Leading strategic consulting company Roland Berger sent their team from Zurich to come visit our office on Friday. Their goal was to soak in Fyber’s (formerly SponsorPay) startup culture and learn more about our mission, business model, and industry positioning. The Roland Berger consultants asked several insightful questions that prompted a great discussion on the mobile app and gaming industries. Of course, app monetization was a central topic. We thought our blog readers would also take interest, so in an effort to push our industry knowledge beyond the walls of our office, we present you with the following overview of mobile ad monetization:
The Monetization Problem
The mobile app economy is exploding. Predictions indicate that one third of the world population will own a smartphone by 2017. In the EU5 (France, Germany, Italy, Spain, and the UK), smartphone penetration has already hit 50%. In the U.S., a whopping 61% of the population owns a smartphone.
While publishers should be ecstatic about such a positive industry forecast, the rapid expansion of the app ecosystem stirs up some problems (or opportunities to build solutions, as we say here at Fyber!). How can developers convert and retain users? How can the industry maximize ad targeting opportunities? And, most relevant for our purposes, how can publishers successfully monetize their apps with mobile ads?
At Fyber, we build innovative products to solve the mobile ad monetization problem. Addressing monetization is a necessity for publishers as free app downloads increase. By 2016, it’s predicted that free downloads will reach 93% of total apps downloaded, and most publishers make less than $1.00 per download. Our aim is to help publishers earn money from their apps through mobile ads without hurting user retention and engagement (read: no ineffective banner ads). Our method encourages users to actively choose interacting with ads they want to see.
Wondering how our products work? Next week we’ll publish our second installment on monetization, which will explain in detail our solution to mobile ad monetization. Check back in soon!