How best monetise your apps - Paul Childs, Adfonic, Apps World Europe

GLOBAL MOBILE ADVERTISINGPresented by Paul ChildsCo-Founder and Chief Marketing OfficerApps World Europe November 2011

Global mobile advertising network > 20 billion ad requests p/m  6 offices in key regions Averaging 3 k campaigns p/m  63 employees; 40 in UK 10 k + publications  Reach 133+ million unique mobile users London Paris San Francisco New York Madrid Singapore

We place ads in mobile sites andapplications across multiple platformsSymbian Blackberry Android iOS Tablets AND MORE PLATFORMS ….

Some of our advertisers by verticalsAutomotiveCommunicationsEntertainmentNews + SportRetailTravel

Some of our media clients

Apps generate global mobile inventory;developers need global solutions Heat map showing typical traffic profile for an iPhone app 1)1/ Current LIVE iPhone app on the Adfonic network October 2011

USAAndroid and iOS sales iOS Android 45% 42% 40% 40% 37% US iOS and Android smartphone market share 35% 31% 32% projections 1) 28% 29% 30% 25% 24% -- iOS and Android will make 66% of all 20% smartphones in USA by EoY 2011 15% 10% 5% 0% 2010 2011 2012 20131/ Source : eMarketer2/ Source : MobileSquared

EU5Android and iOS sales iPhone Android 80 m 74 m 70 m EU 5 iPhone and Android projections 2) 60 m 54 m -- Android sales accelerating fast; forecast to be 50 m 2x iPhone by 2014 40 m 36 m 30 m 32 m 28 m 30 m 23 m 19 m 20 m 15 m 10 m 5m m 2010 2011 2012 2013 20141/ Source : eMarketer2/ Source : MobileSquared

Mobile presents advertisers with anincremental channel to reachconsumersduring prime time TV Home Tipping point WiFi Online browsing behaviour Relaxing Opportunity? TV Mobile browsing behaviour Bed1/ Source : Adfonic network traffic data

Smartphone penetration in the UK isnow nationwide Apple iPhone Android devices  Plotted campaign clicks for an iPhone and an Android campaign in the UK  Disproves the myth that smartphones are London centric  Confirms today smartphones as urban devices shifting towards national coverage1/ Source : Adfonic data for iPhone and Android activity September 2010

Smartphones and tablets are creatingnew use cases for advertisers 44k  100k iPad ad requests on Boxing day mapped to a location 29k  iPad usage built throughout the day, peaking in the evening 19k  Highlights opportunity to reach 9k tablet users in the evening 9% 19% 29% 44%  Highlights opportunity to target regional tablet audiences throughout the country with location targeted campaigns1/ Source : Adfonic network December 2010

The typical iPhone user profile is anattractive audience for advertisersCorporate Media junkies Educated age range spikes 25 – 36 years old 40% earn $75 k + Heavy app, web and email users Comfortable with advertising

We are hooked…

Developer options for PUBLISHERS

PublishersKey reasons for taking ads ?Generate additional revenue streamAlternative business model to paid appsCross promotion

Paid for app versus in-app purchasesversus ad funded app Paid for app Freemium Ad funded app Pro Pro Pro - Works for small volumes - Compete with free apps - Instant monetization - Revenue potential - Try before you buy - Revenue optimization - App store may favour - Get word of mouth paid apps over free apps - Offer in-app purchases ? - Can also ad fund Con Con Con - Payment barrier - Balancing free v paid - Users see ads - Initial purchase revenue - Risk of paid app failing - Intrusive app experience - Price points unknown - Brand compatibility - Hard to get exposure

What do the ads look like from theadvertisers spending marketing dollars?

…including popular applications fromapp developers and brands

Display advertising spend is ramping up across major mobile ad networks Banners and Rich Media : Spend forecast ( USD ) 2010 – 2014 1) $ 1400 m $ 1207 m $ 1200 m $ 1000 m $ 883 m $ 800 m $ 594 m $ 600 m $ 376 m $ 400 m $ 202 m $ 200 m $ m 2010 2011 2012 2013 2014 % YoY Growth - +54% +63% +67% +73%1/ Source : eMarketer Report; Excludes search, messaging and video

What options do developers have for generating ad revenue ? Mediation layer 2 Developers can a solution Yes like AdWhirl or code their Mediation own mediation platform Layer? Ad networks Yes Use ad network SDKs for 1 No integration CONTROL Directrelationship with Ad networks ? Ad platform 3 Use an ad platform like No Yes mOcean to control allocation across ad networks Control allocation? Yield optimisers Allocation across ad networks No determined automatically based on eCPM

The major global ad networks areintegrated with many publisher options $$$ Ad network

There are multiple integration optionsfor publishers # Integration option Commentary 1 SDK Plug and play integration into specific mobile app platforms 2 Server API Enables full control and additional flexibility over the ad requests 3 Web server code For complex mobile web integrations giving developers templates options across multiple web application environments 4 Real Time Bidding Integration option between SSPs and ad networks for now; improved utilization of inventory 5 Javascript tags Easy option for advanced smartphone sites

To maximize revenue opportunities,developers need to think likeadvertisersDevelopers need to keep up with agency and advertiser requirements /trends in order to maximize revenue opportunities # Requirement Impact Commentary 1 Rich Media Higher eCPMs IAB MRAID compliant 2 Larger ad units Higher CTRs 300 x 250, 728 X 90, etc … 3 iPad apps Higher eCPMs High demand for iPad inventory 4 Location data More campaigns DMA, State targeted campaigns 5 User experience Sustainable model High CTR apps may get kicked out by ad network optimizers 6 Data Optimization options Solutions like Flurry give developers deeper insights into what’s going on

Standard bannersAd size include 300 x 250, 320 x 480 etc …

In-app video1 2 4 3

Rich media 1) Tap on banner Full page banner Tap to return to app1/ Source : Celtra rich media campaign screen shots

Revenue is determined by 3 hard factors : CTR, Price and Volume Monthly revenue opportunity based on average $0.20 GROSS CPC campaigns with an average 80% fill rate across the month 1)1/ Source : Sample sensitivity model for illustration purposes only

Developer options for ADVERTISERS

AdvertisersKey reasons for spending on ads ?Generate high volume of downloadsCross promotionGenerate paying customers

Estimated iOS numbers globally 1) iPad iPhone iPod + + = 253 m 43 m 130 m 80 m1/ Source : Estimated numbers extrapolated from various sources

Estimated Android numbers globally 1) = 242 m … 100’s of devices1/ Source : Estimation based on various sources of information

How are brands and developers promoting applications to consumers ? TV campaigns QR codes Brands Print -> App Store Mobile ads UpsellMarketing Banner-> App Store Lite -> Paid for App Store Editorial Category browsing VisibilityApp store Rankingsfocused VisibilityÇ√ In-App purchase Freemium -> Paid for

Advertiser optionsWhat can you do with ad networks? Campaign management  Create/edit campaigns  Establishing targeting parameters  Country / state / city / region  Platform / device / carrier  Time of day / frequency capping  Creative  Standard banners or rich media  Conversion or install tracking  Insert code into app Control and monitor campaigns  Real time analytics and reporting by creative / device / country  Tracking cost per installation or cost per lead

Example campaign to drive appdownloads 21

Advertisers can track app installationsor customer registrations post download

Find us at stand # 77

Contact me paul.childs@adfonic.comFollow me Twitter @paulchilds @adfonic Facebook http://facebook.com/adfonic Blog http://blog.adfonic.comAdfonic Developer wiki developer.adfonic.comPresentations http://slideshare.net

How best monetise your apps - Paul Childs, Adfonic, Apps World Europe

by Adfonic on Dec 01, 2011

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How best monetise your apps - Paul Childs, Adfonic, Apps World Europe — Presentation Transcript