This document discusses various monetization options for mobile apps, including freemium, paid, and advertising models. Freemium involves a free version of the app with optional paid upgrades or subscriptions to unlock additional features. In-app advertising is also discussed, where apps are free but include ads, and users can pay to remove ads. The document provides examples like Candy Crush, which generates billions in revenue through in-app purchases despite being initially free to download. It suggests choosing a monetization approach based on the type of app and whether the target market is open to paying for downloads or content.
2. What’s fun without numbers?
Application Price Distribution (Source: http://www.pocketgamer.biz/ )
3. Freemium Vs Paid Vs Paidmium:
1. App on sale in the store
2. Free app with ads
3. Free app with in-app purchases
4. Free app with paid subscription
5. Free app with paid upgrade options
Monetization Options:
4. What is Freemium?
Basically, there will be two versions of the app. The free version is typically
ad-supported/limited with features/content and the users can access most
of the features easily.
The paid version might be usually a premium or a pro version.This app will
enable more content/privileges by unlocking few more features without any
ads
This model leverages the free offer by mitigating the price as a barrier to
entry and then converts the free app into a distribution channel for the paid
app. Free app is your service messenger and affiliate for revenue.
3.
2.
1.
Freemium revenue for mobile apps was up 211
percent last year, according to a new report from
mobile analytics company App Annie and IDC.
Freemium is ruling
but in app ads are
chasing them hard
Free App
+
Go Pro
Free
+
Premium
Pull with
free offering +
Push your valuables
(content/Privileges/
Levels)
App + Virtual goods
(Upgrades/Speed-up/
Buy additional levels
/Content/Pay to
remove ads etc)
5. Advertisements as part of your mobile app content or mixed as part of your
process as like any TV advertisements.
There are many popular mobile advertising networks like Google’s AdMob that
provides advertisements as a service that can consumed by mobile app via
integration
The decision point is to choose a right advertising network service provider
that will sync up well with your app solution context and bring revenue.
Interestingly, less than half of the developers surveyed in IDC – App Annie said
that they used in-app advertising, as 58 percent said that they did not use ads
in their apps.
Ad revenue from all of a developer’s apps is around $10,000 a month in the
75th to 90th percentile as per the survey
IDC numbers cited in the report suggest that the proportion of ad revenue to
total app revenue will grow in every major mobile market by that point, with
U.S. edging up to around the 60 percent level; Germany, the UK, France, and
Brazil growing significantly; and only South Korea and Japan remaining below
the 50 percent mark.
This is the ‘mium’ part of the freemium monetization model. The users are
pulled with free app offer and then are presented with options to buy within
app. This model is relevant and illustrated efficiently in games app. Games
generally offer virtual currency/points/credits or the option to buy more levels.
If your game is compelling an addictive to end users, this would be an excellent
source of revenue.
In-App Ad:
In-app purchases
Candy Crush is a free app that generated 1.88 billion in revenue in 2013.
Mobile in-app ad revenue will surpass PC display ad revenue by 2017.
6. YesNo
Is market
ready to pay
to download
your app?
What is your app.
key orientation?
Launch paid app
in store
Personal/
Social/
Business
Process
Free
Free with basic
features
Free with ad with
option to pay to
remove ad
Free
Free with limited
content and
subscription option
Pay per premium
content/article
Free with ad with
option to pay to
remove ad
Content
Oriented
Free
Free with in-app ad
Free with in-app
purchases
Game
Which Monetization option to Choose?
Free with ad with
option to pay to
remove ad
