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

Authors: Natália Lemos; Cláudia Cardoso; Cândida Sofia Machado

Addresses: 2Ai, Polytechnic University of Cávado and Ave (IPCA), 4750-810 Barcelos, Portugal ' School of Management, Polytechnic University of Cávado and Ave (IPCA), 4750-810 Barcelos, Portugal ' School of Management, Polytechnic University of Cávado and Ave (IPCA), 4750-810 Barcelos, Portugal

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.

Keywords: monetisation models; price level; pricing structure; multilateral markets; health apps; digital transformation; e-health; m-health; ads revenue; monetisation of privacy capital; apps platforms.

DOI: 10.1504/IJEH.2023.138254

International Journal of Electronic Healthcare, 2023 Vol.13 No.4, pp.295 - 310

Received: 05 Dec 2022
Accepted: 26 Dec 2023
Published online: 30 Apr 2024 *

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