Monetizing Mobile Apps

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How to monetize your mobile apps, presented at Mobile Mojo 2011 in Palo Alto.

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  • Monetizing Mobile Apps

    1. 1. Monetizing Mobile Apps James Smith CTO Heyzap @loopj 1
    2. 2. Decide how to monetize early• Sell your app through iOS/Android app store• Sell your app directly from your website• Make your app free, monetize with ads• Make your app free, charge for content or upgrades 2
    3. 3. Sell your app through an app store • Built in distribution, reviews, existing market • Will cost you 30% of each transaction • Have to comply with market rules • Higher barrier to entry“iOS users in general are more willing to pay for an app than Android users” - makingmoneywithandroid.com 3
    4. 4. Free, Ad supported• Reduces friction at point of download• Revenue varies between platforms“Android game revenue was 1/8 to 1/10 of iOS revenue” - Glu Mobile 4
    5. 5. In-app purchases• Can be very lucrative• Works better with apps/games with high depth and long term retention• Need to make in this mechanic from the start“More than half of iOS’s top 25 grossing games are now free and makemoney off selling virtual currency and goods.” - insidemobileapps.com 5
    6. 6. Sell your app through your website• Might make sense if you have existing traffic• Avoid per-transaction costs• Might be able to avoid platform restrictions• Not allowed without jailbreak on iOS• High friction on Android 6
    7. 7. Consider up front costs• Development and design costs• Cost of tools and software• iOS developer account ($99)• Google market distribution cost ($20) 7
    8. 8. On-going costs add up• User acquisition! • Ad purchases • CPI purchases • Cross promotion deals• Re-invest 8
    9. 9. Reduce user acquisition cost: go viral• Viral channels are a multiplier• Bake viral in from the start for best results• Use something like Heyzap for one-line viral integration“Typical game k-factors are now between 0.05 and 0.20” - Kontagent 9
    10. 10. Some stats• Mobile ad revenue $3.3 billion in 2011• Mobile virtual goods $2.1 billion in 2011• 25-34 age group most lucrative for in-app purchases, consider your demographic 10

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