{"id":69,"date":"2017-03-17T11:58:53","date_gmt":"2017-03-17T11:58:53","guid":{"rendered":"http:\/\/generic.wordpress.soton.ac.uk\/gapapp\/?p=69"},"modified":"2017-03-18T14:29:50","modified_gmt":"2017-03-18T14:29:50","slug":"monitisation-models","status":"publish","type":"post","link":"https:\/\/generic.wordpress.soton.ac.uk\/gapapp\/2017\/03\/17\/monitisation-models\/","title":{"rendered":"Monetisation Models"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-70 aligncenter\" src=\"http:\/\/generic.wordpress.soton.ac.uk\/gapapp\/wp-content\/uploads\/sites\/193\/2017\/03\/Monetization-image-300x250.jpg\" alt=\"Monetization image\" width=\"300\" height=\"250\" srcset=\"https:\/\/generic.wordpress.soton.ac.uk\/gapapp\/wp-content\/uploads\/sites\/193\/2017\/03\/Monetization-image-300x250.jpg 300w, https:\/\/generic.wordpress.soton.ac.uk\/gapapp\/wp-content\/uploads\/sites\/193\/2017\/03\/Monetization-image-768x641.jpg 768w, https:\/\/generic.wordpress.soton.ac.uk\/gapapp\/wp-content\/uploads\/sites\/193\/2017\/03\/Monetization-image-1024x855.jpg 1024w, https:\/\/generic.wordpress.soton.ac.uk\/gapapp\/wp-content\/uploads\/sites\/193\/2017\/03\/Monetization-image-263x220.jpg 263w, https:\/\/generic.wordpress.soton.ac.uk\/gapapp\/wp-content\/uploads\/sites\/193\/2017\/03\/Monetization-image.jpg 1866w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/p>\n<p><strong>The Monetisation of NaviGap<\/strong><\/p>\n<p>The monetisation models that are commonly used in popular Apps have been identified to help guide us through the best model for NaviGap.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Model 1- Freemium \u2013 Used by LinkedIn, Spotify, Evernote<\/strong><\/p>\n<p>Freemium is a model where the application is free, but has upgrading options and locked features that customers can to choose to pay for. It is becoming increasingly popular as it is so easily adapted to any\u00a0app. A similar option to this is offering a limited time trial of a freemium service to get people through the door and wanting to upgrade to the paid accounts.<\/p>\n<p><strong>\u00a0<\/strong><strong>Pros<\/strong><\/p>\n<ul>\n<li>Users who &#8216;<em>try before they buy&#8217;\u00a0<\/em>are more likely to become engaged and buy it later.<\/li>\n<li>Allows developers to generate a large user base with the view of up-selling.<\/li>\n<\/ul>\n<p><strong>Cons<\/strong><\/p>\n<ul>\n<li>If there are not enough features for free, the users may drop off<\/li>\n<li>If too many features are for free, no one will want to upgrade.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>Model 2 &#8211; Subscription \u2013 Used by Whatsapp, Apple Music, Netflix<\/strong><\/p>\n<p>In this model the Apps are free but the content needed to gain value from the service is locked and requires payment in the form of a Weekly, Monthly, OR Annual subscription. There is usually a limited time free trial for the service. The subscription price is usually smaller than the one-time price to incentivise the user into a longer term commitment.<\/p>\n<p><strong>\u00a0<\/strong><strong>Pros<\/strong><\/p>\n<ul>\n<li>Constant revenue stream<\/li>\n<li>Loyal app users<\/li>\n<\/ul>\n<p><strong>Cons<\/strong><\/p>\n<ul>\n<li>It hard to determine just how much content to provide for free.<\/li>\n<li>Subscription requires a commitment from a first time user.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>Model 3 &#8211; Sponsorship \u2013 Used by Runkeeper, Menulog, Pinterest<\/strong><\/p>\n<p>Sponsorship is a monetisation method which offers advertising space to brands within the app, who then offer exclusive deals and discounts to app users.<\/p>\n<p><strong>Pros<\/strong><\/p>\n<ul>\n<li>The developer gets money from the sponsor.<\/li>\n<li>The customer gets exclusive discounts and offers.<\/li>\n<\/ul>\n<p><strong>Cons<\/strong><\/p>\n<ul>\n<li>The app needs to have a\u00a0strong brand behind it to convince sponsors of value.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>Model 4 &#8211; In-app purchases \u2013 Used by Candy Crush, Tinder, Snapchat<\/strong><\/p>\n<p>Users can choose to buy extra functionality, tools, features and content. For example, Snapchat generate a revenue stream through the small % of users who would want to replay a snap more than once (\u00a30.99).<\/p>\n<p><strong>Pros<\/strong><\/p>\n<ul>\n<li>Minimal risk in implementing this model.<\/li>\n<li>Buying features typically\u00a0lead\u00a0to better user engagement.<\/li>\n<\/ul>\n<p><strong>Cons<\/strong><\/p>\n<ul>\n<li>The app stores will take 30%\u00a0of the profits from\u00a0in-app products<\/li>\n<li>Users may be less inclined to download your app if they see that it includes in-app downloads<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>Model 5 &#8211; In-app advertising \u2013 Used by Facebook, Google,\u00a0YouTube<\/strong><\/p>\n<p>The App is Free to download but comes\u00a0with advertising within the app.<\/p>\n<p><strong>Pros<\/strong><\/p>\n<ul>\n<li>Works well if your app is a new concept to the market because you can develop a large user base and collect data on them.<\/li>\n<\/ul>\n<p><strong>Cons<\/strong><\/p>\n<ul>\n<li>Generates quite small revenue per user. According to\u00a0<a href=\"http:\/\/monetizepros.com\/mobile-monetization\/guide-to-mobile-monetization\/\">Monetize Pros<\/a>, most developers will only generate $1.50 per thousand impressions of their ads.<\/li>\n<\/ul>\n<ul>\n<li>Reputation for being annoying and disruptive to the user experience.<\/li>\n<\/ul>\n<p><strong>Calculating potential ad revenue from mobile ads:<\/strong><\/p>\n<p>Cost Per Install CPI: You get paid for every time someone installs the app that\u2019s being advertised after clicking on an ad in your app \u2013 provided that an app IS being advertised.<\/p>\n<p>Cost Per 1000 Impressions CPM:\u00a0An Impression is the number of times the ad has been seen. One impression means the ad has been seen one time.<\/p>\n<p><strong>Which monetisation model will best fit NaviGap? <\/strong><\/p>\n<p><strong>Points JAMR considered:<\/strong><\/p>\n<ul>\n<li>What is your user\u2019s\u00a0overall goal during an app session and so how\u00a0will each monetisation model impact them achieving that goal?<\/li>\n<li>What industry is our app in and how would user experience be compromised as a result of each of the monetisation models?<\/li>\n<li>Are there likely to be any drop-off points when we could prompt users\u00a0with a well timed freemium ad\u00a0or in-app purchase of premium content?<\/li>\n<li>What type of ad will genuinely\u00a0be most helpful to users, \u00a0what are our user\u2019s needs? What kind of advertising, extra features, or brands would our users enjoy being exposed to?<\/li>\n<li>What monetisation models do our competitors use?<\/li>\n<li>Are there any potential partnerships we can leverage?<\/li>\n<\/ul>\n<p><strong>Conclusion:<\/strong><\/p>\n<p>NaviGap will develop a blend of In App purchases and In App advertising models. This is because it is primarily an online social network, users will log in with a profile generating a lot of useful user data and since we hope to engage users for prolonged periods and on a regular basis, we can target suitable and valuable In App advertising from travel based providers that can offer flights, accommodation, tours, equipment and accessories specific to the audience needs. There are a number of brands that users of a travel companion site would find of use, for example: STA travel, The Stoke Travel Company, Trtl travel pillows and EastPak luggage.<\/p>\n<p>NaviGap will be providing users with interactive maps and travel guides meaning that an In-App purchase model is also very suited. The App itself will be free and come with full user functionality as an online social network, alongside a generic map and one location guide. Users can then purchase additional specific maps and guides to suit their needs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Monetisation of NaviGap The monetisation models that are commonly used in popular Apps have been identified to help guide us through the best model for NaviGap. &nbsp; Model 1- Freemium \u2013 Used by LinkedIn, Spotify, Evernote Freemium is a model where the application is free, but has upgrading options and locked features that customers [&hellip;]<\/p>\n","protected":false},"author":2290,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16],"tags":[18,17,19],"class_list":["post-69","post","type-post","status-publish","format-standard","hentry","category-monitisation","tag-money","tag-profit","tag-purchase"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/generic.wordpress.soton.ac.uk\/gapapp\/wp-json\/wp\/v2\/posts\/69","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/generic.wordpress.soton.ac.uk\/gapapp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/generic.wordpress.soton.ac.uk\/gapapp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/generic.wordpress.soton.ac.uk\/gapapp\/wp-json\/wp\/v2\/users\/2290"}],"replies":[{"embeddable":true,"href":"https:\/\/generic.wordpress.soton.ac.uk\/gapapp\/wp-json\/wp\/v2\/comments?post=69"}],"version-history":[{"count":5,"href":"https:\/\/generic.wordpress.soton.ac.uk\/gapapp\/wp-json\/wp\/v2\/posts\/69\/revisions"}],"predecessor-version":[{"id":76,"href":"https:\/\/generic.wordpress.soton.ac.uk\/gapapp\/wp-json\/wp\/v2\/posts\/69\/revisions\/76"}],"wp:attachment":[{"href":"https:\/\/generic.wordpress.soton.ac.uk\/gapapp\/wp-json\/wp\/v2\/media?parent=69"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/generic.wordpress.soton.ac.uk\/gapapp\/wp-json\/wp\/v2\/categories?post=69"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/generic.wordpress.soton.ac.uk\/gapapp\/wp-json\/wp\/v2\/tags?post=69"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}