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

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

Mobile Apps Overview - Agenda
Monetization
What are the main monetization models?
Which distribution channels exist?
How should I choose my distribution channels?
Updates
What has changed from last year?
What has NOT changed from last year?
What about the future?

Paid-For
One-Time-Download
Subscription / Rental (e.g. Jamba)
Freemium – Free version, Premium features costs money
Newer Models
“ Virtual Goods” – mainly for games
Flexible Payments
In-App Advertisement
Pre-Roll / Post-Roll Video Ads
Been around for a few years, but now actually kicks in
Rewards developers for customers reuse
What are the main monetization models?

Application Stores
Mobile Operators (e.g. Orange AppShop)
Vendors (e.g. Appstore, Ovi)
Independent (e.g. Handango)
Aggregators (e.g. Connect2Media, Zed, B!)
Direct-To-Consumer (D2C)
Destination Website (WAP/Web)
On Device Portal (e.g. OnMobile)
Social Networks
Retail (e.g. Retalika) - new
Which distribution channels exist?

Popular Parameters:
Potential volume (comparable best-sellers?)
Pricing (avg.? flexible? pricing points?)
Geography, Demography
Revenue Share
Less Intuitive Parameters:
Competitors (saturated?)
Handset Compatibility (Aggregator’s 400-800 handsets lists..)
Growth expectations
Application Promotion
Reports (trusted? on time?)
Support & Feedback
How should I choose my distribution channels?

More mobiles handsets – 4.6 billion subscribers (ITU, 2009)
~ 4 times the number of PCs
More mobile platforms
Portable media players : Apple iPod / iPod-Touch, Sony Walkman, …
Tablet computers : Apple iPad
E-Book platforms : Amazon Kindle, Sony Reader, …
More distribution channels
Appstores – From 8 to 38 (GetJar, March 2010)
New mediums :
Social networks
Retail

More Revenues – Apps market is boom’ing!
Mobile Application Stores Market
2009 - $4.2 billion
2010 is projected to reach $6.7 billion
2013 is projected to reach $29.4 billion
(Gartner, January 2010)
Lower App Prices
2009 Avg. price - $1.9
Until 2012 – 29% decrease, Avg. price – $1.34
(GetJar, March 2010)
Finally - some Ad-Based monetiziation
2009 – 12% of all Apps revenues
2012 is expected to reach 28%+ of all Apps revenues
(GetJar, March 2010)

Handsets Fragmentation
Still no standards!
Java ME, Symbian, iPhone SDK, Android SDK, MeeGo
High development & porting costs ($10k-$100k’s per app/game)
Distribution is still a “bottleneck”
Past challenges - partially solved
Limited “Shelf Space”
No true solution for long-tail
And even more..
Distribution fragmentation
Tough moderators (e.g. Apple)
What has NOT changed from last year?

Standard APIs / Cross-handset platforms
Sun JavaFX, Adobe Flash
GSMA OneAPI, Vodafone JIL
Web & Mobile Convergence
Yahoo Appstore?
Mobile Web Apps?
Flexible In-App Billing
Mobile Analytics – optimize revenues
Enabling In-App Ads (e.g. innerActive)
What about the future?

What’s Next

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

by MobileMonday Tel-Aviv on Apr 01, 2010

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