Making Money in the Android        Ecosystem    Paul.Houghton@futurice.com
Mobile Market Analysis                         Fututrends   3
2010: Android, 22.7%2009: Android, 3.9%                               Fututrends   4
Making Money in the Android Ecosystem   5
Making Money in the AndroidEcosystem•  Where?  –  Android Market  –  In-app Billing  –  Alternative Markets•  How?  –  And...
Making Money in the AndroidEcosystem•  Where?  –  Android Market  –  In-app Billing  –  Alternative Markets•  How?  –  And...
Android Market•  34% paid apps  –  (Apple: 66%)  –  37% are $1 or less, vs. 61% last summer•  6.2 apps per developer  –  (...
DroidDream•  Security nightmare  –  >50 repackaged apps raid private     security info to remote servers  –  Google is “an...
Making Money in the Android Ecosystem   10
Making Money in the Android Ecosystem   11
Making Money in the Android Ecosystem   12
Making Money in the Android Ecosystem   13
Making Money in the Android Ecosystem   14
Making Money in the Android Ecosystem   15
•  If your app isn’t professional  –  Low user ratings  –  No users  –  You wasted 100% of your money                     ...
In-app Billing•  New•  Sell  –  virtual stuff  –  game levels  –  extra services•  70/30 like normal billing•  Subscriptio...
Alternative Markets•  Three types enter the gold rush  –  Indies     •  Independent opportunists, mostly doomed to fail   ...
Fututrends   19
GetJar•  100m down/month•  200 countries•  Primary revenue is “Sponsored   Apps” section of website –  Advertise your app ...
AppBrain•  Alternate web   interface for Android Market•  You might like the UI better, but…  –  Only apps available in US...
Appsfire•  Alternate web   interface for Market•  Good in-phone App  –  Recommendations adapted based on installed     app...
SlideME•  Focus on promoting   small, independent   developers•  Web, or SAM app on to phone•  Own payment system•  For se...
MobihandOnlyAndroid•  Discounts and   “Deal of the day”•  On-phone app also•  Normal web shop, credit card   checkout, acc...
Approov•  New entrant•  Web interface only  –  Minimalistic aesthetic  –  Includes Google Market search results•  Free app...
Shop4apps•  By Motorola•  Argentina, Brazil, China, Mexico•  Free, automated app testing•  In-app advertising for China   ...
•  Coming soon•  Windows Phone is a good   example of what to expect•  A nice, small place to promote   your app if you ge...
•  AT&T uses Google Market•  AT&T cripples Android firmware –  Remove “Settings -> Applications -> Allow    install from u...
•  Verizon V Cast Store•  Android 2.2+•  Pre-approval required, like Apple  –  Free•  Same 70/30 split as elsewhere  –  ju...
•  THE BEAST is coming•  Bundled with rest of Amazon –  ebooks –  books and gadgets•  Great recommendation tech and   loya...
Beyond the western world•  Chinese markets  –  36% are repackaged free apps from Market     •  25% of repackaged apps requ...
Android Advertising•  AdMob SDK has 40% market share  –  Bought by Google  –  Normal 60/40 split•  A few apps use multiple...
Europe: Mobile Ad Revenues•  Only 37% banners –  and Ad network keeps 40% -> 22%, maybe                            Making ...
Real Time Bidding          Making Money in the Android Ecosystem   34
Making Money in the Android Ecosystem   35
Alternate Revenue Streams•  Flip burgers and play lotto•  Sell direct  –  fremium  –  online subscriptions  –  associated ...
Recommendations1.  Google Market + Checkout  –  Sell it, if you are worth it, basic level must be free     •  Higher price...
Making money in the android ecosystem
Making money in the android ecosystem
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Making money in the android ecosystem

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Making Money in the Android Ecosystem
Android Market, In-app Billing and alternatives
Android advertising and marketing
Analyzing the numbers
Alternate revenue streams
Presenter: Paul Houghton, Futurice. Length: 30 min

Published in: Technology

Making money in the android ecosystem

  1. 1. Making Money in the Android Ecosystem Paul.Houghton@futurice.com
  2. 2. Mobile Market Analysis Fututrends 3
  3. 3. 2010: Android, 22.7%2009: Android, 3.9% Fututrends 4
  4. 4. Making Money in the Android Ecosystem 5
  5. 5. Making Money in the AndroidEcosystem•  Where? –  Android Market –  In-app Billing –  Alternative Markets•  How? –  Android Advertising –  App Marketing –  Alternate Revenue Streams•  Recommendations Making Money in the Android Ecosystem 6
  6. 6. Making Money in the AndroidEcosystem•  Where? –  Android Market –  In-app Billing –  Alternative Markets•  How? –  Android Advertising –  App Marketing –  Alternate Revenue Streams•  Recommendations Making Money in the Android Ecosystem 7
  7. 7. Android Market•  34% paid apps –  (Apple: 66%) –  37% are $1 or less, vs. 61% last summer•  6.2 apps per developer –  (Apple: 4.8)•  32% of Apps are location-based•  7.5% access user contacts –  (Apple: 11%) Making Money in the Android Ecosystem 8
  8. 8. DroidDream•  Security nightmare –  >50 repackaged apps raid private security info to remote servers –  Google is “analyzing” –  Re-flash the phone –  READ the permissions which an application asks for. Most users do not.•  App makers should –  LIMIT permissions your app asks for •  or increasingly smart users will not install it –  RESPOND to online discussion of your app Making Money in the Android Ecosystem 9
  9. 9. Making Money in the Android Ecosystem 10
  10. 10. Making Money in the Android Ecosystem 11
  11. 11. Making Money in the Android Ecosystem 12
  12. 12. Making Money in the Android Ecosystem 13
  13. 13. Making Money in the Android Ecosystem 14
  14. 14. Making Money in the Android Ecosystem 15
  15. 15. •  If your app isn’t professional –  Low user ratings –  No users –  You wasted 100% of your money Making Money in the Android Ecosystem 16
  16. 16. In-app Billing•  New•  Sell –  virtual stuff –  game levels –  extra services•  70/30 like normal billing•  Subscription model coming Making Money in the Android Ecosystem 17
  17. 17. Alternative Markets•  Three types enter the gold rush –  Indies •  Independent opportunists, mostly doomed to fail •  Some are worth working with until then –  OEMs •  Preloaded store on one brand of phone •  Usually small, nice place to be –  Operators •  Big markets, big money, big corruption ambition •  Important since sometimes these guys remove Market from the phone, or block it as the network level Making Money in the Android Ecosystem 18
  18. 18. Fututrends 19
  19. 19. GetJar•  100m down/month•  200 countries•  Primary revenue is “Sponsored Apps” section of website –  Advertise your app here if you have an alternate revenue stream –  PPD: Pay Per Download•  No premium apps –  “Coming” Making Money in the Android Ecosystem 20
  20. 20. AppBrain•  Alternate web interface for Android Market•  You might like the UI better, but… –  Only apps available in US show up –  AppBrain app must be installed on user’s phone to initiate install•  Normal Google Checkout•  Largely obsolete due to recent Google Market web updates Making Money in the Android Ecosystem 21
  21. 21. Appsfire•  Alternate web interface for Market•  Good in-phone App –  Recommendations adapted based on installed apps –  Discounted apps, popular lists, expert recommendation lists, video previews•  Normal Google Checkout•  Ad supported Making Money in the Android Ecosystem 22
  22. 22. SlideME•  Focus on promoting small, independent developers•  Web, or SAM app on to phone•  Own payment system•  For selling to users outside of Google Market geographic reach Making Money in the Android Ecosystem 23
  23. 23. MobihandOnlyAndroid•  Discounts and “Deal of the day”•  On-phone app also•  Normal web shop, credit card checkout, accessorize in the same purchase Making Money in the Android Ecosystem 24
  24. 24. Approov•  New entrant•  Web interface only –  Minimalistic aesthetic –  Includes Google Market search results•  Free apps only•  Upload your free app here along with a video Making Money in the Android Ecosystem 25
  25. 25. Shop4apps•  By Motorola•  Argentina, Brazil, China, Mexico•  Free, automated app testing•  In-app advertising for China Making Money in the Android Ecosystem 26
  26. 26. •  Coming soon•  Windows Phone is a good example of what to expect•  A nice, small place to promote your app if you get placement Making Money in the Android Ecosystem 27
  27. 27. •  AT&T uses Google Market•  AT&T cripples Android firmware –  Remove “Settings -> Applications -> Allow install from unknown sources” –  So all 3rd party app stores are blocked Making Money in the Android Ecosystem 28
  28. 28. •  Verizon V Cast Store•  Android 2.2+•  Pre-approval required, like Apple –  Free•  Same 70/30 split as elsewhere –  just no sharing the 30 with Google•  Carrier billing only –  Premium is blocked on many company phones Making Money in the Android Ecosystem 29
  29. 29. •  THE BEAST is coming•  Bundled with rest of Amazon –  ebooks –  books and gadgets•  Great recommendation tech and loyal customer base Making Money in the Android Ecosystem 30
  30. 30. Beyond the western world•  Chinese markets –  36% are repackaged free apps from Market •  25% of repackaged apps require MORE user permissions than the original application –  2% pirated software (Apple: 85%) –  61% of apps are unique -> serve a local need•  Russia and the east –  There is no culture of paying for software –  Piracy is the norm Making Money in the Android Ecosystem 31
  31. 31. Android Advertising•  AdMob SDK has 40% market share –  Bought by Google –  Normal 60/40 split•  A few apps use multiple SDKs•  Include when –  High number of page views/per day –  Cheap/young target audience –  “Me too” service•  Avoid when –  You make money indirectly based on how many people have your application•  Buy when –  You make more/newuser than ads/newuser cost you Making Money in the Android Ecosystem 32
  32. 32. Europe: Mobile Ad Revenues•  Only 37% banners –  and Ad network keeps 40% -> 22%, maybe Making Money in the Android Ecosystem 33
  33. 33. Real Time Bidding Making Money in the Android Ecosystem 34
  34. 34. Making Money in the Android Ecosystem 35
  35. 35. Alternate Revenue Streams•  Flip burgers and play lotto•  Sell direct –  fremium –  online subscriptions –  associated service –  associated product•  PPI•  Consult Making Money in the Android Ecosystem 36
  36. 36. Recommendations1.  Google Market + Checkout –  Sell it, if you are worth it, basic level must be free •  Higher price, avoid “volume will make up for it” trap –  Ad-based if cheap users/high page count •  Consider Mobclix as an alternative –  Best for most: alternate revenue off-market2.  Marketing –  Blog, SPAM, promo video, spin off a TV show, address book viral, anything to spread the word –  Premium apps- advertise in markets+web+apps! •  Alternative revenue models, consider GetJar ads3.  Be Global –  Design for localization, multi-resolution from day 1 –  Alternate markets later (repackager self defense) Making Money in the Android Ecosystem 37

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