OfferMobi Comments On Apple's "Block" of Incentivized Installs and App Store Ranking Changes

NEW YORK, May 3, 2011 /PRNewswire/ -- OfferMobi, the first and leading US-based performance marketing network for non-incentivized mobile advertising campaigns, today is releasing its position on the state of App Discovery, Incentivized Installs, and changes in Apple's App Store Rankings.

Howie Schwartz, Chairman and Co-founder of OfferMobi is available to the media to comment on this important topic and is releasing the following comments today:

OfferMobi has been talking with app developers since the start of this year about the need for more balance in the App Discovery space.  The focus on incentivized installs was the "dirty little secret" that no one was talking about openly before last week when Apple started tweaking their App Store rankings and began rejecting Apps featuring incentivized installs.

The reality is that developers were 'gaming' the ranking system by pushing incentivized installs and it was only a matter of time before Apple reacted.  There are other issues with incentivized installs beyond Apple's current opinion -- it's one of LTV (life time value) of the users.

Incentivized installs generate low value (and mostly no-value in our opinion) users that do not engage or use the App.  In the majority of these cases they did not even want the actual App, but instead they wanted the "prize" or "bribe".  Since these users are not actively using the Apps it means they are not making in-App purchases or interacting with mobile advertising -- the key methods developers are looking to monetize users in the first place.

So if the incentivized users don't actively use or even re-open the app, the developer is left with "empty" installs that cannot be monetized.  So the question everyone should be asking is why has this continued for so long and how are these incentivized campaigns being funded for low or no value installs?

The answer is simple.  It is about the metric that app developers are being valued by Angel and Venture investors today: installs.  That metric is wrong and will change (this change will be accelerated quickly by the current Apple actions).

The proper method to value a developer is DAU (daily active users).  Only with active users can you monetize your installed base with in-app purchases and mobile advertising.  When developers are properly valued by active users and how well they are monetizing their installs they will be forced to change their marketing campaign mix and not focus so heavily on incentivized installs.

So what is the balance that needs to be brought to App Discovery marketing?  Buying CPC (cost per click) on the mobile ad networks and other mobile display media is very difficult for developers to manage as it is hard to optimize these campaigns and track.  We believe that a focus on non-incentivized installs is the next step in App Discovery.  This allows developers to set a fixed price per install and provides higher value users that actually wanted to install and use their App vs. an incentivized "bribe".  These real installs are more likely to make in-app purchases and interact with mobile advertising and become active loyal users.

The OfferMobi App Discovery Network is focused 100% on non-Incentivized installs for the iOS and Android platforms and is currently accepting developers in its Beta program.

About the OfferMobi App Discovery Network:

In addition to OfferMobi's renowned pay-per-performance mobile marketing platform, the company recently launched the Beta version of its App Discovery Network™ platform now available to both Android and iPhone developers, which enables mobile app developers to increase attention and drive high quality installs of their apps with a unique Non-Incentivized Cost-Per-Install (CPI) model that OfferMobi has developed. Developers participating in Beta will be able to sign up for 50 free installs

For more information on the OfferMobi App Discovery Network, visit:  http://offermobi.com/developer

About OfferMobi:

OfferMobi is the first and leading USA-based mobile affiliate network. Launched in early 2010, OfferMobi has amassed a loyal following of over 10,000 mobile publishers who are seeking performance based commissions from ad campaigns they can run in mobile advertising channels. OfferMobi acts as both an agency and a performance based network for advertisers who wish to promote their mobile enabled website, app, or click to call/pay per call campaign. OfferMobi works with mobile publishers who own well-travelled mobile destinations, popular App owners and other mobile ad networks to increase the revenue they earn from their mobile ad inventories on a performance basis.

For more information, visit www.OfferMobi.com

CONTACT: Matt Rizzetta, PH: 212-334-9754, Email: [email protected]

SOURCE OfferMobi