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