Mobile devices have become omnipresent electronics available to everyone and application development has led to a few developers becoming wealthy. However, for many of them, the money generated is not from sales but rather the advertisements that are displayed at the bottom of the application. If the app is free then all the revenue is from advertisements. Thus generating a new app useful to patients and for health can be funded through those means.
How does it work? Besides, Google with its gargantuan ad revenue model, another company that facilitates ad revenue is Velti. They are the brokers that enable app developers to find the companies that want to place advertisements on their network.
To understand the how this works, Velti publishes a report every quarter and at the end of every year that is an analysis of the market. It helps to understand the market if a company has to grow the mobile devices market. The important factor for every advertiser is the click through rate: that is, what percentage of the ad does the user click even though this appears. The report is worth looking in more detail but here are the highlights:
- Brazil has the highest click through rate – almost twice as much as Spain or United States, which tells you that it is a good place to advertize. However, Spain has the highest growth in Europe and Thailand and Singapore leading in Asia.
- The advertisers in North America and Europe make up the majority of ad dispalyers, with the USA leading in the number of clicks per minute.
- The interesting thisg is that between 2011 and 2012 iPhone/iPad/IPod touch have dominated the ad market in 2012 with the Android having actually lost ground since 2011. This was obviously influenced by the release of iPhone 5.
- The top 5 applications to increase over the years are: Photography, Productivity, Weather, Medical and Navigation. Surprisingly, Travel and Social Networking showed the most decrease. However, Games and Entertainment almost control the entire market.
- Most people used Wifi rather than their phone carrier.