January 27, 2015
Editor’s Note: This article was submitted as a sponsored placement by ironSource.
How will this idea make money? It’s the question that every tech entrepreneur must answer. The issue of monetization comes before investment, marketing…even before telling your friends about your startup plans.
When it comes to consumer software, making money traditionally boils down to two key elements: 1) acquiring users and 2) maximizing the value of each user.
But in the current market, users are more accustomed to getting software for free. This trend puts more pressure on developers to monetize their software in the app itself, and consequently fragments the user experience. Now, more than ever, developers are looking for non-invasive ways to monetize users.
Out of this need has arisen a new stream of monetization: installation platforms. Installation platforms help software companies acquire new users, while simultaneously opening a new channel for monetization – the download itself. But how can these software installation platforms make free software a viable business, and how can they help businesses burst into new markets?
Why You Should Be Utilizing Installation Platforms to Earn More Money:
1. Simple Addition to Your Current Monetization Efforts
Here’s how it works. While your software is downloading, an installation platform creates a flow in which additional software is offered to the user. When a user decides to download more products during the installation, you, the developer of the originally offered software, gets paid.
And these installations are more valuable than impressions, making the Pay Per Installation (PPI) model one of the fastest growing forms of software monetization; it is also the easiest revenue you will ever make. The beauty of installation platforms is that they don’t put additional strain on your current monetization efforts. Simply adding your software to such a platform can bring additional revenue every time someone downloads that software.
2. Improvements to Advertising and User Acquisition
When software entrepreneurs need to acquire more quality users, they can take advantage of the massive distribution volumes available with top tier installation networks. By working with an installation platform, software publishers – either of a single application or a download portal – provide advertisers with access to its users; this balance of strong publishers and advertisers is key for the ecosystem of software distribution and monetization to work properly.
The benefits of this type of advertiser-publisher ecosystem are far-reaching. Let’s say your company wants to test their software on a different market of users. An installation platform with quality publishers allows you to advertise directly to all of the users that fall under their umbrella. This fluidity empowers advertisers to explore their potential markets in different countries, age ranges, and user demographics at relatively little cost compared to traditional digital advertising.
Certain installation platforms also offer advertisers access to in-depth data reporting and business intelligence to track the results. installCore, the largest installation platform in the market, provides its clients with comprehensive data report and experienced account managers to get the most out of each installation campaign.
3. People are Already Downloading Additional Software
You may not be surprised to learn that users are more willing to install additional software once they are already in the download funnel. It’s the same mentality that guides retail shopping displays; except in this case, all the items are free!
Even display ads that appear at the end of software downloads get significantly higher engagement than typical display placements. In most cases this means that advertisers pay less for each installation than the average value of a new user, which can translate into serious profit and growth.
The Future of Software Monetization
Having a reliable and reputable installation platform to monetize your software is a weight off your shoulders. Aside from the additional revenue and users, this technology handles a great deal of logistics with minimal headache for the entrepreneur. These platforms can also provide analytics that help you better optimize monetization.
The installation industry is fast and complex, and is quickly entering the mainstream for savvy entrepreneurs. It’s time to get on board.
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