Category Archives: Technology

Having a website has become a necessity for most small businesses, but the development costs can be difficult to estimate because there are many factors that must be taken into consideration. You can pay as little as several thousand dollars or as much as $100,000+. After reading this article, you’ll be able to approximate the cost of creating a website for your business without having to ask for a price quote, hoping the real costs won’t exceed it.

how much does it cost to make a website for a business

How Much Does It Cost to Create a Website for a Small Business?

Creating a website for your business is a lot like building a house for your family. If you have a small family and an equally small budget, a large McMansion is simply out of the question. On the other hand, if your budget is large, you can afford to build a house with a few extra bedrooms just in case you decide to welcome another child, or several, into your family.

Some small businesses don’t need anything more than a one page website, which displays all information on a single page, making it easy to develop, deploy, and use. Depending on whether you decide to build a website from scratch or hire a professional to do it for you (more about the pros and cons of each of the two approaches later in this article), you can expect to pay anywhere from $3500 to $6000.

Small businesses that offer more products or services typically need a larger website with multiple pages and a content management system (CMS). How much does it cost to make a website for a business with multiple products or services? Anywhere from $10,000 to $35,000. The price range is so wide because there’s a huge difference between using a free CMS in its stock form and modifying it to better fit the needs of the business.

A Large-scale website with hundreds of pages, custom features, proprietary images, professionally optimized content, and other bells and whistles can cost as much as $100,000. Of course, most small businesses don’t spend anywhere near that amount on a website. Partnering up with a reputable web design and development company is the best way to ensure that you get the desired result at an adequate price.

Main Factors That Affect the Cost of a Website

We’ve already mentioned several factors that affect the cost of a website, and now is the time to look at them more closely so that you know exactly what to expect when building a new website.

  • Size: It’s pretty self-explanatory why a small website with just a couple of pages costs considerably less than a large e-commerce site with hundreds of product categories. That said, a website with 40 pages doesn’t necessarily have to be twice as expensive as a website with 20 pages. In most cases, the cost of a new page drops down considerably after the groundwork has been laid.
  • Design & Functionality: Just about any freelance web developer can use an open-source content management system and a template downloaded from the internet to create a website, but only skilled web developers and designers can build a custom website from scratch and add all the functionality the client asks. Of course, custom design and functionality cost more, noticeably increasing the overall cost of building a website.
  • Content Creation: Persuading visitors to take a certain action (make a reservation, order a product, ask for a price quote) takes a certain skill set that many business owners don’t have. Those who decide to hire a professional copywriter should expect to pay at least $0.15 per word. It’s also important to note that web content should be periodically updated to prevent it from becoming stale.
  • Hosting and Maintenance: Every website needs a domain name and web server to be accessible from the internet. Smaller websites can get away with basic web hosting packages, which typically cost just a few dollars a month. Larger websites, on the other hand, need enterprise-grade web hosting that in some cases can cost over $100 per month.
  • Search Engine Optimization: When calculating a small business website cost, it’s easy to forget about search engine optimization. However, a website that’s not optimized for search engines won’t attract any visitors, making SEO one of the most important ongoing expenses.

As you can see, the cost to build a website is affected by both indirect and direct expenses, some larger than others. Now that you have a better understanding of what goes into building a new website, we can describe in detail the two main approaches you can take.

Professional Website Versus DIY

To give you a better understanding of how much it can cost to create a website for your business, we need to explain the differences between two options when it comes to building a website from scratch.

how much does it cost to build a website for a small business

Approach 1: Hiring a Professional

Successful business owners understand their own strengths and know-how to maximize them. By hiring a professional web design and development company such as ComboApp, you can maintain a sharp focus on your core strengths and let someone with many years of experience with creating business websites secure your place on the web.

Because professional web designers and web developers have a good understanding of modern web technologies, they can create a business website that works flawlessly on all devices—desktop computers, smartphones, and tablets. They can also help you fill your site with engaging content and optimize it for search engines so that customers won’t have any trouble finding you.

In most cases, professional web design and development companies are happy to provide ongoing maintenance and support to keep your website fresh and secure. This is especially important if you intend to collect customer information for the purpose of selling goods or services online. According to recent cybersecurity statistics, 43 percent of cyber-attacks target small businesses, and a single data breach can irreparably damage the reputation of any small business in an instant.

Of course, there are some downsides to hiring a professional. The biggest downside is the fact that this approach requires an investment of at least several thousand dollars. Small businesses that are just starting out typically don’t have a lot of money in their budget to allocate for web design and development, which is why it’s not uncommon for them to attempt to build a website from scratch on their own.

Approach 2: Do It Yourself (DIY)

Small business owners who are interested in creating a website while spending as little money as possible can choose the DIY approach if they feel confident in their technical skills and understanding of modern web design principles and development techniques.

To build a website from scratch, you need the following components:

  • Domain name (between $10 and $200 a year): Every website needs a domain name (URL) so that people can easily find it in search engines and visit it by entering it in their web browser. The most common domain name extensions (the last part of a domain name) include .com, .org, and .net, and they cost around $10 a year. There are, however, some exotic domain name extensions that cost as much as $200. Purchasing a registered domain name is a whole different game entirely, and small businesses should avoid it.
  • SSL certificate (between $0 and $200 a year): These days, websites are expected to have an SSL certificate issued by an authorized certification authority. An SSL certificate allows encrypting sensitive data and protecting the privacy of site visitors. The good news is that any small business can get an SSL certificate for free thanks to Let’s Encrypt, a non-profit certificate authority run by Internet Security Research Group.
  • Website hosting (between $10 and $100 a month): To make your website accessible from the internet, you need to host it on a server, which is where web hosting services come in, allowing you to put your site online for as little as $10 a month. Most small businesses can start with the most affordable web hosting plan and upgrade when they start getting more traffic.

These three components provide the foundation upon which you can create a business website using a CMS like WordPress and Drupal or by coding it from scratch in HTML, CSS, JavaScript, and other markup and programming languages.

The obvious benefit of the DIY approach is its low cost. For just a few hundred dollars per year and some personal time investment, a small business can establish a web presence, which is less than what any professional web design and development company would charge.

The problem is that this is where the benefits of the DIY approach end. Anyone who is interested in creating a business website shouldn’t be asking, “How much does it cost to build a website for a small business?” Instead, they should be asking, “How much does it cost to build a website that looks professional and functions flawlessly?”

While a professional web design and development company guarantees professional results, the DIY approach doesn’t guarantee even basic functionality or security. There are many small business owners who had invested hundreds of hours into creating a business website but ended up with something any professional could have done in a few hours.

For this reason alone, the DIY approach can be recommended only to small business owners who have plenty of free time and already possess the necessary technical knowledge and design skills.

Conclusion

In the 21st century, small businesses across all industries need to operate both offline and online, and that’s possible only with a modern website that works just as well on mobile devices as it does on desktop computers. For most small businesses, building a website from scratch by themselves isn’t a good choice unless they already have the necessary skills and plenty of free time.

creating a website for your business

A reputable web design and development company like ComboApp is able to create a professional business website at a price most small businesses can afford and provide value-added services such as search engine optimization and marketing.

For a limited time ComboApp is offering free marketing strategy audits to businesses affected by COVID-19 crisis. We can help you navigate through this challenging time and come out stronger and more prepared for what comes next.

FAQs

How much does a website cost in 2020?

Building a website in 2020 can cost you as little as several thousand dollars or as much as $100,000; it all depends on the approach you choose and the complexity of the website. If all you need is a one-page landing and you have the skills to create it yourself, then you should be able to get it up and running for next to nothing. But if you would like to hire a web design and development company to develop a large e-commerce site for you, be ready to spend a considerable amount of money.

How much time does it take to create a business website?

Just like when it comes to estimating the cost of building a website, determining the amount of time required to create a website depends on many different factors. A capable web design and development company should be able to put together a one-page landing just in a few days, but it may take it a month or more to finish an e-commerce site with hundreds of product pages.

What is WordPress, and how much does it cost?

WordPress is a popular free and open-source content management system used by TechCrunch, BBC America, PlayStation, Skype, Sony, The New Yorker, Variety, Microsoft News Center, Quartz, The Walt Disney Company, and many other notable organizations and brands. It can be set up in just a few minutes and customized to fit the needs of anyone from small businesses to large enterprises.

Is search engine optimization necessary?

Search engine optimization (SEO) is not necessary but absolutely recommended for businesses that want to increase their discoverability and findability on the web.

Is it cheap or costly to modify an existing website?

That depends on the complexity of the website and the technologies used to create it. Simpler websites created using HTML and CSS only can be modified very easily, while custom content management systems with a complex backend can be a real challenge even for an experienced web development company.

Mobile devices have now become a part of our daily routine. At one point in time, they were used strictly for phone calls, but now cell phones have evolved into computers in our pockets. So many of us keep a vast amount of personal and professional information on them, such as email addresses, credit card information, and even important company data. Thoughtful passwords can often help keep this information safe, but is that enough? Here are some mobile cyber security tips for keeping connected devices secure.

1. Check Your Privacy Settings

Turn off Bluetooth and WiFi when not in use

Smartphones can often come preset with privacy and security settings, but give you the option to modify the settings for better mobile device security. One can find these options in the settings app on your phone. These settings can help you limit the access outside networks have to data on your phone. For example, it can help protect your location, pictures, contacts, notes, and emails from your applications and connected Bluetooth or WiFi. This is one of the cyber security tips we often forget about because we are so used to allowing application access to our personal information, in order to properly use these apps.

2. Sign Out of Automatically Logged in Accounts

Sign out of automatically logged in accounts

Smartphones have heightened the accessibility to the internet, which means that we tend to use our cellphones as a secondary or for some, a primary connection online. This means for many of us, especially those of us who travel for work, are using our smartphones for business. Connecting not only our personal accounts but also our work accounts brings a new sense of convenience to the average employee. However, this can be problematic for those trying to keep personal and company information secure.

While it might be difficult to log in and out of accounts already on your phone, it will be more secure in the long run. If someone hacks or finds out your passcode, at least they won’t have direct access to your applications and accounts. For some mobile devices, it might be trickier to log in and out of your accounts on the applications, but in this case, you might want to consider using the browser instead. Even though it might not be as convenient, you’ll be happier knowing your accounts are safe.

3. Turn off Bluetooth and WiFi When Not in Use

Cyber security tips to keep mobile device safe

Bluetooth and WiFi have changed the world of hands-free technology over the years. Having the ability to connect a device to the car or walk into a building and automatically connect to its WiFi, has changed the way we use our devices for the better. However, leaving your personal or work devices available for connection with other devices can leave your data vulnerable. While it’s easy to leave your WiFi and Bluetooth settings on for convenience, it leaves your devices open for cybercriminals to misuse and possibly accesses everything on your device.

To keep things as safe as possible, remember to turn off your Bluetooth and WiFi when you’re not connecting. Some devices make it easy with a simple switch of a button. Many phones also have the option to have additional security levels to these features as well. Something as simple as a password to be able to connect to a Bluetooth or WiFi system could save you a lot of trouble when it comes to security.

4. Download a VPN

Download a VPN for mobile device security

Virtual private networks (VPN) can be cyber safety lifesavers. VPNs allow for privacy online by creating a private network from a public internet connection. By masking your internet protocol (IP) address, your online actions are untraceable. If you are connecting to a public WiFi, your device will be undetectable to anyone else on the network. So many cybercriminals are aware of how many unprotected personal and professional devices are connected to public WiFi networks and take advantage of them.

VPN’s are available for not only laptops and tablets, but also mobile devices as well. VPNs have the ability to hide your IP address, your location, your web activity, but most importantly your device in general. For those who use a smartphone for work, it would be a good idea to invest in this network going forward.

Harmful cybercriminals are on the lookout for those who are relaxed with their security. Not investing the time to research and implement cyber security processes could be the difference between a data breach and a safe network. So, taking the time to understand your security options is very important. These are a few cyber security tips and precautions you can easily take that will bring your mobile device security to the next level.

 

The MWC event is incredibly enormous and so is the potential of ideas and projects that people share at this event. You can see the wireless projector from SK that projects HD video on any surface, has a 2 hour battery life, and fits in your palm of your hand. You experience a Virtual Reality rollercoaster with Samsung’s ‘VR Feature with 4D’.

We were excited to visit the Wearable Technologies conference and confirm our expectations of how the smart and connected world of things is evolving. Below is what Comboapp liked most:

1) Smart watch revolution

Smartwatches are all over news titles and blog reviews and there is a good reason for it. This device becomes a main connector between the human body and monitors. It can track almost anything from sleep quality, like the app we worked with – MobileSleepDoc, to emotions.

MainTool says that smartwatches are supposed to be the next big thing. Geeksme claims that even love can be measured. Apart from fitness and sleep tracking, their watch is designed to track intensity, speed, quality of sexual activity, and help evaluate the way a person felt during sex. 

2) Fitness moves wearables forward

Sport and healthcare industries were always early adopters of new technologies. Now they inspire companies to create futuristic wearables.

Kinematix designed smart insoles that track a person’s movement. This is very valuable information for runners as this insoles show the behavior of both feet on the ground. With the information received, you can build a personalized running plan and avoid injuries from bad running technique. 

First V1sion presented Smart Jersey, an actual jersey that tracks sport activity. It weighs 300 grams and has a battery life of up to 2 hours with a full HD camera. Yes, a jersey with a camera! There are also different versions for each sport type, as fabric should vary depending on type of activity.

Talking about fabrics, one more curious device from ComfTech was the smart garment with sensors that are integrated into the fabric. As a result, you get an imperceptible and easy to care wearable that also serves as clothing.

3) Smart headphones for adults and unborn babies

IBM has displayed headphones with 4GB memory, a heart rate monitor, mic, and oxygen saturation sensor. These are basically microcomputers that lead us to the era of cognitive Internet of Things. 

We couldn’t ignore the presentation of the already famous Babypod. This is a device that helps broadcast music to an unborn baby. With positive reviews from BBC, Guardian and other major media sources, we expect it to be very popular.

4) One more time about connected everything

We talked about connectivity as a trend in a previous post, but when it comes to world-changing technologies, it’s never enough.

Atooma presented a cloud that lets you manage all of your devices, IoTs and apps. It claims that big companies, like Samsung, will create a global ecosystem where things will interact with different devices, connected cars and homes through apps.

According to PWC, the connected living market is estimated to be worth 1 trillion by 2020, connected cars will triple over the next 5 years and new digital players will enter traditional markets.

In the age of digital world big changes happen every day. But only some of them can really shake the market and set up the new rules of old game.

For this time such turning point in advertising industry was an announcement of first data-driven project called Collective. It’s was created by the initiative of a mobile ad attribution company Kochava that teamed up with four mobile ad networks including AdXcel, Altrooz, Appia and Liquid. The main questions are whether this association will bring Kochava a competitive advantage and how it will affect the current leaders such as Appsflyer, Tune and Adjust. It’s only a matter of time when a redistribution of market players’ forces will start.

Just imagine the scale: the participants of this joint project develop the largest Mobile Graph™ which helps advertisers precisely detect the needed custom audience and target it by multiple parameters seriously increasing the value of an ad impression. At the heart of this idea lays an audience API layer for the exchange of information between advertisers, publishers,  measurement partners and the Audience Manager.

Source: kochava.com

But what about the data safety? Managing such amount of the information requires strong security system. Kochava affirms that to keep clients and measurement data secure and independent Audience API Layer technology, personally-identifiable information (PII) is closed for being shared by the Advertisers using the Collective.

The Device IDs doesn’t passed to the advertisers in any form, it rather uses its network connections for the recommendation of an ideal network to reach targeted audience members. With changing target criteria the recommendation will also changes.

Charles Manning, CEO, Kochava, explains: “Asking an advertiser to hand over their unique user data is akin to asking a professional sports team to hand over their playbook, along with notes on what’s working and what’s not, to their competitors. The Collective believes that the advertiser’s data is their data and we adhere to how the advertiser wants their data to be treated. At the same time, publishers want to make their audience data available to advertisers to enable better targeting, filtering and ad buying – at scale. We achieve both with the Collective.”

How it affects the other market players? Basically there are Facebook and Google and many other independent players. Talking about Facebook there are chances it may interpret the emerging of Collective as a competitive step from Kochava’s side and go on the offensive, crushing the foe as it has happened before with exclusion of Tune from its tracking partners.

VB reports that “the Collective has access to a massive network of ad networks and publishers — 1,400 of them — that Kochava has already integrated into its platform. This means there should be plenty of supply and a lot of demand”. So joining this network independent players receive a chance to target and acquire mobile users at scale and with a level of precision they’ve only dreamed of.

But the question of price is still open and requires seeing the Mobile Graph™ in action to measure its effectiveness and understand the correlation between cost of acquisition and ad campaign scaling.

ComboApp professionals will continue monitoring the mobile advertising market in order to keep abreast of this issue to recommend the best decisions for our clients. Stay tuned!

 

 

Anna Grabovska, Content Manager

Wearables – a buzz word that has become a part of our everyday jargon but what difference does it really make in people’s lives?

The overarching function of all wearables is to capture, transmit and display information. Wearables are a part of the Internet of Things, the technological platform that embeds electronics into our houses, clothing and in places we can’t even image yet. Think of it as the next evolutional step following personal computers and smartphones.

According to the IDC, the total number of wearable devices in Q1, 2015 reached 11,4 million. The majority of these devices include activity tracking bands and smartwatches while smart clothing will soon become mainstream.

Fitness Bands

IDC reports that of all of the fitness band companies, FitBit and Xiaomi hold the crowns. FitBit has shipped 3.9 million devices and Xiaomi has shipped 2.8 million Mi Band units in Q1, 2015. It’s no accident that fitness bands dominate the wearable market. The demand for capturing and storing data related to health is outrageous. You can open any recent World Health Organization report to see the magnitude of health problems that exist today and the level of demand for health trackers will then make sense. Activity trackers give people a way to measure their efforts of becoming or staying healthy.

These devices alone cannot make major health changes overnight but they do work for people who are interested in living a healthier lifestyle and need more gear to support it. I’m not expecting fitness bands to become as mainstream as smartphones because being healthy is a personal choice that not everyone is interested in pursuing.

The total number of companies that produce activity trackers is more than 20 and that number keeps growing. In order for companies to join the activity tracker market, they have to work with medical institution(s) on a regional level. Major players in this market have too much head time for small companies to be able to get their share of the global market.

In 2012, the Fitbit One model set the standard for activity trackers. It was a unique duo of hardware to capture data and a mobile app (iOS, Android or both) to store, proceed and display data. Fitbit is getting ready to go public, which shows the company’s confidence in its future. This trend triggered the development of many iOS and Android apps to utilize smartphone tracking capabilities to capture health related data.

Smartwatches

The idea of a smartwatch isn’t really new, the first digital watch was designed back in 1972. Though it took 40 years for Pebble to bring the smartwatch on the market. In order for the smartwatch to be recognized by large amounts of people, e-ink technology brought both ability to expand electronic watch capabilities and guaranteed a long battery life.

Last year 6.8M smartwatches were sold at an average price of $189. The total revenue generated by all companies that sold these smartwatch units was $1.29 million, which is up from $711k back in 2013. Samsung was at the top of the charts with 1.2 million units shipped (we don’t know how many units were sold, which is different from being shipped). Pebble came in second with 700k smartwatches sold last year. Motorola, LG and smaller companies then followed but didn’t sell a significant number of units.

The overall trend I can see is that apart from Apple, Samsung, Motorola and LG, Pebble is the only big player that is focused entirely on a smartwatch. This goes to show that companies see these new devices as an extension of their smartphone businesses. This is a cautious approach because companies simply don’t know the real demand for smartwatches.

How does a smartwatch change lives? The jury is still out. A smartwatch was brought to the market at a time when the young generation of consumers simply didn’t wear watches. All companies that have brought smartwatches on the market, including Apple, have to solve the major issue of how to make a smartwatch relevant for the young generation. Among other companies that sell smartwatches, Apple has the biggest and most loyal consumer base and that is something a company can’t build overnight in order to compete.

Smart Clothing

Though this type of wearable is in its inception stage, it’s one way for clothing companies to distance themselves from their competitors and bring new features to clothing. We see projects like Project Jacquard which is essentially about making a fabric conductive and to become a tablet computer touchscreen analog. Google has already teamed up with San Francisco-based denim label Levi to create a pair of jeans that can actually warn you when you’ve gained some weight. This is only the first application. Smart clothing can be a remote control to various devices in your home as well as in public places.

Smart Glasses

The following quote from Wikipedia sums up the current state of the smart glasses market pretty well:

On January 15, 2015, Google announced that it would stop producing the Google Glass prototype but remained committed to the development of the product. According to Google, Project Glass was ready to “graduate” from Google Labs, the experimental phase of the project

The story of Google Glass, one the most ambitious wearable projects, is a perfect example of what may go wrong with wearables and/or technology. With Google Glass there were two factors stopping it from taking off. People weren’t comfortable (safety wise) and the high price point. We don’t see smart glasses yet from other companies on the market because of the Google Glass failure. Until technology allows us to make smart glasses undistinguishable from regular glasses, this technology most likely won’t take off.

Privacy Concerns

Data collection can be hacked and used by criminals. Since data can be collected via wearables, it will raise a certain level of fear on the consumer side. Companies that will consider privacy concerns and put a proper strategy in place will have an advantage over their competitors.

Bottom Line

The IDC forecast for wearables growth promises to reach 45.7 million units shipped by the end of 2015 and 126.1 million units by 2019. Personal electronics, healthcare appliances and apparel have already taken off. Given how different verticals are connected, it’s too early to predict what other verticals will join the list but there will be more.

 

 

Art Dogtiev,
Head of Branded Content

On June 29, 2007, Steve Jobs presented the iPhone to the world. The release of this advanced device completely changed the way we go mobile. Yes, smartphones existed before this time, but the era of “real” smartphones began on that day. This summer marks 7 years since the iPhone release and since then the word mobile has completely evolved. The majority of all human population uses their mobile phones throughout daily life, work, entertainment and everything in between.

What I really want to talk about is how mobile has transformed major tech companies, specifically companies with expertise in the mobile field being acquired by mobile tech giants. Unfortunately, some are not as successful as others. Let’s rock…

 

AdMob acquisition by Google

AdMob is a mobile advertising company founded by Omar Hamoui in 2006. Hamoui served as the founder and CEO of AdMob up until 2010, he stayed on board one year after the company was acquired by Google for $750 million in 2009. Why did Google purchase the company? Let’s briefly take a look at the history of Android as a mobile app development platform.

Android was founded in 2003 by Andy Rubin (who used to work at Apple as a manufacturing engineer) and a group of entrepreneurs. In 2005 Android was acquired by Google as the platform competing with Windows mobile operating system. In 2007 the iPhone emerged as a competitor with Google and Android OS quickly shifted its gears to compete with iOS.

The Android completely changed prior to the iPhone release and then after its release. By 2009 it had been a year since iOS got the App Store – that was when the mobile app world really took off. At this time Google needed its own mobile ads platform to stay afloat in the mobile arena and being able to serve ads on mobile devices. People went mobile and so Google did too.

How effective has AdMob been as of 2014? Well, the mobile ad solutions most commonly talked about are Facebook Mobile App Install Ads and Twitter Promoted Tweet for mobile ads, but you don’t really hear much about AdMob. Though this does not necessarily mean that the platform isn’t usable, it just is not at the top of the mobile ad solutions list.

 

Flurry acquisition by Yahoo

Let’s now preface the Flurry acquisition with one of the Steve Jobs interviews from 2010 at the D8 conference stage. Clearly it has been a bumpy road for the company since inception in 2005. Flurry now serves 150 billion mobile app sessions per month making it one of the top mobile analytic, monetization and advertising companies. Flurry is the most recent example of the acquisition trend. On July 21, 2014, Flurry was acquired by Yahoo for $200-300 million (the exact figures were not disclosed). Why did Yahoo decide to pull Flurry on board? Let’s look at how Yahoo’s CEO, Marissa Mayer, has been transforming the company. Simply based on how Marissa has changed the company, it is clear that she brought her knowledge and experience over from Google. She joined Google (as employee number 20) back in 1999 and quickly became the vice president of Google Local, Maps, and Location Services.

It was incredibly smart to shift Yahoo in the mobile direction, allowing it to better compete with Google. Though Yahoo has a long way to go if they want to catch up to Google in the mobile world. It will be interesting to see what Yahoo will do next.

 

Facebook acquisition of WhatsApp iOS app

This acquisition is particularly memorable merely due to the absolutely insane price Facebook paid WhatsApp founders Brian Acton and Jan Koum. Both founders are previous Yahoo employees. On February 14, 2014, Facebook paid a whopping $19 billion for WhatsApp – making it the largest acquisition to date. It has been more than 6 months since the deal and many analysts are still scratching their heads wondering whether WhatsApp was really worth that amount of money.

In December of 2013 WhatsApp claimed having 400 million active users use the service each month, that is roughly the number of users they had when the company was acquired by Facebook. For Facebook, who launched its own Messenger app in August of 2011, acquiring a serious competitor significantly increased its user base. But since WhatsApp was purchased, it continues to operate independently. WhatsApp was not shut down by Facebook or merged with Facebook’s Messenger app. Perhaps the hidden benefit for Facebook in this purchase was getting access to the WhatsApp user base. But that is just a speculation, the real reason remains unknown.

 

TestFlight acquisition by Apple

One of the most noteworthy Apple acquisitions in mobile space was Chomp. Chomp is a search engine app company that brought its expertise to the iTunes App Store. On February 21, 2014, Techcrunch fired a viral news article announcing that Apple had purchased Burstly and its two major services, TestFlight and SkyRocket. We covered this acquisition and highlighted Testflight as one of the more popular companies among app developers. We discussed how the majority of iOS apps are being developed with the help of TestFlight as their main testing platform.

After a bit of time, many were asking why Apple does not provide its own similar solution? Apple answered that question by acquiring TestFlight. As part of the iOS 8 official roll out this fall, iOS app developers will be able to use TestFlight as one of the tools that iTunesConnect provides.

 

NaturalMotion acquisition by Zynga

What is the first company that comes to mind when you think about iOS games? Many would say Zynga – let’s all admit we played FarmVille or Words with Friends at some point in our lives. For a long time the company’s huge success seemed like something that would be continuous – unfortunately, this was not the case. In Q2, 2012 the company made $329 million but in Q3, 2012 that number dropped to $317 million. Zynga Co-Founder Mark Pincus’s explanation for this drop caused many analysts to suspect that those glory days were gone.

In January, 2014, Zynga’s new CEO Don Mattrick announced that Zynga had purchased NaturalMotion for $527 million. For Zynga, it was the first step in acquiring highly popular iOS games and expanding its portfolio. At this time, launching a new game from scratch and being able to predict its success on the market does not exist. Zynga simply cannot afford to fail when it comes to launching new games. It is surprisingly cheaper for them to buy a successful competitor than to launch their own games.

 

MoPub acquisition by Twitter

Twitter’s familiar 140-character limit for sending a tweet was a prominent feature from day one. Twitter is severely involved in the mobile world and is now jumping on the mobile ads bandwagon. Last September Twitter purchased MoPub, a mobile advertising platform, for $300 million. It was certainly a bold step on Twitter’s behalf, competing with Facebook.

We recently covered MoPub and how the company has already helped strengthen Twitter’s mobile ads revenue. Since Twitter’s Promoted Tweet for mobile apps solution is fairly new, it is up in the air as to how effective it will be in the long run. While there are many case studies for Facebook Mobile App Installs Ads, there are almost none for Twitter’s new solution.

PS. Why 6 and not 5? Because people may ask “What was the number 6 you left out?” 🙂

Art Dogtiev,
Head of Branded Content

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