It was long apple has kept itself aways from this kind of search based revenue model by advertisement but emerging times need new strategies to increase inflows. Apple is seeking to boost its revenue from its services because iPhone sales are more or less becoming static and iPad has lost its charm after the launch of 6 inch screen phones.
Something Good for Developers
In, order to push the envelope a bit harder, Apple is even planning to reduce its share from 30% to 15% for all the auto-renewed paid application after the first year. Till first year, the revenue share will be same with developers as 70-30. This move is seen as an encouragement to the developer community to try the auto-renewal feature with more paid apps.
The shift of 15% share by Apple is believed to be a strategic call to improve the earning share of developers once the app completes one year on App Store. If market sources have confirmed that this will make a dent in the efforts of Android as more and more app developers will opt for better revenue. There is a thing that no one is talking about, the user, yes the one one who is believed to pay for all this.
Apple to focus more on Paid Apps
The whole thing in this marketing and strategic gimmick is user. Is our user ready for more paid apps? The way market is functioning it is hard to say that because until the app is a really effective tool and is used regularly, user doesn’t go for purchase. But it all depends on case to case basis. While in-app purchase and ad model is working very well with most of the apps it is not sure how fare user will will go on for paid app.
Promote your App on App Store
Apart from app subscriptions, Apple is looking at the search based ads on App Store so as to escalate its earnings. This will be a crucial step in allowing iOS app developers to market their new apps in a better and more efficient way on the App Store. Apple officials have cleared that this search based ad model will not affect the indie app developers. But it is still an early stage to comment on it, we will have to wait till usage results are out.
Re-Engage with Users
As on pilot, this search ad based model will be implemented in US App Store. It will not just help to discover the new apps but also aid old apps to re-engage with users. Apple source quoted that it’s targeting feature will enable deeper discovery of apps, including lesser known or niche apps.
The search ad algorithm will ensure that user will not see ads of the apps already installed on the device. It will target apps based on factors based on demographic and location of the device, ensuring the ad reaches precise user group. The ad will be counted on PPC (Pay per Click) model.
It is sure that it is indeed a great news for the developers but only time will tell that how better revenue generation model will it become for the Apple. At the time when market of Apple has almost become stagnant, these initiative are definitely here to do some magic.