6. App Store Economy: Open / Ad Supported Model
Developer
GetJar
User
Carrier/OEM
Partner
Stores
6
Marketing
$
Legal/Safety
check
Application
App revenue
$ Fee
7. Loyalty and Rewards: For every user, everywhere
GetJar Confidential 7
GetJar App Sponsored App Any App
100
GOLD
30
GOLD
5
GOLD
9. GetJar Confidential
Your
App Rewards SDK
GetJar Gold
Advertisers
.
9
Monetize through Virtual Currency
• Integrate Virtual Currency
as alternative payment
vehicle to Google Checkout
(Rewards SDK) for IAP
• ‘Pay with Cash’ or ‘Pay with
GetJar Gold’
• Redeem Gold earned on
GetJar or earn within your
App
• Exchange Gold Coins for
Cash with GetJar
12. Conclusion
Developer
Convert more consumers to paying
users through alternate payment
vehicle, monetise the 95% of untapped
potential
Consumer
Access premium content and In App
Purchases by exhibiting loyalty and
Installing interesting Apps, all without
parting with Cash
Advertiser
Increase discoverability, reach new
Audiences and drive high quality
installs
For any developer looking to build a business on any mobile platform, other than finding the idea and executing the application itself there are really two big challenges today.The first challenge of course is discovery. You spend time, effort, blood, sweat, tears and most importantly a large amount of money developing a beautiful, engaging, innovative, intuitive application experience. You send it live on the market…and in a worse case scenario no-one downloads it Now, this audience is of course far more sophisticated than that, but with 50% of downloads going to 0.1% of apps across both the iOS and Android eco-system it’s no surprise that this is a problem that effects virtually everyone to a greater or lesser extent. In addition to that any marketing strategy focused on driving organic ranking on both is, in our opinion, unsustainable. Velocity has increasingly less impact and the App Stores are engaged in actively trying to combat what they largely consider t be illegitimate practices. App Store ranking will continue to become more complex and 2012 will see more personalised rankings which in turn means that the ability to drive organic positioning through marketing activites is becoming increasingly difficult to execute.
Assume for a moment that you solve the issue of discovery then and you have hundreds of thousands of Daily Active Users. The challenge of course does not stop there, particularly on Android where GetJar is currently focussed. Even with hundreds of thousands of DAU’s conversion to pay on Android through Google Checkout is generally less then 1% whilst monetising through standard display advertising is difficult, requiring incredibly high volumes to offset low eCPM and variable fill rates in different markets around the World. In addition Google Checkout remains an environment with far more friction that on Apple and lacks Global coverage.
30M monthly usersAt Get Jar we help to address the issues of discovery and monetisation on Android For some brief context though and for anyone in the audience who is unaware of us, GetJar is the Worlds Largest FREE App Store, in that all of our Apps are FREE to the consumer at the point of download. We are 2.5 Billion downloads to date from 200 countries around the World and whilst Android is an increasing focus for us we still deliver 10’s of Millions of monthly downloads across other Operating System envirionments including Java and Symbian devices, Windows and Black Berry. Supports Android, Blackberry, Web, Java, Symbian platformsAvailable in 190 countriesWorks on over 2,500 handsetsSupports free and paid appsList apps for free and optionally advertise your apps to get more downloads
In terms of the way our business is organised it’s fairly disruptive versus other App Store models. In the traditional model App Stores operate on a standard retail basis. The developer, in this example Farm Ville uploads to the relevant App Store, the App Store Approves, the consumer downloads and the developer generates revenues. The traditional App Store model then is to tax the developer 30% either on Paid downloads or on IAP that go through that platforms billing solution For the right to distribute within these environments the developer gives up 30% of their earned revenue back to the platform operator
In the GetJar model, the process is different; The developer uploads to our store in the same way, but hey can of cousre upload cross-platform if they choose too, we monitor safety and legal compliance and approve. The App goes live and the consumer is able to download from us as well as from any of the third party environments where we also distribute our store which include OEM’s, Carriers and Tablet Manufacturers One of the fundamental differences between GetJar and other App Stores though is that we are agnostic on the monetisation solutions that developers integrate within their App. We allow any billing solution; PayPal, Carrier Billing, pSMSor any of a plethora of third parties offering billing solutions and we take no part of the revenue from developers at any point in the process. All App Business models compete equally within our App Store environment enabling Developers to make the monetisation decisions that make most sense to them in any particular device, OS or country scenario For GetJar we capture value through Marketing Spend where developers, brands and agencies have the option to bid for additional downloads in an Ad Words type auction to drive discovery within our App Store environment. There is a clear distinction between our organic catalogue and sponsored listings and we enable the Developer to set the price for a download or installation of their Application at the country oS or Device level. To this extent we enable better monetisation and offer tools within our store to drive discovery
One of the big changes for us recently, which further helps address both discovery and monetisation has been the launch of our own virtual currency; GetJar Gold In this model we have launched a loyalty or Rewards programme for Android where we Reward consumers who download Apps through GetJar with our Virtual Currency We reward any action on our Store including giving consumers Gold Coins when they first download our App, we then reward them further when they download any application from GetJar, whether that is an organic App or a sponsored AppAs such we are creating a community of millions of people, who use GetJar regularly, who will build up a Wallet full of Virtual Currency just by virtue of being a loyal GetJar user
The extension of this model and where it becomes really exciting for Developers and Advertisers is that we are enable this Virtual Currency within third party applications to better address the monetisation challenges across the entire Android eco-system, in all categories of ApplicationI talked earlier about the fact that conversion on Android through Google Checkout is less than 1%, in many scenarios, and when you look at the data Globally, for every one hundred DAU’s you have within your App you may convert only 0.5% or half a user to completing the Google Checkout experience. What we are doing is enabling Developers to use our Virtual Currency, GetJar Gold to augment Google Checkout,, and to drive higher conversion around IAP on Android. The GetJar Virtual Currency is backed by Global Marketing spend from hundreds of Advertisers. In scenarios where GetJar refers a user to your App – and we will promote every partner - then they will likely arrive with a Wallet full of Gold Coins which they can immediately redeem for any In App Purchase, whether that is converting Lite users to the Premium version, removing Ads or a more standard Freemium model for Virtual Goods.
The virtual currency process is very simple; you integrate our Virtual currency within you App as an alternative payment vehicle to Google Checkout and immediately access a community of users with existing Gold balances The result is massively improved billing conversion for In App Transactions Some consumers continue to pay cash through Google Checkout, but many more will use our Virtual Currency to access your In App Purchases The developer creates a new and meaningful revenue stream through our Virtual Currency as we pay out for coins redeemed in your Applications Coverage is Global, we pay out in every market, even in markets where Google Checkout is not available and you super-charge monetisationOne of the additional benefits is that we also cross-promote Apps with our VC integrated from our App Store which we provide for Free, so as well as getting more money per user, we also help you to find new users that were not using your App previously
In this example Wiki Encyclopeaedia are leveraging the GetJar Virtual Currency to move people from the FREE version of their App to the Pro Version You can see that this user has the option to buy through GC or to get for FREE with GetJar Gold. Here you can see that the Gold Balance is 167 and that the cost to a consumer in Gold Coins is 60, so there is no need to engage in further downloads and the purchase is immediate
We have a more classic Gaming example to share with you here tooHungry Sharks has x3 In App Purchases for different Game enhancements;Blood Bath makes the game play more gory Mega Shark allows you to super size your shark and Treasure Map shows you where all of the hidden objects are throughout the levels Through integrating a Virtual Currency solution the consumer can either redeem their current Gold balance or download Sponsored Applications from within our Advertiser Community to earn Gold Coins to enable them to make the purchase
In summary we believe that the Virtual Currency model creates a sustainable eco-system where all parties WinThe consumer Wins in that they can access premium content within your App without having to pay cash and go through a Google Checkout experience The Advertiser wins with enhanced discoverability and is able to reach NEW users around a value exchange in a positive environment and finally The Developer Wins with enhanced monetisation, enabling them to earn from the 95% or more of users that wont pay on Android, further they drive discoverability through Cross-Promotion from our App Store environment and through our Social channels We believe that the opportunity to better monetise on Android is there for the taking and we would be happy to partner with you around it.