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Top Mobile App Monetization Tactics You Ought to Know

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Top Mobile App Monetization Tactics You Ought to Know

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With the holiday season nearing, is your app monetization strategy geared up to get the most out of your users? Crafting an effective monetization strategy involves understanding and influencing your user's lifetime value (LTV).

In this 1 hour webinar, you'll learn:

What is LTV and how to apply it to your app business effectively -- metrics that you need to monitor and measure constantly.

How to go beyond analytics & metrics -- apply advanced user segmentation to design clever strategies that can help you engage and monetize your users better.

Some ideas to increase your app's monetization this holiday season.

This session is led by Pratik Shah, Product Manager at InMobi.

With the holiday season nearing, is your app monetization strategy geared up to get the most out of your users? Crafting an effective monetization strategy involves understanding and influencing your user's lifetime value (LTV).

In this 1 hour webinar, you'll learn:

What is LTV and how to apply it to your app business effectively -- metrics that you need to monitor and measure constantly.

How to go beyond analytics & metrics -- apply advanced user segmentation to design clever strategies that can help you engage and monetize your users better.

Some ideas to increase your app's monetization this holiday season.

This session is led by Pratik Shah, Product Manager at InMobi.

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Top Mobile App Monetization Tactics You Ought to Know

  1. 1. Top app monetization tactics… Pratik Shah | Product Manager
  2. 2. A bit about Myself..
  3. 3. What do these entities have in c o m m o n ?
  4. 4. “The deeper the understanding “We are an analytics company we have about our customers masquerading as a games and our products, the better we company” can connect with them.” Data. Insights. Actions. Oakland A’s manager Billy Citibank is exploring possible Beane based his winning uses for IBM’s Watson strategy on rigorous data supercomputer in mining analysis to acquire top baseball customer data. players.
  5. 5. This is all great….. How the heck is this relevant for an app developer?
  6. 6. 700K iOS & Android apps 60% app developers don’t profit 30% apps used only once It’s a tough world out there.. Only the intelligent app businesses will win!
  7. 7. Agenda: Improve App monetization by focusing on your users Best practices ‣  Monetization models ‣  Key metrics & ARM cycle Customer segmentation ‣  Why ‣  How Use cases ‣  Acquisition ‣  Retention ‣  Monetization
  8. 8. Best Practices
  9. 9. Monetization: Variety of monetization models Consumer Advertiser pays pays Paid downloads, Banner, in-app purchases, interstitial, cross merchandizing, promote, offer subscription.. walls..
  10. 10. Embrace the power of Freemium model The best part? Not limited to gaming apps..
  11. 11. Metric driven? Don’t get lost in vanity metrics… Did you catch the funny ones?
  12. 12. Keep it simple: Focus on value maximization during ‘ARM’ cycle Basics ‣  App value = Number of users * LTV of each user Acquisition Retention LTV of each user ‣  Lifetime value ‣  LTV = value * engagement USERS Value levers ‣  Monetization ‣  Virality ‣  Loyalty Monetization ‣  UGC & Community ‣  Feedback ‣  Marketplace (Downloads, Ratings & Comments) In order to focus on monetization, it is important to look beyond monetization..
  13. 13. Audience Track key ‣  Daily Active Users (DAU) & Monthly Active Users (MAU) ‣  Demography metrics in Acquisition ‣  Cost per acquisition (CPA) the ‘ARM’ ‣  ROI on campaigns (Value - CPA) Retention cycle ‣  Stickyness (DAU/MAU) ‣  Retention rate Monetization ‣  Conversion rate ‣  ARPU & ARPPU
  14. 14. Customer segmentation
  15. 15. Lets borrow an industry best practice.. Loyal 31% Newly 24% acquired ‣  Customer segmentation - a practice Dormant 18% of: ‣  Dividing a customer base into buckets that are Engaged similar in specific ways (spending, engagement 16% etc.) ‣  On which they can take targeted actions to Socially 16% extract the maximum marketing value. active Advanced 13% ‣  Traditionally, retail marketers have used segmentation as an important Whales10% technique ‣  In order to maximize the value levers, app developers need to adopt the same sophisticated techniques.
  16. 16. Customer segmentation: How does it work? Basics ‣  Use a rule engine to define user behavior & attributes to define a segment Dimensions ‣  Purchase history ‣  Time spent ‣  Session length ‣  Advancement ‣  Session frequency ‣  Country, Carrier, Device ‣  …. Examples ‣  S1: IF purchase history > 25 percentile of my app ‣  S2: IF purchase history > $10 ‣  S3: IF purchase history > $10 & Time spent < 5 minutes in last month Need to track key metrics with the prism of each segment
  17. 17. Use cases
  18. 18. Lets put it to use in the ‘ARM’ cycle? Acquisition Retention USERS Monetization
  19. 19. Acquisition: Leverage organic techniques Basics ‣  Expensive to pay to acquire users unless you have a well oiled positive ROI engine (LTV > CPA) Measurement ‣  Cost per acquisition (CPA) ‣  ROI on campaigns (LTV/CPA) Techniques ‣  Internal cross promote (Keeping users within your app portfolio) is the best but needs to be done properly.. ‣  Viral is very cost effective, but also very difficult ‣  Performance networks (display, cross promote) are widely used to acquire further users
  20. 20. Identify pattern: Highly engaged users from USA are most likely to give you viral uplift Segment using rule engine: IF (time spent > 300 hours) & (country == USA) Incentivize virality Segment: Social influencers Reduce your CPA by as much as 50%
  21. 21. Identify pattern: Advanced users in your top app don’t have other apps in your portfolio Segment using rule engine: IF (levels crossed > 25) & (! Using omegajump) Smart cross promote Segment: ‘ripe’ users Increase ROI by acquiring known users
  22. 22. Retention: Use a variety of techniques at different user stages Basics ‣  Difficult.. but certainly most important Measurement ‣  Stickyness (DAU/MAU) ‣  Retention rate (% of returning users across months) ‣  Cohort analysis ‣  Measure how many users return for 2nd time, 3rd time and so on… Techniques ‣  Clean early experience * Playnomics Q3 2012 report ‣  Localize content ‣  Gamification: Rewards, challenges etc…
  23. 23. Identify pattern: New users are likely to be delighted to see a tailored message Segment using rule engine: IF (App launches < 5) & (country == China) Localized ‘welcome’ Target segment: New Chinese users Increase retention beyond day 1
  24. 24. Identify pattern: User engagement can be improved with a social taunt Segment using rule engine: IF (user time spent in last month < 50% of average time spent) Social ‘taunt’ Target segment: Waning users Increase engagement by 30%
  25. 25. Monetization: Use tiered pricing Basics ‣  Price goods along the curve based on capacity of each customer Measurement ‣  Conversion rate (% paying) ‣  ARPU & ARPPU ‣  Customer profile split ‣  Whales (10% users, 60% revenue) ‣  Dolphins (30% users, 30% revenue) ‣  Minnows (60% users, 10% revenue) Techniques ‣  Holiday & event specific ‣  Timely offers
  26. 26. Identify pattern: Hardcore users would pay a lot for certain features Segment using rule engine: IF (user time spent == high) & (app section == ‘tough’) Timely unlocks Target segment: Hardcore users Display offers at right time
  27. 27. Identify pattern: High paying users in developed economies tend to purchase a lot during holidays Segment using rule engine: IF (user purchase history == high) & (date == 31st Oct) & (country == USA || UK) Holiday promotion Target segment: High paying US and UK users Add cyclic bursts to your sales
  28. 28. ‣  Step 1: Deciding what data will be collected and how it will be How does a ‣  gathered Step 2: Collecting data from developer ‣  various sources Step 3: Developing methods of do all of big data analysis for segmentation ‣  Step 4: Building in-house this? message server - scaled globally! ….Could this all be easier?
  29. 29. Thank you Pratik Shah Product Manager, InMobi Pratik.shah@inmobi.com

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