360iDev - Gregory Kennedy


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Session 2: Building an Ad Supported App Business - Gregory Kennedy, head of InMobi’s developer community will share business strategies for developer and entrepreneurs who want to create an ad support app business.

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  • Smartphone impressions represent half the network in both Europe and North America.
  • 360iDev - Gregory Kennedy

    1. 1. 11/6/10<br />1<br />World’s Largest IndependentMobile Ad NetworkThe Economics of Building anAdvertising Supported App BusinessAugust 16, 2010<br />
    2. 2. 11/6/10<br />2<br />We’re a Mobile Ad Network<br /><ul><li>185 M Consumers reached
    3. 3. 150 employees
    4. 4. Backed by Kleiner Perkins
    5. 5. 21.2 Billion impressions
    6. 6. 6 Offices
    7. 7. Live in 115 countries</li></ul>London <br />San Francisco <br />Tokyo <br />Bangalore <br />Singapore <br />Johannesburg <br />
    8. 8. 11/6/10<br />3<br />A Selection of Partners<br />
    9. 9. Mobile App Landscape<br />Saturation point reached (100K+ Apps)<br />Market dynamics change daily and hourly<br />Highly competitive<br />11/6/10<br />4<br />
    10. 10. The Opportunity<br />Still huge opportunity for developers (long tale)<br />Mobile eco-system is still emerging<br />Top apps are worth millions of dollars<br />11/6/10<br />5<br />Since its release over 6.5 million copies of the game Angry Birds have been purchased.<br />
    11. 11. There are only four ways to make money<br />Revenue Models: Overview<br />11/6/10<br />6<br />Paid Downloads<br />Sponsorship<br />Advertising<br />In App Purchase<br />Each has strengths and weaknesses<br />Some models are more appropriate than others<br />
    12. 12. Revenue Models: Paid Download<br />Strength: Works best with gaming and utilities<br />Weakness: Promotion is difficult<br />Examples<br />11/6/10<br />7<br />Angry Birds Halloween<br />Fruit Ninja<br />
    13. 13. Strength: Can drive more revenue than paid<br />Weakness: Requires large installed base<br />Revenue Models: Advertising<br />11/6/10<br />8<br />Photobucket<br />Moco Space<br />Examples<br />Shotgun<br />
    14. 14. Revenue Models: Sponsorship<br />Strength: Great for niche apps<br />Weakness: Not scalable<br />11/6/10<br />9<br />The Onion<br />Examples<br />Walgreens<br />
    15. 15. Revenue Models: In App Purchase<br />Strength: Requires loyal repeat usage<br />Weakness: Difficult to achieve app loyalty<br />Examples<br />11/6/10<br />10<br />Tap Zoo<br />Ebay<br />Eliminate<br />
    16. 16. App Monetization Matrix<br />11/6/10<br />11<br />Recommended models by category<br />
    17. 17. 11/6/10<br />12<br />Try Combining Models<br /><ul><li>Mix models depending on growth stage
    18. 18. Experiment
    19. 19. Take advantage of global markets</li></ul>Introduction<br />Growth<br />Maturity<br />Decline<br />1<br />2<br />3<br />4<br />
    20. 20. 11/6/10<br />13<br />Build a Business not Apps<br /><ul><li>Build a portfolio of apps
    21. 21. Create synergy between apps
    22. 22. Use loss leaders to build brand
    23. 23. Variable pricing
    24. 24. Develop quality content
    25. 25. Take maximum advantages of social channels
    26. 26. Exploit global nature of app market</li></li></ul><li>The Mobile Ad Opportunity<br />A $1 Billion market in the U.S. today <br />Globally it’s expected to exceed $20 B in 2013<br />11/6/10<br />14<br />
    27. 27. 11/6/10<br />15<br />The Ad Network Concept<br />Advertiser A<br />Advertiser B<br />Advertiser C<br />Advertiser D<br />Ad Network<br />Publisher A<br />Publisher B<br />Publisher C<br />Publisher D<br />
    28. 28. 11/6/10<br />16<br />How to Pick a Network<br />Some important questions:<br /><ul><li>In what regions are you trying to monetize?
    29. 29. What platform are you developing for?
    30. 30. Type of content games, music, cars?
    31. 31. Is a third party platform right for you?</li></ul>Types of Network:<br />Blind<br />Network<br />Vertical<br />Network<br />Targeted<br />Network<br />
    32. 32. 11/6/10<br />17<br />How Publishers Make Money<br />Ad Network<br />Revenue<br />Impression<br />Fill Rate<br />CPC<br />CTR<br />
    33. 33. 11/6/10<br />18<br />Tips and Tricks<br /><ul><li>Experiment with ad placement and format
    34. 34. Use data to improve performance
    35. 35. Use multiple ad networks
    36. 36. Create your own mediation layer
    37. 37. Develop directly for ad verticals (cars, travel, finance, etc.)
    38. 38. Test everything
    39. 39. Iterate often</li></li></ul><li>Think Globally<br />11/6/10<br />19<br />
    40. 40. Think Globally<br />eCPMs vary globally but not by a big margin<br />11/6/10<br />20<br />129<br />Index by region<br />Sourced from our Network<br />125<br />101<br />90<br />70<br />
    41. 41. eCPMs Top 20 Countries<br />11/6/10<br />21<br />
    42. 42. We are 100% compatible with:<br />WithInMobi you get both reach and impact.<br />Compatibility<br />
    43. 43. 11/6/10<br />23<br />Our Network<br />InMobi can offer developers monetization in all regions around the globe.<br />Europe<br />1.8 Billion Ad Requests <br />North America<br />3.2 Billion Ad Requests <br />Middle East<br /> 514 Million Ad Requests <br />Asia Pacific<br />11.5 Billion Ad requests <br />Africa<br />2.8 Billion Ad Requests <br />
    44. 44. Froggy Jump Case Study<br />11/6/10<br />24<br />Invictus Games Sees eCPMs as High as $5.99 for iPhone Game With InMobi<br />
    45. 45. Shotgun Free Case Study<br />11/6/10<br />25<br />Inedible’s Shotgun Free iPhone App Triples International eCPMs With InMobi<br />
    46. 46. InMobi World Developer Fund<br />11/6/10<br />26<br />$2 Million Dollar World Developer Fund<br />Normally ad networks share revenue with publishers<br />We offer you 100% of revenue earned<br />Program lasts until the fund is gone<br />Real support for developers<br />
    47. 47. Austin Special Offer<br />11/6/10<br />27<br />Join Our Dev Community<br />http://inmobi.com/onlinecampaigns/austindev/<br />
    48. 48. Key Messages<br />11/6/10<br />28<br />Think globally<br />Build a sustainable business<br />Test and experiment<br />Optimize based on data<br />Have fun!<br />