Making Money With Your Mobile App


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This presentation gives an overview of ways you can make money with your mobile app. Almost 100% of app owners in Bangladesh are offering their apps for free. Globally, most app owners operate on the "fremium" model. Other monetization models app owners can think about include:

1. Paid, Free, Fremium
2. In-App Purchases & Virtual Goods
3. Subscription
4. Telco Partnerships
5. Direct Sponsorship
6. Ad Network
7. Commissioned-to-Build
8. OEM & Royalty deals

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Making Money With Your Mobile App

  1. 1. App Monetization Overview From G&R: Bangladesh’s Only Mobile App Ads Partner
  2. 2. App Monetization - Things to Think About 1. Paid, Free, Fremium 2. In-App Purchases & Virtual Goods 3. Subscription 4. Telco Partnerships 5. Direct Sponsorship 6. Ad Network 7. Commissioned-to-Build 8. OEM & Royalty deals
  3. 3. 1. Paid, Free, or Fremium? Model Cost to Download Revenue Through... Paid $0.01 - $1,000 From original payment for download Free Free Ads Fremium Free Extra charges for features, virtual goods, and in-game currency
  4. 4. 1. Paid, Free, or Fremium? Model Example App Cost Paid Switft Key $4.99 Free Angry Birds $0 Fremium Dragon Age $0 In-app purchases up to $99 ! 3rd party ads on pause screen
  5. 5. Freemium apps generate over 92% of total app revenue Paid apps experienced a 29% decline in app revenue in 2013
  6. 6. But in Bangladesh, almost 100% of apps are Free
  7. 7. 2. In-App Purchases & Virtual Goods Single-Device Items (in- game currency) Multi-Device Items (premium game “unlocks”) Can only be accessed on the device from which they were purchased (ex: coins, stars) Can be accessed on all compatible devices registered to your account; no need to buy again (ex: magazine issues) VS
  8. 8. 2. In-App Purchases & Virtual Goods Single-Device Purchase: GEMS Note: Gems are the ONLY items purchasable in-app and Clash of Clans is one of the MOST profitable apps of all time Multi-Device Purchase: Magazine Download
  9. 9. 3. Subscription How it Works... What Weekly, monthly, or annual subscription fees for premium content Price Set lower than one-time purchase price to incentivize users into longer term commitment Tiered subscriptions allow you to set different prices but with ceiling on both price and consumption Benefit Guarantees repeat transactions
  10. 10. 3. Subscription 1 month: $5 1 year: $45 Savings: $15 Free Features Premium Features • Monthly uploads of 60 MB / mo • Online notebooks only • Text and handwritten recognition • Others can view notebooks but not edit • Attach files such as .PPT and .PDF • Monthly uploads of 1 GB • Offline Notebooks • Note history • Faster image recognition • Hide promotions • Top priority support • Allow others to edit your notes • larger files, bigger notes • Single note size increased to 50 MB • Pin lock for extra security • PDF search option
  11. 11. 4. Partnering with Telcos How it Works... What Partnering with Telcos means integrating your app with Telco APIs Pros Bill through mobile balance accounts, access to unique telco data & services Cons Integration limited to one Telco at a time, APIs are limited, partnership process can be cumbersome
  12. 12. 4. Partnering with Telcos
  13. 13. 5. Direct Sponsorship (Ads) How it Works... What Brands sponsor apps in exchange for featuring company logos Pros • Developers have more control over screen space • Guaranteed income not based on customer interaction Cons • Must have dedicated sales team out looking for sponsors • Typically produces an upfront shot of income, not a sustainable income month after month
  14. 14. 5. Direct Sponsorship (Ads) In 2011, Subway sponsored the special New York City Marathon app Their sponsorship allowed them to include Subway locations on the race map with links to special offers
  15. 15. 6. Ad Networks How it Works... What Ads from external advertisers show up in pre-set places in app Pros Very low effort on your end and a check every month from the ad network Cons Ads may decrease usability / user happiness
  16. 16. 6. Ad Networks International Local
  17. 17. 7. Commissioned-to-Build How it Works... What App-making on contract Pros Often very large paychecks and set work hours Cons Developer has no creative freedom
  18. 18. 7. Commissioned-to-Build
  19. 19. 8. OEM & Royalty Deals (App Comes on Handset) How it Works... What Partnership with phone company to include app on all phones Pros HUGE reach Cons Very difficult to make these connections, see partnership through to paycheck
  20. 20. 8. OEM & Royalty Deals (App Comes on Handset) Samsung Galaxy Built-in Apps KNOX PS4 payView S Health 2.0
  21. 21. Lutfi Chowdhury Sr Manager Business Development Thank you For G&R Case Studies visit: Green and Red Technologies Limited House 70/B, Road 21, Block B, Banani, Dhaka 1213 , Bangladesh Alyssa Ransbury Head of Operations