Senthil Pandurangan's presentation to East Bay New Tech meetup regarding Mobile App Monetization.

1. Monetization with mobile apps
Senthil Pandurangan
(senthil@anusen.com)
Founder, Anusen Inc

2. Agenda
• Introduction
• Ways to Monetize mobile Apps

3. Anusen Overview
Anusen.com is an edutainment company focusing on kids educational apps
for mobile platforms. Ourapps are quite famous in the iTunes app store and
they had been in the top 50’s in for past two years in iTunes app store.
With our continued success and hard work we have launched apps with
Palm, Android and recently in Samsung app store. We are making continuous
efforts to reach out all mobile app stores.
Recently our app “Word Magic ” had been featured in the kids section ” Our
Favorite iPhone Apps for Kids | Living in the Family Room Blog - Martha
Stewart ”
Anusen won first place for best app in “ Silicon Valley Android Developers
Hackathon event ”

4. Anusen.com

5. Kids Applications
Count Magic Math Series Match Magic
Math Magic Word Magic Think Big

6. Word Magic App Rankings
Reviews:
Great game and learning for pre schoolers
By: Twe_et
My 4.5 yr old daughter loves this game, she is
having lots of fun as well learning at the same
time. Thanks for making learning fun:)Excellent!!!
By: AZHoneybee - Apr 10, 2009 Version: 1.7This
app is the best. My son is learning to read and
being able to play to find the begining and ending
sound is great and it is a concept being taught to
him in kindergarten. My 3 year old loves it too.
Makes me want to have iPhones for each one of
them!
Source: http://www.topappcharts.com/293630633/app-details-word-magic.php

7. Math Magic App Rankings
Reviews:
A Most Magical App for Your Kids! By: ibeartouch
- 11-Dec
This little app is one that will get your kids thinking
about math. It has a very easy to use interface, and
incorporates a good use of colours, and rewards to
keep your little ones wanting to "play". My
daughter (5 yrs) enjoys this app so much, I may
need to surrender my iPod Touch to her, and go
buy an iPhone! It has improved quite a bit since
version 1.0, so if you enjoy apps that actually help
your kids LEARN, and not only amuse them, I
would give this app a shot.
Source: http://www.topappcharts.com/291478690/app-details-math-magic.php

8. Team
Hello
everyone

9. Today’s Mobile phone capabilities
• Camera
– Front Facing camera
• MP3 player
• FM player
• Internet
• GPS
– Driving directions
– Traffic updates
• Accelerometer

10. Applications

11. Mobile Platforms for apps
Development
• Apple - iOS
• Google – Android
• Nokia – Nuvi/Qt
• Microsoft – WP7
• Palm-HP - WebOS
• BlackBerry (RIM) – Symbian
• Samsung - Bada
• Intel – Meego (Appup)

12. Apps in several app stores

13. Opportunity

14. Application Category Distribution
http://148apps.biz/app-store-metrics/?mpage=catcount

15. Pay per download
Count By Price Active Apps
App Price # Apps # Games Total % of Total
Free 175,869 30,088 205,957 41.56%
0.99 104,469 30,882 135,351 27.32%
1.99 49,618 8,249 57,867 11.68%
2.99 25,051 3,126 28,177 5.69%
3.99 14,317 811 15,128 3.05%
4.99 15,039 1,287 16,326 3.29%
5.99 5,480 179 5,659 1.14%
6.99 3,879 283 4,162 0.84%
7.99 4,124 94 4,218 0.85%
8.99 1,440 47 1,487 0.30%
9.99 8,732 162 8,894 1.79%
10.99 429 11 440 0.09%
11.99 995 14 1,009 0.20%
12.99 514 7 521 0.11%
13.99 318 12 330 0.07%
14.99 1,398 21 1,419 0.29%
15.99 242 8 250 0.05%
16.99 316 3 319 0.06%
17.99 152 2 154 0.03%
18.99 336 5 341 0.07%
19.99 2,220 23 2,243 0.45%
20.99 143 33 176 0.04%
21.99 66 2 68 0.01%
22.99 100 1 101 0.02%
23.99 106 2 108 0.02%
24.99 856 10 866 0.17%
25.99 139 0 139 0.03%
http://148apps.biz/app-store-metrics/?mpage=appprice

16. In app Purchases
• In-app purchases
– Additional levels
– Virtual goods
– Unlock codes
A very common example is a game in which you have to achieve a certain
goal, but the free tools are not sufficient. You are then offered to buy
more and pay $.99 from within the app to get the needed tools.

17. In app Advertising
• In-app Advertisements
– Additional levels
– Virtual goods
According to Informa, by 2015, mobile ad revenues will hit $24billion, while
paid app revenue will only be at $10billion.
Angry Birds free version has Ad’s. Pandora and Flipboard has placed Ad’s
that will not interfere but enhance the experience.

18. Freemium model
• Freemium model
– Free to Premium
– 3rd party integration
– More Feature set
One example is Evernote .With the near-fully featured free version of
Evernote winning over more than 3 million users since it started out 2
years ago. Also integrated 3rd party apps.

19. Subscription
• Content Providers
– Videos
– Music
• Publishers
– Magazines
– News papers

20. Summary
http://blog.buysellads.com/2011/07/attack-of-the-in-app-ad/?view=infographic

21. Q &A

22. $ per download
• $ per download:
To generate immediate revenue, many developers
choose to charge for the download of their mobile
app. Given all the competition, developers are finding
that the accepted price for a mobile app has decreased
and a few dollars has already become an amount that
most consumers would not spend on an app. This,
combined with the fact that over 80% of mobile apps
are free, creates a barrier for the developer to
monetize the app and reach its full potential.