Monetisation strategies for health apps: evidence from Apple’s App Store and Google Play Store

Abstract

Monetisation models of multilateral platforms are key elements for the viability and success of health apps. In this paper, we study how alternative monetisation methods influence the price of health apps. For a sample of health apps available on the Apple’s App Store and the Google Play Store, we use a censored regression model to identify the factors that influence the expected price of a health app. Our results show that the presence of alternative monetisation mechanisms negatively affects the expected price of a health app. Monetisation mechanisms based on ad revenue are those with the strongest impact on lowering the download price of health apps, followed by monetisation mechanisms based on the monetisation of ‘privacy capital’. The selection of the platform to market a health app also seems to be a strategic decision because of the divergent willingness to pay of users of each platform.