For the first time in history mobile gaming has taken a larger share in the global gaming industry than the PC. Mobile gaming is expected to account for more than 34% ($52.5 bn) of the global gaming industry by 2019 (Newzoo, 2016). The market has become highly competitive and extremely saturated with large global players like Zynga, Tencent, EA Mobile etc. In addition to that mobile games are often given for free thus developers need to rely on creative monetization strategies. This thus requires active gamer engagement to recoup the cost of development. With plenty of choice in mobile games and low switching costs, developers are struggling to promote their apps. To eventually find out that users give up during the initial tutorial of the game.
AppOnBoard wants to change that, like the CEO Jonathan Zweig said “we want to take the tutorial out of the app, to the other side of the fence…. Before the app is ever downloaded” (Anthony, 2017). They have patent-pending technology that can create gamified in-game adds with chronological heat maps to track consumer behavior. This allows developers to see how consumers interact with their demo before the game is even completely developed. This aids developers, in turn helping gaming developing companies to weed out potentially bad app ideas.
The chronological heat maps is an integrated monetization boost for advertisers, as they can now sell of their ad space at higher prices because developers gain more analytics. Both sides of the platform benefits from running ad’s on AppOnBoards technology. Their tag lines surrounding their business model is “built by developers for developers”, and as such they state that they will be the next wave of app revenue.
The tool has been built by a team of engineers who have prior experience in building apps for over 200 titles in the App Store. The company has already signed up some of the largest game publishers including Zynga ($765 million Revenue) and Glu Mobile ($223 million Revenue).
Through a unique form of value co-creation made possible through this proprietary technology, developers can now generate better ideas and design through instantaneous feedback, whilst making ad’s more engaging and fun for consumers. Creating a customer centric approach to app game development.
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Their are multiple stakeholders who gain from the new value system created by AppOnBoard. Under the joint profitability formula advertisers gain more money from their advertisement banners, developers gain more analytics and insights from their designs and consumers get more engaging and fun ad’s.
Under institutional arrangements, there are some judiciary implications, AppOnBoard will have to disclose and provide a “up-front explanation of what data is being collected, what they are doing with it, why they are doing and how long they will store it.” They would have to be communicate clearly to all stakeholders involved. This is required under the Consumer Privacy Bill of Rights. This might raise privacy concerns on behalf of consumers who used to have static ads and now are being tracked on their movement and user behavior.
Under social norms in terms of institutional arrangements, it is still yet to be seen how users will interact with these ads’. Users might find them intrusive over time, or they could simply stop interacting with gamified ads at all.
What do you think? Will app developers benefit from using AppOnBoards technology? And how will consumers respond?
New Zoo, 2016. “The Global Games Market 2016 | Per Region & Segment.” Newzoo. N.p., 21 Apr. 2016. Web. 10 Mar. 2017.
Ha, Anthony, 2017. “AppOnboard Offers Fast, Playable Mobile ads.” TechCrunch. TechCrunch, 06 Mar. 2017. Web. 10 Mar. 2017.