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Don’t Just Build a Mobile App.
Build a Business.
Wayne Pan, Software Engineer
May 10, 2011
Feedback? Scan the
                      QR code and tell us
                      what you think.


                      Twitter? Use #io2011
                      and #Android.


                      Questions? Ask them on
                      Google Moderator @
                      http://goo.gl/mod/B8cG.

http://goo.gl/l6tjC
I’ve built an app.
How do I make money?
Many ways to earn money




Paid downloads    Freemium        In-app purchase   Advertising
User pays a fee   User pays for   User purchases    User clicks
to download       additional      goods within      on ads
                  functionality   the app
Earning money with mobile advertising




       User launches    User clicks on ad    You get paid for
         your app.     placed in your app.     each click.
Show me the money!




$0.10 Cost Per Click                               1,500 Clicks
       (CPC)

                       120,000       100,000
                       Ad requests   Impressions
Show me the money!

CPC = $0.10             Click-through rate   =     Clicks    
                              (CTR)              Impressions
Ad requests = 120,000
                                             =     1,500         
Impressions = 100,000                             100,000
Clicks = 1,500                               = 1.5%
Show me the money!

CPC = $0.10             Revenue = Clicks x CPC
Ad requests = 120,000           = 1,500 x $0.10
                                = $150
Impressions = 100,000
Clicks = 1,500
CTR = 1.5%
Show me the money!

CPC = $0.10             eCPM   =     Revenue     x 1,000
                                   Impressions
Ad requests = 120,000
Impressions = 100,000          =     $150     x 1,000
Clicks = 1,500                      100,000
                               =   $1.50
CTR = 1.5%
Revenue = $150
Show me the money!

CPC = $0.10             Fill rate =   Impressions
                                      Ad requests
Ad requests = 120,000
                                 =    100,000
Impressions = 100,000                 120,000
Clicks = 1,500                   = 83%
CTR = 1.5%
Revenue = $150
eCPM = $1.50
Show me the money!
    Network A
    eCPM = $1.00
    Fill rate = 83%
    Revenue per thousand ad requests = $1.00 x 83% = $0.83

    Network B
    eCPM = $3.00
    Fill rate = 25%
    Revenue per thousand ad requests = $3.00 x 25% = $0.75

    Compare by eCPM: B > A

    Compare by revenue: A > B
I want to use
multiple ad networks.
eCPM fluctuations
eCPM varies across networks
Mediation helps reduce eCPM fluctuations
Mediation enables multiple ad networks

Ad network A

Ad network B       Mediation
Ad network C
Allocating inventory with AdWhirl




Use unlimited                          Easily change
 ad networks                           allocations to
                                       maximize revenue

Full control to
  turn on and
 off networks
I’ve built another app.
App user engagement over time
App user engagement over time
Build your audience faster
Leveraging your audience with house ads
Cross-promote your apps with house ads
There a lot going on.
It’s easy to measure downloads

                                 Download data and
                                 statistics are readily
                                 available in most
                                 marketplaces
Understanding engagement with Google Analytics
Getting started with Google Analytics

 1.  Download and integrate the Google
     Analytics SDK for iOS and Android:
     code.google.com/mobile/analytics


 2.  Setup a Google Analytics account:
     google.com/analytics


 3.  Create a new profile for your app,
     UA-XXXXXXX-X
Potential
Tracking app engagement            Customers




•  Ecommerce tracking
•  Android referral tracking
  –  Referrals from your
     advertising campaigns
  –  Referrals from cross
     -promotion, including house
      ads

                                   Active
                                   Customers
Don’t just build a mobile app.
Build a business.




For more information on our
mobile advertising,
monetization and
measurement solutions visit:

www.guidetotheappgalaxy.com
Feedback? Scan the
                      QR code and tell us
                      what you think.


                      Twitter? Use #io2011
                      and #Android.


                      Questions? Ask them on
                      Google Moderator @
                      http://goo.gl/mod/B8cG.

http://goo.gl/l6tjC
How to build a mobile business

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How to build a mobile business

  • 1.
  • 2. Don’t Just Build a Mobile App. Build a Business. Wayne Pan, Software Engineer May 10, 2011
  • 3. Feedback? Scan the QR code and tell us what you think. Twitter? Use #io2011 and #Android. Questions? Ask them on Google Moderator @ http://goo.gl/mod/B8cG. http://goo.gl/l6tjC
  • 4. I’ve built an app. How do I make money?
  • 5. Many ways to earn money Paid downloads Freemium In-app purchase Advertising User pays a fee User pays for User purchases User clicks to download additional goods within on ads functionality the app
  • 6. Earning money with mobile advertising User launches User clicks on ad You get paid for your app. placed in your app. each click.
  • 7. Show me the money! $0.10 Cost Per Click 1,500 Clicks (CPC) 120,000 100,000 Ad requests Impressions
  • 8. Show me the money! CPC = $0.10 Click-through rate = Clicks  (CTR) Impressions Ad requests = 120,000 = 1,500  Impressions = 100,000 100,000 Clicks = 1,500 = 1.5%
  • 9. Show me the money! CPC = $0.10 Revenue = Clicks x CPC Ad requests = 120,000 = 1,500 x $0.10 = $150 Impressions = 100,000 Clicks = 1,500 CTR = 1.5%
  • 10. Show me the money! CPC = $0.10 eCPM = Revenue x 1,000 Impressions Ad requests = 120,000 Impressions = 100,000 = $150 x 1,000 Clicks = 1,500 100,000 = $1.50 CTR = 1.5% Revenue = $150
  • 11. Show me the money! CPC = $0.10 Fill rate = Impressions Ad requests Ad requests = 120,000 = 100,000 Impressions = 100,000 120,000 Clicks = 1,500 = 83% CTR = 1.5% Revenue = $150 eCPM = $1.50
  • 12. Show me the money! Network A eCPM = $1.00 Fill rate = 83% Revenue per thousand ad requests = $1.00 x 83% = $0.83 Network B eCPM = $3.00 Fill rate = 25% Revenue per thousand ad requests = $3.00 x 25% = $0.75 Compare by eCPM: B > A Compare by revenue: A > B
  • 13. I want to use multiple ad networks.
  • 15. eCPM varies across networks
  • 16. Mediation helps reduce eCPM fluctuations
  • 17. Mediation enables multiple ad networks Ad network A Ad network B Mediation Ad network C
  • 18. Allocating inventory with AdWhirl Use unlimited Easily change ad networks allocations to maximize revenue Full control to turn on and off networks
  • 20. App user engagement over time
  • 21. App user engagement over time
  • 23. Leveraging your audience with house ads
  • 24. Cross-promote your apps with house ads
  • 25.
  • 26. There a lot going on.
  • 27. It’s easy to measure downloads Download data and statistics are readily available in most marketplaces
  • 28. Understanding engagement with Google Analytics
  • 29. Getting started with Google Analytics 1.  Download and integrate the Google Analytics SDK for iOS and Android: code.google.com/mobile/analytics 2.  Setup a Google Analytics account: google.com/analytics 3.  Create a new profile for your app, UA-XXXXXXX-X
  • 30. Potential Tracking app engagement Customers •  Ecommerce tracking •  Android referral tracking –  Referrals from your advertising campaigns –  Referrals from cross -promotion, including house ads Active Customers
  • 31. Don’t just build a mobile app. Build a business. For more information on our mobile advertising, monetization and measurement solutions visit: www.guidetotheappgalaxy.com
  • 32. Feedback? Scan the QR code and tell us what you think. Twitter? Use #io2011 and #Android. Questions? Ask them on Google Moderator @ http://goo.gl/mod/B8cG. http://goo.gl/l6tjC