2008 11 25 Monetizing Applications With Adobe Air

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This is a talk I presented at Adobe MAX in Milan that presents examples of how customers are making money with Adobe AIR.

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2008 11 25 Monetizing Applications With Adobe Air

  1. 1. Monetizing Applications with Adobe AIR Rob Christensen Product Manager, Adobe AIR December 2 nd , 2008
  2. 2. Agenda & Goals <ul><li>Agenda </li></ul><ul><ul><li>Why build on Adobe AIR? </li></ul></ul><ul><ul><li>Business models </li></ul></ul><ul><ul><li>Case studies </li></ul></ul><ul><ul><li>Next steps </li></ul></ul><ul><li>By the time you leave this session you should… </li></ul><ul><ul><li>Have a clear understanding of proven business models used by AIR applications today </li></ul></ul><ul><ul><li>Understand the strengths and weaknesses of those models in the context of AIR </li></ul></ul>
  3. 3. ADOBE AIR OVERVIEW
  4. 4. Adobe AIR enables web developers to use JavaScript, HTML, Flash, and Flex to build web applications that run outside the browser
  5. 5. Adobe AIR Application Stack Cross-OS Application Adobe AIR APIs Mac, Windows & Linux File System Access Network Detection Notifications Application Update Drag and Drop Local Database ... Flash Flex ActionScript XML Audio Video HTML PDF HTML HTML JavaScript XML CSS Flash PDF
  6. 6. Why build on AIR? <ul><li>Three primary business motivators: </li></ul><ul><li>Why Adobe AIR? </li></ul><ul><li>Single code base </li></ul><ul><li>Build applications using web technologies </li></ul><ul><li>Target new use cases that extend beyond the browser </li></ul><ul><li>Easy to deploy and update </li></ul>
  7. 10. Why build on AIR versus the browser? <ul><li>Break free of the browser limitations: </li></ul><ul><ul><li>Add presence to your applications by launching at start-up and displaying notifications </li></ul></ul><ul><ul><li>Persist data using the local file system access and database for reading/writing movies, images, .mp3’s, and documents to disk </li></ul></ul><ul><ul><li>Pixel-perfect control of your application’s look and feel </li></ul></ul><ul><ul><li>Richer integration with the desktop such as clipboard and drag and drop support </li></ul></ul><ul><ul><li>Build more responsive applications by caching to disk and synchronizing with remote data </li></ul></ul><ul><ul><li>Run full-screen, interactive applications </li></ul></ul>
  8. 11. BUSINESS MODELS
  9. 12. Business Model Landscape USER PAYS SPONSOR PAYS TRANSACTION PRICE USER & MERCHANT PAYS Less than €1 € 10 to €1 Greater than €10 Software License (€) Subscription (€) Metered Usage(€) Transaction Broker Fee (%) Content Marketplace (€) Finder’s Fee (€ or %) Video Ads (€) Banner Ads(€)
  10. 13. Classes of Monetized Applications TOOLS ENTERTAINMENT E-COMMERCE COLLABORATION Content Authoring Tools Utilities Casual Games Media Players Content Management Systems Content Marketplaces Shopping Companion Developer Tools Presence Clients
  11. 14. Business Model Summary Business Model AIR Application Example Software License <ul><li>EarthBrowser </li></ul><ul><li>Agile Agenda </li></ul><ul><li>Balsamiq </li></ul>€ 70 per license Subscription Fee <ul><li>DirecTV </li></ul>€ 10/month Transaction Broker Fee <ul><li>eBay Desktop </li></ul>8.75% of the closing value Finder’s Fee <ul><li>Pandora </li></ul>10% of referred purchase price Content Marketplace <ul><li>Sam’s Interactive Reader </li></ul>€ 2 per interactive book Metered Usage <ul><li>NASDAQ </li></ul><ul><li>Google Maps API </li></ul>€ 1 per megabyte downloaded Video Ads <ul><li>Adobe Media Player </li></ul><ul><li>Fox News </li></ul>€ .20 per impression Banner Ads <ul><li>Pandora </li></ul>€ .40 per click
  12. 15. Types of AIR applications being built Rich Media Branded Experiences
  13. 16. CASE STUDIES
  14. 17. Content Marketplace: Sam’s Interactive Reader Sam’s Interactive Reader Content marketplace for children’s books and games. Leverages PayPal for payments micro payments. Distributed using install badge on website, AIR marketplace and Facebook application. Download: http://www.storybookanytime.com/
  15. 18. License Fee: EarthBrowser Download: http://www.earthbrowser.com/ Earth Browser Built-in support for serial numbers. “ Freemium” model for attracting new customers. Discounts for schools.
  16. 19. License Fee: Balsamiq Download: http://www.balsamiq/ Business success: http://www.balsamiq.com/blog/?cat=6 Earth Browser Built-in support for serial numbers. “ Freemium” model Discounts for schools $100,000 in revenue
  17. 20. License Fee: Now Boarding Source: http://www.nowboarding.us/ Now Boarding Targeted at casual gamers Built-in support for serial numbers. “ Freemium” model
  18. 21. Metered Usage: NASDAQ Market Replay Source: https://data.nasdaq.com/mr.aspx NASDAQ Market Replay Subscription-based.
  19. 22. Transaction Fee: eBay Desktop Download: http://desktop.ebay.com/ eBay Desktop Richer experience than eBay website. Free to browse catalogue.
  20. 23. Video Ads: Fox News & Adobe Media Player Fox News & Adobe Media Player Video commercials can be clicked and taken to sponsor’s website. Pre and post roll commercials. Branded application skin. Download: http://www.foxnews.com/rss/ http://get.adobe.com/amp/
  21. 24. Banner Ads & Finder’s Fee: Pandora Pandora Desktop Runs in the background and does not require a browser Persists musical preferences in the cloud. Multiple, potential business models (banner ads + finder’s fee)
  22. 25. Banner Ads: Parleys.com Parleys.com Banner advertisements. Content partnerships.
  23. 26. NEXT STEPS
  24. 27. Credit Card Authorization <ul><li>PayPal </li></ul><ul><ul><li>Website Payments Standard/Pro - add HTML to a public web page redirect user to a web page </li></ul></ul><ul><li>Amazon </li></ul><ul><ul><li>Amazon Flexible Payment Services (beta) - leverage Amazon’s infrastructure </li></ul></ul>
  25. 28. Factors to consider <ul><li>Customers will expect support: </li></ul><ul><ul><li>List of known issues, knowledge base and tech notes </li></ul></ul><ul><ul><li>Web forums </li></ul></ul><ul><ul><li>A way to submit bugs and feature requests </li></ul></ul><ul><ul><li>Documentation </li></ul></ul><ul><li>Current AIR limitations to consider: </li></ul><ul><ul><li>No access to native libraries or executables </li></ul></ul><ul><ul><li>No USB or serial port API </li></ul></ul><ul><ul><li>Limited support for accessibility </li></ul></ul>
  26. 29. Deployment Checklist <ul><li>Application uses Update Framework? </li></ul><ul><ul><li>See Updating AIR Applications </li></ul></ul><ul><li>Application is or is ready to be localized? </li></ul><ul><ul><li>See Localizing AIR Applications </li></ul></ul><ul><li>Application uses seamless install badge? </li></ul><ul><ul><li>See Getting started with the custom install badge </li></ul></ul><ul><li>Application website supports analytics? </li></ul><ul><ul><li>See Google Analytics </li></ul></ul><ul><li>Application signed with a certificate purchased from a Certificate of Authority (CA)? </li></ul><ul><ul><li>See Digitally Signing an AIR file </li></ul></ul><ul><li>Application uploaded to the AIR Marketplace? </li></ul><ul><ul><li>See Upload Instructions to the AIR Marketplace </li></ul></ul>
  27. 30. Adobe Technologies That Can Help <ul><li>Servers </li></ul><ul><ul><li>Flash Media Server 3.5 </li></ul></ul><ul><ul><li>Flash Media Rights Management Server 1.5 </li></ul></ul><ul><ul><li>ColdFusion 8 </li></ul></ul><ul><ul><li>Live Cycle Data Services </li></ul></ul><ul><li>Authoring Tools </li></ul><ul><ul><li>Flex Builder, Dreamweaver , Flash Authoring , Fireworks </li></ul></ul><ul><li>Services </li></ul><ul><ul><li>Adobe Share </li></ul></ul><ul><ul><li>Photoshop.com </li></ul></ul><ul><ul><li>… many more. </li></ul></ul>
  28. 31. Top Five Applications Waiting to Be Built <ul><li>Marketplaces for independent music and movies </li></ul><ul><li>Social network for Flash powered games such as chat, join games in progress for multiplayer games, etc. </li></ul><ul><li>Rich wiki editor for Confluence, Media Wiki, and Drupal </li></ul><ul><li>Rich blog editor for Movable Type, TypePad, and WordPress </li></ul>
  29. 32. Q&A

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