Posted by James Coops, April 10, 2011
For some time the main ways to monetise mobile traffic have been confined to standard display advertising or user payments. App developers and mobile site publishers have the option of running ads on their site on a CPC (cost per click) or CPM (cost per thousand) basis. The alternative is to offer a premium service, typically via a charging for an app download. However, recent trends are making these business models less effective. Firstly the growth in mobile ad inventory means that fill rates and eCPMs (earnings per thousand page views) are falling as supply outstrips demand. Secondly, the paid-for app market is suffering from a general downward trend of pricing towards free. Whereas the iphone platform has been successful in terms of paid downloads, Android users have proved far less willing to pay for apps.
These trends mean that there is a need for new types of monetisation. Enter mobile affiliate marketing. Mobile affiliate marketing offers developers and publishers the ability to generate revenues on a CPA (cost per action) basis which means that an unlimited level of inventory can be effectively monetised. To date, unlike the online world, where affiliate marketing is well established, these types of offers have been few and far between on mobile. However, this is now changing with a number of recent developments showing that mobile affiliate marketing is starting to reach take off point:
- Mobpartner, one of the pioneers of mobile affiliate marketing recently raised $3.5m from leading VCs to expand its mobile performance marketing platform
- Kissmyads launched a new mobile affiliate network based out of Germany
- Moolah Media has uncloaked in the US, and provides a range of mobile performance marketing services, backed by some major investors
- Offermobi is making waves with a range of US-focused lead gen and mobile affiliate offers and also recently raised $1m
All of this activity is bring more offers, more merchants and more money onto mobile on a CPA basis. There are huge opportunities for publishers, app developers and mobile marketers who are quick to learn how to make mobile affiliate marketing pay. We’ll be discussing some of the techniques and opportunities here on blognotions in the coming months.
Published by Mobyaffiliates, a directory of mobile affiliate networks and programs.