12. Gartner’s research
• 46 billion mobile app downloads this year,
89% will be free.
• Number of downloads has nearly doubled,
up from 25 billion downloads in 2011
• 90% of all paid apps in 2012 have been
priced at $2.99 or less (lower than 2011)
• Apple’s app downloads have grown by 74%
over 2011.
13. Gartner’s research (cont.)
• The overall app market is estimated to
have grown by 83% over 2011.
• In 2012, revenue from paid downloads,
including in-Apps will be $20 billion
compared to just around $6 billion from ad
revenues.
14. OPA research
• Smartphone adoption in the US is expected
to reach 57% by 2013
• 93% of smartphone users access content
and information on their smartphone
regularly.
• 84% of smartphone owners use their mobile
phone or tablet while watching TV
• 24% of smartphone users have purchased
some sort of content on their smartphone.
18. India android phones – 0.5 million a
month market
No of units sold/month (000)
Pp growth (%)
19. Everyone knows the audience is there,
and that they are spending a lot of
time in the apps
it’s new media
20. App Monetization
• Paid apps
– Games
– Utility apps
– Content
• In-app purchases and virtual goods
– Subscription
– Pay to play
– Commerce – virtual goods
– Commerce – real goods
• Mobile advertising
– Ad networks
– Direct display
– Custom apps for brands
21. Casual users are going to go the
freemium route and use apps to
entertain themselves for short stints
Which makes mobile advertising and
in-app purchases very important
22. Monetization strategies need to be
conceived from the very beginning. It
has to be the driver of development
and design process.
23. A great app(game/content/utility) could ally
with a mobile advertiser and integrate the
brand attributes in app logic and design
But the first priority should be best gaming /
usability / entertainment experience
24. Times internet case study
• The Times of India(TOI) and Economic
Times(ET) app
• Key focus:
– Product experience, design and usability
– Grow the base to a substantial number(before
going for advertising sales)
• Premium publisher model
– Focus on sponsorships
– Not going through ad networks, dedicated sales
teams for mobile monetization
25. Key results
• TOI:
– 11 million UVs on mobile (including mobile
site)
– 4.5 million app downloads across platforms
• ET:
– 3 million UVs on mobile (including mobile
site)
– 1.5 million app downloads across platforms
26. Type of ads
• Banner ads
• Inline videos
• Rich media
34. Pandora case study
• In music apps, ads can be incorporated easily
without diminishing the user experience.
• Pandora’s music app has seen success from ad
revenue by delivering personalized ads to
mobile users.
35. Pandora’s assertions
• Mobility redefined: Mobile is quickly
becoming the dominant radio outlet for
consumers.
• Mobile makes it easy to act when the device
in is in hand and a short radio ad encourages
the listener to tap the screen.
• From branding to traffic driving and
everything in between, mobile does it all.
44. EA case study – The SIMS
The advertisements offer virtual goods for free
Users do not mind interacting with product
placements(since they get free virtual goods)
45. EA case study
• Types of in-game advertising options:
Traffic Drivers: These ads drive players in the
game to visit a brand’s Facebook page, where
they can download a free in-game virtual good.
In a two-week period, more than one million
players from The Sims redeemed the Dove Hair
Spa virtual items in their games, and 50 percent
of the players chose to “Like” the brand on their
own accord.
46. EA case study
• Types of in-game advertising options:
Quests: These are the deepest and most
involved. Players will have to take a
number of steps inside the game to earn a
valuable item at the end. For instance,
Toyota launched a quest where players
earned a Prius.
47. EA case study
• Types of in-game advertising options:
Store Tabs: In the virtual goods store,
there will be a whole tab dedicated to the
brand.
48. EA case study
• Types of in-game advertising options:
Media Integrations: Users can watch a
short video advertisement or other type of
media, to unlock a virtual good.
50. Amazon one click purchase case study
• Amazon is giving mobile developers the
ability to sell physical items in their mobile
apps using a simple one-click process.
• The option, available for Kindle and Kindle
Fire HD apps, will give developers another
way to monetize their apps
51. Amazon one click purchase case study
• Activision is the first publisher to make use of
the new in-app purchase option, which will
be available in the game Skylanders Cloud
Patrol.
– Users will be able to buy a physical toy for 99
cents using Amazon’s 1-click transaction system
and have it shipped to their address.
– They will also be able to get a digital copy of their
character that will be playable in the game.
52. Metaps case study – rewards based
advertising
• Metaps provides Android developers with the
ability to attract customers through low-risk
reward-based ads.
• They generate revenue from free users
through advertisements, increase user activity
rates and maximize lifetime user value.
54. Commerce through magazine apps –
MPA survey case study
• 66% of people who read magazines on
tablets and e-Readers think they’ll be
spending more time with digital issues over
the next year
• 59% of respondents said that they want to
buy directly from adverts
• 79% saying that they want to be able to
purchase products and services directly
from editorial features.
55. Zappos Now app case study
• Zappos Now, a monthly “magalog*”
app about style and fashion trends –
featuring Zappos products that can be
purchased from the app.
*Magalog = Magazine + Catalog
56. The local mobile advertising is the
holy grail
But real time highly relevant local
advertising is not easy
