Cross-promotion, the future for Mobile App Developers

Today we are happy to bring you a guest post written by Eric Dyck, Co-Founder of Tap for Tap.

You can find Tap for Tap on Twitter or Facebook.

Cross-promotion has been around since advertising began
The idea is simple and attractive. Two or more companies can promote each other’s product for mutual benefit. It’s been used extensively by entertainment companies who promote their movies with product tie-ins. You may have seen it – Reese’s Pieces feature prominently in the movie E.T. while EcoFriendly Mazda SUVs power Dr Suess’, The Lorax, for example.

It was hugely popular during the boom years of the internet
Companies like Link Exchange grew to a massive size operating on the simple principal, of mutually beneficial cross-promotion. At its peak, the LinkExchange Banner Network reached over half of Internet enabled households every month, according to Media Metrix.

Modern ad networks require all parties buy and sell their inventory
After being bought by Microsoft for 256 million dollars, LinkExchange was quietly phased out. Microsoft, presumably, preferred to charge for its media, rather than barter it between willing participants. From that point onward, advertising exchanges modeled themselves after online auctions, where traffic was exchanged for money, rather than for other traffic.

In the mobile app gold rush, cross-promotion is regaining popularity
With over a million mobile applications all clamouring for attention, the simple, but powerful notion of “I’ll scratch your back, if you scratch mine” is an increasingly popular one. With the help of a number of companies that have sprung up to accommodate the exchange model, the world of mobile applications provides a unique opportunity for both independent and established app developers to engage in mutually beneficial cross-promotion.

Successful app cross-promotion networks will focus on transparency and value
The best of these companies will focus on the cross-promotion exchange model, not as a loss leader to attract apps into its paid services, but as a viable and effective business model in it’s own right. To accomplish this goal, the cross-promotion company has to be forthcoming about the cut it takes. These cross-promotions will strive to make it clear that they’re in the cross-promotion business for the long haul and their goal will be to build a thriving app exchange where all parties feel they are creating value for themselves and others.

All parties in a cross-promotion exchange will need to add value
Whether you’re exchanging impressions, clicks, downloads, installs, or sales, the fundamental principle is the same. The key is to ensure that all participants are extracting a similar value to the value that they are contributing to the exchange.