Google enables devs to monetise free users with ‘Rewarded Products’

Google has introduced a new method for Android developers to monetise free users with a feature called ‘Rewarded Products’.

Free apps are increasingly more popular than paid. In Q1 2018, Statista found 94.24 percent of app downloads are free.

It’s understandable from a user perspective that most want to at least try an app before committing to a purchase. In-app purchases allow users to pay for the full app or additional functionality, but some users don’t want to cough up any cash.

One way to monetise those users has been to reward them with in return for watching adverts. Google is now making this method an official platform feature.

In a blog post, Google wrote:

“One trend has been to reward users for a monetizable action, like watching a video, with in-game currency or other benefits. This gives users more choice in how they experience the app or game, and has been an effective way to monetize non-paying users.”

The company provided an example of 100 ‘coins’ being rewarded for watching a short video:

Developers will earn ad revenue from the interaction. The adverts are, of course, served from AdMob and feature a range of content to help make them relevant.

While such functionality was available in the past, it required implementing extra SDKs. Google claims Rewarded Products “significantly reduces the work required to implement”.

The feature is now available in open beta in the Play Console.

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Microsoft boosts developers’ revenue cut across its app stores

Microsoft has updated its app store policies to give developers a much fairer revenue cut of up to 95 percent.

There are some caveats to Microsoft’s revenue cut. To receive the full 95 percent, the app must be purchased through a deep link directly to your app. If the app is purchased through Microsoft listing it or marketing it somewhere, the developers will receive 85 percent.

App store fees have become a hot topic in recent months. The general feeling among developers is the platform holder’s 30 percent take on the likes of the App Store, Play Store, and Steam is far too high.

On iOS, the lack of alternative app stores means it’s a case of putting up with it or not reaching the lucrative market full stop. On Android, users can install third-party app stores or sideload apps themselves.

For its Android launch of Fortnite, developer Epic Games controversially bypassed the Play Store to avoid the cut taken by Google on in-app purchases. Several fake versions of Fortnite quickly appeared to take advantage of the reduced security.

On Windows, Epic Games recently launched their own game store as a competitor to Steam. The Epic Store only takes a 12 percent cut of the revenue from sales in comparison to Steam’s 30 percent.

“As a developer ourselves, we have always wanted a platform with great economics that connects us directly with our players,” said Epic CEO Tim Sweeney in a statement. “Thanks to the success of Fortnite, we now have this and are ready to share it with other developers.”

Microsoft’s new fees apply to purchases made on Windows 10 PCs, Windows Mixed Reality, Windows Phone, and Surface Hub. However, it excludes purchases made on Xbox consoles.

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