This document discusses pricing strategies for iOS applications. It notes that 40-45% of iOS revenues come from in-app purchases, with subscriptions and ads being other monetization models. The document provides download estimates needed for top rankings and outlines various monetization models including in-app purchases, subscriptions, ads, location-based offerings, and social media integration. It also discusses Apple's subscription policies and considerations around other payment integrations and mobile platforms.

1. Pricing Strategies for iOS
Applications
By: Shailendra Sinhasane
Twitter: @sunshail
Mobisoft Infotech LLC

2. Why Monetize?
• Generate money
• How?
– Compulsion Loops, there are ways to draw user back
into the app
– Engagement, does it have engagement elements that
could be monetized, i.e. virtual currency?
– Value, is it worth your users’ time?

3. Some numbers ~
• 40-45% of all iOS revenues are from in-app purchases
• Only 10% from advertising
• Near about 50% of the games downloaded from the app
store were free with in-app purchase integrated
• In-app purchases will grow exponentially in coming years

4. Download estimates
Estimated download volume needed for Top 100 ranking:
App Store Position Est. # Downloads Needed
Top 10 ~50k-150k
Top 25 ~30k-50k
Top 25-50 ~17k-30k
Top 50-100 ~10k-17k
Sub 100 Free 100s-depending on category
popularity
-Source: AdMob, Inc.

5. Models
1. In-app purchases
2. Subscription
3. Ads
4. Location-based offerings
5. Social media sharing and
aggregation

6. To do
1. Try various in-app models to find the combination that maximize
your revenues
• Games: Subscription based casual gaming package + premium
payment for sending best scores
• E-books for kids: read once for free. Pay to read again
• Security: free trial (30 days) . Paid license for 1 year period
• Video: pay per gallery
2. Freemium strategy
• Strongest marketing play
• Risk reduction
• Developers should be focused on finding consumers who are
willing to pay, not trying to completely satisfy free-rider
consumers

7. In-App single purchase
Pros:
• This is probably the easiest path to implementation and
launch and it's straightforward and proven
• Virtual goods/currency through In-App
Cons:
• No ongoing revenue stream
• No access to user data - makes selling advertising difficult.
One potential workaround is to build in-app surveys,
which pushes data back.

8. Subscription - I
Pros:
• Revenue is sustainable
• Renew just as other web based subscriptions
• Easy extendable as an add-on
Cons:
• Requires user management solution
• Requires users to leave the app and visit the publisher's
website to subscribe
• Conversion rate lower than in-app purchases
• Success :
lifetime value of a subscriber > revenue lost from lower conversion

9. Subscription - II
Apple's subscription policy for publishers:
• Apple still gets a 30% cut of any subscription a reader signs
up for inside the App Store.
• Publishers can now offer an app subscription for a different
price than what they might sell their app for in the App Store.
• Publishers can't link to an external-to-Apple location that sells
a subscription within the app.

10. Advertising
Apple: iAd platform – Adv as an app
Third party : adMob, Medialets etc
Pros: Easier to command advertising premiums and less pressure to
live up to metrics
Cons:
• Mobile budgets just aren't well-defined
• Apple changes strategic decision with third party ad integration

11. Location Based Offerings
Pros: Awesome mobile offerings into a high-fidelity advertising
environment
Cons:
• Complexity in integrating these systems
• Requires the device be connected to the internet

12. Social, Sharing & Aggregation
Pros:
• Cost-effective
• Viral marketing
• Better user engagement
Cons: Getting advertiser support on a product as nebulous as this is
challenging

13. Other payment integrations
• Paypal API integrations
• Carrier billing option – Very easy for users to pay
• Virtual credits
• Google Checkout

14. other mobile platforms
1 MoVend payment platform
• Easy integration – Supports Android, BlackBerry, Windows
Phone7
• Sales Track
• Better user engagement
2 Bango
• Supports all mobile
platforms including
iOS
• Operator billing

15. Thank You!
Connect:
Email: shail@mobisoftinfotech.com
Twitter: @mobisoftinfo
Blog: mobisoftinfotech.com/blog