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The Hitchhiker's Guide to App Monetization
 

The Hitchhiker's Guide to App Monetization

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A complete overview of the mobile app industry’s main concepts, terms and buzz Words.

A complete overview of the mobile app industry’s main concepts, terms and buzz Words.

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    The Hitchhiker's Guide to App Monetization The Hitchhiker's Guide to App Monetization Presentation Transcript

    • 1
      The Hitchhiker's Guide to the World of App Monetization
    • 2
      Industry’s Main Concepts
      Terms and BuzzWords
    • In-App Payments
      3
      “I refuse to answer that question on the grounds that I don't know the answer”
      D. Adams
    • 4
      In-App Payment
      Download the app for freeNOW and pay later
      through a variety of revenue models:
      • “Try and buy”
      • Virtual goods
      • Subscription model
    • 5
      In-App Payment
      Fact!
      35% of the 300 top-selling free games use some sort of virtual currency as a form of payment in the App Store
      49% of all iPhone-related revenue is derived from in-app purchases
      (As of June 2011; Source: Distimo)
    • 6
      Payment Methods
      When purchasing a mobile app, the user must choose from the following payment alternatives:
      iOS
      iTunes account
      Android:
      Carrier Billing
      PayPal
      Google Checkout
      Credit Card
    • 7
      Payment Methods
      Fact!
      The “Carrier-Billing” payment method is likely to generate payment 10 times more than any other method.
    • 8
      Payouts
      The final net payment to the developer (after the middle-men take their cuts) is different in every geo-territory
      Apple’s App Store – 30% - 70%
      Android App Market – 30% - 70%
      PayPal – 3.4% +€0.35
      Carriers:
    • 9
      Payouts
      Fact!
      In most cases, the net payout from the carriers will be between 40%-60% of the price.
    • 10
      Alternative Payments
      - “I really wish I'd listened to what my mother told me when I was young."- "Why, what did she tell you?"- "I don't know, I didn't listen.“
      D. Adams
    • “Alternative Payment”
      Standard payment:
      In-App Item
      Your user!
      You!
      Money…
      Alternative payment
      Free In-App Item
      Your user!
      You!
      An advertiser!
      Money…
      Action
    • 12
      Alternative Payment
      Action:
      • Incentivized download (TBD)
      • Submit your mail
      • Watch a video
      • Vote
      • “Like” (Facebook)
      Fact! The developer’s cut is usually 70% of the amount paid by the advertiser
    • 13
      Incentivized Downloads
      Game coins
      Your user!
      You!
      Cash
      Free content
      Pay for the item
      Another developer
      Better ranking
      Download, install and open
      13
    • 14
      Incentivized Downloads
      Fact!
      At its peak, Tapjoygenerated income of $8M monthly from incentivized downloads
      While Apple clamped down on incentivized app downloads, this option it still available on Android devices 
    • 15
      Advertisement
      “Who said anything about panicking? This is still just the culture shock. You wait till I've settled down into the situation and found my bearings.
      Then I'll start panicking.”
      D. Adams
    • 16
      CPC / CPA / CPL / CPI and More
      CPC - Cost-per-Click (only if necessary)CPI - Cost-per-InstallCPA - Cost-per-Action (install, register, use)
      CPL – Cost-per-Lead (mail submission)Fill rate - The percentage of ad requests that are filled with ads (when an ad is displayed to the end user)
      Fact!
      The fill rates of most ad networks range between 50%-60%
    • 17
      Offer Wall
      How can you monetize your app?
      You can define paid In-App items
      You can add an ad banner
      You can add offers
      Contextual offers that 3rd parties are willing to pay for
    • 18
      The Ultimate Fact!
      Lunkwill: Do you... Deep Thought: Have an answer for you? Yes. But you're not going to like it. Fook: Please tell us. We must know! Deep Thought: Okay. The answer to the ultimate question of life, the universe, and everything is...
      Deep Thought: 42.
    • LogiaPay- The market’s most comprehensive in-app payment solution offering every available payment method
      LogiaReach – Upload your app to the stores of various 1st tier mobile operators using our existing relationships
      LogiaAd – Use Logia’s optimized ad-network solution to increase revenues from your advertising space
      19
      For those of you who are not satisfied with this answer, Logia can offer a more practical one –> A set of monetization tools for maximizing your revenues:
    • Thank You!