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How do we make money from this

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A university presentation on App revenue

Published in: Business, Technology
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How do we make money from this

  1. 1. How Do We Make Money From This? Ryan MacGillivray
  2. 2. Introduction • Is there any money in it? • How do we make money? • Entry costs
  3. 3. Is there any money in it
  4. 4. • $4.2 billion • $2.96b Even with 30% to Apple/Google/Nokia • Pre-tablets
  5. 5. Rovio • Angry Birds Released 10/12/09 • 6.5m purchases August 2010 • #1 PAID app in 67 countries • £0.59/$0.99 • ~$4.5m (iOS only) • 2m downloads for Android in opening weekend
  6. 6. How do we make money • Ads? • Paid and unpaid versions? • Donation system? • Paypal sales?
  7. 7. Ads • AdMob reported ~$100m in 2009 • Includes all mobile Ads • 60/40 revenue split (iAd & AdMob) • ~$60m to publishers • Claim to serve over 7.1b ads per month
  8. 8. Paid and Unpaid • Unpaid: – Generates interest and sales – Can serve ads • Paid – Offer further features – Remove ads
  9. 9. Paypal • Paypal used in Android apps • Lower split – 3% to paypal • License system to unlock extra features
  10. 10. Entry Costs • iOS - $99 per year • Android - $25 one time fee • Nokia - €50 one time fee • Microsoft/WP - $99 per year • webOS – Free
  11. 11. Summary • Living off apps? • Picking the right platform • Ads over sales • Will tablets boost sales? • Piracy?

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