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Advertsing Monetization Strategy

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"How to make money with online advertising", logiche di ottimizzazione dell'online advertising

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Advertsing Monetization Strategy

  1. 1. Startup Boot Camp Advertising monetization strategy October 24, 2013 Maurizio Lettieri - Strategic Partners Leader PBS Italy Google Confidential and Proprietary
  2. 2. Advertising Investment – 2012 vs 2011 Source: iab 2012 Internet, Nielsen other media
  3. 3. Some examples of our publishers Google Confidential and Proprietary
  4. 4. There are several sub-business models that exist within advertising and Growth sales 2012-16 2016 Global Market Size Search Advertising In-App Advertising +360% $36.9B +160% $35.6B (Informa 12/12) Display Virtual Goods, Apps & Content App Developer Sales Physical Goods Premium Freemium Subscription Direct (Yankee 6/12) Indirect Google Confidential and Proprietary
  5. 5. Google provides a range of solutions to help application developers succeed in mobile Google Mobile Solutions Search Advertising Custom Search Ads for Apps In-App Advertising Display Virtual Goods, Apps & Content Sales Physical Goods Premium Freemium Carrier Billing Subscription Direct Indirect Google Confidential and Proprietary
  6. 6. In-App Search Advertising helps vertical search apps monetize your users search queries Google In-App Search Monetization Solutions Advertising Description Business Model Example Applications In-App Advertising Search Display Typically a vertical search application that provides users with a mixture of organic and promoted search results Promoted search results monetized through Pay-Per-Click or Pay-Per-Action (e.g. Click-toCall) Yoga moves Fitness routes Custom Search Ads for Apps Targeted ad unit based on in-app search query More Relevance = More Revenue Only the most relevant advertisements are served to users based on their search queries. As seen on Google Leverage Google's familiar search ad formats and our partner search network of over one million advertisers. Easy to Integrate Custom Search Ads for Mobile implementation is straightforward through Google’s SDK Completely Customizable Ability to customize the shape, size, number, and color of the ads to match your existing search results. Google Confidential and Proprietary
  7. 7. AroundMe’s implementation of CSA for Apps resulted in 3x higher CPM and 5x higher CTR Advertising In-App Advertising Sponsorship Case Study Search •  AroundMe quickly identifies the user’s position and allows them to search for the nearby shops and services (e.g. Movie Theatre, Restaurant, and Taxi) •  AroundMe previously served display advertisements adjacent to its search results, however moved to custom search advertisements inline with its search results Display Custom Search Ads for Apps Results Achieved AroundMe Attorno A Me Application •  App Developer •  3x higher average CPM over display banner ads 5x higher click-through rate Google Confidential and Proprietary
  8. 8. In-App Display Advertising is a popular method of monetizing mobile audiences Google Display Monetization Solutions Advertising In-App Advertising Search Tilt Display Description Embedded advertising units within the application, ranging from text to image to rich media Business Model Ad impressions are monetized through a Cost-Per-Click (CPC) or Cost-Per-Mille (CPM) basis Text ad Banner ad Typical Applications Interactive banner App banner Results 120,000 ad requests Vertical content apps (e.g. news, fashion, etc) Games and entertainment Utility and productivity apps Full-screen ad 83% fill rate Impressions 100,000 Click-through rate (CTR) 1.5% Clicks 1,500 Cost per Click (CPC) $0.10 Revenue $150 Google Confidential and Proprietary Shake
  9. 9. Premium applications generate revenues by selling through the Google Play platform Google Premium App Monetization Solutions Sales Description Virtual Goods, Apps & Content Premium Freemium Subscription Two-step App Purchase Process Fully-featured versions of applications, typically ad-free and differentiated from free alternatives Step 1 Business Model One-off transaction value of application retail price Step 2 Payment Methods Carrier Billing Typical Applications Utilities Games Productivity tools Stored credit card credentials, most common method Direct charge to carrier bill, available with over 75M users Gift Card Available in USA across select retailers Google Confidential and Proprietary
  10. 10. The Beautiful Widgets app, retailing at $1.99, has generated over $1M of sales on Google Play Sales Virtual Goods, Apps & Content Premium Application Case Study Premium Freemium •  LevelUp Studio is a four-person development team based in France •  Their development team has been solely focused on the Android platform from v1.5 •  Their flagship title, ‘Beautiful Widgets’ is a collection of widget add-ons for Android devices distributed through Google Play Subscription App Developer Results Achieved Application •  Beautiful widgets has sold over 500,000 copies and generated over $1M worth of revenues Google Confidential and Proprietary
  11. 11. Freemium applications rely on in-app purchases of feature upgrades, content and virtual goods Google Freemium Monetization Opportunities Sales Description Virtual Goods, Apps & Content Premium Freemium Subscription Freemium apps lack key features or content, therefore enticing users to make in-app purchases to upgrade their app experience Business Model Revenue generated through inapp purchases of feature upgrades, additional content or virtual goods Typical Applications Games Magazines Food and Diet In-App Billing •  Supported by any application published on Google play and •  Checkout processing handled automatically by Google Play •  All purchases are tracked to avoid multiple purchases of same items Examples •  •  •  Feature Upgrades (e.g. unlimited streaming) Content (e.g. gaming levels, wallpaper) Virtual Goods (e.g. character upgrades) Google Confidential and Proprietary
  12. 12. Subscription applications generate revenues from recurring fees charged to users for content Google Subscription Monetization Solutions Sales Virtual Goods, Apps & Content Premium Freemium Content Subscription Purchase Subscription Description Subscription applications require users to pay recurring fees for access to premium content Business Model Revenues generated from monthly or annual subscription fees •  Typical Applications Music streaming Fitness / Excercise Magazines Source: DeNA Consolidated Financial Results H1 2012 Accepts monthly and annual billing intervals •  All subscriptions are auto-renewing •  Users informed of recurring charges Google Confidential and Proprietary
  13. 13. In summary, Google has solutions across the three key phases of mobile monetization Source: DeNA Consolidated Financial Results H1 2012 Google Confidential and Proprietary
  14. 14. Technical implementation is easy and simple and you can start monetizing very fast Open an Create an App AdMob account entry within the platform Integrate the AdMob SDK in the App Insert the AdUnit in the code of the App Google Confidential and Proprietary
  15. 15. Monetisation solutions are not only for Apps Desktop Mobile Apps Google Confidential and Proprietary
  16. 16. For more info Maurizio Lettieri lettieri@google.com Google Confidential and Proprietary

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