Many casual and social game developers have moved to mobile, but since the economics of mobile and web are very different not all of these transitions have been successful. While helping companies like Rovio, Digital Chocolate, Badoo and many others find their monetization strategy on mobile, we have distinguished key factors that developers should change in their monetization strategies while moving to mobile. Andrei Demenjev is sharing these key points so you can learn from and avoid the mistakes made by early adopters of the mobile platform.
3. New smartphone sales in Q2 2011
Microsoft Others 1%
Bada 2%
2%
Android
RIM 12% 43%
iOS 18%
Symbian
22%
Every second smartphone sold is running
Android.
4. Smartphones in US (July 2011, comScore mobilens)
Microsoft Other Symbian
6% 1% 2%
RIM
22%
Google
42%
Apple
27%
iOS and BlackBerry are installed on 49% of US
smartphones
5. 4.90% 4.70%
7.70%
82.70%
Nearly 83% of app store revenues are made on iOS.
6. Glu Mobile: Android Revenues make only
1/10 of iOS revenues
Challenge:
Why develop for other platforms if iOS is
making most of the revenues?
7. iOS has the highest level of competition
by Distimo
8. Rovio Angry Birds:
Android revenue = iOS revenue
Answer:
Every platform can bring
you money
Keywords:
competition, experience, expertise, st
rategy
9. Going Global
Challenge:
Developers are only aiming at established
and rich markets like US and Western
Europe
10. Android sales in 2011
40% of smartphones are sold in Asia-Pacific
12. Answer:
You should have a monetization strategy for
every region.
Asia Pacific
USA
Western Europe
Middle East
Latin America
Eastern Europe
CIS
Africa
17. Percentage of free apps:
Apple App Store
Nokia Ovi Store
BlackBerry App World
Windows Phone Marketplace
Android Marketplace
0% 10% 20% 30% 40% 50% 60%
18. Why Premium is bad?
App stores are full of low quality apps
App purchase is an investment
Cultural differences
Weak and non effective billing solutions
Free competitors
Limited distribution options
Piracy
19. Why Freemium is good?
More downloads
Target long tail (just like offers)
People are used with free apps
Ability to adjust to different ability to pay
Better global reach
More distribution options
Lower dependence from app stores
Piracy
20. 75% of top 100 grossing iOS apps are games
65% of them are freemium
Answer:
Avoid selling your games
and use Freemium models!
21. Earn money from free games
Mobile ads
Offers
In-game purchases
Sponsorships and special deals
23. Challenge:
Mobile ads makes my game slow and ugly.
Answer:
Do it smart!
What's critical:
Ad coverage
Respect low-end devices
Try different advertisers
Think about UI and design
Place ads on loading screens
25. Pros:
great for monetizing non paying users
global reach
Cons:
be careful with what you offer
you may be promoting competitors
don't overload your game by offers
don't replace payments with offers!
26. In-app purchases
What can be sold?
virtual credits
extra levels
trial version activation
extra features
personalization
banner-free version (weak)
27. Consumable goods (virtual credits) 68% of in-app purchases
28. Challenge:
Developers are using ineffective payment
methods
29. In-app payment methods:
App store billing (Google checkout) – mostly credit card based, high store
margins.
Mobile operator billing (direct billing, premium sms) – good coverage
and conversion rates, low revenue shares.
Credit cards (Visa, Mastercard) – bad coverage, high revenue shares, kills
conversion rate.
Paypal – works in limited number of the countries
Prepaid cards, kiosks and vouchers – low conversion rates
Direct debit and others...
30. or
Answer
Analyze your user base and select the most suitable
payment method and additional methods if needed.
31. Challenge:
Bad user experience during payment flow
vs
32. In-app payment is impulsive
Every new screen kills conversion by 10-15%
Customers are not yet familiar with mobile
purchases
Payment should look secure
Answer:
Golden rules of in-app payment: the user
should reach to the payment with a maximum
of 3 clicks.
33. Challenge:
Developers don’t benefit from ingame
promotion.
Holidays discounts
Achievement based bonuses
Limited time offers
Exclusive items and gifts
34. Answer:
Active promotion of ingame purchases
increases the revenues by 30%!
35. Challenge:
Developers ignore small details.
• Currency
• Localization
• Terms and conditions
• Operator/billing provider logos (+ 15% conversion)
• Helpdesk and customer care
• Track user reviews and comments
• A/B testing
37. Challenge:
Wrong game balance
Game is too difficult => they leave before buying
Game is too easy => they don’t need to buy
Too few free levels => they are not yet addicted
Too many free levels => they had enough
Answer:
Develop the perfect balance for introducing
paid content.
38. Challenge:
Wrong pricing policy
$2 in USA $2 in China
Answer:
Adjust the prices according to purchasing
power.
39. Challenge:
Lack of offline mode support.
According to Localytics, 15% of mobile apps are
launched while offline .
Answer:
Your game should be prepared to work and
monetize while offline.