A comprehensive presentation that cover all the opportunities & available revenue model for mobile apps. Presentation by @shauryaBT

1. We Are Going Mobile
Trends and Growth in App Economy

2. SNAPSHOT
1. Where do
we stand?
6. How do you
sell?
2.
What is an
Insight
7. Ways to
monetize
3.
Insight to an
Idea
8. Applications
worth Noticing
4.
Type of
mobile
applications
9. Gaming –
Business Models
5. The
commandments
10.
What to
track?

3. Where do we stand?
 More than 60% of social media
consumption happens though mobile
devices
 90% of users use multiple screens
sequentially, where Smartphone
triggers an activity
 Android in India holds 91% market
share followed by Windows phone &
IOS*
 9.5% of the overall app downloads
came from India (2nd after US)

4. What is an Insight?
Disturbance in Discourse
Discourse = Received ways of thinking or talking about a subject
Disturbance = A new way of saying what we didn’t know how to say before
Patterns are attractive but their overall success rate is pretty poor

5. Insight to an Idea
Dong Nguyen’s Flappy Bird
Flappy Bird has flied to Number 1 spot in 53 countries on Apple App Store*

6. Types of Mobile Applications
Productivity
Save my time
Creativity
Invest my time

7. The Commandments
 Thou shall focus on context and not patterns
 Thou shall not forget the user while designing
 Thou shall make your app name unique
DON’T TRY
TO GET BRANDS
FOR YOUR
APPLICATION
 Thou shall write a description which tells the usage upfront
 Thou shall not try to develop transactions but relationships
RATHER MAKE A
BRAND OF YOUR
APPLICATION
 Thou shall establish the feedback loop

8. Developer Mindshare
“37% of mobile developers use
HTML5 as a platform, i.e. to
develop mobile websites or webapps, while another 15% use
HTML5 to go beyond the browser”

9. How do you sell?
 Blogs
 Contextual blogs
 Advertisements
 Banner Ads
 Expandables
 Interstitials
 Text Ads
 Partnerships
 Partner with OEMs and other applications

10. Choose The Right Format
Average conversion rate across ad formats
3.06
On Android, the average
conversions on
1.99
1.73
1.65
1.40
1.58
double that of
1.12
other ad formats
0.63
Banner Ads
interstitial ads are almost
Expandables
iOS
Interstitials
Android
Text ads

11. Monetize
Direct
App as a product
Commissioned apps
Indirect
App as a channel
In – app advertising
Pay per Download
Indirectly (brand
awareness)
In app purchases
Developer services
Subscriptions
E-commerce sales
Per device royalties
Affiliate or CPI
programs

12. The New Frontier
The median revenues of developers involved in e-commerce are
$2,750 per app/month, by far the highest among all app revenue
models that can be employed

13. Revenue Distribution
Start from iOS and then move to Android
when launching because In terms of
developer revenues per capita, iOS
maintains its momentous gap to Android

14. Applications Worth Noticing
COVER
Description
The app learns which apps you use most in
various locations you frequent, and it makes
them easily accessible with no user
intervention

15. Applications Worth Noticing
THEMER
Description
Let’s you apply themes to your phones with
a click and organizes the apps. The beauty
lies in how they try to sell other apps by
categorizing the existing ones

16. Applications Worth Noticing
SHOPKICK
Description
It recognizes a SmartPhone when it is next to
a store, Sends points to the phone each
time it passes by the store and allows the
points to be redeemed when at the store

17. Applications Worth Noticing
DUOLINGO
Description
Gamifies the concept of learning a new
language by creating levels which force
user to try more and hence learn more

18. Gaming – Business Models
Around game
advertising
Banner & Skyscraper
In-game advertising
Billboards and Branded
items in game world
Try before buy
Restricted versions of game
Advertgames
Selling the experience
Skill-based Progression
Buy a ticket to enter
Episodic Entertainment
Borrowing from the TV
model

19. Gaming – Business Models
Velvet Rope
Players pay for VIP access
Sponsored Games
World of Warcraft or Conan
Subscription
Player to Player trading
Micro-Transactions
(Freemium)
Pre-Sell the game
World of Warcraft or Conan
Small, Impulsive driven up
selling
Trade land, property and
characters
Kickstarter.com

20. The Rise of Freemium
2012 Indexed Revenues
2013 Indexed Revenues
7%
14%
43%
54%
93%
86%
57%
46%
Games
With In-app purchase
Apps Excluding Games
Without In-app purchase
Games
With In-app purchase
Apps Excluding Games
Without In-app purchase
Freemium as a revenue model has not only been successful in gaming but has also become prevalent in nongaming categories such as messaging, music, news and dating

21. Advertising Network – Admob
Choose an
advertising
network which
suits your
revenue model
and user
Monetize
Publish Apps with Admob SDK
Promote
Advertise your app in others to
increase downloads
demography

22. What to Measure?
Usage
Session Length
Lifetime Value
ARPU
Demography, Frequency, Time,
User Flow, Cohort Analysis
Assign values to the mobile user
to compare/analyze
Retention Rate
Measure how many users
continue to use your
application after install
Active Users
MAU (Monthly Active Users) or
DAU (Daily Active Users)
The time mobile users are
spending with your application
Value of an user to your app
business
Launch/Load Time
Ensuring that the launch/load
time is consistent across all users
Acquisition
Acquiring more users based on
the usage patterns

23. Candy Crush Saga
2X
revenues in the
December
quarter last year
The revenue model of the game was Freemium (in app purchases + in game advertising).
Advertising serves as a powerful revenue stream because publishers can earn money even when
no one is downloading the application

24. It’s Your Time To Speak Up
Thanks!