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Monetization: Unlock More Value from Your APIs

Do you want to scale your API program? Do you want to create new business opportunities with developers and partners? If so, monetization might be the right strategy for you.

Monetization is influencing how APIs are delivered. It provides the flexibility to generate different API consumption models for developers, and it opens opportunities to derive value from APIs, for developers and for partners.

Learn about:

- Monetization trends and best practices
- The industries that leverage API monetization today
- The future of monetization

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Monetization: Unlock More Value from Your APIs

  1. 1. API Monetization: Unlock More Value from your APIs Sarthak Ganguly, Apigee | Google Cloud Harsh Chevuru, Apigee | Google Cloud
  2. 2. Meet the Speakers Harsh Chevuru Apigee | Google Cloud Sarthak Ganguly Apigee | Google Cloud 2
  3. 3. “This year more CIOs will have their bonuses tied to how many new business models they help create with existing and planned IT platforms than ever before.” Forbes, 2017 3
  4. 4. What is Monetization? ● Is monetization just a trend? ● Is monetization only applicable for external APIs? ● Is monetization relevant to our business? ● Should monetization be part of our business strategy? ● How does monetization impact scaling our API programs?
  5. 5. 5 Reasons to Monetize APIs ● Monetization is another growth strategy ● Frictionless way to sell data and services ● Additional revenue source ● Create a shared services platform ● Monetization as incentive scheme
  6. 6. API Monetization Strategies 6 Monetization Internal External IndirectAPIs as Add OnRevenue ShareShared Services Direct
  7. 7. Monetization Strategies - External APIs 7 Direct Monetization Charge for API Consumption Industry Examples: Google Maps Weather Flight Stats Pitney Bowes APIs as Add-ons APIs usage as an additional tier of service Industry Examples: Salesforce Shopify Indirect Monetization API usage is free, but indirectly ties to revenue generation Industry Examples: Uber YouTube Payments Cloud Ecosystems
  8. 8. ● Use APIs to create premium packages ● No Direct way to monetize ● Think APIs as Products APIs as Add-Ons
  9. 9. Industry Examples: Indirect Monetization
  10. 10. Consumption Models
  11. 11. Users Pay Developers Pay Developers Get Paid Charging Models Explained
  12. 12. 12 Developer Pays: Users Pay: Developers Get Paid: Maps Travel Data ML Weather Payment Telecom Ride Services
  13. 13. Direct Charging Models 13 Feature SLA Rate limit Duration Quantity Hybrid Tiered (API provider charges developer) Freemium Models Volume Data depth Pay as you go Ala carte Differential cost per API Flat Fees (API provider charges developer)
  14. 14. Tiered Models Multi Level Sub Levels Tiered Two Broad levels, High vs. Low Each category has a subcategory Revenue / Volume Bands Overage Add-ons
  15. 15. Industry Examples: Weather
  16. 16. What we learned from the Weather Industry: ● Most mature industry from a monetization standpoint ● Heavily dependent on call volumes ● Wide range of bundles ○ Bundles catering to startups ○ Bundles better suited for large enterprises
  17. 17. • Tiered • Call Volume • Trial - No Freemium • Feature differentiator • Overage Charge
  18. 18. • Tiered • No Freemium
  19. 19. • Tiered • Call Volume+ • Features+ • Add-ons • Feature Differentiator • Custom High Volume Plan
  20. 20. Latest Trends
  21. 21. Using Points or Credits as Currency ● Reduces complexity in multi- currency scenarios ● Easy to make changes to pricing structures ● Loose coupling to finance processing
  22. 22. Value Based Models Google Vision API Google Translation API 22
  23. 23. Monetization as an Incentive Scheme • Affiliate program • $5 per new rider • Max Pay $5k • Official partner program to earn more • Affiliate program • $7.5 per new rider • Max Pay $7.5k • Official partner program to earn more 23
  24. 24. Monetization Data Services Internal Chargeback Indirect Monetization Ancillary New Revenue Primary Business 24 -Media -Credit Services -Research Services -Airports -Banks -Fin Serv -Healthcare -Telco -Telco -Payment Services -Credit Services -Research Services -Media
  25. 25. Proprietary and confidential Are you… ● Currently experimenting with monetization models? ● Curious about how API monetization can change your business? 25
  26. 26. 26 Whether you are a trailblazer in monetization or just getting started, we can help. Contact us to discuss how Apigee can help you optimize your digital business.
  27. 27. Questions?