THE APP MONETIZATION REPORT: How developers can navigate the engagement crisis and tap into the $102 billion app opportunity

BI Intelligence

App developers long considered the "pay once and play" model — in which users pay up front an app and aren't prompted to make in-app purchases — the best way to generate revenue. But as more "free-to-download" apps entered the market, users increasingly opted for these experiences. These apps offer microtransactions for in-app goods and services, and in-app ads.

As the app ecosystem expands further, it will become increasingly challenging for developers to compete in a crowded market. Overall, global gross app revenue will double to reach $102 billion by 2020, according to recent projections by App Annie. As a result, app monetization strategies need to shift at least as quickly as consumer trends and preferences in order for developers to capture a piece of this growing market.

A new report from BI Intelligence explores the top app monetization strategies under user- and advertising-paid approaches, and the growing combination of both. We will also look at emerging trends that could help developers navigate the fiercely competitive app ecosystem, and address the potential barriers that developers will have to overcome to reap the benefits of the multi-billion dollar market.

Here are some of the key takeaways: 

• The app ecosystem is expanding quickly, and it's becoming increasingly challenging for app developers to compete in a crowded market. 
• To capture a piece of the growing market, app developers must adapt their strategies at least as quickly as consumer trends and preferences change. 
• Developers can choose a user-paid or an advertising-paid approach to monetizing their apps. Different monetization strategies work best with different apps.
• There are a number of widespread challenges that developers must contend with both before and after they enter the app market.  

In full, the report:

• Provides key factors driving the expected growth of global app revenue
• Evaluates the top app monetization strategies
• Looks at emerging trends to help developers navigate the app ecosystem
• Explains the challenges that developers face to compete in the app market
• And much more

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