This document discusses various monetization models for mobile apps, including immediate revenue models like paid downloads, subscriptions, and in-app purchases, as well as long-term branding models. It focuses on the benefits of in-app purchases, noting that the top grossing apps utilize this model through virtual goods, upgrades, and other purchases within free apps. While in-app purchases can drive high revenue, developers must ensure their app has strong potential for microtransactions and additional content to justify this approach. In conclusion, the best monetization strategy depends on factors like the target market and value offered.

1. App Monetisation:
Choosing the Best Business Model for
Revenue Generation
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2. The Road from App Development to App Revenue
 So you’ve created a professional, useful and attractive application and
you want (ideally!) to make some money with it: what to do next?
 Here are the possible monetisation models to consider:
1. Immediate Revenue
 Third Party Supported
 Advertising
 Sponsorship
 Payments
 Paid Downloads
 Subscriptions
 In-app Purchases
2. Long-term Revenue
 Establish and Exploit
 Branding

3. The Pros and Cons of Third Party Revenue
• By relying on third party revenue you can offer the app free
and
• Increase brand reputation
• Increase App Store presence
• Build a following
• Ad Revenue = Clicks x CPC
• Of all other revenue models out there, one payment model
has become the most successful in the past several months…

4. Apps with In-App Purchasing
 Now, in-app purchasing is driving revenue for the top grossing apps
 End-users can purchase upgrades, more levels, virtual goods, or extra
features from within the App
 Top 20 grossing game apps - 60% drive revenue with in-app purchases.*
 In-app purchases on free apps - 15% of total app revenue on iPad and 14%
of all total app revenue on paid apps in Dec 2010.**
* iTunes Top Grossing App Chart, March 4th, 2011.
** Distimo
***Flurry

5. A Few Apps with in-App Purchasing
Functionality…

6. In-App Purchasing: The Pros
• Enables you to create content, features, or offer services from
within your app.
• Allows you to create revenue while exploiting the high
download rate of free applications. Users are willing to spend
more on extra content!
• Allows experimentation with different monetisation models
(subscriptions, pay-per-feature transactions, etc).

7. In-App Purchasing: The Cons
• It takes more time and effort to configure in-app purchasing
capabilities.
• Your app needs to have strong micro-transaction potential
• You must be able to create additional content, functionalities
or offer new services.

8. In Conclusion…
• This talk has touched on the basic monetization models…
• Best monetisation strategies often require experimentation
with a combination of these models
• Choosing the best monetisation model will depend on several
factors:
1. The target market
2. The micro-transaction potential of the app
3. The kind of value it offers to users

9. Questions/Comments?
Thank you!
Email: diana@apppli.com