Last month we commissioned Survata to survey their audience of mobile app developers and publishers. We wanted to learn more about the cash flow issues they face, the impact of receiving faster payments, and how payment speed affects their participation with monetization partners.
We’ve always known that weekly payments are important, and our CEO, Keith, has been talking about supply chain health and how accelerated payments should fit into an overall industry-wide improvement. But the participants’ responses and the results of the survey blew our minds.
So where does this cash go? The costs that were ranked “Biggest Expenses” were mostly unavoidable fixed costs: App Development was #1 and Payroll was #2.
Beyond the fix for cash flow issues, we wanted to know the impact of receiving earnings weekly on the supply chain. Advertisers can and will pay on whatever terms please them. But how does offering faster payment terms benefit a marketplace? Would offering faster payments increase the developer’s participation with the marketplace they’re supplying to?
The participants were overwhelmingly in favor of marketplaces offering a more frequent payment option.
Publishers and app developers can experience cash flow issues; their financing options are generally expensive and limited, and they shoulder heavy fixed costs. When marketplaces give them an option to receive payments on better terms, it’s a huge value-add for the developers. They can keep things running smoothly and continue to grow their business. And according to our survey, accelerated payment terms definitely increase the business they’re doing with the marketplace.
In turn, marketplaces can and will benefit from giving their suppliers more payment options – helping retain and grow their existing publisher base and attracting the best new publishers.