BUS 1000 Lecture Notes - Lecture 3: Gamification, Smartphone, Three-Cushion Billiards
6 Sep 2016
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6 revenue models for apps: fee/subscription . Charge for app download or monthly fee. Well-known, value-added apps, reference, productivity, health, tinder. Won"t work for photo sharing, social networking, communications, games, etc. Very difficult: ad-support app is free, generate revenue by charging advertisers. Random: need a lot of attraction, common in games, weather, news, pop-ups, ribbons, pay monthly flat rate, pay-per-click (impression) - few cents, sell- through (conversion) several $ Targeted: related businesses pay to be on app, customer set is target set, opt-out-of-ads. Works well with random ad-support model, doesn"t with targeted ads. User options: stop using the app, ignore the ads, pay to opt out of ads. Freemium models (free + premium: free = basic version (useful and compelling, premium = pay for upgrade, full version (1/10 users upgrade) Free game, pay for new stuff, level ups: white-labeling and licensing.
