Technological Strategies & Monetization


Published on

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
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Technological Strategies & Monetization

  1. 1. Technological strategies & Monetization Ivano Malavolta
  2. 2. Roadmap• Native vs Web vs Hybrid Apps• Monetization Strategies
  3. 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. 4. FragmentationIf you go native… there are too many platforms to be supported
  5. 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. 6. The Web
  7. 7. Distribution Control Before.. Before.. Operators NowDevice and Platform makers Future Developers
  8. 8. Distribution Control $$$ Store A Store B Store C Store D
  9. 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. 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. 11. Web UbiquityThe mobile web is also• The easiest platform to learn• The cheapest to produce• The most standardized• The easiest to distribute
  12. 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. 13. A first look at native VS Web…
  14. 14. Skills/tools Native Hybrid Mobile WebObjective-C HTML HTMLJava CSS CSSC Javascript JavascriptC++ Mobile developmentC# framework (like PhoneGap)
  15. 15. Distribution Native Hybrid Mobile WebApp Store/Market App Store/Market Internet
  16. 16. Number of applications needed to reach major smartphone platforms Native Hybrid Mobile Web4 1 1
  17. 17. Ongoing application maintenance Native Hybrid Mobile WebDifficult Moderate Low
  18. 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. 19. Offline access Native Hybrid Mobile WebYes Yes Yes
  20. 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. 21. Native App - Example
  22. 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. 23. Mobile Web App - Example
  24. 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. 25. Hybrid App - Example
  26. 26. Roadmap• Native vs Web vs Hybrid Apps• Monetization Strategies
  27. 27. Mobile Business ModelsThere are 4 main ways to make money with apps:1. Paid2. Ad-supported3. Freemium (virtual goods)4. Subscriptions
  28. 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. 29.
  30. 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. 31. Price Ranges 4.99+ $ < .99 $ < 4.99 $simple apps qualitative apps with great expectations complex apps utilities
  32. 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. 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. 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. 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. 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. 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. 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. 39. Examples
  40. 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. 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. 42. Examples ESPN Score CenterWired Magazine
  43. 43. How to choose your BM?
  44. 44. How to choose your BM?
  45. 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. 46. ReferencesChapters 9 -10- 14