App- vertising : Lucrative (or) Lackluster ??
The term App — vertising is the combination of words (portmanteau) App and advertising. The go to revenue generation model adopted by most of the Apps are advertising and ironically the most criticized one too for intrusion. So whether the Advertising based revenue generation is the name of the game in the coming days for the Apps (or) it’s a model which is at the vague end of getting matured & stagnant because of overdo approach.
Let’s deep dive to analyze it.
The concept of generating revenue through ads got predominant way back when silicon valley stalwart start ups like Google, Microsoft etc concentrated on providing the product to customer at free of cost (or) at very reduced rate in most of the cases and embraced a way to navigate the so called pressure of getting revenue by connecting the other marketers to customers in the form of advertising and in most of the cases they tried to make the advertising as beneficial as possible to the user and ads served as their elixir to exist in the world of business. And in today’s scenario as mobile Apps have become the easy and go to way to connect to the huge base of potential customers, the model of revenue generation is also adopted for Apps. The “App-vertising” market has reached approx $50 Billion in 2016 and some experts constantly voice their opinion saying it is the next big thing in the world of technology,but there some contradictory views suggesting that app- versting model is being over done and it is just a mere intrusion / interruption for the user.
How many times we have come across a situation that in the middle of a game we were forced to watch an ad (or) video popping up in the window? Does it really influence our purchase decision?
Well, at least not to me!!
But stats tells a different tale as the market size and reach is quite large, it is really effective and does influence the decision of the users and it is predicted to be $100 Billion in 2020 by industry experts.
Connect and Customize
But the same old plain one size fits for all advertising doesn’t appeal to the users any more, there needs to be high level of connect with user and customization added over to the ad content. In ads timing is everything for example if a user is booking a cab through Uber on Friday / Saturday night, it is more likely that the ads related to restaurant and movies are apt and useful for the customer. Hence the technical capability in terms of AI will be the difference between serving the customer better (or) just being ended up a mere intrusion. The simple strategy of concentrating on addressing the needs of customer goes a long way rather than stressing upon the profit alone. Hence it can be said that yes App-vertising is ofcourse here to stay and continues to be predominant for revenue generation, but the level of user connect and customization is the key to success.
