Mobile App Monetization

Copyright ©2016 Talentica Software (I) Pvt Ltd. All rights reserved.
C2M – App
Monetization
Monetization Options
Ashutosh Tripathi

Copyright © 2016 Talentica Software (I) Pvt Ltd. All rights reserved.Copyright ©2016 Talentica Software (I) Pvt Ltd. All rights reserved. 2
Agenda
• Monetization options
• Monetization Strategy
• Mobile App Advertising
• Sneak peek inside AdNetwork world

• Paid Apps
– Direct earnings
– Big deterrent for gaining users
– 90% apps free
– 0 of Top 50 Grossing app is Paid , 3 out of top 200
grossing apps are paid (iOS)

• In-App Advertising
– Most popular
– 57% of digital advertising is Mobile Ads (2017)
– Different formats – Banner, Interstitial, Native , etc.

• In-App Purchases
– Distributed as free version
– 2nd most popular option
– Sell virtual items
– Mostly used in games

• Freemium Apps
– Free version of app is distributed
– Premium features can be accessed after purchasing
only
– Good strategy for tools/usability apps
– Evernote, Skype etc.

• Subscription
– Distributed as Free App
– Some services can be availed only after purchasing
subscription
– Relevant for content based Apps like news, blogs
etc.

• Affiliate Marketing/Promotion
– Promoting other products/brands in your App
– Direct partnership with other brands, paid on basis
of visit/purchase of product
– Good strategy for very popular app to earn revenue
without showing ads

• User Data == $$$
– Many buyers to see user data and their usage
patterns
– Location, user interest ,etc.
– Before collecting data user consent is must
– Applicable only when data set is high

• White Label App
– Same App to be used by different brands
– Minimal config changes for branding
– Preferred options for SME’s

• Code == $$$
– Selling features as product
– App developers will buys SDK’s to speed up
development
– Likely bundled with some server component
– Freemium model

Monetization Strategy

• Market Potential
– The app economy will double by 2020 and reach astonishing $101 billion in global
revenue.
• Reality
(Src: https://hackernoon.com/https-medium-com-linosphere-app-monetization-guide-12809d74b6b0)

• Crucial to plan your monetization in advance
• It should be plan considering app content and
audience
• Paid App – big risk
• Hybrid Approach
• User retention is key

Mobile App Advertising

• Users are spending more and more time in side
app
• Mobile advertising is predicted to drive 75% of all
digital ad spend in 2018.
• Ads should not impact user experience
• Choose Ad Formats considering your audience

• Ad Formats
– Banner
• Partial Screen
• Text, Image, Rich Media (JS)
– Interstitial
• Full Screen
• Text, Image, Rich Media, Video

• Ad Formats
– Rewarded Video Ads
• Full Screen Video Ads
• Virtual rewards only after
completion of video
– Native Ads
• Displayed as App Content
• App responsible for drawing ad content

• Native Video Ads offers high CPM and CTR (18 % –
200% higher then display ads)
• Rewarded Video Ads have very high viewability rate
• More variation of Ads also exist
– Lock Screen Ads
– Sponsor Ads Wall
– Postitial Ads/App Exit
– Mid-roll video ads
– Playable Ads

Inside Ad network World

• AdNetworks brings two side of world together i.e.
Publisher (App Developers) and Advertisers
• Publisher select ad format, category and pricing model
(considering app content and audience)
• AdNetwork get inventory from Advertisers considering
aggregated inventory request from different Publishers
• Integrated mostly as SDK’s

• Popular Pricing Structure
– CPM : Cost per Thousand display
– CPC/CTR : Cost per click
– CPA : Cost per Acquisition
– CPI : Cost per Install
– CPCV : Cost per Completed Video View

• Many big players are involved
– Google (AdMob)
– Facebook
– Amazon
– Twitter(Mopub)
– AOL

Mobile App Monetization

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