1The Hitchhiker's Guide to the World of App Monetization
2Industry’s Main ConceptsTerms and BuzzWords
In-App Payments3“I refuse to answer that question on the grounds that I don't know the answer”D. Adams
4In-App PaymentDownload the app for freeNOW and pay laterthrough a variety of revenue models:“Try and buy”
Virtual goods
Subscription model 5In-App PaymentFact!35% of the 300 top-selling free games use some sort of virtual currency as a form of payment in the App Store49% of all iPhone-related revenue is derived from in-app purchases (As of June 2011; Source: Distimo)
6Payment MethodsWhen purchasing a mobile app, the user must choose from the following payment alternatives:iOSiTunes accountAndroid:Carrier BillingPayPalGoogle CheckoutCredit Card
7Payment MethodsFact!The “Carrier-Billing” payment method is likely to generate payment 10 times more than any other method.
8PayoutsThe final net payment to the developer (after the middle-men take their cuts) is different in every geo-territory Apple’s App Store – 30% - 70%Android App Market – 30% - 70%PayPal – 3.4% +€0.35 Carriers:
9PayoutsFact!In most cases, the net payout from the carriers will be between 40%-60% of the price.
10Alternative Payments- “I really wish I'd listened to what my mother told me when I was young."- "Why, what did she tell you?"- "I don't know, I didn't listen.“D. Adams
“Alternative Payment”Standard payment:In-App Item Your user!You!Money…Alternative paymentFree In-App Item Your user!You!An advertiser!Money…Action
12Alternative PaymentAction:Incentivized download (TBD)
Submit your mail
Watch a video
Vote
“Like” (Facebook)Fact! The developer’s cut is usually 70% of the amount paid by the advertiser
13Incentivized DownloadsGame coinsYour user!You!CashFree contentPay for the itemAnother developerBetter rankingDownload, install and open13
14Incentivized DownloadsFact!At its peak, Tapjoygenerated income of $8M monthly from incentivized downloadsWhile Apple clamped down on incentivized app downloads, this option it still available on Android devices 
15Advertisement“Who said anything about panicking? This is still just the culture shock. You wait till I've settled down into the situation and found my bearings. Then I'll start panicking.”D. Adams

The Hitchhiker's Guide to App Monetization

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    1The Hitchhiker's Guideto the World of App Monetization
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    In-App Payments3“I refuseto answer that question on the grounds that I don't know the answer”D. Adams
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    4In-App PaymentDownload theapp for freeNOW and pay laterthrough a variety of revenue models:“Try and buy”
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    Subscription model 5In-AppPaymentFact!35% of the 300 top-selling free games use some sort of virtual currency as a form of payment in the App Store49% of all iPhone-related revenue is derived from in-app purchases (As of June 2011; Source: Distimo)
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    6Payment MethodsWhen purchasinga mobile app, the user must choose from the following payment alternatives:iOSiTunes accountAndroid:Carrier BillingPayPalGoogle CheckoutCredit Card
  • 8.
    7Payment MethodsFact!The “Carrier-Billing”payment method is likely to generate payment 10 times more than any other method.
  • 9.
    8PayoutsThe final netpayment to the developer (after the middle-men take their cuts) is different in every geo-territory Apple’s App Store – 30% - 70%Android App Market – 30% - 70%PayPal – 3.4% +€0.35 Carriers:
  • 10.
    9PayoutsFact!In most cases,the net payout from the carriers will be between 40%-60% of the price.
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    10Alternative Payments- “Ireally wish I'd listened to what my mother told me when I was young."- "Why, what did she tell you?"- "I don't know, I didn't listen.“D. Adams
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    “Alternative Payment”Standard payment:In-AppItem Your user!You!Money…Alternative paymentFree In-App Item Your user!You!An advertiser!Money…Action
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    “Like” (Facebook)Fact! Thedeveloper’s cut is usually 70% of the amount paid by the advertiser
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    13Incentivized DownloadsGame coinsYouruser!You!CashFree contentPay for the itemAnother developerBetter rankingDownload, install and open13
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    14Incentivized DownloadsFact!At itspeak, Tapjoygenerated income of $8M monthly from incentivized downloadsWhile Apple clamped down on incentivized app downloads, this option it still available on Android devices 
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    15Advertisement“Who said anythingabout panicking? This is still just the culture shock. You wait till I've settled down into the situation and found my bearings. Then I'll start panicking.”D. Adams
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    16CPC / CPA/ CPL / CPI and MoreCPC - Cost-per-Click (only if necessary)CPI - Cost-per-InstallCPA - Cost-per-Action (install, register, use) CPL – Cost-per-Lead (mail submission)Fill rate - The percentage of ad requests that are filled with ads (when an ad is displayed to the end user)Fact!The fill rates of most ad networks range between 50%-60%
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    17Offer WallHow canyou monetize your app?You can define paid In-App itemsYou can add an ad bannerYou can add offersContextual offers that 3rd parties are willing to pay for
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    18The Ultimate Fact!Lunkwill:Do you... Deep Thought: Have an answer for you? Yes. But you're not going to like it. Fook: Please tell us. We must know! Deep Thought: Okay. The answer to the ultimate question of life, the universe, and everything is... Deep Thought: 42.
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    LogiaPay- The market’smost comprehensive in-app payment solution offering every available payment method LogiaReach – Upload your app to the stores of various 1st tier mobile operators using our existing relationshipsLogiaAd – Use Logia’s optimized ad-network solution to increase revenues from your advertising space19For those of you who are not satisfied with this answer, Logia can offer a more practical one –> A set of monetization tools for maximizing your revenues:
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