Which Monetization Method is Best for Your App?

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This webinar was presented on January 29, 2014. We took a look at four major monetization methods available to mobile developers and explored the challenges and opportunities of each. To listen to the full recording, click here: https://vimeo.com/user19192623/review/85380364/2155393547

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Which Monetization Method is Best for Your App?

  1. 1. Which Monetization Method is Best for Your App? Matt Tubergen Vice President of Business Development and Programmatic The Leading Mobile User Acquisition Network 1
  2. 2. Before we get started… Deck and recording will be available. Love the content? Share it! #Appia Keep the conversation going post-webinar. Follow us @Appia 2
  3. 3. About Matt •  Matt Tubergen is the Vice President of Business Development and Programmatic at Appia.   •  He has over 12 years of experience in mobile content and the ad-tech space.  •  Prior to Appia, Matt helped build, lead, and manage many mobile first divisions from NativeX to THQ. 
  4. 4. 4
  5. 5. Paid Apps 5
  6. 6. Paid Apps Whether you are charging .99 or a premium for your app, making the pricing decision can be tough. 6
  7. 7. Pros " " Easiest, most straightforward monetization method Users are willing to pay if perceived value 7
  8. 8. Price Elasticity Within 5 days… A 1% drop in price leads to a 1.2% increase in revenue for iPhone apps. A 1% drop in price leads to a 0.7% increase in revenue for iPad apps. 8
  9. 9. Cons 7% of App Store and 2% of Google Play revenue is generated from paid apps with in-app purchases 9
  10. 10. Subscription Model –  10
  11. 11. Subscription-based monetization models only work for some niche developers and publishers 11
  12. 12. Pros If your app falls into these niche categories, subscriptionbased monetization may be a great way to see a steady revenue stream. 12
  13. 13. Cons “ Be wary of the platform: Apple and Amazon both want to take a 30% cut of your revenue, a figure that has prompted the DOJ to launch a probe (and not the cool space-faring kind) into the consequences for market competition. p Google, in contrast, takes10% or less. “ 13
  14. 14. Cons There is a single, set price for all users. 14
  15. 15. Cons “Readers think I’m greedy and I want to address that. It costs a lot to manage content,” said Susan Miller, a popular New York astrologer who recently updated her iOS app to include a subscription model. 15
  16. 16. In-App Purchases 16
  17. 17. Potential Places for In-App Purchases: Upgrades, additional lives, new or hidden characters, bonus levels, virtual goods, virtual currency, and more! 17
  18. 18. Mobile App Store Downloads, Worldwide, 2010-2016 (Millions of Downloads) 2012 Free Downloads Paid-for Downloads Total Downloads Free Downloads % 2013 2014 2015 2016 2017 57,331 82,876 127,704 167,054 211,313 253,914 6,654 9,186 11,105 12,574 13,488 14,778 63,985 102,062 138,809 179,628 89.6 91.0 92.0 93.0 224,801 268,692 94.0 94.5 Source: Gartner (September 2013) 18
  19. 19. 85% of revenue in App Store, 94% in Google Play is generated from Freemium apps. 19
  20. 20. Pros In-app purchases will account for 48% of all mobile revenues by 2017. 20
  21. 21. Mobile Advertising 21
  22. 22. Ad Formats App wall Banner Ads Interstitial Ads Native Ads Video Ads 22
  23. 23. Ad Format Disruption vs Revenue 23
  24. 24. Test to see which advertising styles your users respond to and optimize on those formats. 24
  25. 25. Consumers expect some level of advertising in exchange for downloading an app for free. 25
  26. 26. Pros There are more than 7 billion mobile devices on earth. That is a lot of potential customers! 26
  27. 27. Cons Some consumers can be intolerant of mobile ads 27
  28. 28. Things to Consider… Type of content Frequency of content and releases Competitive analysis What are users accustomed to? Web or parallel business model? Other apps published 28
  29. 29. Recap: Paid Apps Subscription Model In-App Purchases Mobile Advertising 29
  30. 30. Questions? 30

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