5 Main ModelsLength of 1 5 Intensity ofUsage Free Sales Usage 2 TRADEOFFS 4 Freemium Data 3 extensions Paid Volumes $
Business Model #1: Free Penetration: Largest % of apps in Stores Typical Revenue Model: Advertising – Direct brand sponsorship, ad enablers, or ad networks Example:
Business Model #2: Freemium Penetration: Fastest growing trend Ideal Revenue Model: Revenue from upgrades Examples:
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:
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
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
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
Focus on “That” Apps> 30% of Smartphone users have used “That” apps
Focus on “That” Apps: 1+4 1 5 Free Sales 2 4 Freemium Data 3 extensions Paid
Monetize “That” Apps throughbrands’ growing mobile marketing budgets
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
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
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
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
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
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
Social / EngagementBuilding Social / EngagementUse social as a means to an end (engagement) and an end in itself(revenue)
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
Process of Design Process of Design Experiences Principles Research Methods
Principles Process of Design Experiences Research Principles Methods 38
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
Principle 2: DO NOT expect design’s to meet all users needsFocus on target users Rapid Release Webzine Share button 40
Principle 3: Make the important importantSet priorities1. Conversation2. Friends3. Dynamic4. QQ box5. More 41
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
Principle 4: Keep it naturalProper invisible design clues Scene simulation Common icons 43
Principle 5: Give them feedback - InteractGive them feedback. Show actions Press Events 44
Research Methods Process of Design Experiences Principles Research Methods 45
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
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
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
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
The Winning Formula for Monetization Analytics Engagement Experience & Design
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
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
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
Platforms What does the Native vs HTML5 debate mean to you?
Platforms What does location basedservices / targeting mean for you?
Technologies What kind of “that” apps do youbelieve would appeal in your context?
Technologies Would you consider a license / buy out deal of a technology if all your potential customers were using it?
Localization How do you look and segment end-users from China and Hong Kong?
Localization What does design & user experience mean for you?
Advertising What do you think about growing need for Analytics vs. Privacy?
Advertising Is advertising more about numbers than creativity?
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?
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…