I just want to throw my 2cents here... While the math presented here is true, you left out an interesting side effect: Implementing an opt out can lead to higher click through rates and higher click through rates draw higher bids from the advertisers meaning higher revenue / click values.
The math was based on the assumption that the revenue/click value is the same for all applications. This is not true. I have two apps apparently with the same user base and one of them have the 4 times the CTR as the other and the one with higher CTR brings in about 20% more revenue per clicks. Higher bidding advertisements appear more often in apps that have higher CTRs affectively resulting in higher revenue / click figures. Now it's a different story whether allowing that 1.5% users not to show the ads will increase your CTR noticeably... I think no, but the goodwill might counter your small losses. It really depends on the user attitudes. Rudolf On Wednesday, September 19, 2012 12:54:35 AM UTC+2, Nathan wrote: > > Let's be civil here. No one has proposed "annoying the hell out of your > users". If you do, the users will uninstall you long before they make any > sort of opt out decision. > > I can agree with several people here. > > Fran and William are right about the math. John's approach does not bring > him more revenue, and likely reduces it by a small amount. CTR and eCPM are > vanity metrics. > > Nonetheless, John's approach is reasonable if it is worthwhile to give up > a miniscule amount of revenue, in exchange for increased goodwill and > decreased support costs. I've been known to give a few refunds that were > entirely undeserved, just because I have better things to do than argue > with customers. > > But William's approach also makes sense. Let's not use words like > blackmail and hostage. You are offering something of value, ad free use of > your app. In a free market, the user can accept the offer and pay, decide > that the ads aren't really that bad and decline, or even decide to > uninstall your app. No hostages, no blackmail. Certainly there are other > offers you could make to your users, alone or in combination. Since there > is a way to opt out of ads, albeit a paid one, reasonable people are less > likely to complain. UNreasonable people, well, they might still do that . . > . > > I am not using ads for a revenue source in anything right now. Personally, > I wouldn't take John's approach for the simple reason that I'd never get > around to implementing it. I have several hundred things on a list that I > could do to make things better for my customers: features, usability, > content, etc. I think it fair to prioritize such requests above those > things that would make life easier for the people who are unwilling to pay, > neither through accepting ads nor making a purchase. That puts it at the > bottom of the list which means I will get to it approximately. . . never. > > I'm not in business to please everyone. Don't get me wrong - I want those > who do purchase and use my products to have a great experience. But you > could release an app with no monetization whatsoever and it would still get > complaints. You can't expect those of us who want/need to earn revenue to > be exempt. > > Nathan > > -- You received this message because you are subscribed to the Google Groups "Android Developers" group. To post to this group, send email to android-developers@googlegroups.com To unsubscribe from this group, send email to android-developers+unsubscr...@googlegroups.com For more options, visit this group at http://groups.google.com/group/android-developers?hl=en
