny’s customer may be keen to embark on this type of eating adventure, the app does a good job of including both types of customers with loyalty-based prizes and virtual badges. For example, users who check in to a Denny’s location 10 times will receive 10% off their checks and 25 check-ins pays off with a free “Pancake Puppies” sundae. Group check-ins are also rewarded. There’s a simple lesson to be learned here. A strong user experience breeds loyalty; loyalty drives repeat visits, in-app purchases and social promotion; all of this leads to a consistent source of revenue for publishers and app developers.

Location, location, location

I’ve said this time and time again, but I’ll say it again. Targeting capabilities are an invaluable tool for publishers and app developers. When it comes to dining, hungry people are usually on the hunt for good food, right here and right now. Using geo-location targeting, publishers and app developers can serve up ads that have location-specific relevance and, more importantly, can be used immediately. Serving up the right types of ads to the right users in the right place can have real monetization benefits.

As we head into what I can only assume will be a food-heavy holiday season, I hope publishers and app developers are being smart with their monetization strategies. Are there any restaurant and dining apps that you absolutely love? Do you prefer to use your smartphone or tablet for on-the-go food activities? Tell us on our Facebook page or share your favorite (or funniest) mobile food experience on Twitter using the hashtag #MobileFoodie!

LinkedIn: It’s Time To Monetize Mobile

By Amy Vale

LinkedIn is a staple of the business world, no matter what industry you sit in. In the last few months, we’ve seen the professional networking site ramp up with many improvements such as redesigning its home page, profile pages and company pages, plus launching features such as endorsements, notifications and sponsored job listings. These improvements came off the heels of its Q1 2012 earnings call, which revealed that mobile now accounts for about 22% of its membervisits and the launch of its first official iPad app in April. Despite all this growth in mobile traffic, the network has yet to fully monetize its mobile channels.

According to analyst Mary Meeker’s projections on Internetand Mobile Trends this year, mobile monetization could very well be on track to outpace desktop monetization in as little as one to three years. In August 2012, eMarketer estimated that in the U.S., just under 82 million consumers, or 26% of the population, will access social networks from their phones this year, rising to nearly 117 million by 2014.

One factor that could very well contribute to LinkedIn’s success in monetizing its mobile channel is the predicted growth in tablet advertising. According to IAB’sreport on “Mobile’s Role In The Consumer’s Media Day,”  nearly half of tablet users (47%) reported engaging with ads on that mobile device more than once a week and an impressive 89% of tablet users are extremely likely to take action after engaging with an ad on that device.

The larger screen real estate of tablets, for one, offers a unique benefit to tablet publishers and developers looking to monetize with mobile advertising. For tablet publishers and app developers, it will be important not to simply stretch out existing smartphone apps to fit the device’s larger screen size. With the recent introduction of the iPad Mini and other mid-sized 7 inch tablet devices entering the market, I can’t warn enough against making that mobile mistake. Know the capabilities of and types of devices where your mobile ads will be seen, and then tailor your ad creative accordingly. If your ads are being served onto LinkedIn’s tablet app, rich media and video ads may be a smart way to drive longer and deeper engagement rates and, as a result, monetization.

As we move into 2013, all eyes will be on the professional network to see what steps it will take to invest in a fully scalable mobile solution.

Resilience In The Wake Of Hurricane Sandy

By David Gwozdz

Last week, the Northeast was put to the ultimate test when Hurricane Sandy barreled its way across the east coast. Although it only lasted two days, the effects of the “superstorm” will be seen for months to come. For millions of people in towns near and far – from New York to New Jersey to Connecticut to Washington DC – homes were destroyed, businesses were washed away (literally) and sadly, lives were lost. The people of New York have always been resilient in the face of disaster and tragedy. All of us here at Mocean Mobile feel incredibly proud to call New York City our headquarters and express our deepest sympathies and condolences for all those affected by Hurricane Sandy. Now is the time to come together (friends and strangers alike) and rebuild this city that’s given us so much over the years.

In the months to come, I’m hopeful and optimistic that mobile will act as an important tool in the recovery and rebuilding process. As we’ve seen with previous natural disasters around the world – from the devastating 2010 earthquake in Haiti to the 2011 tsunami in Japan – mobile carries with it tremendous power to do “good” and empower communities to work together, fundraise and rebuild what’s been torn down to make it even better and stronger.

Because of the unique capabilities of mobile devices and their ability to keep us “always connected” 24/7, mobile giving is expected to account for 20% of Hurricane Sandy disaster relief efforts. The American Red Cross, Salvation Army, American Humane Association and World Vision are just a few of the organizations that have already set up mobile giving campaigns. Mobile users can simply text a keyword to a short code to donate $10 – it’s simple and fast to help those affected by Hurricane Sandy.

Here are just a few ways we can all help and give back to all those affected by Hurricane Sandy.

American Red Cross: http://www.redcross.org

Salvation Army: http://www.salvationarmyusa.org

American Humane Association: http://www.americanhumane.org

World Vision: http://www.worldvision.org

iPad Mini: Tipping The Monetization Scale For Developers

By Amy Vale

Over the last several weeks, everyone has been talking about Apple’s debut of the iPad Mini. It has a somewhat smaller screen size (7.9 inches, to be exact); it’s priced lower than the older versions of the iPad; it’s equipped with a new and improved 5-megapixel camera. But will this new tablet be seen as an opportunity or challenge to app developers? Here are 3 reasons the iPad Mini will tip the monetization scale for developers (in a good way).

Play nice with old apps

The in-app experience on the iPad Mini will be the same as on the older and bigger versions of the iPad. In fact, it’s capable of running 275,000 iPad apps. That’s good news for app developers who may not have the resources or budgets to redesign or rescale their existing iPad apps to fit the lighter, thinner and smaller version. Plus, since the iPad Mini has the same aspect ratio as the bigger iPads, apps designed for the iPad Mini’s 7.9-inch screen will translate well to the larger 10-inch screen of the iPad.

Up the ante for tablet gaming

Some are calling the iPad Mini a gaming “game-changer” for the simple fact that the device’s lighter, thinner and smaller specs allow users to hold it comfortably in one hand. As a result, it’s been touted as an alternative controller or console for iOS games.

Mintel has found that sales in the mobile phone and tablet gaming market in the U.S. more than doubled between 2005 and 2010—reaching $898 million—and sales are forecasted to increase 82%, to $1.6 billion, by 2015. Smartphone sales in the U.S. increased a massive 538%—from 11.3 million units to 72 million units—between 2006 and 2011. What’s more is that U.S. tablet sales are forecast to more than triple between 2010 and 2015, from 10.3 million units to 44 million units. So what does this mean for gaming developers looking to monetize with ads on the iPad? For gaming developers looking to monetize effectively and consistently, the route to monetization will be just as clear, if not better, via in-app ads and in-app purchases.

Enhance user experience

Tablets are often referred to as “lean back” devices. Its users rely on the devices to read e-books/news, watch videos, play games, use utility apps, listen to music and perform a host of other activities (aside from making calls/talking). Understand what types of tablet users are likely to use a specific app on the iPad Mini, where they’re using it, when they’re using it and for what purpose. If your app has a strong design, easy-to-use interface and isn’t cluttered with an excessive number of calls-to-action, you’ll be one step closer to monetization.  

Monetization Questions Every App Developer Should Ask

Monetization Questions Every App Developer Should Ask

By Amy Vale

We live in a fast-paced world; no one has time to grab breakfast these days let alone leisurely read a physical newspaper or even sit at our computers reading about the news. Like so many people around the world, I too rely on my smartphone and tablet to scour through national and international news  while on-the-go. It looks like I’m not alone here.

A recent study released by Pew Research Center’s Project for Excellence in Journalism and The Economist Group revealed that nearly three times as many tablet owners and twice as many smartphone users access news primary through browsers than apps. 60% of tablet news readers and 61% of smartphone news readers in the survey said they get most of their news through web browsers on those devices. 23% of tablet news readers and 28% of smartphone news readers claimed they use apps, while 16% and 11%, respectively, said they use apps and web browsers equally. For many news publishers such as Hearst and The Economist Group, mobile traffic is booming. That’s a fact; now how can they monetize those huge mobile traffic numbers? Here are three questions every app developer should ask themselves to monetize effectively.

How willing are people to pay up-front for my app?

Arguments can be made on both sides for the freemium and paid app model. The monetization advantages of the paid app model have a lot to do with the type of content and category of the app itself. Does your app’s user base prefer not to have the overall user experience disturbed by ads? If you answer yes to this question, the paid app model, whereby users pay a one-time fee to download an app, is one way to ensure that your app is monetizing.

Is the user experience engaging, relevant and informative?

Don’t be in a rush to get your app launched and in the marketplace. Make sure the user experience is strong, relevant to the needs of the audience and, most importantly, that it won’t be a trick pony and will drive consistent clicks and revenue.

Will my user base be receptive to view, and click on, in-app ads?

No matter what category your app falls into, I can’t stress enough the importance of having a mobile-specific strategy, creative collaboration and testing what works and doesn’t work. Know what your users are doing, where they are and where they’re going. Know the type of content that will resonate with them, even with the ads being served in apps. For example, mobile users reading news on The Economist Group tablet app will likely be more receptive to viewing a streaming video ad. Leveraging these insights will put you one step closer to effective monetization.

Social Games: The Monetization Factor

Social Games: The Monetization Factor

By Amy Vale

When it comes to social networks like Facebook and Twitter, mobile traffic is growing by leaps and bounds. Recently, Facebook put out some big numbers indicating its mobile users jumped from 83 million in March 2012 to 102 million in June 2012. According to comScore, time spent on Facebook’s mobile site and apps per month (441 minutes) has finally surpassed usage of its classic website (3991 minutes) – for Americans who use both Facebook interfaces. When you look at these stats, the potential for gaming developers to generate revenue from apps on Facebook is tremendous. But not all social games monetize the same.

There are 3 R’s that gaming developers should keep in mind - Reach, Retention and Revenue. Each of these should be taken into serious consideration when developers are looking to monetize their social games.

Reach

How many people does your social game have the potential to reach across all channels, including gameplays, Facebook and Twitter? It’s millions and millions. And those millions will translate to a large amount of revenue, if your app strategy is executed well.

Retention

Once people download and play your game, are they coming back 10 times, 20 times and on a consistent basis? Are they inviting other friends on their social networks to play too? It’s not enough to get a user to your app; you have to create a rich, wholly immersive user experience that will make them return repeatedly, enjoy the experience and, best of all, encourage their fellow mobile-centric friends to download and play the game.

Revenue

What are you doing to generate revenue? In-app purchases in the form of virtual currency or tokens can be an effective way to generate revenue while still complementing the overall user experience. For example, tokens can be used as a form of reward or incentive to move to the next level of a game.

Mobile Wallets & The Monetization Effect

By Amy Vale

The term ‘mobile wallet’ has been popping up quite frequently in major discussions among industry experts, analysts, retailers and the press. A mobile wallet is a smartphone or tablet app that stores a consumer’s payment details on his/ her devices or online to fund digital and in-store purchases. These mobile wallets are being touted as an area of great promise to both streamline and speed up the overall shopping process for consumers. According to a recent report by JuniperResearch, mobile payments are expected to rise nearly fourfold to more than $1.3 trillion annually by 2017.

Since the Merchant Customer Exchange announced its plans to launch a mobile payments network back in August, two more leading retailers have joined including Gap Inc. and Bed Bath & Beyond Inc.  It’s not just retailers who are lining up to implement mobile wallets into their larger advertising strategies. Financial services giant MasterCard is putting a lot of its marketing and manpower behind its vision to let consumers pay for items from just about any app or video. But the question remains: How will app developers monetize with mobile wallets? Here are 3 things app developers should keep front of mind when developing mobile wallet apps.

Improve user experience (one-click payment option from mobile devices)

When it comes to today’s shoppers, multi-tasking is embedded into their DNA. They are typically on-the-go, running from one place to the next and rely on smartphones and tablets (often simultaneously for varying tasks). One key tactic that will help app developers monetize with mobile wallets is improving the user experience. Create a user experience that makes it easy, fast and even entertaining to get from point A (researching a product) to making the final purchase in as few clicks as possible.

Offer instant mobile coupons

The beauty of a mobile wallet is that it simplifies and enhances the overall shopping experience, all within a mobile app. Using location-based targeting to deliver instant coupons is a smart and effective way for app developers to monetize with mobile wallets.

Look at customer purchase data and tweak advertising tactics accordingly

As with any form of marketing, data shouldn’t just be seen with the attitude of “what did we do?” App developers looking to generate revenue via mobile wallets should look at data with the attitude of “how can I act on it?” As more mobile wallets enter the market, the amount of purchase data from an increasingly mobile audience will be tremendous. Ask yourself important questions. Who are the consumers using your mobile wallet? What is their purchase behavior? How often are they shopping? What’s their typical spend per purchase? If your app isn’t perfoming well (less than 3.5 stars), use the data to tweak and adjust your app so that it’s creating a consistent stream of revenue.

Mocean Mobile’s Julie Preis To Speak at Application Developers Alliance Event in NYC

By Amy Vale

Mobile advertising is futile without the right mobile ad serving technology behind it to deliver results. Without the right tools and ad serving platforms, monetization will continue to remain a challenge for publishers and app developers. Helping developers find smart, effective ways to monetize their apps will be the topic of conversation at a panel hosted by the Application Developers Alliance, which takes place at the IAC Building in New York City on Tuesday, October 9^th. And we’re excited to report that our very own Julie Preis, SVP, Product Management, will be speaking on the Platforms/Tools panel at 12:45pm, and she will be joined by highly respected mobile advertising executives from Localytics, Double Positive and TapJoy.

The event will be live streamed across the Application Developers Network and, of course, you’ll be able to see all of the monetization action and dialogue on our Facebook and Twitter pages as well.

Three Rules For Luxury Mobile Monetization

By Amy Vale

What’s the first thing that comes to mind when you think of the word “luxury”? For me, it’s usually exquisite craftsmanship, beauty, privilege and a sense of exclusivity. Wealthy Americans, better known as that group of consumers earning a minimum of $150,000 a year, are apt to use their mobile devices for all kinds of activities associated with the purchase funnel. According to a study by The Luxury Institute and Plastic Mobile, 60% of wealthy Americans owned a smartphone, of which more than 80% had downloaded an app. The study goes on to show that mobile luxury shoppers are most interested in using apps to gain access to discounts. 46% of those who had downloaded or planned to download any mobile app said they expected a luxury app to provide them with a loyalty program. Early access to sales was the second-highest anticipated app feature, at 45%. For publishers and app developers, understanding these consumer perceptions will go a long way in serving up mobile advertisements onto smartphones and tablets that are relevant, engaging and, most importantly, deliver consistent revenue. Now, let’s look at three ways luxury publishers and app developers can maximize their monetization strategies.

Integrate banner ads into mobile-optimized luxury sites

The biggest benefit of a mobile-optimized site is that it can be used in conjunction with many mobile functions. So understand the type of ad content that will appeal and resonate with luxury mobile shoppers. For example, don’t try to do too many things with mobile banner ads. Less is more. Focus on one clear call-to-action that will increase clicks, downloads and eventually revenue. By doing so, publishers and app developers will be well on their way to monetization.

Deliver exclusivity via “insider access”

Luxury connotes a sense of exclusivity and “insider access.” Leverage that quality by serving mobile ads with exclusive content via rich media and mobile video. By serving mobile ads that are entertaining, engaging and, most importantly, let mobile luxury shoppers experience “never seen before” content will be an effective monetization strategy for publishers and app developers. In the case of luxury carmaker LandRover, video has proven to be a key piece of their mobile-focused advertising strategy. During the pre-launch of its 2012 Range Rover Evoque, Land Rover introduced a mobile app called Pulse of the City and also created an interactive online movie in hopes of entertaining and informing its early-adopter, tech-savvy target audience.

Leverage “appvertising” within gaming apps

Earlier this year, Juniper Research released its “MobileAdvertising: Messaging, In-App and Mobile Internet Strategies 2012-2017” report highlighting what brands are doing well, and not so well, to monetize apps and mobile sites. The report projects that in-app mobile advertising spend will reach $10.4 billion by 2017. Clearly, apps aren’t going anywhere any time soon, so understanding where, when and how to serve up mobile ads within apps is most important for publishers and app developers right now. One tactic to create a consistent funnel of revenue for app developers is to deliver ads within gaming apps. As recently as a few weeks ago, Toyota’s luxury brand Lexus hedged its mobile bets on video ads within the gaming app Gems With Friends. Video ads of the new Lexus ES model are served to Gems With Friends players, and then connect Gems With Friends players to the Lexus Facebook page. What’s important to understand is that not every gaming app will be the right place for publishers and app developers to serve up ads. Figuring out the right time, the right place and the right message will make monetization feel much more attainable for app developers. 

Why Mobile Political Ads Are Here To Stay

By Amy Vale

The political landscape has changed considerably over the last several years, especially when you look at where and how people vote. Historically, people voted at polling stations located near their homes or offices, and it was standard practice for voters to receive “house calls” from political constituents looking to drum up support for a specific socio-political issue and fundraise. That’s all begun to change with the proliferation of smartphones and tablets and consumers’ increasing dependence on these small screen devices. Now people are using these devices to research social, political and economic issues affecting the country and the world, read news about political candidates, and even promote fundraising events.

In the context of this year’s Presidential Election, mobile is one channel that’s already getting the attention and advertising dollars of both Obama and Romney in their race to win the hearts and votes of Americans. So what’s the draw for publishers and app developers to make the most of mobile political ads? What are the best ways to monetize mobile political ads? According to eMarketer, video will account for 5.8%, or $151.5 million, of the year’s $2.61 billion total mobile ad spending in the U.S.

As the race to the White House heats up over the next few months, we’re seeing an increase in the use of mobile video and rich media ads within mobile sites and apps like Pandora and Facebook. The reason being is simple – both are smart ad-supported channels that reach millions of mobile users daily. By serving political ads that are engaging, relevant and entertaining within these apps and mobile sites, publishers and developers can effectively drive an increase in clicks, conversions and revenue. eMarketer estimates that by the end of 2012, nearly 82 million Americans will access a social media site on their mobile device. In fact, over 70% of music listening on Pandora happens on mobile, or “off the computer,” (in July, total listening hours hit 1.12 billion), and Facebook said last month that 543 million, more than half of its users, access Facebook from a mobile device. If there’s one thing we can be sure of, it’s that mobile political ads are here to stay and can create a consistent revenue stream for publishers and app developers.

Of course, one of the biggest assets of mobile devices is the ability to target users based on their location, time of day, device type and device features. For mobile political ads, the monetization that can result from delivering intuitive, targeted mobile ads across smartphones and tablets is very important. For example, mobile ads targeting voters in a typically “blue”, or Democratic state such as New York, will likely have higher engagement rates.

Last, but certainly not least, it’s important for publishers and app developers to pay close attention to the actual design and user experience of mobile political ads themselves. Less is more. Instead of pushing multiple messages through a banner ad, it’s better to focus on one particular call-to-action. With consumers apt to want information fast and delivered easily, the user experience should be a top priority in delivering mobile political ads. So, ensure that banner ads support this type of mobile usage/behavior to drive deeper and longer engagement (thus resulting in that all important metric – revenue and ROI).

What types of innovation would you like to see in mobile political ads? Would you be more responsive to a mobile ad that positioned a candidate in a negative light? How do you plan to use your smartphone and tablet in the days leading up to the Presidential Election? Tell us on our Facebook and Twitter pages.

Rejuvenate Your Health & Fitness App Monetization Strategy

By Amy Vale

There are over 40,000 health and fitness apps out there, and that number is climbing fast. Not to mention, these healthy apps are expected to bring in $1.3 billion in 2012, according to a Research2Guidance report. If you have any doubts or skepticism as to just how lucrative the health and fitness app market really is, take a look at these numbers. About 33% of people with smartphones in the U.S. tracked their diet or their exercise routines with their mobile devices, a comScore representative told the New York Times in April. comScore said that for tablet users the numbers climb a bit: 35% used the devices to track diet and 39% used tablets like the iPad to track their exercise. Clearly, the time is ripe for publishers and app developers to grow their mobile revenue through health and fitness app advertising.

Gone are the days when publishers and app developers rely on pay-per-download apps as their sole source of revenue. While the Freemium model isn’t going anywhere, we’re seeing a shift in the monetization tactics used to generate revenue from mobile apps, specifically using in-app ads and in-app purchases. First, health and app developers need to dig into the who, what, where and why their apps are being used. Who are the targeted “power” users of these apps? How likely are users to view and interact with ads that appear in health and fitness apps? What types of information and content is of interest to these users and what ad format would drive deeper engagement? By answering these questions, app developers can serve up ads that are more relevant, targeted and engaging. As a result, mobile traffic and revenue will undoubtedly surge.

Of course, we can’t ignore a huge “power” market for health and fitness apps – mobile moms. Moms are often referred to in the medical community as “Chief Health Officer”, and today’s mom has an even greater reliance on her smartphone or tablet to keep her family healthy, wherever she may be. Recently, our mobile ad network Mojiva released its “Moms on Mobile” report, which revealed that one-third of moms own a connected device and they spend an average of 6.1 hours a day on their smartphones – that’s more than the time spent reading magazines, watching TV or listening to the radio. Plus, 62% of these mobile moms use shopping apps and 46% took action after seeing a mobile ad. To this group of “power” users, mobile is more than just another channel; it’s an essential component of their everyday routine. These connected moms are sleeping with their mobile devices next to their bed andthey’re scrolling through emails and social updates first thing in the morning. They’re tracking their family’s health and fitness goals on these small screens (i.e. calories burned, miles run, healthy recipes). And they’re even using the devices to research more serious health conditions such as Diabetes and Heart Disease. According to a Baby Center study, one in three moms used her smartphone for health purposes, compared to 22% of the general population. Further, a Baby Center “Dr. Mom Study” showed that nine out of 10 moms who own smartphones used the devices to research health conditions.

When it comes to health and fitness apps, it’s all about the user experience. Is it engaging? Does it provide useful and relevant health tips and information? How often do users use the app? Much in the same way the user experience impacts how users engage with an app, this same “usability” factor should be taken into consideration when serving up ads within an app. For instance, rich mobile ad units, such as expandable banner ads, click to social and video, can meet these “usability” needs and, in doing so, ensure that publishers and app developers achieve optimal ROI and deliver against their KPI metrics.

In addition, in-app purchases are also being hailed as a smart and effective monetization route. According to a recent study conducted by IDC and Appcelerator, 50% of developers say that in-app purchases will be the most important monetization strategy, tying with app store sales. In the case of health and fitness apps, a lot can be learned from gaming app developers who create ongoing revenue streams through in-app purchases, also referred to as “tokens” or “power ups.” Much like Words With Friends and Angry Birds, power users are fiercely loyal and will be more receptive to make in-app purchases once they’ve used the app more than 10 times. These in-app purchases, or “tokens,” can be redeemed for a number of “goods,” including gym discounts and exercise video packs. The more relevant and targeted these in-app purchases are, the greater likelihood they will make money long-term for publishers and app developers.

Health and fitness apps are here to stay, that’s for sure. What remains to be seen is how publishers and app developers will turn what some may call a “fad” into a long-term, lucrative business that deliver real revenue and ROI. 

iOS 6 Software: A Boon For Mobile Revenue

by Amy Vale

Apple fans all over the world are waiting with bated breath for the release of the new iPhone 5. Images of the new device and snippets of information continue to be leaked, but there’s still some time before we’ll hold the latest iPhone in our hands. With a host of incredible new developments and features, the iOS 6 software has the potential to boost mobile revenue (in big ways) for publishers and app developers.

To begin with, the iPhone’s Siri voice-recognition technology is expected to undergo some massive improvements. The new software will allow users to launch applications and games directly from within Siri, thus opening the door wide for mobile monetization. As a result, we anticipate seeing more advanced functionality and features within apps in general, and in turn this will allow publishers and app developers to serve up in-app ads that are smart, engaging and relevant to users’ needs, and a better ROI on their marketing dollars.

The new software also plans to make significant changes to Facebook access and bring about more complete integration with other apps and device features across the board. Some of the changes will include accessing Facebook from within the iOS 6 platform itself-which will integrate seamlessly via Siri, the Notifications Center, status updates and more, so users can share their favorite apps across social networking sites. All of these updates in time will allow publishers and app developers to get more bang for their buck with the use of in-app ads and in-app purchases on the new iPhone 5.

As another example, Fly Over is Apple’s new map application, a 3D photographic model of cities in the same vein as Google Earth. Not only will this new app be a big feature of the iPhone 5, but the iOS 6 software has also fully integrated Siri into the rest of the device’s features so the maps are voice-navigation compatible. Apple has also wisely tied this into millions of businesses so it will be easy for users to get information or read customer reviews from, for example, Yelp while still using the map app. From publishers’ and app developers’ perspective, this feature could be a platform for new forms of mobile targeting.

The reports are also saying that new software plans to use geo-fencing technology to upgrade the phone call features of the iPhone. For example, users can be reminded to call a particular person when they have left or arrived at a particular location. It will be interesting to see how publishers and app developers leverage specific parameters of mobile targeting, including day-parting, geo-location, contextual keywords, device type and device feature, to serve up ads and boost clicks, impressions and revenue. Targeting isn’t the only path for monetization with this new iOS 6 software; we already know that video viewing and social networking on Smartphones are on the rise. In fact, eMarketer estimates that by 2016, more than 110 million Americans – or one-third of the total U.S. population – will watch video content on a mobile phone at least once per month. Perhaps we’ll see mobile ads served up on the iPhone’s hugely popular video-calling application – FaceTime.

Lastly, another great iOS 6 feature is a new app that lets users merge all of their passes and tickets into one location. Essentially, users can store their movie tickets, boarding passes and store cards in one single location. What’s more is that when users enter a movie theater, their movie ticket will pop up on the small screen of their mobile device. This poses a huge opportunity for publishers and app developers to serve up ads across iPhones that are specifically targeted and relevant to where users are located, what they’re doing and what types of content they prefer to engage with.

How can iOS6 create ongoing revenue streams for publishers and app developers? Is monetization a top priority for publishers and app developers leading up to Apple’s anticipated release of the iPhone 5? Feel free to tell us your thoughts here, or on our Facebook and Twitter pages.

Mobile Dating Steers Publishers & App Developers To Monetization

Mobile Dating Steers Publishers & App Developers To Monetization

By Amy Vale

Finding love and romance isn’t always easy, especially in a world where people live on-the-go and are always rushing to the next activity with multiple devices in their hands. It’s this very rushed style of dating that’s driven the huge surge in popularity of online dating sites. And that popularity is moving to the small screen too, as mobile dating is on pace to overtake online dating as the preferred channel for finding love around the world. Statistics now say that 80% of single people prefer mobile dating apps over online dating sites. If that isn’t proof enough, a Snap Interactive survey of 50,000 people found that four out of five single people prefer using Smartphones to get dates, compared to online dating sites. With the number of mobile users worldwide rising at a pace faster than we could imagine, how can publishers and app developers monetize the high traffic of mobile users searching for love on-the-go?

According to a New York Times article, mobile dating apps are fast becoming the favored method of finding love due in large part to the ease of use and immediacy offered by location-based targeting capabilities. Essentially, users can flirt and set up dates at a much faster rate on their mobile devices. With the added benefit of “instant dating,” these app users can find someone with similar interests who is nearby instantly. So how can publishers and app developers prevent their dating apps and mobile sites from becoming a one-hit wonder and generate consistent streams of revenue from them?

Since a growing number of mobile dating sites and apps leverage location-based features, using geo-location targeting in the mobile ads and in-app ads has tremendous value because they fill the instant and local needs of mobile daters. In late 2011, the hugely popular online dating site OKCupid delved into the mobile world with its ‘OKCupid Locals’ app. The dating site’s bid to monetize with mobile is a very smart move, and exactly the type of mobile move analyst Mary Meeker would approve of. OKCupid Locals has found that a tenth of its 2.5 million active members use the location features within the mobile app. Given these high numbers, location-based targeting will make mobile ads a lucrative business for publishers and app developers. Imagine a thirty-something female professional sitting at a local coffee shop on a Saturday afternoon, idly browsing through the OKCupid Locals app on her Smartphone. Geo-location targeting ensures that the mobile ads served within the app on her Smartphone are geographically relevant to her. When it comes to dating, the more relevant and targeted these ads are (whether on a mobile-optimized dating site or app), the greater the likelihood of converting mobile site visits into a consistent source of revenue.

Another way to monetize these dating apps and make them stand out from the pack is the Freemium model, whereby it’s free to download an app initially and a healthy portion of revenue comes from in-app purchases. According to IHS iSuppli’s market intelligence, revenue from in-app purchases is expected to increase to $5.6 billion in 2015, up from $970 million in 2011, and will account for 64% of total market revenue. To make the case for in-app purchases in the world of love and flirting, let’s look at one app that’s monetizing a bit differently from other socially-driven apps like Instagram, Pinterest and Tumblr. Skout boasts some pretty serious engagement numbers asthe dating app supports 300 million messages a month,  its average user checks in about 8 to 9 times a day and it’s signing up about one million users each month. Instead of using mobile ads, Skout’s mobile revenue stream comes in large part from in-app purchases. Essentially, Skout app users can purchase “points” which can be used in a number of ways, including sending virtual gifts, seeing who is viewing their profile and sending “wink bombs.”

Clearly, mobile dating is gaining favor with consumers around the world. And the benefits of finding instant, local love on the small screen aren’t only confined to daters; there’s plenty of revenue to be made long-term following the route of in-app ads and in-app purchases.

The Monetization Rush For Mobile Payment Apps

By Amy Vale

As people trade in their older, clunkier mobile phones for sleeker, more advanced Smartphones and tablets, the number of benefits to their lives increase exponentially. That can be said for the mobile shopping experience, with the percentage of mobile shoppers who are Smartphone users jumping from 75% in 2010 to 93% in 2011. With this up shift in mobile use, so does the need for retailers to create a seamless shopping experience for their customers, both offline and online. As retailers rush to adopt mobile-first strategies, we’ll likely see the release of more mobile payment apps to cut down on time shoppers spend waiting in line at their stores, much like the one launched by Carphone Warehouse last week. But how (well) will publishers and app developers cash in on these mobile payment apps?

We already know that consumers aren’t as frustrated or averse to seeing mobile ads, as we once thought. In fact, the Interactive Advertising Bureau reports that 76% of mobile commerce users used their mobile devices in the retail store, and 22% of mobile commerce interactions were driven by a mobile ad. To monetize mobile payment apps, it’s not enough for publishers and app developers to simply make the decision to develop in-app ads. If publishers and app developers want to see those ads drive a significant portion of overall revenue, they must embody, respect and enhance the overall user experience. And that may very well mean abandoning banner ads and pre-roll. Instead, in-app ads for these mobile payment apps must tell a visually interactive, compelling and relevant message to users. For instance, if a regular JC Penney customer is using their Smartphone to play a gaming app, they’ll be more responsive (and interested) in interacting with an ad that says: “Interact with this JC Penney ad and receive 5 free power-ups.” What this means is that delivering the right in-app ad at the right time can effectively increase the number of clicks, impressions and revenue that publishers and app developers see. For mobile users, it’s a win-win situation because they not only get to enjoy playing the gaming app, but they’re given ads that are both interactive and relevant to their needs (super gaming users want more power-ups). For publishers and app developers, being strategic in the types of ads delivered to Smartphones and tablets will ensure greater ROI and revenue.

To top it off, just last week a group of 14 merchants including Wal-Mart Stores Inc., Best Buy and Target Corp. (calling themselves Merchant Customer Exchange, or MCX) announced plans to create a mobile payment app that would give some of their competitors a serious run for their money. In addition to creating a convenient and seamless shopping experience, the payment app plans to integrate ads offering personalized deals, promotions and coupons to customers.

The reality is that there is a systematic cultural shift happening in retail – consumers are coming to assume mobile, from full-featured apps to mobile websites, will be a large part of the shopping experience. It will not only assist shoppers in getting the right information, products and services before they arrive at brick-and-mortar stores, but these new technologies will also simplify and improve the in-store shopping experience tremendously. So the important lesson here is that publishers and app developers need to custom-build and design in-app ads that are innovative and interactive, without interrupting the overall user experience.

What Is The Future of Mobile Commerce?

By Amy Vale

The proliferation of mobile devices globally has changed the way consumers shop, both offline and online. No longer are brick-and-mortar shops the first point of contact in a shopper’s purchase cycle. They’re increasingly using mobile sites and dedicated apps to make better, more informed purchases. So the question remains – how can publishers and app developers capitalize on this opportunity?

One thing is for certain; in-app purchases can be a developer’s proven route to monetization. According to Business Insider’s Analysis of App Store Data, 93 percent of the top 100 grossing iPhone apps use in-app commerce. Of those 100 grossing apps, two-thirds are free-to-download apps. High-level or power users of apps are typically the ones making the majority of in-app purchases. And the more frequently and consistently these power users interact with an app (upwards of 10 app sessions), the more likely they are to make an in-app purchase. Take for example the largest Internet retailer, Amazon. It recently added in-app purchases as part of its larger mobile advertising strategy. This new feature will use Amazon’s one-click purchasing, letting consumers buy an item without having to exit the application they’re using. Keen to deliver more content for its Kindle Fire tablet (and compete with Apple’s iPad), each movie and book download made within the app will help Amazon make substantial revenue gains.

Another example of the monetization potential of in-app purchases is the Magic Piano by Smule app. It was first developed specifically for iPads as a pay-to-download app that costs $2.99. Months later, the iOS developer released a version for the iPhone, which was free-to-download and offered a few songs at the start. To ensure the app delivered consistent streams of mobile revenue, the iOS developer released additional songs every Wednesday from popular artists like Lady Gaga, Jason Mraz and Britney Spears – available as an in-app purchase using a special type of currency called Smoola. These Smoolas are sold in packs of 160, starting at $1.99, and tracks cost anywhere between 25 and 75 Smoolas each. We’ve already seen these types of in-app purchases prove to be huge revenue drivers for game makers like Zynga. Clearly, there is a very compelling business case for why more app developers should leverage in-app purchases to earn revenue from consumers.

Did you know that one in six Smartphone users in Europe access online retail sites and apps on their mobile devices? To top it off, one in eight Smartphone users in the EU5 countries actually completed a retail transaction on their phones, according to comScore. As recently as a few months ago, British supermarket chain Sainsbury’s put its mobile commerce strategy into motion with the launch of a mobile-optimized site that lets shoppers choose from over 200,000 grocery items to purchase using their phones. The newly launched mobile site was designed with a very specific goal in mind – to make customers’ lives easier and deliver a rich, useful shopping experience no matter where customers are when they decide to do grocery shopping. Given Forrester Research’s European Mobile Commerce Forecast, citing that mobile spending across Europe will grow to a whopping €19.2 billion (or 6.8% of online sales) in 2017, the potential to generate revenue from mobile site purchases is one that publishers cannot afford to ignore.

Clearly, the remarkable growth of apps and mobile sites has generated a number of different revenue models for publishers and app developers. But should we be worried that the success of gaming apps like Words With Friends and Draw Something (thanks to in-app purchases) is fleeting? What types of innovation are needed for publishers to monetize traffic on their mobile sites?

Hot Monetization Trends To Watch in 2013

By Amy Vale
Earlier this year, analyst Mary Meeker talked about the huge gap between time spent on mobile devices and the advertising dollars allocated to mobile. That represents a goldmine of opportunity for publishers and app developers. So we wanted to highlight some key mobile trends that show real monetization promise for 2013.

Mobile Integration

We, as consumers, are multi-taskers. We don’t just watch watch TV. We don’t just read a book. We don’t just play a game of Scrabble. We have multiple devices in our hands (and our bags) at all hours of the day and everywhere we are. We sit in front of the TV set, while simultaneously texting friends on our Smartphones, checking email on our laptop or desktop computer, and read the latest celebrity scandal on our tablet device. So it goes without saying that publishers and app developers must integrate mobile first into their overall advertising strategy (and allocate a significant portion of their advertising dollars into this channel).

To ensure that publishers and app developers capitalize on their mobile traffic and revenue, it’ll be important to cater the creative used in mobile ads to the channel specifically. That means not replicating the same creative used on a regular website and simply repurposing it to fit onto the smaller screens of Smartphones and tablets. For instance, iPad usage tends to be higher on weekends, while desktop is typically lower. It’s now thought that publishers who serve ads across more than three platforms will be 21 times more effective than those who focused on only one platform. Understand the complexities of the mobile channel, analyze and measure what’s working (and not working) and tailor your creative to maximize ad performance and ROI.

More Targeting

Who doesn’t want to see an ad at the right time, or in the right place? In the world of mobile advertising, one of the biggest keys to monetization is relevance – in other words, the ability to target and reach your audience in a way that matters. Some of the strongest parameters offered by publishers to deliver mobile ads have been location, day-parting and contextual keywords. Now, as we move into 2013, it will require publishers to strike a delicate balance and layer multiple targeting options without losing scale.

Social Media

Social networking has fundamentally altered the way users interact not only with their mobile devices, but also with ads. According to comScore, 45% of all Facebook traffic and 55% of all Twitter traffic comes from mobile. Recently, the Wall Street Journal reported that Twitter is beginning to see strong revenue growth by delivering ads across mobile devices. People who see a Twitter ad on their phones are more likely to click or interact with it in some way, which is how Twitter gets paid for advertisements. While there is speculation on why Twitter is seeing its mobile ads “click,” it will be interesting to see how social media will impact the effectiveness of, and revenue generated from, mobile ads. If you ask me, this is only the beginning for this trend.

Augmented Reality

Mobile augmented reality, also known as mobile AR, is still relatively new. But by 2015, Juniper Research predicts that globally there will be 950 million mobile handsets, over 50,000 mobile AR apps, and mass adoption of AR in ads and apps. It’s estimated that the mobile AR market will reach $732 million in 2014, fueled by pay-to-download apps, subscription services and advertising.

Recently, IBM launched an AR app for grocery stores that lets users pan the store’s shelves with their Smartphones to receive personalized product tips, recommendations and coupons. What’s smart and effective about a mobile AR app of this kind is its ability to close the gap between the in-store and online shopping experience. While mobile Augmented Reality may not offer a huge opportunity for monetization at scale, it can however, create a rich brand experience. 

Four Ways Publishers Can Make Money From Apps

By Amy Vale

Nielsen reported that the average number of apps on a user’s Smartphone jumped from 32 to 41 this year. According to ABI Research, the total mobile app revenue will explode over the next five years, growing from $8.5 billion to $46 billion in 2016. The remarkable growth of apps has generated a number of different revenue models for publishers. Let’s look at 4 ways publishers can make money from apps.


1. In-App Advertising

A new report from Juniper Research finds that in-app advertising spend across all mobile devices will reach $7.1 billion by 2015, up from $2.4 billion in 2012. While a larger portion of mobile users are moving away from downloading paid apps on their Smartphones initially – even if it’s $1.99 or $2.99 – the opportunity to generate revenue from free-to-download apps isn’t lost. The more downloads and views an app gets, the opportunities for monetization rise exponentially.

Thanks to rich media and an increase in app usage, in-app advertising can significantly improve click-through rates and create an overall engaging experience. To fully capture the attention of mobile users who are multi-taskers by nature with short attention spans, it’s all about making the content entertaining and engaging. So publishers should partner with rich media providers to ensure integrations are seamless for their advertisers’ creative executions to be delivered to mobile users. App users will be far more receptive to see, and act on, ads when they are packaged creatively in rich media formats like expandable banner ads, in-banner video, etc.

 2. In-App Purchases 

One of the most beneficial aspects of in-app purchases is the additional income stream that can be generated. We frequently see this in gaming apps where additional features and levels can be purchased via “tokens.” In January, mobile app analytics company Localytics found that 44% of mobile app users did so after their 10^th session in the app. For ‘casual gamers’ who, once downloaded, become loyal ‘super users’ of gaming apps like Angry Birds and Words With Friends, paying a nominal fee to keep playing (and winning) seems well worth it.

According to ABI Research, mobile application revenues from in-app purchases this year will surpass pay-per-download revenues. But, the vast majority of in-app purchase revenue is being generated by a small percentage of devoted mobile game players, and some people are concerned that this revenue source could be fleeting. The question is whether mobile developers, other than game developers, will adopt it?

3. Leverage Demographics of App Users

According to a new study from the Interactive Advertising Bureau, what devices people are using, when they are using them, and where they happen to be all matter critically to their content preferences, usage patterns and openness to advertising messages. So it goes without saying that publishers should analyze and leverage these insights in determining what ads users of each device see, and don’t see.

Publishers need to leverage the specific demographics associated with each mobile device in order to monetize apps effectively. It is important to remember that each mobile device, and of course each app, is associated with a particular user – age, gender, socioeconomic bracket and more. Leveraging the demographics of the app user will lead to tailored and customized messaging of both the ads and the app itself, and in the end this is a significant factor in the monetization of the app.

The general demographics of an Android user may differ dramatically from the average user that visits your site. For example, knowing that your typical user is a 15 year old could very well be critical in deciding whether to include an in-app purchase via credit card. Understand, leverage and execute those key differences into your broader mobile monetization strategy.

4. Look at the Data and Tweak

Analyzing the data of your app will allow you to become far more sophisticated in future offerings. Look at the campaign components that worked, what didn’t meet expectations, and adjust future plans to maximize your mobile app revenue. Understanding when, where and why CTRs spiked (or fell flat), among other metrics, will set capable publishers apart.