Connected digital platforms improve our lives in many ways. We use social network profiles to log onto apps and websites, third-party payment systems while online shopping, and we share our activity data from devices like Fitbit. How do all these platforms work together so seamlessly?
It’s all done through a technology known as Application Programming Interfaces (APIs).
As today’s infographic from Raconteur demonstrates, thousands of APIs are allowing companies to work together and share data in powerful ways.
Here are the four main business models that use APIs:
|Business Model||Description||Example Companies|
|API is the Product||The API itself is the primary source of revenue||Amazon Web Services, Skype|
|API Projects the Product||Allows partners and third-parties to integrate||eBay, Spotify|
|API Promotes the Product||Advertises your product, shares data to generate interest||Amazon, Vimeo, Netflix|
|API Powers the Product||A channel to drive new data / content onto platform||Facebook, YouTube, Twitter|
How Do APIs Work?
An API is essentially a messenger that delivers a request to the provider you’re requesting it from, and then delivers the response back to you. Here are some of real-world examples:
Travel Sites – If you are using a travel site (e.g. Travelocity, Expedia), APIs are what allow that site to “talk to” airline databases to generate results to your query. Without an API, there would be no way for travel websites to aggregate flight and hotel quotes in real time.
Advertising – If you are a marketer, you are likely using a service to manage your campaigns in one place. Social platforms like Twitter have an API for ads that allows for integration between their platform and selected advertising solutions. This keeps marketers from having to log in to every single social website to manage their campaigns.
Apps – Say you open up a weather app on your iWatch. That app needs to get its information from a source, typically a website like weather.com. Apple could scrape information off the website, but APIs allow a more standardized, stable approach for requesting information. This way, weather.com can dictate the structure of information requests to facilitate the seamless flow of information.
Next time you’re cursing the weather forecast on your phone, remember the hero who fetched the information for you.
Article by Nick Routley, Visual Capitalist