CPI is the dominant model in the mobile advertising market. For example, 59% of Facebook’s advertising revenue in the second quarter came from mobile advertising, the main share of which is CPI, Venturebeat writes. But the cost of such advertising is very high, moreover, it continues to grow. According to Fiksu, the annual price increase for installations was 16% on iOS and 44% on Android. Today, many cannot afford it. For large advertisers, its high price is also a problem, since they reduce ROI and increase risks. But what awaits the market next?
Daniel Kadvany, who is promoting his TrialPay product on VentureBeat, believes that mobile commerce will become it. Mobile revenues from the latter, according to Forrester, overtake the amounts paid by Apple and Goolge to application developers in terms of volumes. According to the forecasts of the analytical company, in 2014, revenues from purchases made through mobile applications will amount to $ 114 billion. For comparison, over the past year, Apple and Google have paid developers a total of $ 15 billion.
Mobile commerce can work, for example, according to the following scheme: for each real purchase / viewing of a video advertising a real product, the user receives in-game currency. But it is unclear how, working closely with sellers of real goods, developers will be able to promote their own applications, bring themselves to the top.
App developers need to prepare for the transition to a new mobile advertising model to capitalize on the growing cash flow.
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