Monetizing Mobile Apps- A Value-based approach

Apart from deciding whether to charge on a one-off or a subscription basis, mobile app developers need also to consider whether their application has mass market appeal as well as perceived value. This can help determine which strategy to follow when deciding how to price the application (free or not). It can also help to determine whether to include advertising or not.

In my book, Building Location Aware Apps (2010 Manning Publications, R Ferraro and M Aktihanoglu-AVAILABLE FOR PRE-ORDER ON AMAZON.COM) I present a model of how the perceived value of the app and target market can be combined to decide on the charging strategy for the app itself:

'Freebie' applications are shown in the lower left-hand quadrant of the matrix. When it comes to monetizing an application, there is clearly no interest in giving it away for free, especially if it is not supported by ads. However, in the case of low value/low market potential applications this is often the only choice available.

'Long Tail Kings' are those applications that address a small, but definable niche within the market with a high-value proposition. They can charge for their application a premium price, and don’t need to include advertising as a result.Long Tail Kings can try over time to extend their appeal to other market segments.

'Killer Apps' rule over the mobile landscape. By offering great value to the consumer within a mass market, they can use their dominant position to not only charge for their application but also generate regular advertising revenue. Other applications continually aspire to become killer apps, though most never make it.

'Boot Campers' are those applications that hold great promise, because they have a large market potential, but that do not hold a great deal of perceived value in the eyes of the consumer. Boot Campers have to work extremely hard (hence the name) to work their way out of their quadrant by convincing consumers of the value they can offer.    

There is a lot more on this and other approaches to determine how best to monetize your mobile app (including a full range of mobile advertising options) in my book. I also explore the freemium model in more detail, as it remains one of the key ways of successfully commercialising digital products.

The iPad Tablet Revolution-Three Reasons that Explain Why it is the Future

These days, it is very difficult to filter real news from the substantial amount of 'digital media noise' created on the web. This is even more the case, when it comes to new gadgets and technology. And no gadget caused  more noise and expectation than the iPad, when it was launched to a global fanfare in April this year.

I will not review the iPad's hardware and technical capabilities-enough has been said already and you can easily read this up elsewhere. I just want to make one point that is getting lost in the media hype -the iPad is the most revolutionary device type that has been rolled out this millenium.It is not a fad, it is not a toy and most definitely not merely a giant-sized iPhone.

It is the exquisite execution of the tablet computing concept that others before, including Microsoft, tried and failed.But let me say this again, the iPad is a revolutionary device. It is set to change mobile media forever. Here are three reasons why:

1. The iPad introduces a totally new way to consume mobile media, especially newspapers and magazines.Its screen size achieves a happy medium between readibility and portability. Again, something that is easily overlooked by reviewers is its landscape mode. Turn the iPad on its side from its vertical position and it automatically switches to landscape reading mode.This makes it ideal for newspaper and magazine browsing (Kindle take note).It also makes using those wonderful apps an even better experience.

2.The iPad is the first device of its size and weight to truly enable computing to be carried out. You can actually create and work on a Powerpoint presentation on an iPad. Yes, processing power needs to be upgraded, but then Apple is not perfect.

3. The iPad is designed to be a connected device. With 3G capability designed into the device (unlike a netbook which relies on a dongle or WiFi), data exchange and sharing comes as standard. Forget the WiFi-only version of the iPad, I am sure it will be phased out in due course.(Significantly, the iPad was conceived before the iPhone was, but put on hold to prioritise launching the smaller 3G iPhone device).

The iPad is an inspirational product, like many Apple creations before it. But don't take my word for it. You can check out many videos of how it was used as different musical instruments to create compositions. You'll find one in the title link. Enjoy!