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Making Real Money with Mobile Apps

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Alex Quilici presents on the real world making of money with Apps on mobile platforms

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Making Real Money with Mobile Apps

  1. 1. Making Real Money With Apps Inside Mobile 2009 Alex Quilici CEO [email_address] www.youmail.com Reader Favorites
  2. 2. The Core Question <ul><li>Free w/embedded advertising? </li></ul><ul><li>OR </li></ul><ul><li>Paid download? </li></ul><ul><li>OR </li></ul><ul><li>… ? </li></ul>
  3. 3. Free with Advertising # of downloads * impressions/download eCPM *
  4. 4. Does Free w/Ads Make Money? # of downloads * impressions/download eCPM * 12 sessions, w/ 1-3 ads/session <10,000 $1-2 $120-720 average
  5. 5. Easy To Get Downloads? < $75 < $7,500 < $750
  6. 6. Who Gets The Downloads? Extensions Featured 24/25 of BB AppWorld Top 25
  7. 7. Can You Get The Usage?
  8. 8. Can you get the CPMs?
  9. 9. CPMs Falling Fast?
  10. 10. Making Free w/Ads Work # of downloads * impressions/download eCPM * Extend/Draft Featurable Viral
  11. 11. Making Free w/Ads Work # of downloads * impressions/download eCPM * Stickiness Extend/Draft Featurable Viral
  12. 12. Make Free w/Ads Work # of downloads * impressions/download eCPM * Stickiness Extend/Draft Featurable Viral Target
  13. 13. Paid # of downloads * ePrice/download
  14. 14. Paid w/No Ads # of downloads * ePrice/download <2,000 ~$2.00 $4,000 average
  15. 15. Paid Reduces Downloads 400-1 reduction in downloads
  16. 16. Most Apps Are Paid…
  17. 17. Yet Most Downloads Are Free…
  18. 18. Any Many Paid Get Nowhere….
  19. 19. Can You Charge More?
  20. 20. All-Time Winners Crash Bandicoot Nitro Kart 3D Koi Pond Enigmo Bejeweled 2 iBeer Moto Chaser PocketGuitar Flick Fishing Tetris Texas Hold'em Super Monkey Ball Pocket God Cro-Mag Rally Ocarina Fieldrunners iFart Mobile Touchgrind iHunt iShoot Monopoly Here & Now Edition <ul><li>Games/Entertainment </li></ul><ul><li>50% “extensions” </li></ul><ul><li>Most featured </li></ul><ul><li>Others viral </li></ul>
  21. 21. An Alternative To Consider Free, Ad Supported Paid Add-Ons or Services +
  22. 22. Case Study: Visual Voicemail Plus <ul><li>Free </li></ul><ul><li>Top 25 BB Download </li></ul><ul><li>Sticky, event driven use </li></ul><ul><li>Viral </li></ul><ul><li>CPMs – SMS/Mobile </li></ul>User worth: ~$1
  23. 23. Multiple Paid Upgrades <ul><li>Transcription </li></ul><ul><li>Storage/Support </li></ul><ul><li>Content </li></ul>Paying user: ~$150
  24. 24. Per-User Economics Free, Ad-Supported Paid Add-Ons or Services + ~$1.00 ~$9 <ul><li>Free markets paid </li></ul><ul><li>Paid supports marketing free. </li></ul>
  25. 25. What To Think About <ul><li>Free maximizes downloads/exposure. </li></ul><ul><li>Stickiness and/or targeting maximizes ad-revenue. </li></ul><ul><li>Within-App sales maximizes overall revenue. </li></ul><ul><li>Paid revenue maximizes marketing. </li></ul>

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