FQ Mobile Asia Congress - App Bytes 2011 - Session Speech & Panel


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FQ Mobile Asia Congress - App Bytes 2011 - Session Speech & Panel

  1. 1. Monetizing“That” Apps Mobile Asia Congress 2011
  2. 2. What are “that” apps?
  3. 3. 5 Main ModelsLength of 1 5 Intensity ofUsage Free Sales Usage 2 TRADEOFFS 4 Freemium Data 3 extensions Paid Volumes $
  4. 4. Business Model #1: Free Penetration: Largest % of apps in Stores Typical Revenue Model: Advertising – Direct brand sponsorship, ad enablers, or ad networks Example:
  5. 5. Business Model #2: Freemium Penetration: Fastest growing trend Ideal Revenue Model: Revenue from upgrades Examples:
  6. 6. Business Model #3: Paid Penetration: Small % of App Store Apps. Almost non-existent in “That” apps. Ideal Revenue Model: Revenue from paid downloads – Higher value added apps have higher price points Example:
  7. 7. Business Model #4: Data Extensions Definition: Apps that enhance an existing product or service. Usually “first gen” Brand apps. Ideal Revenue Model: Loss leader, revenue generated elsewhere. Example: 8
  8. 8. Business Model #5: Sales Definition: Apps through which you can buy a product or service Ideal Revenue Model: Profits from sales or affiliate commission Examples: 9
  9. 9. Segmentation of App Types by Usage Moto Racer Facebook CNNGo Tune In Sudoku High FruitNinja RadioIntensity of Use IMDB Talking Tom Traffic Reporter My Notes Love Test Low Compass The Weather Channel iFart Local Gas Prices Low High Length of Use 10
  10. 10. Focus on “That” Apps> 30% of Smartphone users have used “That” apps
  11. 11. Focus on “That” Apps: 1+4 1 5 Free Sales 2 4 Freemium Data 3 extensions Paid
  12. 12. Mobile Marketing Grows
  13. 13. Monetize “That” Apps throughbrands’ growing mobile marketing budgets
  14. 14. 4 categories of monetization for free appsAds Sponsors License Buy outMulti-platform ads Sections Whitelabel Hot IPExclusive ads Monthly promos Powered apps Potential synergyBase Get some cash Substantial money to Most likely a techmonetization Requires be made if company buyerStarting point negotiation negotiated “now you are set”“basic earnings” “making a living” “minting it” Substantial monetization
  15. 15. Ads Sponsors License Buy outThe simplest game in the book… but try targeting Ad enabler aggregates feeds from multiple ad networks or a single network in the case of the exclusive model Earn revenue from CPMs (Impressions) and CPAs (Touch-thrus) No threshold to start, can do from day 1 CPMs can be about $1-10 range Specialist apps can get more – Targeting – Talk to ad networks – Push hard to get better rate
  16. 16. Ads Sponsors License Buy outA bit of negotiation required… but better results Developer has agreements directly with ad agency or brand to fully brand the app Best if you have a strong business or personal network Higher CPMs, better integration of branding and app Only possible if you can showcase how your “That” app is the right fit for a brand
  17. 17. Ads Sponsors License Buy outPower the apps that brands want Be prepared to white label your tech or License it to a brand – Requires knowledge of licensing – Some negotiation Brands are constantly on the look-out for hot tech that can add the “cool factor” to their apps
  18. 18. Ads Sponsors License Buy outOne-of-a-kind success story that no one can resist.. The dream case, where a larger company sees value in your IP to the extent that they can integrate it into their business Might start off with a License deal at first that eventually leads to buy out Does require you to constantly make noise and start approaching potential buyers
  19. 19. Ads Sponsors License Buy out
  20. 20. Current Structure of Ad Industry  Want to promote  Aggregate adverts from mobile products via mobile agencies advertising campaigns.  Either serves developers directly or  Size of budgets can passes on adverts to another Looking to grow the ecosystem by vary hugely. aggregator layer, the ad enablers building great products and make a living Brands and Ad agencies Developers Consumers advertisers Ad networks / Publishers Ad enablers Analytics  Agencies are hired Providers by advertisers to plan  Aggregate adverts from ad and create campaigns networks and feed them to  Some agencies developers to attempt to increase fill focused solely on the rates and CPM,  Monitor performance of applications mobile space Ad enablers can service all mobile  Generally offered free at the moment advertising, or just websites,  Different focuses between companies (advertising, applications or operators. pure analytics, market research…) 24
  21. 21. The biggest ad networksMoney Flow 25
  22. 22. Current Structure of Ad Industry Brands and Ad agencies Developers Consumers advertisers Ad networks / Publishers Ad enablers Lets focus on this 26
  23. 23. What do Brands / Marketers / Advertisers care about?
  24. 24. Demographic &Local Targeted Reach Syncs with brand values User base threshold (active users)
  25. 25. The Opportunity Beckons….
  26. 26. Build a case for the Marketers.Show them that we understand.
  27. 27. The Winning Formula for Monetization Analytics Engagement Experience & Design
  28. 28. Analytics ToolsAnalytical 32
  29. 29. Social / EngagementBuilding Social / EngagementUse social as a means to an end (engagement) and an end in itself(revenue)
  30. 30. Mobile InternetMobile User Experience Design Anxiety on information and applications Mobile Features Pieces of time Personalization features Location Features(LBS) Contact interactionCharacteristics on mobile Internet Devices Features Multi-channel interaction Screen Size iPhone IOS Platform Features Android WM 7
  31. 31. Process of Design Process of Design Experiences Principles Research Methods
  32. 32. Principles Process of Design Experiences Research Principles Methods 38
  33. 33. Principle 1: Interaction design is not guessworkGet answers to all questions up front Who are my users? What are my users trying to accomplish? How do my users think about what they’re trying to accomplish? What kind of experiences do my users find appealing and rewarding? How should my product behave? What form should my product take? How will users interact with my product? How can my product’s functions be most effectively organized? How will my product introduce itself to first-time users? How can my product put an understandable, appealing, and controllable face on technology? How can my product deal with problems that users encounter? How will my product help infrequent and inexperienced users understand how to accomplish their goals? How can my product provide sufficient depth and power for expert users? 39
  34. 34. Principle 2: DO NOT expect design’s to meet all users needsFocus on target users Rapid Release Webzine Share button 40
  35. 35. Principle 3: Make the important importantSet priorities1. Conversation2. Friends3. Dynamic4. QQ box5. More 41
  36. 36. Principle 3: DO NOT let users think.Allow users to learn less Same Graphic Feature Tips that are not disturbing. More graphics and less text. 42
  37. 37. Principle 4: Keep it naturalProper invisible design clues Scene simulation Common icons 43
  38. 38. Principle 5: Give them feedback - InteractGive them feedback. Show actions Press Events 44
  39. 39. Research Methods Process of Design Experiences Principles Research Methods 45
  40. 40. Persona What different sorts of people might use this product? How might their needs and behaviors vary? What ranges of behavior and types of environments need to be explored? Experience goals, which are related to visceral processing: how a user wants to feel? End goals, which are related to behavior: what a user wants to do? Life goals, which are related to reflection: who a user wants to be? 46
  41. 41. Persona Profile Name: Age: Job: Type: Share/Scan/… Patterns of behavior: Brief description: Experience Goal: Feel smart or in control/ Have fun/ Feel cool or hip or relaxed… End Goal: Stay connected with friends and family/Find music that I’ll love/Get the best deal Life Goal: Live the good life/Succeed in my ambitions to/ Be a connoisseur of … 47
  42. 42. Scenario In what setting (s) will the product be used? Will it be used for extended amounts of time? Is the persona frequently interrupted? Are there multiple users on a single workstation or device? With what other products will it be used? What is the expected end result of using the product? 48
  43. 43. Task Analysis Why the user is performing the task (that is, the underlying goal) Frequency and importance of the task Cues — what initiates or prompts the execution of the task Dependencies — what must be in place to perform the task, as well as what is dependent on the completion of the task People who are involved and their roles and responsibilities Specific actions that are performed Decisions that are made Information that is used to support decisions What goes wrong — errors and exception cases How errors and exceptions are corrected 49
  44. 44. The Winning Formula for Monetization Analytics Engagement Experience & Design
  45. 45. Take all your facts and insights… User base Demographic threshold & Targeted Analytics Engagement (active Reach users) Sync with Brand Values Experience & Design … and advertisers will come start chasing
  46. 46. Panel IntroductionsDonald Anderson Marcus Sigurdsson Nemo Sun Aneesh VarmaDirector of Lead Digital Catalyst, Director of Director ofMarketing, McCann Worldwide Marketing, InnovationCNN - Turner 3G.cn & Co-Founder, FabriQate
  47. 47. Live Jeopardy (with no real money) Platforms Technologies Localization Advertising HKD 100 HKD 100 HKD 100 HKD 100 HKD 500 HKD 500 HKD 500 HKD 500 Audience ? Audience ? Audience ? HKD 1000 Let’s Make History
  48. 48. Platforms What does the Native vs HTML5 debate mean to you?
  49. 49. Platforms What does location basedservices / targeting mean for you?
  50. 50. Technologies What kind of “that” apps do youbelieve would appeal in your context?
  51. 51. Technologies Would you consider a license / buy out deal of a technology if all your potential customers were using it?
  52. 52. Localization How do you look and segment end-users from China and Hong Kong?
  53. 53. Localization What does design & user experience mean for you?
  54. 54. Advertising What do you think about growing need for Analytics vs. Privacy?
  55. 55. Advertising Is advertising more about numbers than creativity?
  56. 56. Advertising If you are a brand advertising in a free app – isn’t this a paradox? Your goal is to get conversions / revenue / sales. Users using free apps are usually the “cheaper” ones and probably not likely to purchase your products. Is this true? Thoughts?
  57. 57. Audience ?
  58. 58. Let’s Make History (open for Panel & Session Attendees) There is no name for “That” apps today.‘Utility-with-Datafeed’… just doesn’t cut it. Lets define a name today that will be cited by our industry & generations to come…
  59. 59. Crowd Sourced Name Ideas2. WowApps8. Magic
  60. 60. It’s a Magic app
  61. 61. We are happy to talk more:friends @ FabriQate.com