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.
$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.