This document discusses various revenue sources and strategies for monetizing mobile apps. It outlines revenue that can be generated through app stores like paid downloads, in-app purchases, and subscriptions. It also discusses generating revenue from ads networks and private placement ads outside of app stores. The document provides details on each revenue stream and factors that influence their success like download volumes, user engagement and retention. It concludes with tips for improving app rankings and downloads through app store features, charts and keyword search optimization.

1. Mobile App
Monetization!
Jeremy Schrage!
JSV Ventures, LLC!
jeremy@jsvventures.com!

2. Content!
Revenue Sources!
Downloads!
Rankings!

3. Revenue Sources!

4. Revenue Sources!
Processed through app stores!
• Paid downloads!
• In App Purchases (IAP)!
• Subscriptions !
Outside of marketplace!
• Ad networks !
• Private placement ads!
• Other!

5. Paid Downloads!
• Direct correlation to
downloads!
• Fast revenue
recognition, viewed
in daily reports!
• Subject to refund
based on quality &
expectations!

6. IAP Revenue!
• Dependent on downloads & purchase
conversion rate!
• Delayed revenue - users need to appreciate app
before purchase!
• Refunds still possible, but generally lower rates!

7. IAP Revenue (cont.)!
• Conversions are a function of demographics, app
type, quality of app, etc.!
• Infinite purchases skew mean conversion rates -
Clash of Clans gems can be purchased forever
by outliers!
• IAP on paid download apps generate higher
conversions [those willing to pay were filtered],
but downloads will decrease compared to
freemium !

8. Subscriptions!
• Recurring revenue!
• Increasing revenue, depending on
subscription attrition rate!
• Compelling content additions!
• Aided by laziness to unsubscribe!
• Refunds for recent payments possible based
on store, geography and time of request. !

9. Ad Networks!
• Multiple advertisers!
• Admob (Google) - arguably the leader!
• Chartboost - games only !
• Dozens/hundreds of others: iAd (Apple), Millennium, Flurry (Yahoo!),
Leadbolt, TapJoy!
• Private exchanges, real-time bidding, or black box algorithms!
• Multiple impression formats!
• Banner - less intrusive, lower click through rates!
• Interstitials - pop ups can annoy users, higher click through rates!
• Video - captive audience, highest click through rates!

10. Ad Networks (cont.)!
• Revenue is a function of numerous parameters:!
1. Downloads!
2. Usage or average session time!
3. Network’s ability to source (fill rate)!
4. Pay per click or pay per install!
5. Demographics of your users matching
demographics of advertisements!
6. Accidental clicks!
7. Placement - app open/wake generally do
better per impression!

11. Ad Networks (cont.)!
• Revenue recognition in pseudo
realtime, seen via dashboards!
• Payment schedule varied!
• Many networks allow you to allocate
inventory for cross promotion!
• Likely to lower app rating and
complaints may show up in reviews!
• Caveat: drives traffic AWAY from the
app!!

12. Private placement!
• Have to form partnership on your own!
• Most likely done if your app sits in a niche!
• Should generate higher revenues!
• Steady revenue, but at liberty of your
partnership!
• In most cases, ad networks will be a better
option!

13. Other!
• App’s value is derived from product or service
outside the app itself!
• Examples: Uber, AirBnb!
• LTV (Lifetime Value) of customers likely to be
greater than acquisition costs!

14. Downloads!

15. Low Impact Downloads!
• Word of mouth - rarely impactful!
• Social media shares - needs to go viral or have
large conversion % to be impactful!
• Web search - needs to be unique!
• Cross promotion - perhaps valid for app launch,
otherwise there is more value elsewhere for the
effort!

16. Advertising Downloads!
!
• Relatively easy to drive large number of installs via mobile
advertising networks (see revenue section)!
• Cost dependent on network and numerous other factors!
• Free apps cost $.50 - $2 per download, higher in large
quantities. !
• New network channels (eg. vine promotions) may generate
lower cost per install (CPI)!
• Can track installs for Lifetime Value (LTV) via IAP, ads, etc.!

17. App Store Downloads!
• Roughly 60% of all downloads from these
sources:!
• App store featured - Huge driver, but need to
convince apple folks. Need top notch design
and usability. Helps greatly to be unique.!
• Top charts - Big driver, need to rank high!
• Keyword search - Big driver, need to rank high
and optimize keywords !

18. Rankings!

19. Rankings!
• Exact formulas unknown but
probably based on:!
• Ratings and reviews!
• Downloads (dependent on total
and recent)!
• Revenue (dependent on total and
recent)!
• Keyword rankings likely
dependent on downloads after
discovery via that keyword!
• User engagement metrics!

20. Questions/Comments?!
• Please reach out: jeremy@jsvventures.com!