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.