The Android Developer Dilemma

The Android Developer Dilemma: Monetizing a Platform of Non-Payors

For more than a year, we've been hearing that Android represents the next great opportunity for smartphone app developers. With the brains at Google behind the OS, and a multi-carrier, multi-device approach, we all looked forward to Android as an open platform that could take touch screen, always connected devices to a mainstream audience. Now, with roughly 47 million Android devices sold, and Android tablets the buzz of the gadget-sphere, the audience is definitely there. But one big question remains: how do you make money from them?

Why is it harder to make money on Android, even with millions of users? There are a handful of reasons. Apple has every (legit) iPhone user's credit-card info. And with its two-touch app purchases from iTunes, instant in-app micro-transactions, and now subscriptions, Apple makes it easy for users to buy content.

Android 3.0’s upcoming in-app purchases, alongside new stores from Amazon and others, will hopefully make it just as easy for Android users to open their digital wallets. But there's no guarantee. Now that Android users are used to enjoying their devices without paying for (most) content, the culture of Android's mass market may be a "free" one.

So, how about advertising? Even in advertising there is a platform "discount". CPMs on Android banners, even from Google itself, tend to be lower than on iPhone. So, what's an Android developer to do? Think outside the banner.

When Greystripe brought large format, branded advertising to iOS (back when it was iPhone OS) mobile developers faced a similar situation. Monetization options were few, and the dominant ad format was low-revenue pay-per-click banners. Now we see the same trends on Android with developers opting for lowest-common-denominator banner ads. In fact, within our network, Android developers are 10 times more likely to monetize using small banners ads than our iOS developers who overwhelmingly choose our full screen ads to maximize revenue.

Our success on iOS shows that developers can make 4 times more (based on average eCPM) with our full screen ads without sacrificing user experience while getting paid for every impression (not just the click). And as a cross-platform network, Android developers have access to that higher value inventory, without a platform “discount”. There's no reason to settle for small banners with your Android audience.

So Android developers, think outside the banner. Integrate our full screen, rich media ads today and earn nearly four times the eCPM.