The beginning of the end could be marked in 2016 for the free ad model of ad funded apps as Google introduce labeling across it’s entire app store. Potentially this could disrupt the revenue model, known as the internets original sin, that has been adopted by much of the internet.
This move which was introduced by email from Google to it’s Google Play developers describes their intention of expanding their app labelling from just those app aimed at children and families to all apps to all of it’s apps by January 11th.
From this point consumers will then be able to make more informed decisions about which apps they want to download as they will be able to see which apps contain pop ups and banners.
For many the only word they are looking for when downloading content is ‘Free’ so while this move may deter some a calculation must have been made that this will not have to much of an impact on revenues. Especially given that the Google Play Store contributes a significant and growing amount of revenue to the company.
One prediction for the future of app revenues is to see an increase in co-branded apps as the rule will not extent to product placements, like the Star Wars take over of Angry Birds, so consumers may see more of these kinds of apps in the near future.
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