Wattpad AndroidTO 2011 - Android and Monetization

1,452 views

Published on

Topic: Android & Monetization

It is no secret that making money on Android is hard but is it mission impossible? With no truly efficient way to pay for your Android Apps, are we all doomed? Allen Lau from Wattpad will discuss the best ways to monetize on Android.

Published in: Technology
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,452
On SlideShare
0
From Embeds
0
Number of Embeds
9
Actions
Shares
0
Downloads
24
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Wattpad AndroidTO 2011 - Android and Monetization

  1. 1. Android and Monetization Allen Lau wattpad.com/allenlau @allenlau Unlimited Stories
  2. 2. WHO IS THIS GUY?
  3. 3. WHO IS THIS GUY? • CEO and Co-founder, Wattpad – Community of readers and writers to discover and share stories – Wattpadders were spending 2 billion minutes on Wattpad in Q3 2011, most of them coming from mobile – Investors include Union Square Ventures, Golden Venture Partners, W Media Ventures • CEO and Co-founder, FeedM8 – Mobile advertising company, sold to Upstream Systems • CTO and Co-founder, Tira Wireless – VC backed mobile content publishing and deployment company
  4. 4. CURRENT MARKET
  5. 5. CURRENT MARKET• Number of apps = 500,000+• Number of downloads per month = 1 billion+• % of paid apps = 66%• Payout to developers = $3 billion• Number of apps = 500,000+• Number of downloads per month = 1 billion+• % of FREE apps = 66%• Payout to developers = 2% of iOS (2010) Google is downright “not happy” about the purchases of paid apps – Eric Chu, Group Manager Android Platform Manager, Jan 2011
  6. 6. WHY?
  7. 7. WHY?• Openness encourages – Free apps – Copyright infringing content – Spam• Billing methods – Google Checkout vs iTunes – Billing reliability
  8. 8. IT’S GETTING BETTER!
  9. 9. IT’S GETTING BETTER!• Mobile advertising is becoming a viable option• In-app purchase – Very important when competing with LOTS of free apps• Operators Billing – AT&T, T-Mobile, Sprint – Vodafone UK, Vodafone Germany – NTT DoCoMo, KDDI, SoftBank, SKT• 3rd Party payment provider – Urban Airship, Zong, Boku, Payfone
  10. 10. PREREQUISITE
  11. 11. PREREQUISITE• Great product• Lots of users – It is a volume game – Don’t build apps for small niches (app for Mongolian food lover living in PEI won’t work) – Some exceptions (more on this later)• Build a business, not an app – Apps can be commoditized really quickly
  12. 12. ADVERTSING
  13. 13. ADVERTISING• eCPMs can be a few times HIGHER than iOS – Mostly CPC ads – CPM ads are few and far between• Advertising is a (high) volume game – eCPM is a step function of traffic• Using multiple ad networks and mediation are VERY important• Geography matters – Ad network is a local business• Other ad formats – Video and other intrusive ads generate higher CPMs – Don’t sacrifice your UX
  14. 14. PAID APP/IN-APP PURCHASE
  15. 15. PAID APP/IN-APP PURCHASE• Paid app – Hard to make it work when there are so many free apps and a suboptimal payment system• In-app (freemium) is the preferable model – At least you are on equal ground with all the free apps! – Treat “free” as your marketing expenses – As long as you have enough “mium” to convince users to pay up• Small niches, business apps, where price sensitivity is not an issue, is also a possibility
  16. 16. DO I NEED TO MAKE MONEY?
  17. 17. DO I NEED TO MAKE MONEY?• Remember - build a business, not an app• Can Android be your loss leader and make money elsewhere? – Especially true for network effect based business
  18. 18. ONE THING TO REMEMBER
  19. 19. ONE THING TO REMEMBER• Traction is king• Engagement matters• When you have a billion users, you have a million ways to make money• When you have no user, you have no way to make money
  20. 20. Thank Youp.s. we are hiring ;-) Allen Lau, CEO and co-founder Suite 801-B 4950 Yonge Street Toronto ON M2N 6K1 wattpad.com/allenlau @allenlau allen@wattpad.com

×