The art and science of pricing• Consider your app – What do competitors charge? – What sets my app apart? – How can it be monetized? • Compulsion loop • EngagementMore on pricing strategies at blog.w3i.com or twitter @w3i
Freemium vs. Paid• iOS freemium games generate $14.66/user* VentureBeat• In 2009 free apps received more than 4x number of installs over paid * AdMob
5 out of 10 top grossing iPhone Appsare using the free-to-play model 52 10 6 4 iTunes Top Grossing 11/9/2010
Price cut. The magic of $.99• EA Christmas 2010 Strategy – #4, #7, #8, #10, #11, #12 paid iPhone apps – #1, #2, #4, #7, #9, #10 paid iPad apps• Support price cuts with publicity
Looking ahead• W3i in collaboration with Distimo, will publish pricing research in Q1 2011, follow us for the latest. @w3i blog.w3i.com
The Monetization PuzzlePaid Installs and App Monetization
Setting the foundation• Are you sure its good? – Compulsion Loops – Engagement – Value
Display Advertising• For developers, easy way to monetize impressions.• For advertisers, high level of risk and high cost of acquisition.
In-App Purchasesaccess/subscriptions• For developers, an alternative to “lite” version.
In-App Purchasesvirtual goods/enhancement• For developers capitalize on your game mechanics.• For advertisers, low risk, value add to consumers. 75% of revenue from virtual Free goods Paid 37 63App Store Top Grossing 100 - 11/12/2010
How It Works 1 User Plays 2 User Wants 3 User Selects Game Background App 4 User Installs 5 User Claims 6 User ChecksApp, Gets Points Background History
Want more? Join the community. Contact Rob. @w3i Rob Weber Vice President and Co-Founder hashtag #appschat firstname.lastname@example.org (320) 257-7551 W3i, LLC blog.w3i.com 1900 Medical Arts Avenue S Suite 200 Sartell, MN 56377