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Fortumo droidcon 2012
 

Fortumo droidcon 2012

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    Fortumo droidcon 2012 Fortumo droidcon 2012 Presentation Transcript

    • Stanislav  Gurba  Business  Development,  Fortumo  
    • Platforms  
    • ¡  New  smartphone  sales  in  Q2  2011  and  Q4  2011   Bada   Microsoft   Others   Microso:   2,1%   1,9%   0,8%   2%   Others  1%  Bada  2%   RIM  8,8%   Android   Android   50,9%   43%  RIM  12%    iOS  18%   Symbian   11,7%     iOS   23,8%   Symbian     22%   ¡  Every  second  smartphone  sold  is  running   Android.  
    • ¡  Smartphones  in  US  (February  2012,  comScore  mobilens)     §  iOS  and  BlackBerry  are  installed  on  49%  of  US  smartphones  
    • 4,90%   4,70%  7,70%   82,70%  Nearly  83%  of  app  store  revenues  are  made  on  iOS.  
    • ¡   Glu  Mobile:  Android  Revenues  make  only  1/10  of   iOS  revenues  ¡  Distimo  reports  iOS  had  6X  the  revenue  of  Android   in  2011  ¡  Challenge:     Why  develop  for  other  platforms  if  iOS  is  making   most  of  the  revenues?  
    • ¡  iOS  has  the  highest  level  of  competition    
    • ¡  Rovio  Angry  Birds:  Android  revenue  =  iOS  revenue*   *according  to  statement  by  Peter  Vesterbacka  at  MWC  2010      ¡  Answer:   Every  platform  can  bring  you   money    ¡  Keywords:   competition,  experience,  expertise,   strategy  
    • Going  Global    ¡  Challenge:     Developers  are  only  aiming  at  established   and  rich  markets  like  US  and  Western   Europe      
    • ¡  Android  sales  in  2011  ¡  40%  of  smartphones  are  sold  in  Asia-­‐Pacific    
    • ¡  America:  63%  vs  Asia  19%  -­‐  36  million  less  devices   techrunch.com  
    • ¡  Answer:   You  should  have  a  monetization  strategy  for   every  region.   §  Asia  Pacific   §  USA   §  Western  Europe   §  Middle  East   §  Latin  America   §  Eastern  Europe   §  CIS   §  Africa  
    • App  stores  
    • ¡  Challenge:     Developers  are  ignoring  alternative  app   stores    
    • ¡  Alternative  stores:   §  Appchina  (China)   and  many  more..   Opera  Mobile  App  Store   §  §  Fasmicro  App  Store   GetJar   §  (Africa)     Appia  (Pocketgear)   §  §  HiAPK  (China)   ..2  000  000  000   AndAppStore   §  downloads  on   §  Handango   ¡  Operator  stores:   GetJar  only   §  OnlyAndroid   §  Vodafone  Live!   §  Insyde  Market   §  OrangeWorld   §  Amazon  App  Store   §  O2  Active   §  SlideME   §  Appoke   ¡  Manufacturer  stores:   §  YAAM   §  HTC  Market   §  Samsung  Apps  ¡  Regional  stores:   §  LG  smartWorld   §  Andronavi  (Japan)   §  Shop4Apps  (Motorola)   §  Wandoujia  (China)  
    • Premium  vs  Freemium    ¡  Challenge:   Developers  rely  on     premium  distribution     models.  
    • §  Percentage  of  free  apps:   Nokia  Ovi  Store  BlackBerry  App  World   Amazon     Apple  App  Store   Samsung  Apps   Windows  Phone   Android  Market   GetJar   0%   25%   50%   75%   100%  
    • ¡  Why  Premium  is  bad?   §  App  stores  are  full  of  low  quality  apps   §  App  purchase  is  an  investment   §  Cultural  differences   §  Weak  and  non  effective  billing  solutions   §  Free  competitors   §  Limited  distribution  options   §  Piracy  
    • ¡  Why  Freemium  is  good?   §  More  downloads   §  Target  long  tail  ( just  like  offers)   §  People  are  used  with  free  apps   §  Ability  to  adjust  to  different  ability  to  pay   §  Better  global  reach   §  More  distribution  options   §  Lower  dependence  from  app  stores   §  Piracy  
    • ¡  75%  of  top  100  grossing  iOS  apps  are  games  ¡  65%  of  them  are  freemium  ¡   Answer:   Avoid  selling  your  games   and  use  Freemium  models!  
    • Earn  money  from  free  games          ¡  Mobile  ads  ¡  Offers  ¡  In-­‐game  purchases  ¡  Sponsorships  and  special  deals  
    • Mobile  ads             $15  billion  in  2011.      
    • ¡  Challenge:   Mobile  ads  makes  my  game  slow  and  ugly.  ¡  Answer:   Do  it  smart!  ¡  Whats  critical:   §  Ad  coverage   §  Respect    low-­‐end  devices   §  Try  different  advertisers   §  Think  about  UI  and  design   §  Place  ads  on  loading  screens  
    • Mobile  offers             A  great  way  to  monetize  non-­‐paying  users.      
    • ¡  Pros:   §  great  for  monetizing  non  paying  users   §  global  reach    ¡  Cons:   §  be  careful  with  what  you  offer   §  you  may  be  promoting  competitors   §  dont  overload  your  game  by  offers   §  dont  replace  payments  with  offers!  
    • In-­‐app  purchases  ¡  What  can  be  sold?   §  virtual  credits   §  extra  levels   §  trial  version  activation   §  extra  features   §  personalization   §  banner-­‐free  version  (weak)    
    • ¡  Consumable  goods  (virtual  credits)  68%  of  in-­‐app  purchases  
    • ¡  Challenge:     Developers  are  using  ineffective  payment   methods    
    • ¡  In-­‐app  payment  methods:   §  App  store  billing  (Google  checkout)  –  mostly  credit  card  based,  high  store   margins.   §  Mobile  operator  billing  (direct  billing,  premium  sms)  –  good  coverage   and  conversion  rates,  low  revenue  shares.   §  Credit  cards  (Visa,  Mastercard)  –  bad  coverage,  high  revenue  shares,  kills   conversion  rate.   §  Paypal  –  works  in  limited  number  of  the  countries   §  Prepaid  cards,  kiosks  and  vouchers  –  low  conversion  rates   §  Direct  debit  and  others...  
    •                                                                              or  ¡  Answer   Analyze  your  user  base  and  select  the  most  suitable   payment  method  and  additional  methods  if  needed.    
    • ¡  Challenge:     Bad  user  experience  during  payment  flow       vs    
    • ¡  In-­‐app  payment  is  impulsive  ¡  Every  new  screen  kills  conversion  by  10-­‐15%  ¡  Customers  are  not  yet  familiar  with  mobile   purchases  ¡  Payment  should  look  secure  ¡  Answer:     Golden  rules  of  in-­‐app  payment:  the  user   should  reach  to  the  payment  with  a  maximum   of  3  clicks.    
    • ¡  Challenge:     Developers  ignore  small  details.   •     Currency   •     Localization   •     Terms  and  conditions     •     Operator/billing  provider  logos  (+  15%  conversion)   •     Helpdesk  and  customer  care   •     Track  user  reviews  and  comments   •     A/B  testing  
    • ¡  Answer:     Make  your  payment  flow  perfect!  
    • ¡  Challenge:     Wrong  game  balance  ¡  Game  is  too  difficult  =>  they  leave  before  buying  ¡  Game  is  too  easy  =>  they  don’t  need  to  buy  ¡  Too  few  free  levels  =>  they  are  not  yet  addicted  ¡  Too  many  free  levels  =>  they  had  enough  ¡  Answer:   Develop  the  perfect  balance  for  introducing   paid  content.  
    • ¡  Challenge:     Wrong  pricing  policy       $2  in  USA                              $2  in  China  ¡  Answer:   Adjust  the  prices  according  to  purchasing   power.  
    • ¡  Challenge:     Lack  of  offline  mode  support.   According  to  Localytics,  15%  of  mobile  apps  are   launched  while  offline  .  ¡  Answer:   Your  game  should  be  prepared  to  work  and   monetize  while  offline.  
    • Danke!    Stanislav  Gurba  stanislav@fortumo.com  skype:  stanislav.gurba