Building a Mobile Business with Apps
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Mobile app usage and revenue are growing rapidly globally. The number of daily activated Android devices is 850,000 and people play 125 years worth of Angry Birds each day. Mobile video views on YouTube reach 600 million daily. App and mobile site usage in Russia grew dramatically from 2010 to 2012. Revenue from in-app advertising is a major source of income for many developers, with some earning over $100,000 per year. Effective promotion, monetization through advertising and analytics can help developers better understand user behavior and make strategic business decisions.
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Building a Mobile Business with Apps
- 1. BUILDING A BUSINESS ON MOBILE APPS Anna Yashchenko AdMob by Google
- 2. 850K Android Devices activated daily Source: Apple, Google data, April 2011
- 3. 125 years of Angry Birds played every day 600 million mobile playbacks every day on YouTube Source: Nielsen June 2010, Rovio December 2010, YouTube Internal Data 2010
- 4. Jan-10 through Mar-12 Source: AdMob Network Data
- 5. App and site use is exploding in Russia Ad requests 1,5 bn 40 m Jan-10 Jan-2010 Jan-11 Jan-2012 Source: AdMob network data, August 2010 & 2012
- 6. “Hockey stick” growth in ad requests AdMob Network Ad Requests Russia Source: AdMob Network Data, March – August 2011
- 7. … but growth driven from high end devices AdMob Network Ad Requests Russia iPhone + Android Source: AdMob Network Data, March – August 2011
- 8. … and tablets are just starting to take off AdMob Network Ad Requests Russia iPad !"#$ %&'$ ()"$ *+,$ -).$ /+0$ Source: AdMob Network Data, March – August 2011
- 9. How Much Are Developers making? We quickly discovered that ads were bringing in the majority of the revenue Guilherme Schvartsman Founder & CEO of Best, Cool & Fun Games Results 20M users Drove 45% of Ant 70% of revenue derived Smasher downloads with from ads through AdMob advertising on AdMob
- 11. YOU
- 12. Promote Earn Measure
- 13. PROMOTE
- 14. Ways to get discovered • Build a brand – app description and icon matter • Go social – leverage your social circles • Advertise – free vs. paid
- 15. 400,000+ apps in the store
- 16. Advertise within other apps to get discovered
- 17. Increased ranking means more “discoverability”
- 18. Jumpstart your user base with paid advertising Active Users Time
- 19. Jumpstart your user base with paid advertising Active Users Time
- 20. More than one app? Use house ads for free advertising
- 21. Jumpstart your user base with house ads App A Active Users Time
- 22. Jumpstart your user base with house ads App B App A Active Users Time
- 23. Jumpstart your user base with house ads App B Active Users App A Time
- 24. EARN
- 25. Many ways to earn money Paid downloads Freemium User pays a fee User pays for additional to download functionality In-app purchase Advertising User purchases goods User clicks on ads within the app
- 26. Advertisers are spending to reach their audience in apps Developers earning over $100K / year has quadrupled since 2009
- 27. Earning money with mobile advertising User launches User clicks on ad You get paid for your app. placed in your app. each click.
- 28. Advertising math 101 $0.10 cost per click (CPC) 120,000 100,000 ad requests impressions 1,500 clicks 100,000 Fill rate 83.3% 120,000 1,500 Click-through rate (CTR) 1.5% 100,000 Revenue 1,500 x $0.10 $150 $150 х 1000 eCPM $1.50 100,000
- 31. RPM varies across networks
- 32. Mediation reduces RPM fluctuations and maximizes revenue 3
- 33. Mediation enables multiple ad networks Ad network A Ad network B Mediation Ad network C 3
- 34. MEASURE
- 35. It’s easy to measure downloads Download data and statistics are readily available in most marketplaces
- 36. But what are my users doing? Potential Customers Active Customers
- 37. And where are downloads coming from? Potential Customers Active Customers
- 38. Analytics helps you make critical decisions • Extend to a new platform? • Acquire more users? • Change my business model? • Retire unused features? • Develop a new app?
- 39. Get started with AdMob by Google Promote Earn Measure • Drive downloads with • Monetize with • Track performance paid advertising AdMob ad network with Analytics • Cross-sell with house • Consider ads freemium, in-app purchases, etc.
- 40. The Guide to the App Galaxy To learn about mobile advertising, monetization and measurement visit: www.guidetotheappgalaxy.com