In the early days of mobile development calculating ROI was challenging because the technology was new and the marketplace was still developing.  With the introduction of iAds from Apple and other ad marketers you now have some sense on what a “tap” or view inside mobile app is worth, or at lease what others are paying.  The WSJ recently posted this article:  Apple's Ad Service Off to Bumpy Start.  Detailed inside the article is a very interesting item:  At the high end of most mobile ads branded advertisers are charged $2 per tap on a banner.  Additionally Developers who wish to promote their apps are being charged as low as $0.25 per tap.

With these numbers you can begin to develop Return on Investment (ROI) for your mobile App Project.  Let’s say you spend $5000 to develop, build, and distribute your custom app for your business.  If a “tap” inside is worth $2 it would require 2500 taps to recoup the project costs.  If your app is accessed “sessions” 200 times per day with 10% click rate that equals 20 clicks per day.  2500 clicks divided by 20 clicks per day equals 125 days to recoup your investment.  $1 clicks equals a ROI in 250 days.  If you produce a good content rich app 200 sessions per day is very low.  Jam-Mobile.com produces and sells many simple but functional apps that produce sessions per day way beyond 200. Mobile analytics build in to your app can give you great information about app usage and more.  We will talk about mobile analytics in a future post.  Lastly all apps are not created equal but hopefully this gives you a framework to begin to evaluate mobile investment.

Project ROI:

$5000 (Project Cost) / $2 (Cost per Tap) = 2500 Taps
200 (Session per Day) * 10% (Tap Rate) = 20 Taps per Day
Return on Investment (ROI) = 2500 (Taps) / 20 (Taps per Day) = 125 Days

BUT WAIT!  If I sign up with iAd I have to share 40% of the ad revenue.  This is true but you don’t have to use iAds or other ad services to have a return on your investment!  We have built custom apps were the client controls the ad displayed and the “click” or “tap” on the ad and resulting link location.  The client keeps and controls 100% of the advertising revenue.
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Comments

09/17/2012 05:14

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08/26/2014 04:38

These photos are test items from a standardized psychological test and publishing them in a newspaper violates both copyright protection and test ethic standards.

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08/27/2014 14:09

Some major flaws (that show why it is not a good idea to test this on readers)

08/27/2014 16:54

me too....wanted more older women, less makeup.

09/18/2014 02:51

Good point about guessing quickly. Sometimes I clearly saw two emotions and picked the more subtle one as more real, and my quick guess would have been correct.

09/26/2014 05:38

One might then ask, why do some people claim to have ESP (for lack of a proper set of specific descriptive words) and others have never felt any such thing?

10/08/2014 04:34

35/36. I guess I'm from a similar demographic as the person who made up the right answers.

10/11/2014 13:33

There is a difference between an actor playing a role where he is "concerned" and actually feeling concerned, or where an actor is trying to demonstrate "desire" and actually feeling that way.

11/16/2014 04:07

Was this test designed by Larry Summers?! And clearly older women or non-white women matter not a jot.

01/01/2013 05:11

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04/26/2013 09:22

Really great explanation, I imagine this is a crucial focus point when developing an app.

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05/17/2013 05:24

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05/17/2013 05:25

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