The document discusses strategies for making money in the Android ecosystem. It covers major topics like monetizing apps through the Android Market and in-app billing, alternative app markets, Android advertising, and alternative revenue streams. Specific recommendations include using the Android Market and in-app purchases for basic apps, considering advertising for cheap or high traffic apps, and pursuing alternative revenue streams off the Android Market for most apps. Effective marketing and designing apps to be global from the start are also recommended.
6. Making Money in the Android
Ecosystem
• Where?
– Android Market
– In-app Billing
– Alternative Markets
• How?
– Android Advertising
– App Marketing
– Alternate Revenue Streams
• Recommendations
Making Money in the Android Ecosystem 6
7. Making Money in the Android
Ecosystem
• Where?
– Android Market
– In-app Billing
– Alternative Markets
• How?
– Android Advertising
– App Marketing
– Alternate Revenue Streams
• Recommendations
Making Money in the Android Ecosystem 7
8. Android Market
• 34% paid apps
– (Apple: 66%)
– 37% are $1 or less, vs. 61% last summer
• 6.2 apps per developer
– (Apple: 4.8)
• 32% of Apps are location-based
• 7.5% access user contacts
– (Apple: 11%)
Making Money in the Android Ecosystem 8
9. DroidDream
• Security nightmare
– >50 repackaged apps raid private
security info to remote servers
– Google is “analyzing”
– Re-flash the phone
– READ the permissions which an application asks
for. Most users do not.
• App makers should
– LIMIT permissions your app asks for
• or increasingly smart users will not install it
– RESPOND to online discussion of your app
Making Money in the Android Ecosystem 9
16. • If your app isn’t professional
– Low user ratings
– No users
– You wasted 100% of your money
Making Money in the Android Ecosystem 16
17. In-app Billing
• New
• Sell
– virtual stuff
– game levels
– extra services
• 70/30 like normal billing
• Subscription model coming
Making Money in the Android Ecosystem 17
18. Alternative Markets
• Three types enter the gold rush
– Indies
• Independent opportunists, mostly doomed to fail
• Some are worth working with until then
– OEMs
• Preloaded store on one brand of phone
• Usually small, nice place to be
– Operators
• Big markets, big money, big corruption ambition
• Important since sometimes these guys remove
Market from the phone, or block it as the network
level
Making Money in the Android Ecosystem 18
20. GetJar
• 100m down/month
• 200 countries
• Primary revenue is “Sponsored
Apps” section of website
– Advertise your app here if you have an
alternate revenue stream
– PPD: Pay Per Download
• No premium apps
– “Coming”
Making Money in the Android Ecosystem 20
21. AppBrain
• Alternate web
interface for Android Market
• You might like the UI better, but…
– Only apps available in US show up
– AppBrain app must be installed on user’s phone
to initiate install
• Normal Google Checkout
• Largely obsolete due to recent
Google Market web updates
Making Money in the Android Ecosystem 21
22. Appsfire
• Alternate web
interface for Market
• Good in-phone App
– Recommendations adapted based on installed
apps
– Discounted apps, popular lists, expert
recommendation lists, video previews
• Normal Google Checkout
• Ad supported
Making Money in the Android Ecosystem 22
23. SlideME
• Focus on promoting
small, independent
developers
• Web, or SAM app on to phone
• Own payment system
• For selling to users outside of
Google Market geographic reach
Making Money in the Android Ecosystem 23
24. Mobihand
OnlyAndroid
• Discounts and
“Deal of the day”
• On-phone app also
• Normal web shop, credit card
checkout, accessorize in the
same purchase
Making Money in the Android Ecosystem 24
25. Approov
• New entrant
• Web interface only
– Minimalistic aesthetic
– Includes Google Market search results
• Free apps only
• Upload your free app here along
with a video
Making Money in the Android Ecosystem 25
26. Shop4apps
• By Motorola
• Argentina, Brazil, China, Mexico
• Free, automated app testing
• In-app advertising for China
Making Money in the Android Ecosystem 26
27. • Coming soon
• Windows Phone is a good
example of what to expect
• A nice, small place to promote
your app if you get placement
Making Money in the Android Ecosystem 27
28. • AT&T uses Google Market
• AT&T cripples Android firmware
– Remove “Settings -> Applications -> Allow
install from unknown sources”
– So all 3rd party app stores are blocked
Making Money in the Android Ecosystem 28
29. • Verizon V Cast Store
• Android 2.2+
• Pre-approval required, like Apple
– Free
• Same 70/30 split as elsewhere
– just no sharing the 30 with Google
• Carrier billing only
– Premium is blocked on many company phones
Making Money in the Android Ecosystem 29
30. • THE BEAST is coming
• Bundled with rest of Amazon
– ebooks
– books and gadgets
• Great recommendation tech and
loyal customer base
Making Money in the Android Ecosystem 30
31. Beyond the western world
• Chinese markets
– 36% are repackaged free apps from Market
• 25% of repackaged apps require MORE user
permissions than the original application
– 2% pirated software (Apple: 85%)
– 61% of apps are unique -> serve a local need
• Russia and the east
– There is no culture of paying for software
– Piracy is the norm
Making Money in the Android Ecosystem 31
32. Android Advertising
• AdMob SDK has 40% market share
– Bought by Google
– Normal 60/40 split
• A few apps use multiple SDKs
• Include when
– High number of page views/per day
– Cheap/young target audience
– “Me too” service
• Avoid when
– You make money indirectly based on how many people
have your application
• Buy when
– You make more/newuser than ads/newuser cost you
Making Money in the Android Ecosystem 32
33. Europe: Mobile Ad Revenues
• Only 37% banners
– and Ad network keeps 40% -> 22%, maybe
Making Money in the Android Ecosystem 33
36. Alternate Revenue Streams
• Flip burgers and play lotto
• Sell direct
– fremium
– online subscriptions
– associated service
– associated product
• PPI
• Consult
Making Money in the Android Ecosystem 36
37. Recommendations
1. Google Market + Checkout
– Sell it, if you are worth it, basic level must be free
• Higher price, avoid “volume will make up for it” trap
– Ad-based if cheap users/high page count
• Consider Mobclix as an alternative
– Best for most: alternate revenue off-market
2. Marketing
– Blog, SPAM, promo video, spin off a TV show, address
book viral, anything to spread the word
– Premium apps- advertise in markets+web+apps!
• Alternative revenue models, consider GetJar ads
3. Be Global
– Design for localization, multi-resolution from day 1
– Alternate markets later (repackager self defense)
Making Money in the Android Ecosystem 37