This webinar was presented on January 29, 2014. We took a look at four major monetization methods available to mobile developers and explored the challenges and opportunities of each. To listen to the full recording, click here: https://vimeo.com/user19192623/review/85380364/2155393547

1. Which Monetization Method
is Best for Your App?
Matt Tubergen
Vice President of Business Development and Programmatic
The Leading Mobile
User Acquisition Network
1

2. Before we get started…
Deck and recording
will be available.
Love the content?
Share it!
#Appia
Keep the conversation
going post-webinar.
Follow us @Appia
2

3. About Matt
• Matt Tubergen is the Vice President
of Business Development and
Programmatic at Appia.
• He has over 12 years of experience
in mobile content and the ad-tech
space.
• Prior to Appia, Matt helped build,
lead, and manage many mobile
first divisions from NativeX to THQ.

4. 4

5. Paid Apps
5

6. Paid Apps
Whether you are charging
.99 or a premium for your
app, making the pricing
decision can be tough.
6

7. Pros
"
"
Easiest, most straightforward monetization method
Users are willing to pay if perceived value
7

8. Price Elasticity
Within 5 days…
A 1% drop in price leads to a 1.2%
increase in revenue for iPhone
apps.
A 1% drop in price leads to a 0.7%
increase in revenue for iPad apps.
8

9. Cons
7% of App Store and 2% of Google Play revenue is generated
from paid apps with in-app purchases
9

10. Subscription Model
–
10

11. Subscription-based monetization models
only work for some niche developers and
publishers
11

12. Pros
If your app falls into these niche categories, subscriptionbased monetization may be a great way to see a steady
revenue stream.
12

13. Cons
“
Be wary of the platform: Apple and Amazon
both want to take a 30% cut of your revenue,
a figure that has prompted the DOJ to launch
a probe (and not the cool space-faring kind)
into the consequences for market competition.
p
Google, in contrast, takes10% or less.
“
13

14. Cons
There is a single,
set price for all
users.
14

15. Cons
“Readers think I’m greedy and I want
to address that. It costs a lot to manage
content,” said Susan Miller, a popular
New York astrologer who recently
updated her iOS app to include a
subscription model.
15

16. In-App Purchases
16

17. Potential Places for In-App Purchases: Upgrades, additional
lives, new or hidden characters, bonus levels, virtual goods,
virtual currency, and more!
17

18. Mobile App Store Downloads, Worldwide, 2010-2016
(Millions of Downloads)
2012
Free Downloads
Paid-for
Downloads
Total Downloads
Free Downloads %
2013
2014
2015
2016
2017
57,331
82,876
127,704
167,054
211,313
253,914
6,654
9,186
11,105
12,574
13,488
14,778
63,985
102,062
138,809
179,628
89.6
91.0
92.0
93.0
224,801 268,692
94.0
94.5
Source: Gartner (September 2013)
18

19. 85% of revenue in App Store, 94% in Google Play
is generated from Freemium apps.
19

20. Pros
In-app purchases will account for 48% of all mobile
revenues by 2017.
20

21. Mobile Advertising
21

22. Ad Formats
App wall
Banner
Ads
Interstitial
Ads
Native
Ads
Video Ads
22

23. Ad Format Disruption vs Revenue
23

24. Test to see which advertising styles your users respond
to and optimize on those formats.
24

25. Consumers expect some level of advertising in exchange for
downloading an app for free.
25

26. Pros
There are more than
7 billion
mobile devices on
earth. That is a lot of
potential customers!
26

27. Cons
Some consumers
can be intolerant
of mobile ads
27

28. Things to Consider…
Type of content
Frequency of content and releases
Competitive analysis
What are users accustomed to?
Web or parallel business model?
Other apps published
28

29. Recap:
Paid Apps
Subscription Model
In-App Purchases
Mobile Advertising
29

30. Questions?
30