4. 5 Main Models
Length
of
1 5 Intensity of
Usage Free Sales Usage
2
TRADEOFFS 4
Freemium Data
3 extensions
Paid
Volumes $
5. Business Model #1: Free
Penetration: Largest % of apps in Stores
Typical Revenue Model: Advertising
– Direct brand sponsorship, ad enablers,
or ad networks
Example:
6. Business Model #2: Freemium
Penetration: Fastest growing
trend
Ideal Revenue Model: Revenue
from upgrades
Examples:
7. Business Model #3: Paid
Penetration: Small % of App Store
Apps. Almost non-existent in “That”
apps.
Ideal Revenue Model: Revenue from
paid downloads
– Higher value added apps have
higher price points
Example:
8. Business Model #4: Data Extensions
Definition: Apps that
enhance an existing
product or service. Usually
“first gen” Brand apps.
Ideal Revenue Model: Loss
leader, revenue generated
elsewhere.
Example:
8
9. Business Model #5: Sales
Definition: Apps through
which you can buy a
product or service
Ideal Revenue Model:
Profits from sales or affiliate
commission
Examples:
9
10. Segmentation of App Types by Usage
Moto Racer Facebook
CNNGo
Tune In Sudoku
High FruitNinja Radio
Intensity of Use IMDB
Talking Tom
Traffic Reporter My Notes
Love Test
Low Compass The Weather Channel
iFart Local Gas Prices
Low High
Length of Use
10
11. Focus on “That” Apps
> 30% of Smartphone users have used “That” apps
12. Focus on “That” Apps: 1+4
1 5
Free Sales
2 4
Freemium Data
3 extensions
Paid
18. 4 categories of monetization for free apps
Ads Sponsors License Buy out
Multi-platform ads Sections Whitelabel Hot IP
Exclusive ads Monthly promos Powered apps Potential synergy
Base Get some cash Substantial money to Most likely a tech
monetization Requires be made if company buyer
Starting point negotiation negotiated
“now you are set”
“basic earnings” “making a living” “minting it”
Substantial monetization
19. Ads Sponsors License Buy out
The simplest game in the book… but try targeting
Ad enabler aggregates feeds from multiple ad networks
or a single network in the case of the exclusive model
Earn revenue from CPMs (Impressions) and CPAs
(Touch-thrus)
No threshold to start, can do from day 1
CPMs can be about $1-10 range
Specialist apps can get more
– Targeting
– Talk to ad networks
– Push hard to get better rate
20. Ads Sponsors License Buy out
A bit of negotiation required… but better results
Developer has agreements directly with ad agency or brand to
fully brand the app
Best if you have a strong business or personal network
Higher CPMs, better integration of branding and app
Only possible if you can showcase how
your “That” app is the right fit for a brand
21. Ads Sponsors License Buy out
Power the apps that brands want
Be prepared to white label your tech
or License it to a brand
– Requires knowledge of licensing
– Some negotiation
Brands are constantly on the look-out
for hot tech that can add the “cool
factor” to their apps
22. Ads Sponsors License Buy out
One-of-a-kind success story that no one can resist..
The dream case, where a larger
company sees value in your IP to the
extent that they can integrate it into
their business
Might start off with a License deal at
first that eventually leads to buy out
Does require you to constantly make
noise and start approaching potential
buyers
24. Current Structure of Ad Industry
Want to promote Aggregate adverts from mobile
products via mobile agencies
advertising campaigns. Either serves developers directly or
Size of budgets can passes on adverts to another Looking to grow the ecosystem by
vary hugely. aggregator layer, the ad enablers building great products and make a living
Brands
and Ad agencies Developers Consumers
advertisers Ad networks / Publishers
Ad enablers
Analytics
Agencies are hired Providers
by advertisers to plan Aggregate adverts from ad
and create campaigns networks and feed them to
Some agencies developers to attempt to increase fill
focused solely on the rates and CPM, Monitor performance of applications
mobile space Ad enablers can service all mobile Generally offered free at the moment
advertising, or just websites, Different focuses between companies (advertising,
applications or operators. pure analytics, market research…)
24
26. Current Structure of Ad Industry
Brands
and Ad agencies Developers Consumers
advertisers Ad networks / Publishers
Ad enablers
Lets focus on this
26
33. Social / Engagement
Building Social / Engagement
Use social as a means to an end (engagement) and an end in itself
(revenue)
34. Mobile Internet
Mobile User Experience Design
Anxiety on information and applications
Mobile Features Pieces of time
Personalization features
Location Features(LBS)
Contact interaction
Characteristics on mobile Internet Devices Features
Multi-channel interaction
Screen Size
iPhone IOS
Platform Features Android
WM 7
35. Process of Design
Process
of Design
Experiences
Principles Research
Methods
36.
37.
38. Principles
Process
of Design
Experiences
Research
Principles
Methods
38
39. Principle 1: Interaction design is not guesswork
Get answers to all questions up front
Who are my users?
What are my users trying to accomplish?
How do my users think about what they’re trying to accomplish?
What kind of experiences do my users find appealing and rewarding?
How should my product behave?
What form should my product take?
How will users interact with my product?
How can my product’s functions be most effectively organized?
How will my product introduce itself to first-time users?
How can my product put an understandable, appealing, and controllable face on technology?
How can my product deal with problems that users encounter?
How will my product help infrequent and inexperienced users understand how to accomplish their
goals?
How can my product provide sufficient depth and power for expert users?
39
40. Principle 2: DO NOT expect design’s to meet all users' needs
Focus on target users
Rapid Release
Webzine
Share button
40
41. Principle 3: Make the important important
Set priorities
1. Conversation
2. Friends
3. Dynamic
4. QQ box
5. More
41
42. Principle 3: DO NOT let users think.
Allow users to learn less
Same Graphic Feature
Tips that are not disturbing. More graphics and less text.
42
43. Principle 4: Keep it natural
Proper invisible design clues
Scene simulation Common icons
43
44. Principle 5: Give them feedback - Interact
Give them feedback.
Show actions Press Events
44
45. Research Methods
Process
of Design
Experiences
Principles Research
Methods
45
46. Persona
What different sorts of people might use this product?
How might their needs and behaviors vary?
What ranges of behavior and types of environments need
to be explored?
Experience goals, which are related to visceral processing:
how a user wants to feel?
End goals, which are related to behavior: what a user wants
to do?
Life goals, which are related to reflection: who a user wants
to be?
46
47. Persona Profile
Name:
Age:
Job:
Type: Share/Scan/…
Patterns of behavior:
Brief description:
Experience Goal: Feel smart or in
control/ Have fun/ Feel cool or hip or
relaxed…
End Goal: Stay connected with friends
and family/Find music that I’ll love/Get
the best deal
Life Goal: Live the good life/Succeed in
my ambitions to/ Be a connoisseur of …
47
48. Scenario
In what setting (s) will the product be used?
Will it be used for extended amounts of time?
Is the persona frequently interrupted?
Are there multiple users on a single workstation or
device?
With what other products will it be used?
What is the expected end result of using the product?
48
49. Task Analysis
Why the user is performing the task (that is, the
underlying goal)
Frequency and importance of the task
Cues — what initiates or prompts the execution
of the task
Dependencies — what must be in place to
perform the task, as well as what is
dependent on the completion of the task
People who are involved and their roles and
responsibilities
Specific actions that are performed
Decisions that are made
Information that is used to support decisions
What goes wrong — errors and exception
cases
How errors and exceptions are corrected
49
50. The Winning Formula for Monetization
Analytics Engagement
Experience &
Design
51. Take all your facts and insights…
User base
Demographic threshold
& Targeted
Analytics Engagement
(active
Reach
users)
Sync with
Brand
Values
Experience &
Design
… and advertisers will come start chasing
52. Panel Introductions
Donald Anderson Marcus Sigurdsson Nemo Sun Aneesh Varma
Director of Lead Digital Catalyst, Director of Director of
Marketing, McCann Worldwide Marketing, Innovation
CNN - Turner 3G.cn & Co-Founder,
FabriQate
53. Live Jeopardy (with no real money)
Platforms Technologies Localization Advertising
HKD 100 HKD 100
HKD 100 HKD 100
HKD 500
HKD 500 HKD 500 HKD 500
Audience ? Audience ? Audience ? HKD 1000
Let’s Make History
54. Platforms
What does the Native vs HTML5
debate mean to you?
55. Platforms
What does location based
services / targeting mean for you?
56. Technologies
What kind of “that” apps do you
believe would appeal in your context?
57. Technologies
Would you consider a license / buy
out deal of a technology if all your
potential customer's were using it?
58. Localization
How do you look and segment
end-users from China and Hong
Kong?
59. Localization
What does design & user
experience mean for you?
61. Advertising
Is advertising more about
numbers than creativity?
62. Advertising
If you are a brand advertising in a free app – isn’t this
a paradox?
Your goal is to get conversions / revenue / sales.
Users using free apps are usually the “cheaper”
ones and probably not likely to purchase your
products.
Is this true? Thoughts?
64. Let’s Make History
(open for Panel & Session Attendees)
There is no name for “That” apps today.
‘Utility-with-Datafeed’… just doesn’t cut
it.
Lets define a name today that will be cited by
our industry & generations to come…
