InMobi - The Economics of Building an Advertising Supported App Business
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InMobi - The Economics of Building an Advertising Supported App Business

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This presentation was given by Gregory Kennedy at the San Francisco Android Meet Up. It provides an overview of different business models and how app developers can use them to monetize their apps.

This presentation was given by Gregory Kennedy at the San Francisco Android Meet Up. It provides an overview of different business models and how app developers can use them to monetize their apps.

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  • Smartphone impressions represent half the network in both Europe and North America.

InMobi - The Economics of Building an Advertising Supported App Business InMobi - The Economics of Building an Advertising Supported App Business Presentation Transcript

  • 9/29/10
    1
    World’s Largest IndependentMobile Ad NetworkThe Economics of Building anAdvertising Supported App BusinessAugust 16, 2010
  • 9/29/10
    2
    InMobi: Mobile Ad Network
    • 185 M Consumers reached
    • 150 employees
    • Backed by Kleiner Perkins
    • 21.2 Billion impressions
    • 6 Offices
    • Live in 115 countries
    London
    San Francisco
    Tokyo
    Mumbai
    Bangalore
    Johannesburg
  • 9/29/10
    3
    A Selection of Partners
  • Mobile App Landscape
    Highly competitive
    Saturation point reached (iPhone)
    Market dynamics change daily and hourly!
    9/29/10
    4
  • The Opportunity
    Still huge opportunity for developers (long tale)
    Android eco-system is still emerging
    Top apps are worth millions of dollars
    9/29/10
    5
    Since its release over 6.5 million copies of the game Angry Birds have been purchased.
    Over 1 Million sold on Android.
  • Revenue Models: Overview
    There are only four ways to make money
    9/29/10
    6
    Paid Downloads
    Sponsorship
    Advertising
    In App Purchase
    Each has strengths and weaknesses
    Some models are more appropriate than others
  • Revenue Models: Paid Download
    Strength: Works best with gaming and utilities
    Weakness: Promotion is difficult
    9/29/10
    7
  • Revenue Models: Advertising
    Strength: Can drive more revenue than paid
    Weakness: Requires large installed base
    9/29/10
    8
  • Revenue Models: Sponsorship
    Strength: Great for niche apps
    Weakness: Not scalable
    9/29/10
    9
  • Revenue Models: In App Purchase
    Strength: Requires loyal repeat usage
    Weakness: Difficult to achieve app loyalty
    9/29/10
    10
  • App Monetization Matrix
    9/29/10
    11
    • Recommended models by category
  • 9/29/10
    12
    Try Combining Models
    • Mix models depending on growth stage
    • Experiment
    • Take advantage of global markets
  • 9/29/10
    13
    Build a Business not Apps
    • Build a portfolio of Apps
    • Create synergy between apps
    • Use loss leaders to build brand
    • Variable pricing
    • Develop quality content
    • Volume of apps also matters
    • Take maximum advantages of social channels
    • Exploit global nature of App market
  • 9/29/10
    14
    Tipsfor Monetizing With Ads
    • Test everything
    • Use data to improve performance
    • Experiment with ad placement
    • Experiment for ad format
    • Try multiple ad networks
    • Develop directly for ad verticals (cars, travel, finance, real estate, etc.)
  • 9/29/10
    15
    Picking an Ad Network
    • Some important questions:
    • In what regions are you trying to monetize
    • What platform are you developing for
    • Type of content games, music, cars
    • Consider a mediation platform: Mobclix
  • Think Globally
    eCPMs vary globally but not by a big margin
    9/29/10
    16
    Index by region
    Sourced from our Nework
    129
    125
    101
    90
    70
  • eCPMs Top 20 Countries
    9/29/10
    17
  • 9/29/10
    18
    The InMobi Platform
    • Largest independent mobile ad network
    • iOS friendly - full support for iAd format
    • Multi-platform iOS, Android, Blackberry, etc.
    • 40% of our traffic is outside the U.S.
    • Live in 115 countries including US
  • 9/29/10
    19
    Our Network
    • Can offer ad monetization for developers in almost every region, globally.
    Europe
    1.8 Billion Ad Requests
    North America
    3.2 Billion Ad Requests
    Middle East
    514 Million Ad Requests
    Asia Pacific
    11.5 Billion Ad requests
    Africa
    2.8 Billion Ad Requests
  • InMobi World Developer Fund
    9/29/10
    20
    $2 Million Dollar World Developer Fund
    Normally ad networks share revenue with publishers
    We offer you 100% of revenue earned
    Program lasts until the fund is gone
    Real support for developers