Monetization of apps has been Android’s Achilles heal for a while now. It is rather strange that with some very strategic assets such as Check out, The surging numbers of Android phones and more, Android has not been able to put it resources behind apps which could lead to higher levels of monetization. It is more challenging for developers in the Google Android Market than in the Apple App Store to monetize using a one-off fee monetization model. The Android eco-system suffers from lack of monetization and paid applications have a higher chance to reach high download volumes in the Apple App Store for iPhone than in the Google Android Market. This actually puts onus on the Android team to make monies through in-app and store level advertisements.
The difficult task for Android developers is to monetize applications in the Google Android Market using a one-off fee monetization model, which is why developers have turned to advertising to monetize their applications. the recent introduction of in-app billing should give developers more opportunities to monetize applications
Android has been criticized for the lack of discover-ability which is why the team is putting in quick amendments:
1. Android takes a long term performance of apps into account in order to rank apps. They are looking to reverse the ranking logic to include top trending new apps and all time apps
2. Android is putting steam behind local content as a differentiator for the Marketplace.
Will Android get the act right?
Wireless Intelligence released a report recently on the Top 20 Mobile Operators in the world based on revenues. The list is led by China Mobile followed by Vodafone and Verizon. Bharti Airtel scores 5th in terms of subscribers having just shy of 200 million subscribers.
However, Airtel is the worst performer in terms of revenue generated per user. Airtel earns USD 14.5 per subscriber in an year, equivalent to about Rs. 650 in an year.China Mobile earns over Rs. 1530 on its 584 Million Subscriber base. NTT DOCOMO which is primarily based in Japan, earns over 9000 rupees per subscriber and ranks 6th largest in terms of revenue on its relatively miniscule 57 million subscriber base. That is about 14 times more than Bharti Airtel !
7 out of top 20 mobile operators earn over Rs. 4500 (USD 100) per subscriber. The average per subscriber earning amongst top 20 mobile providers is Rs. 3813!