How do you get mobile developers to love you? Give them free tools and pad their wallets. 

One of the big themes for Google last week at its I/O developers conference was helping developers make more money creating apps for Android. That included a variety of tools to help them engage with their users and process transactions as well as optimization tips to monetize Android.

Monetization is a big challenge for Android developers. Developers who make Android apps earn a fraction of what they make from Apple's iOS, which paid developers nearly $1 billion alone in January this year and $8 billion total as of February. Android developers can only dream of such riches. 

(See also How Google Is Wooing Developers to Make Apps For Android First.)

Yet there is hope. Google's VP of Android product management Hugo Barra told I/O attendees last week that Google had paid more to Android developers in the past 4 months than the previous 12 months before that combined. This increase has been driven by a renewed focus by Google to give developers more tools to make money, culminating in a slurry of announcements to the Google Play Developer Console last week.

"Everything from the analytics integration we have shown to you could imagine other things that Google could put together," said Ellie Powers, product manager for Google Play in an interview with ReadWrite.

Powers continued:

I think that is sort of the next thing. They want to have deeper insights. They want to know exactly what they should work on. And I think [with] the things that we are doing we can continue enhancing them. Developers always want more stuff. They are always really hungry and we are hearing from more and more developers. They are saying they want to invest more because you [Google] give us such great data we are able to use that to understand our users better and invest more in the Android platform.

New Tools In The Google Play Developer Console

Specifically, Google issued six new features to Google Play to help Android developers optimize towards monetization:

1. App translation service: The ability to translate an app into a different language directly from Google Play Developer Console. This is an agency approach (human, not machine) that Google purposefully chose because it found the human touch of translations provided better results on the local level.
2. Revenue graphs: A new tab in the Developer Console gives developers a summary of their app global app revenue over time.
3. Alpha and beta testing and staged rollouts: Perhaps the biggest announcement for Android developers last week, beta and staged rollouts are unique to Android. This should encourage developers to take bigger risks knowing that they will not be rolling out a bug-laden app to 100% of its users.
4. Optimization tips: Based on analytics from Google Play, optimization tips will point developers towards market segments that could benefit them, like launching in a new country or developing specifically for tablets, which make 1.7-times more revenue per user than do Android smartphones.
5. Google Analytics: Mobile data on usage, time spent and a variety of cohorts as Google Analytics for Mobile is integrated straight into the Developer Console.
6. Referral tracking: Where are your installs coming from? Did getting written about by the major tech publications give you a bump? How about that in-app advertising? Referral tracking will tell you.

More Ways To Pay: Simplifying The Billing Infrastructure

Overlooked in the improvements made to the Google Play Developer Console were several infrastructure tweaks to the way Google processes payments for developers. The purchase flow (from app discovery to payment) has been simplified with the new user interface in Google Play, making it easier for users to pay in a variety of ways. Those include expanded gift cards and pre-paid options (which Google announced at I/O 2012 and has been improving on ever since). 

Google is working hard to get Android users to overcome their relative reluctance to paid purchases by promoting gift cards and other pre-paid mechanisms - like Google Play promotional credits with mobile device purchases. While Google acknowledged at I/O that "the barriers to success for a paid title is very high," making a purchase with a free credit seems to help encourage users to keep buying even when the credits run out. 

(See also Google Is Making Life Easier For Android Developers.)

The company is also boosting options for direct-carrier billing in markets around the world. One reason for the success of Apple's App Store is that the company already has every user's credit card number. Because Google doesn't make or sell Android devices, it may not necessarily have that information. In developing markets, especially, credit cards are either non-existent or not popular. Direct-carrier billing gives Google a popular, easy-to-use payment method almost everywhere. About 50% of Android's daily active users now have access to direct-carrier billing, the company said.

"We went from having 20 countries or so that could pay to what is it? 130 or so," Powers said. "So that is amazing. I think with a lot of developers they are only thinking about people in their own countries but it turns out that there are billions of people in the world... So helping developers reach into new markets really helps there too."

From a developer's perspective, of course, it doesn't really matter what option a user pays with - as long as they pay. Google takes care of the entire payments infrastructure on the backend - the developer doesn't even need to know what option was used. The ongoing problem, of course, is that even with the improvements, Google Play still can't match the ease of use of the App Store, which licenses Amazon's 1-Click payment patent. Even as Android eclipses Apple's iOS in many ways, playing catch-up in this area is likely to be an ongoing effort for Google.

Top image by Nick Statt: Google's Android head Sundar Pichai announces 900 million Android installations at I/O 2013.

While Google hasn't commented, according to the reports Google has already struck licensing deals with Universal Music Group and Sony Music Entertainment - it already has a deal with Warner Music Group. 

No word on pricing yet, but the Times said that there would be no "free" tier of service. The new service is expected to be accessed via the Google Play store for Android devices, but Google is also said to be working on a streaming-music product for its YouTube division. 

Details are expected to be announced at the Google I/O keynote on Wednesday. 

Why the App Store Loses

On the surface, the Appthority study — released Tuesday during the RSA security conference in San Francisco  — appears to find iOS and Android apps equally culpable of privacy violations. Of the 10 top-selling apps the firm tested in each of five categories, 60% of the iOS apps shared data with advertising and analytics networks. So did 50% of Android apps.

A closer look, however, revealed that iOS apps were far leakier than their Android counterparts. A full 60% of iOS apps gathered your location data, 54% vacuumed up your contact lists and 14% siphoned information from your calendar. With Android apps, those percentages were 42%, 20% and zero, respectively — not exactly laudable, but certainly an improvement over the performance of Apple apps.

Encrypting user data was not a big priority for apps on either platform. All of the iOS apps sent unencrypted data to ad networks, while 92% of Android apps did the same.

Appthority says iOS apps fall short because ad networks are willing to pay more for user data from Apple devices, giving developers a greater incentive to gather and hand over as much information as possible. At the same time, there are more developers making iOS apps, so they have to work harder at making a buck — and that apparently tempts some to compromise on privacy.

"Developers are struggling to monetize, because it's hard to run a company giving apps for free or selling apps for 99 cents," says Domingo Guerra, president and co-founder of Appthority. "So, in turn, they use the ad networks to try and get money, and the ad networks will pay more money if the developers share more data on the users."

The Overall Numbers

Appthority tested business, education, entertainment and finance apps, as well as games. Entertainment apps were the worst when it came to user privacy. This category had the highest number of apps that tracked location and shared data with ad networks. Education and finance apps posed the smallest threat — relatively speaking, at least — to user privacy.

Individual developers built roughly 80% of the apps tested. Companies with iOS apps in the study included Apple, Intuit, Kids Games Club and PayPal. On the Android side, the companies included Imangi Studios, Intuit, PayPal and Intellijoy.

Appthority's last report was in July 2012, when the apps tested posed a slightly higher risk to user privacy. However, the study was done differently. It analyzed the top 50 free apps in each platform, regardless of category.

Last year's study also showed iOS apps gathering more user data than Android apps, though less than iOS apps this year.

The Trend

Guerra predicts the next Appthority study in three months will show a decline in risky app behavior, thanks to recent government crackdowns on online privacy abuse.

This month, the Federal Trade Commission announced an $800,000 settlement with social networking start-up Path, which was charged with uploading users' address book data without permission and gathering personal information on several thousand children without parental consent.

In addition, some states are also taking a hard stand on privacy. California Attorney General Kamala Harris last year formed a Privacy Enforcement and Protection Unit to prosecute companies that violated the state's privacy laws.

While prosecuting scofflaws can be a deterrent, sometimes the best way to protect privacy is to pay for an app, rather than hunt for something similar that's free. In general, paid apps gather less user data than free apps, Guerra says. "Your privacy is worth more than 99 cents, so just buy the app."

Image courtesy of ShutterStock