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Technological Strategies & Monetization


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Mobile Applications Development - Lecture 6 …

Mobile Applications Development - Lecture 6

Native apps - Web apps - Hybrid apps
Making money with apps

This presentation has been developed in the context of the Mobile Applications Development course at the Computer Science Department of the University of L’Aquila (Italy).

Published in: Education, Technology, Design

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  • 1. Technological strategies & Monetization Ivano Malavolta
  • 2. Roadmap• Native vs Web vs Hybrid Apps• Monetization Strategies
  • 3. Mobile Web Mobile web seems to be the only long-term long- commercially viable content platform for mobile devicesReasons:• Fragmentation• The web• Distribution Control• Consumer expectations• Web Ubiquity
  • 4. FragmentationIf you go native… there are too many platforms to be supported
  • 5. The Webthe only medium for information and services that lasts from over 15 yearsThe web is an advanced technology• webGL• Local storage management• Positioning & mapping• Physical engines• Real-time data• Push• …
  • 6. The Web
  • 7. Distribution Control Before.. Before.. Operators NowDevice and Platform makers Future Developers
  • 8. Distribution Control $$$ Store A Store B Store C Store D
  • 9. Consumer expectationsUsers expect things to just work they don’t care about what platform they have they simply expect that your app will be available for their deviceso… CROSS- YOU HAVE TO BE CROSS-PLATFORM
  • 10. Web UbiquityThe web is the only platform that• works across devices• apps share the same set of standards• the same app can work also on a desktop
  • 11. Web UbiquityThe mobile web is also• The easiest platform to learn• The cheapest to produce• The most standardized• The easiest to distribute
  • 12. Native vs Web vs Hybrid Apps There are no golden rules here… It depends on a lot of factors, such as • Which type of app are you creating? • When do you need it? • What are your skills skills?
  • 13. A first look at native VS Web…
  • 14. Skills/tools Native Hybrid Mobile WebObjective-C HTML HTMLJava CSS CSSC Javascript JavascriptC++ Mobile developmentC# framework (like PhoneGap)
  • 15. Distribution Native Hybrid Mobile WebApp Store/Market App Store/Market Internet
  • 16. Number of applications needed to reach major smartphone platforms Native Hybrid Mobile Web4 1 1
  • 17. Ongoing application maintenance Native Hybrid Mobile WebDifficult Moderate Low
  • 18. Device Access Native Hybrid Mobile WebFull access: Full access: Partial access:(Camera, microphone, GPS, (Camera, microphone, GPS, (GPS, gyroscope,gyroscope, accelerometer, gyroscope, accelerometer, accelerometer, file upload)file upload, etc…) file upload, etc…)
  • 19. Offline access Native Hybrid Mobile WebYes Yes Yes
  • 20. Native AppPROLets you create apps with rich user interfaces and/or heavy graphicsCONS• Development Time• Development Cost• Ongoing Maintenance• No portability (apps cannot be used on other platforms)
  • 21. Native App - Example
  • 22. Mobile Web AppPROOffers fast development, simple maintenance, and full application portabilityOne mobile web app works on any platformCONS• Can’t handle heavy graphics• Can’t access camera or microphone
  • 23. Mobile Web App - Example
  • 24. Hybrid AppPROCombines the development speed of mobile web apps with the device access and app store distribution of native appsCONS• Can’t handle heavy graphics.• Requires familiarity with a mobile framework
  • 25. Hybrid App - Example
  • 26. Roadmap• Native vs Web vs Hybrid Apps• Monetization Strategies
  • 27. Mobile Business ModelsThere are 4 main ways to make money with apps:1. Paid2. Ad-supported3. Freemium (virtual goods)4. Subscriptions
  • 28. Paid AppsYou simply set a price for your app and sell it in a store/marketThere are 3 main stores:• Apple Store – 30% of revenue + 99$ subscription• Android Market – 30% of revenue + 25$ subscription• Windows Phone Marketplace – 30% of revenue + 99$ subscription
  • 29.
  • 30. Price DefinitionThe key is finding a balance between functionality and what users will find reasonableIf users are not satisfied, then they will make bad reviewsA bad review keeps potential users awayExperiment with different price rangesTIP:TIP paid apps are downloaded far less, but may be perceived as being of higher quality
  • 31. Price Ranges 4.99+ $ < .99 $ < 4.99 $simple apps qualitative apps with great expectations complex apps utilities
  • 32. Ideal Workflow1. Analyze competitors and their apps price2. Set an initial price (high) – Remember, new apps get more visibility3. Experiment with price ranges to find the right balanceTIP:TIP people love free and on sale stuffPutting your app “on sale for a limited time” helps a lot in getting visibility within the store and in dedicated blogs
  • 33. Ads You develop your app and then you place ads within it Ad service providers will show ads in your app and pay you 60-70% of the money they collect from advertisers It is the easiest way to monetize free apps
  • 34. Ads workflow1. Sign up to an ad service2. Register your app to the service3. Embed the ad code into your app4. Get money from the ad service provider
  • 35. Ad services There are hundreds of Ad services providers, like: • AdMob • Apple iAds • TapJoy • Mobclix • InMobi • … There are also mobile ads aggregators, like Inneractive
  • 36. Freemium (Virtual Goods)You distribute a free copy of the applicationbut there are some paid “premium” services that you offer in addition to the basic free serviceYou can also provide a discriminatory free: consumers get it free, businesses pay
  • 37. Virtual goodsPremium services may be anything:• calling credits for Skype• virtual items in games• “ego services” in social networks – like badges, virtual objects, etc.• new levels• extra features
  • 38. ImplementationYou may realize it by:• Proposing two version of the same app: – the lite version, usually free – the full version, paid app with a complete set of features• Single app with in-app purchases for additional in- goods
  • 39. Examples
  • 40. Subscriptions Users subscribe to a service and pay a regular fee to continue accessing the serviceExisting subscribers can input their username and password in the same way as on the websiteThose who want to subscribe can via your website
  • 41. SubscriptionsThe revenue is sustainable and can auto-renew just as other Web-based subscriptionsHowever, it requires users to leave the app and visit the publishers website to subscribe
  • 42. Examples ESPN Score CenterWired Magazine
  • 43. How to choose your BM?
  • 44. How to choose your BM?
  • 45. If everything else fails… Build apps for someone else!That is, help companies who don’t have the expertise to build mobile applications and develop apps for them
  • 46. ReferencesChapters 9 -10- 14