Prior to the launch of the Rs 999 ($12) Jio Bharat Phone, Akash Ambani, Chairman, Reliance Jio, said that it would help the 250 million Indians still “trapped in the 2G era” to break the bonds of having to live IRL and embrace the online realm. The phone comes with 4G capabilities (nicely complemented by Jio’s new Rs 123 and Rs 1,234 data plans), and access to now commonplace features like call and HD recordings, and access to OTT platforms and UPI payments.

The catch? The phone only supports the Jio App Store. Advertising experts believe this is more a pro than a con and could help open up the Indian market to platforms beyond Android, and even Apple for that matter (though admittedly the latter caters to a very different market).

According to several sources, the Play Store, Android’s app platform, makes up Google’s largest and most direct revenue source from the software. Every time an app or game is purchased on the Play Store, the amount is divided between Google and the developer. And of course, the Play Store comes pre-installed in every Android device in every market (except for China, the only place where Android doesn’t dominate).

While the exact percentage varies, Google takes a minimum of 15% in exchange for hosting the app and serving it to users, making up a significant amount of change, given that there are over 3.6 billion Android devices in use around the world. And between all the possible app purchases, reviews, ratings, and searches are scores of ads, popping up or running through screens, advertising goods, services and retail therapy.

Rammohan Sundaram, President – Integrated Media, DDB Mudra Group, observes that Jio is creating an end-to-end ecosystem and this restriction to the Jio app store on the Jio Bharat phone is part of the plan.

“Let’s understand some of the bigger reasons first. Google App Store charges a hefty amount for having the app on the store for transactions via the app, called in-app purchases. The cost exists anywhere between 0-15 per cent depending on the size of your business, and typically the larger the revenue generation, the bigger it gets for Google. This service fee is a charge that a lot of Indian consumer tech companies are fighting in the court of law,” he explains.

Therein lies the opportunity that Jio is interested in tapping. Experts point out that if you have an app store where charges are much lower, you naturally will attract more interest from the developer community to build on a platform that is owned and operated by Jio because their pricing will be predatory.

“We have seen time and again on any of their consumer foray businesses. In the environment we live in, this is a welcome move but it is a Catch-22 situation. If there isn’t enough penetration of the smartphone, the developer interest is bound to lack. Therefore, one needs to see how Jio can break into that market,” says Sundaram.

“Indeed, Jio has established itself as a leader in the digital mobile advertising landscape. While its limited access to Android and Apple stores provides a short-term advantage, it (the phone) also creates an opportunity for competitors to offer more compelling offerings to users,” says Ankit Banga, CBO, FCB/SIX India.

Sanju Menon, Chief Operating Officer at Wondrlab India, agrees that being contained to the Jio ecosystem will not become a deterrent to any brand’s plans, saying, “It will challenge marketers to develop strategies that are more focused by using the uniqueness of each platform that’s available on the Jio App Store. This will break the duopoly that exists today. Access to the Jio smartphone will give birth to newer habits, newer consumption patterns, and newer content.”

As the market evolves, other phone manufacturers have the chance to capitalize on this gap and provide alternative solutions that cater to users seeking a broader range of app options, and therefore app platforms, like say, Jio’s. This competition can drive innovation and potentially reshape the dynamics of the mobile advertising landscape in the long run.

Mitesh Kothari, Co-founder and Chief Creative Officer, White Rivers Media, adds that given its connection with the Indian audience at a massive scale, the Jio app platform offers excellent localized advertising opportunities.

"Leveraging advanced tech, the platform can bring about newer formats for advertisers to optimally target users. A seamless experience for every party involved consistently will help them stay on top. Jio has successfully been a game changer in the past and we can expect no less from the platform going forward as well," says Kothari.