App pricing and monetization strategies are outlined.

1. Mobile App Strategies
Pricing and Monetization

2. Pricing Strategies

3. The art and science of pricing
• Consider your app
– What do competitors charge?
– What sets my app apart?
– How can it be monetized?
• Compulsion loop
• Engagement
More on pricing strategies at blog.w3i.com or twitter @w3i

4. Freemium vs. Paid
• iOS freemium games generate
$14.66/user* VentureBeat
• In 2009 free apps received more than 4x
number of installs over paid
* AdMob

5. 5 out of 10 top grossing iPhone Apps
are using the free-to-play model
5
2 10
6
4
iTunes Top Grossing 11/9/2010

6. Price cut. The magic of $.99
• EA Christmas 2010 Strategy
– #4, #7, #8, #10, #11, #12 paid iPhone apps
– #1, #2, #4, #7, #9, #10 paid iPad apps
• Support price cuts with publicity

7. Looking ahead
• W3i in collaboration with Distimo, will
publish pricing research in Q1 2011,
follow us for the latest.
@w3i
blog.w3i.com

8. The Monetization Puzzle
Paid Installs and App Monetization

9. Setting the foundation
• Are you sure its good?
– Compulsion Loops
– Engagement
– Value

10. Emerging Strategies
• Display Advertising
• In-App Purchase
– access/subscription
• In-App Purchase
– virtual goods/enhancement

11. Display Advertising
• For developers, easy way to monetize
impressions.
• For advertisers, high level of risk and
high cost of acquisition.

12. In-App Purchases
access/subscriptions
• For developers, an alternative to “lite”
version.

13. In-App Purchases
virtual goods/enhancement
• For developers capitalize on your game
mechanics.
• For advertisers, low risk, value add to
consumers.
75% of
revenue
from
virtual
Free goods
Paid 37
63
App Store Top Grossing 100 -
11/12/2010

14. How It Works
1 User Plays 2 User Wants 3 User Selects
Game Background App
4 User Installs 5 User Claims 6 User Checks
App, Gets Points Background History

15. Want more?
Join the community. Contact Rob.
@w3i Rob Weber
Vice President and Co-Founder
hashtag #appschat
robert.weber@w3i.com
(320) 257-7551
W3i, LLC
blog.w3i.com 1900 Medical Arts Avenue S
Suite 200
Sartell, MN 56377