What This Company Did to Improve Monetization

Naomi is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.

If you read the IDC report that was released last week, there was a tremendous increase in smart device shipments in Q3 2012. A staggering 303.6 million shipments and pointers were shipped for the holiday quarter, a number that's expected to increase up to 362 million. According to statistics gathered by Gartner, the number of apps that will be downloaded by smartphone users will almost double the number downloaded the previous year, at over 45 billion. This, added to the content of the IDC report, means an explosion in sales as far as smart devices are concerned. Over the next five years, the smart device market is projected to experience an annual growth rate of no less than 20%.

What this means is that mobile app search is continually becoming invaluable, and as such, for a company in the mobile sector to thrive it should make this an important component of its system. Google (NASDAQ: GOOG) is among the companies that have come to understand this and is working hard to make sure that apps are easily found on its platform. The company is also carrying out in-app transactions. This entails that there should be a carrier billing option to enable users to pay for various services and products through their mobile devices. This led the company to sign a deal with Bango, which also means good news for Android developers since it will help increase revenue and conversions for developers as they are able to monetize their various products. In comparison to Apple’s iOS, Google generates less revenue from its mobile platform.

According to Ray Anderson, Bango CEO, "As user numbers soar, we will see an increasing flow of developer talent and compelling content channeled through Google Play. We're expecting that operator billing from Bango will boost conversion rates and developer monetization." For Google Play users, it means that the days of paying for in-apps or buying apps with credit cards are gone. The companies that have been in the lead when it comes to the use of carrier billing are AT&T (NYSE: T), wich gives consumers the benefit of paying for products and services through their smartphones and other mobile devices. The consumers can also pay through text messages or calling customer service.

Also working hard on making it easier for users to locate apps on its various platforms is Microsoft (NASDAQ: MSFT), which took a bold step to create more awareness about its over 100,000 apps and also help consumers easily find them by striking a deal with Mimvi, an up and coming company that designed a search engine that helps consumers find mobile apps. Through this agreement makes it easier to access its various apps, more users and developers will be attracted to Microsoft’s platform. Also included are Amazon and Apple (NASDAQ: AAPL) which makes periodic updates to its software in order to enhance user experience and keep consumers on its platform. Also not to be left out is Nokia (NYSE: NOK)  as Xyologic, a Germany-based company has announced its app search partnership with Nokia. This partnership is geared towards ensuring that users of Lumia smartphones are able to discover Windows Phone apps that are similar to most of the iOS and Android apps they like.

Finally, gone are those days that Google had issues on monetizing Google Play because with the recent deal signed with Bango, there is an expected increase in in-app transactions by users of Google Play. Based on this, in consideration of the company’s current share price and innovativeness, I would say there is nothing to lose in making it a buy. 

Chizy has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Google, and Microsoft. Motley Fool newsletter services recommend Apple, Google, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!

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