How do we make money from this

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A university presentation on App revenue

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  • Includes paid and unpaid
    2.5 billion apps. 16 million not Apple
  • Only accounts for paid apps
    Pre-iPad, Galaxy Tab, etc
  • Nokia switched to 60/40 1st of October for carrier billing
    Also Palm/HP webOS
  • Android free - ad supported (further reach)
    Crashed GetJar several times on release
    1m sales of Halloween version in first week
  • No firm released figures as yet (iAds or Admob)
    7.1b between web and apps (text and banner (see link))
    http://www.tmcnet.com/usubmit/2009/11/04/4462302.htm – Nov 2009
    1bn impressions per day/ads served (15/11/10 E. Schmidt – Web 2.0 Summit)
  • Paypal used to provide a license for a pro/donate version
    Allows for wider sales (Android market limited in countries with paid apps)
    Not used in iOS apps and unclear for Nokia
  • WP – up to 5 free apps the $19.99 thereafter, also includes Xbox 360 release)
    None of this includes cost of phones or any other hardware.
  • You can make money from it but can you afford it as your only source of income?
    Top grossing apps on app store are nearly all from big companies
    Android market seems to favour indie developers but are there less paying customers?
    Will having ads make you more money in the long run? (Refer to ROM Manager with option to switch off ads in paid version)
    Tablet specific versions of apps or universal?
  • 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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