This story was delivered to BI Intelligence Apps and Platforms Briefingsubscribers. To learn more and subscribe, please click here.Snapchat, the popular ephemeral photo- and video-sharing app, is allowing websites to create their own SnapcodesSnapchats version of QR codes, TechCrunch reports.After scanning a brands code with the Snapchat camera, users will be sent outside of the app, to the brand's mobile website.For example, a Business Insider Snapcode would take users to Business Insiders webpage. Until now, Snapcodes have been used as an easy way to add friends. The new feature could give businesses a powerful means to promote their brand with images rather than through simple URL links.Pushing Snapcodes beyond friend acquisition could open a world of opportunity for Snapchat. In China, QR codes are a crucial touch point for its mobile-first population, largely as a result of WeChats efforts. The popular Chinese chat app and bellwether for the messaging app industry uses QR codes to give its users access to a multitude of actions. And while this functionality isnt yet available on Snapchat, the app may be trying to replicate the Chinese QR experience in the US.Its therefore useful to look at how WeChat leveraged QR technology to achieve success:It turned an app into a portal for B2C connections. QR codes have been fundamental in helping WeChat expand its platform beyond that of a simple chat app. The act of scanning QR a code has partly replaced exchanging business cards, sending web links, making online searches, and swiping credit cards, marketing consultant and tech blogger Hong Bo said.It created greater reach for marketers. QR codes helped WeChat broaden the reach of brands and marketers that use the platform to reach its 864 million monthly active users. These users can be immediately directed to a conversation with a brand by scanning their QR code on a website, or poster. Snapchat has also released ad products incorporating Snapcodes, which unlocks special features when a user scans the code.It made payments more accessible. QR codes can make payment functions much more seamless, allowing users to connect and pay for items simply by scanning codes with their cameras. Incorporating this tech into WeChats platform was fundamental to WeChats mobile payments business, propelling the companys share of that market in China from 3% to 38% in three years, according to The Wall Street Journal.App developers long considered the "pay once and play" modelin which users pay up front an app and aren't prompted to make in-app purchasesthe best way to generate revenue. But as more "free-to-download" apps entered the market, users increasingly opted for these experiences.These apps offer microtransactions for in-app goods and services, and in-app ads.As the app ecosystem expands further, it will become increasingly challenging for developers to compete in a crowded market.Overall, global gross app revenuewill double to reach $102 billion by 2020, accordingto recent projections by App Annie.As a result, app monetization strategies need to shift at least as quickly as consumer trends and preferences in order for developers to capture a piece of this growing market.Laurie Beaver, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on app monetization that explores the top app monetization strategies under user- and advertising-paid approaches, and the growing combination of both. We will also look at emerging trends that could help developers navigate the fiercely competitive app ecosystem, and address the potential barriers that developers will have to overcome to reap the benefits of the multi-billion dollar market.Here are some of the key takeaways:The app ecosystem is expanding quickly, and it's becoming increasingly challenging for app developers to compete in a crowded market.To capture a piece of the growing market, app developers must adapt their strategies at least as quickly as consumer trends and preferences change.Developers can choose a user-paid or an advertising-paid approach to monetizing their apps. Different monetization strategies work best with different apps.There are a number of widespread challenges that developers must contend with both before and after they enter the app market.In full, the report:Provides key factors driving the expected growth of global app revenueEvaluates the top app monetization strategiesLooks at emerging trends to help developers navigate the app ecosystemExplains the challenges that developers face to compete in the app marketAnd much moreInterested in getting the full report' Here are twoways to access it:Subscribe to anAll-Accesspass to BI Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensureyou stay ahead of the curve and benefit personally and professionally.START A MEMBERSHIPPurchase & download the full report fromour research store.Purchase & Download NowJoin the conversation about this story
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