App Monetisation Secrets (Part 2)

By Romulo “Je” Alipio, Executive Producer, Games

At the turn of the millennium (which sounds very cool to say, but was really just a little over a decade ago), app developer houses were popping up all over the place. 

Large developers made money by selling content directly to phone manufacturers like Nokia.  Sometimes they received one-off payments, but more often revenue sharing was the preferred model.  Garage developers, meanwhile, struck deals with bigger companies, which could bundle their content for sale to the Nokias and Ericcsons.

But as the number of development houses mushroomed, margins became smaller and smaller and it just became too difficult to turn a profit. Pay-per-download seemed the way to go, but like the other models, this revenue stream was highly dependent on the carriers, which created a number of problems for developers.

App Monetisation Secrets (Part 1)

By Romulo “Je” Alipio, Executive Producer, Games

"Freemium". Is it the golden grail for application developers? It's certainly the key buzzword in the industry right now. But not that long ago pay-per-download and embedding were on top.

Developing cool and useful mobile applications isn't easy. Making money off them can be even harder. Even if you believe in freemium, there are so many different models – Try & Buy, Upgrades, Mobile Rewards . . . what to do?

Well, let's start with a sense of history. Today's piece is the first of a multi-part series in which I'm going to take a closer look at the evolution of mobile monetisation, explore why some business models work and others don't, then share reflections about what's to come in the near future.

Ringback Tones

By Delynn Ho, VP Sales

Ever find yourself snapping your fingers, bouncing your head or even singing along as you listen to a friend's mobile ring a familiar tune? Or perhaps you find your colleague's ringback tone to be especially annoying? (No offense, Hisham!)

What's a ringback tone, you ask?

Telecoms Go Off-Portal

By Delynn Ho, VP Sales

A shift has taken place in the world of telecom companies.

Not long ago, carriers saw themselves as gateways, creating walled gardens making it difficult and more expensive for mobile users to surf beyond the telco portals. Mobile users wouldn't have it, though. And as data charges in most markets have become increasingly affordable, telcos have had to adjust.

Nowhere has this shift been more pronounced than in the carriers' sales and marketing departments. Under the old plans, telcos were content to market to their consumer base, particularly via SMS blasts. Today, though, carriers are moving beyond their own properties. They're taking out mobile ads and running mobile campaigns, just like brands in other industries, to engage surfers and promote unique services like ringback tones.

The new campaigns are paying off.

Agencies tell us that mobile internet usage during the period of the campaigns has increased by more than 40%.

Let's take a look at examples from three countries . . .