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Even though we are still at the beginning of 2011, this year is already being labeled by many as “the year of the mobile app.” Estimates are showing that mobile app sales in 2011 could triple from last year, reaching up to $15 billion, so those saying that apps will be big this year are definitely on to something. While Apple iOS apps have been the most popular to date, apps for Android devices are also gaining in popularity as many developers are focusing on Android apps. Interestingly, the growth rate of Android apps is actually faster than that of iOS apps, so plan on seeing many more apps for Android over the next year or two (Security Week).
With more apps out there to compete with, the question app developers must ask themselves is, what is the best way to advertise? Well, there are two ways that app developers can profit from their apps. First, they can sell an app in an app store, making money from a one-time purchase of the app. The other possibility is to promote a free app and earn revenue from advertising within the app.
Both ways generate income for the app developer, but the second way has a higher earning potential. Apps that are sold once are a one-time revenue source. An app that is given away for free has the possibility of generating revenue for the lifetime of the app. Advertising is placed within the app itself, and as often as the user clicks on ads in the app and makes a purchase or signs up for a service, the developer makes money. It is as simple as that.
To generate revenue by giving away apps for free, banners and text ads are placed within the apps. The user clicks on the ad and makes a purchase or signs up for a service or subscription. If the app developer is working through our network, the purchase will be tracked and commission for the sale credited to the developer’s account. This will happen every time the user clicks on the ads within the app and makes a subsequent purchase (or signs up for a subscription), making it possible to earn income over the lifetime of the app.
App developers can choose exactly how they want to market their apps. Developers who advertise with Sponsormob can choose to sell their apps or give them away for free and advertising within the app. We do encourage developers to consider the possibility of life-time earnings with the free app model, as the earning potential is greater, and there are no fees to pay the app store, so developers can keep more of what they earn.