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#1 AppWarrior  Icon User is offline

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Ad revenue on mobile apps?

Posted 29 April 2015 - 01:29 AM

Hi guys.

I have been trying to find any stats on how much revenue a mobile app can make from a free model using ads for the monetization model?

I am trying to raise capital to start development but it's tricky to answer the questions on how much money the app will make in what time frame.

I realise this is the same as asking how much money does an educated person make, so the results are extremely broad...but If anyone has some sort of idea or example from an app they have created it would be interesting to know.

Thanks
-AppWarrior

Visit my blog at: www.MyAppAdventure.com
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Replies To: Ad revenue on mobile apps?

#2 CTphpnwb  Icon User is offline

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Re: Ad revenue on mobile apps?

Posted 29 April 2015 - 06:26 AM

As I see it, the problem with ad supported apps is that the market they're selling into is cheap. What advertiser wants to reach potential customers who wouldn't pay a couple of bucks for an app that they use on a regular basis? BMW? Mercedes? I think not. So then you're left with other companies selling cheap stuff, and they of course don't want to pay for the ads either. And let's face it, users quickly learn to ignore the ads or they delete the app. It's a vicious cycle.

Of course, some players are making money with ads, but if you're small enough that you have to ask about it, I wouldn't count on being one of them.
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#3 hbn.developer  Icon User is offline

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Re: Ad revenue on mobile apps?

Posted 29 April 2015 - 07:09 AM

Not much...
As CTphpnwb said,these apps are annoying for users & they usually delete them.
Profit from using ads is not that much.

as you can see,these ads are usually seen in apps that are not neccessary.

Hope this helps!
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#4 AppWarrior  Icon User is offline

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Re: Ad revenue on mobile apps?

Posted 01 May 2015 - 08:39 AM

Thanks for the advice guys.

The thing I keep thinking about though is that if the ad revenue is so little why is it still such a huge model and there are so many companies built that are fighting for advertising space on that little bar above/below your app.

I've done my fair share of research on the monitization models used on apps and it seems it's a fine line to decide how you eventually make a buck or two off the app. And mostly it's the concept of shooting in the dark until you hear a bang. But companies such as Admob and Airpush exists for a reason...

I was wondering if anyone out there would e nice enough to share what their app has made over Certain time frame milestones. Would be interesting to see...

Regards
-AppWarrior

Visit my blog at: www.MyAppAdventure.com
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#5 CTphpnwb  Icon User is offline

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Re: Ad revenue on mobile apps?

Posted 02 May 2015 - 09:44 AM

View PostAppWarrior, on 01 May 2015 - 11:39 AM, said:

The thing I keep thinking about though is that if the ad revenue is so little why is it still such a huge model and there are so many companies built that are fighting for advertising space on that little bar above/below your app.

Because it's very tempting to think that you can make money off of the ads, many of which are sold automatically. You don't need to market as heavily or as well, so your app doesn't need to be as good as if you were selling directly to consumers. After all, it's free to them, right?

The problem is, those automated sales are for low dollars and consumers will judge your app harshly if the ads get in the way or if they feel that you've delivered too little because its free.

View PostAppWarrior, on 01 May 2015 - 11:39 AM, said:

But companies such as Admob and Airpush exists for a reason...

Don't forget Google. Also don't forget that they don't care if your app succeeds or not. They only care about the number of ad impressions they sell. If your app adds to that number, great. If not, there are many others. They can make pennies per thousand ads displayed and do very well for themselves. Your app needs to do much better for you because you only get revenue from that app.

This post has been edited by CTphpnwb: 02 May 2015 - 09:46 AM

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#6 AppWarrior  Icon User is offline

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Re: Ad revenue on mobile apps?

Posted 02 May 2015 - 11:46 PM

Very true.

I understand your points...

Have you worked with implementing Google's Admobs or Airpush.com's ad services into an app?

Regards
-AppWarrior
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#7 CTphpnwb  Icon User is offline

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Re: Ad revenue on mobile apps?

Posted 04 May 2015 - 08:16 AM

No, I've been working in academia, and now in web development. I've been thinking about mobile a lot though. I've got a couple of apps I'd like to work on when I have both the time and the money to make a go of it, and it seems to me that "ad supported" is a trap I'd like to avoid.
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#8 AppWarrior  Icon User is offline

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Re: Ad revenue on mobile apps?

Posted 04 May 2015 - 11:23 AM

It's true what you say, time and money is so essential in this process. So much more then I thought.

I work a whole weekend only taking breaks to eat and get a few hours sleep and when I sit back and look at what I've done it looks like there's almost no progress...

Not to sound all philosophical, but don't wait for the right time and enough money. Just start now!

At least you have a background of development, I'm starting as a complete noob in this industry.

Regarding the "ad supported" trap, it's becoming a lot clearer to me know...But there are quite a few ways of making money off an app be it freemium, paid version, pro-versions etc...By the looks of it the skill is in finding a perfect balance in incorporating a few of the methods and not just solely relying on one.

If I may ask, what would you use to monitize your app, or aren't you?

Regards
-AppWarrior
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#9 CTphpnwb  Icon User is offline

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Re: Ad revenue on mobile apps?

Posted 04 May 2015 - 12:29 PM

I believe that "freemium" and "ad supported" are antithetical to a free market because they encourage both customers and potential employers to think that they can get a valuable service for free. Devaluing the service I provide for a living is counter productive at best.

I'll sell any app I produce with the same attitude I take when selling my programming services: it either has value worth paying for or I shouldn't be selling it.
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#10 AppWarrior  Icon User is offline

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Re: Ad revenue on mobile apps?

Posted 14 May 2015 - 05:45 AM

Hi Jcage.

Thanks for the info...

Is there any chance you'd be willing to share some stats or numbers with us, like impressions vs clicks vs cost per click? or anything that can give us an idea of what "some real decent income" vs how many active app users you have.

I'm sure everyone would be keen to know.

Would I understand if you can't.

Regards
-AppWarrior
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#11 CTphpnwb  Icon User is offline

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Re: Ad revenue on mobile apps?

Posted 14 May 2015 - 05:53 AM

View Postjcage, on 14 May 2015 - 06:05 AM, said:

I created my app and inserted some ads to it. It works really great for me, and brings me some really decent income

What is a decent income? Are you happy because you can go out to dinner on occasion, or is it reaching 6 figures or more on an annual basis? While I'm asking about specifics, what's your churn rate and how does it compare to before you inserted ads?
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#12 AppWarrior  Icon User is offline

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Re: Ad revenue on mobile apps?

Posted 14 May 2015 - 05:54 AM

View PostCTphpnwb, on 04 May 2015 - 09:29 PM, said:

I believe that "freemium" and "ad supported" are antithetical to a free market because they encourage both customers and potential employers to think that they can get a valuable service for free. Devaluing the service I provide for a living is counter productive at best.

I'll sell any app I produce with the same attitude I take when selling my programming services: it either has value worth paying for or I shouldn't be selling it.


I agree and support your point, but we live in a country that doesn't support Google Merchant Registration, so the option of simply selling an app isn't open to us, so we have to explore other methods. Nice little spoke in the wheel there for us. But Apple still supports it, so that's one silver lining.

Regards
-AppWarrior
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