The Hitchhiker's Guide to App Monetization


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A complete overview of the mobile app industry’s main concepts, terms and buzz Words.

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The Hitchhiker's Guide to App Monetization

  1. 1. 1<br />The Hitchhiker's Guide to the World of App Monetization<br />
  2. 2. 2<br />Industry’s Main Concepts<br />Terms and BuzzWords<br />
  3. 3. In-App Payments<br />3<br />“I refuse to answer that question on the grounds that I don't know the answer”<br />D. Adams<br />
  4. 4. 4<br />In-App Payment<br />Download the app for freeNOW and pay later<br />through a variety of revenue models:<br /><ul><li>“Try and buy”
  5. 5. Virtual goods
  6. 6. Subscription model </li></li></ul><li>5<br />In-App Payment<br />Fact!<br />35% of the 300 top-selling free games use some sort of virtual currency as a form of payment in the App Store<br />49% of all iPhone-related revenue is derived from in-app purchases <br />(As of June 2011; Source: Distimo)<br />
  7. 7. 6<br />Payment Methods<br />When purchasing a mobile app, the user must choose from the following payment alternatives:<br />iOS<br />iTunes account<br />Android:<br />Carrier Billing<br />PayPal<br />Google Checkout<br />Credit Card<br />
  8. 8. 7<br />Payment Methods<br />Fact!<br />The “Carrier-Billing” payment method is likely to generate payment 10 times more than any other method. <br />
  9. 9. 8<br />Payouts<br />The final net payment to the developer (after the middle-men take their cuts) is different in every geo-territory <br />Apple’s App Store – 30% - 70%<br />Android App Market – 30% - 70%<br />PayPal – 3.4% +€0.35 <br />Carriers: <br />
  10. 10. 9<br />Payouts<br />Fact!<br />In most cases, the net payout from the carriers will be between 40%-60% of the price. <br />
  11. 11. 10<br />Alternative Payments<br />- “I really wish I'd listened to what my mother told me when I was young."- "Why, what did she tell you?"- "I don't know, I didn't listen.“<br />D. Adams<br />
  12. 12. “Alternative Payment”<br />Standard payment:<br />In-App Item <br />Your user!<br />You!<br />Money…<br />Alternative payment<br />Free In-App Item <br />Your user!<br />You!<br />An advertiser!<br />Money…<br />Action<br />
  13. 13. 12<br />Alternative Payment<br />Action:<br /><ul><li>Incentivized download (TBD)
  14. 14. Submit your mail
  15. 15. Watch a video
  16. 16. Vote
  17. 17. “Like” (Facebook)</li></ul>Fact! The developer’s cut is usually 70% of the amount paid by the advertiser<br />
  18. 18. 13<br />Incentivized Downloads<br />Game coins<br />Your user!<br />You!<br />Cash<br />Free content<br />Pay for the item<br />Another developer<br />Better ranking<br />Download, install and open<br />13<br />
  19. 19. 14<br />Incentivized Downloads<br />Fact!<br />At its peak, Tapjoygenerated income of $8M monthly from incentivized downloads<br />While Apple clamped down on incentivized app downloads, this option it still available on Android devices <br />
  20. 20. 15<br />Advertisement<br />“Who said anything about panicking? This is still just the culture shock. You wait till I've settled down into the situation and found my bearings. <br />Then I'll start panicking.”<br />D. Adams<br />
  21. 21. 16<br />CPC / CPA / CPL / CPI and More<br />CPC - Cost-per-Click (only if necessary)CPI - Cost-per-InstallCPA - Cost-per-Action (install, register, use) <br />CPL – Cost-per-Lead (mail submission)Fill rate - The percentage of ad requests that are filled with ads (when an ad is displayed to the end user)<br />Fact!<br />The fill rates of most ad networks range between 50%-60%<br />
  22. 22. 17<br />Offer Wall<br />How can you monetize your app?<br />You can define paid In-App items<br />You can add an ad banner<br />You can add offers<br />Contextual offers that 3rd parties are willing to pay for<br />
  23. 23. 18<br />The Ultimate Fact!<br />Lunkwill: Do you... Deep Thought: Have an answer for you? Yes. But you're not going to like it. Fook: Please tell us. We must know! Deep Thought: Okay. The answer to the ultimate question of life, the universe, and everything is... <br />Deep Thought: 42. <br />
  24. 24. LogiaPay- The market’s most comprehensive in-app payment solution offering every available payment method <br />LogiaReach – Upload your app to the stores of various 1st tier mobile operators using our existing relationships<br />LogiaAd – Use Logia’s optimized ad-network solution to increase revenues from your advertising space<br />19<br />For those of you who are not satisfied with this answer, Logia can offer a more practical one –> A set of monetization tools for maximizing your revenues:<br />
  25. 25. Thank You!<br />