MoMoTLV Israel March 2010 - Aviv Revach - Mobile Apps Monetization Overview

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MoMoTLV Israel March 2010

Mobile Apps Monetization Overview - Aviv Revach, Co-Founder, VP Business Development @ Mo'Minis. Co-Founder @ MobileMonday Tel-Aviv.

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  • http://www.itu.int/newsroom/press_releases/2010/06.html http://www.research2guidance.com/?p=66 GetJar: http://www.webpronews.com/topnews/2010/03/17/mobile-app-market-to-soar-to-175-billion
  • http://www.gartner.com/it/page.jsp?id=1282413
  • MoMoTLV Israel March 2010 - Aviv Revach - Mobile Apps Monetization Overview

    1. 1. <ul><li>Mobile Apps Monetization Overview </li></ul>Aviv Revach Co-Founder, VP Business Development @ Mo’Minis Co-Founder @ MobileMonday Tel-Aviv
    2. 2. Mobile Apps Overview - Agenda <ul><li>Monetization </li></ul><ul><li>What are the main monetization models? </li></ul><ul><li>Which distribution channels exist? </li></ul><ul><li>How should I choose my distribution channels? </li></ul><ul><li>Updates </li></ul><ul><li>What has changed from last year? </li></ul><ul><li>What has NOT changed from last year? </li></ul><ul><li>What about the future? </li></ul>
    3. 3. <ul><li>Paid-For </li></ul><ul><li>One-Time-Download </li></ul><ul><li>Subscription / Rental (e.g. Jamba) </li></ul><ul><li>Freemium – Free version, Premium features costs money </li></ul><ul><li>Newer Models </li></ul><ul><ul><li>“ Virtual Goods” – mainly for games </li></ul></ul><ul><ul><li>Flexible Payments </li></ul></ul><ul><li>In-App Advertisement </li></ul><ul><li>Pre-Roll / Post-Roll Video Ads </li></ul><ul><li>Been around for a few years, but now actually kicks in </li></ul><ul><li>Rewards developers for customers reuse </li></ul>What are the main monetization models?
    4. 4. <ul><li>Application Stores </li></ul><ul><ul><li>Mobile Operators (e.g. Orange AppShop) </li></ul></ul><ul><ul><li>Vendors (e.g. Appstore, Ovi) </li></ul></ul><ul><ul><li>Independent (e.g. Handango) </li></ul></ul><ul><li>Aggregators (e.g. Connect2Media, Zed, B!) </li></ul><ul><li>Direct-To-Consumer (D2C) </li></ul><ul><ul><li>Destination Website (WAP/Web) </li></ul></ul><ul><ul><li>On Device Portal (e.g. OnMobile) </li></ul></ul><ul><ul><li>Social Networks </li></ul></ul><ul><li>Retail (e.g. Retalika) - new </li></ul>Which distribution channels exist?
    5. 5. <ul><li>Popular Parameters: </li></ul><ul><ul><li>Potential volume (comparable best-sellers?) </li></ul></ul><ul><ul><li>Pricing (avg.? flexible? pricing points?) </li></ul></ul><ul><ul><li>Geography, Demography </li></ul></ul><ul><ul><li>Revenue Share </li></ul></ul><ul><li>Less Intuitive Parameters: </li></ul><ul><ul><li>Competitors (saturated?) </li></ul></ul><ul><ul><li>Handset Compatibility (Aggregator’s 400-800 handsets lists..) </li></ul></ul><ul><ul><li>Growth expectations </li></ul></ul><ul><ul><li>Application Promotion </li></ul></ul><ul><ul><li>Reports (trusted? on time?) </li></ul></ul><ul><ul><li>Support & Feedback </li></ul></ul>How should I choose my distribution channels?
    6. 6. <ul><li>More mobiles handsets – 4.6 billion subscribers (ITU, 2009) </li></ul><ul><ul><li>~ 4 times the number of PCs </li></ul></ul><ul><li>More mobile platforms </li></ul><ul><ul><li>Portable media players : Apple iPod / iPod-Touch, Sony Walkman, … </li></ul></ul><ul><ul><li>Tablet computers : Apple iPad </li></ul></ul><ul><ul><li>E-Book platforms : Amazon Kindle, Sony Reader, … </li></ul></ul><ul><li>More distribution channels </li></ul><ul><ul><li>Appstores – From 8 to 38 (GetJar, March 2010) </li></ul></ul><ul><ul><li>New mediums : </li></ul></ul><ul><ul><ul><li>Social networks </li></ul></ul></ul><ul><ul><ul><li>Retail </li></ul></ul></ul>What has changed from last year?
    7. 7. <ul><li>More Revenues – Apps market is boom’ing! </li></ul><ul><ul><li>Mobile Application Stores Market </li></ul></ul><ul><ul><ul><li>2009 - $4.2 billion </li></ul></ul></ul><ul><ul><ul><li>2010 is projected to reach $6.7 billion </li></ul></ul></ul><ul><ul><ul><li>2013 is projected to reach $29.4 billion </li></ul></ul></ul><ul><li>(Gartner, January 2010) </li></ul><ul><li>Lower App Prices </li></ul><ul><ul><li>2009 Avg. price - $1.9 </li></ul></ul><ul><ul><li>Until 2012 – 29% decrease, Avg. price – $1.34 </li></ul></ul><ul><li>(GetJar, March 2010) </li></ul><ul><li>Finally - some Ad-Based monetiziation </li></ul><ul><ul><li>2009 – 12% of all Apps revenues </li></ul></ul><ul><ul><li>2012 is expected to reach 28%+ of all Apps revenues </li></ul></ul><ul><li>(GetJar, March 2010) </li></ul>What has changed from last year?
    8. 8. <ul><li>Handsets Fragmentation </li></ul><ul><ul><li>Still no standards! </li></ul></ul><ul><ul><ul><li>Java ME, Symbian, iPhone SDK, Android SDK, MeeGo </li></ul></ul></ul><ul><ul><li>High development & porting costs ($10k-$100k’s per app/game) </li></ul></ul><ul><li>Distribution is still a “bottleneck” </li></ul><ul><ul><li>Past challenges - partially solved </li></ul></ul><ul><ul><ul><li>Limited “Shelf Space” </li></ul></ul></ul><ul><ul><ul><li>No true solution for long-tail </li></ul></ul></ul><ul><ul><li>And even more.. </li></ul></ul><ul><ul><ul><li>Distribution fragmentation </li></ul></ul></ul><ul><ul><ul><li>Tough moderators (e.g. Apple) </li></ul></ul></ul>What has NOT changed from last year?
    9. 9. <ul><li>Standard APIs / Cross-handset platforms </li></ul><ul><ul><li>Sun JavaFX, Adobe Flash </li></ul></ul><ul><ul><li>GSMA OneAPI, Vodafone JIL </li></ul></ul><ul><li>Web & Mobile Convergence </li></ul><ul><ul><li>Yahoo Appstore? </li></ul></ul><ul><ul><li>Mobile Web Apps? </li></ul></ul><ul><li>Flexible In-App Billing </li></ul><ul><li>Mobile Analytics – optimize revenues </li></ul><ul><ul><li>Enabling In-App Ads (e.g. innerActive) </li></ul></ul>What about the future?
    10. 10. <ul><li>What’s Next </li></ul>

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