3. Some examples of our publishers
Google Confidential and Proprietary
4. There are several sub-business models that exist within advertising and
Growth
sales
2012-16
2016 Global Market Size
Search
Advertising
In-App
Advertising
+360%
$36.9B
+160%
$35.6B
(Informa
12/12)
Display
Virtual Goods,
Apps &
Content
App Developer
Sales
Physical
Goods
Premium
Freemium
Subscription
Direct
(Yankee
6/12)
Indirect
Google Confidential and Proprietary
5. Google provides a range of solutions to help application developers
succeed in mobile
Google Mobile Solutions
Search
Advertising
Custom Search
Ads for Apps
In-App
Advertising
Display
Virtual Goods,
Apps &
Content
Sales
Physical
Goods
Premium
Freemium
Carrier Billing
Subscription
Direct
Indirect
Google Confidential and Proprietary
6. In-App Search Advertising helps vertical search apps monetize your
users search queries
Google In-App Search Monetization Solutions
Advertising
Description
Business
Model
Example
Applications
In-App
Advertising
Search
Display
Typically a vertical search
application that provides users
with a mixture of organic and
promoted search results
Promoted search results
monetized through Pay-Per-Click
or Pay-Per-Action (e.g. Click-toCall)
Yoga moves
Fitness routes
Custom Search
Ads for Apps
Targeted ad unit
based on in-app
search query
More Relevance = More Revenue
Only the most relevant advertisements are served to
users based on their search queries.
As seen on Google
Leverage Google's familiar search ad formats and our
partner search network of over one million advertisers.
Easy to Integrate
Custom Search Ads for Mobile implementation is
straightforward through Google’s SDK
Completely Customizable
Ability to customize the shape, size, number, and color
of the ads to match your existing search results.
Google Confidential and Proprietary
7. AroundMe’s implementation of CSA for Apps resulted in 3x higher CPM
and 5x higher CTR
Advertising
In-App
Advertising
Sponsorship Case Study
Search
•
AroundMe quickly identifies the
user’s position and allows them to
search for the nearby shops and
services (e.g. Movie Theatre,
Restaurant, and Taxi)
•
AroundMe previously served display
advertisements adjacent to its
search results, however moved to
custom search advertisements inline with its search results
Display
Custom Search
Ads for Apps
Results Achieved
AroundMe
Attorno
A Me
Application
•
App Developer
•
3x higher average CPM over
display banner ads
5x higher click-through rate
Google Confidential and Proprietary
8. In-App Display Advertising is a popular method of monetizing mobile
audiences
Google Display Monetization Solutions
Advertising
In-App
Advertising
Search
Tilt
Display
Description
Embedded advertising units
within the application, ranging
from text to image to rich media
Business
Model
Ad impressions are monetized
through a Cost-Per-Click (CPC)
or Cost-Per-Mille (CPM) basis
Text ad
Banner ad
Typical
Applications
Interactive
banner
App banner
Results
120,000
ad requests
Vertical content apps (e.g. news,
fashion, etc)
Games and entertainment
Utility and productivity apps
Full-screen ad
83%
fill rate
Impressions
100,000
Click-through rate (CTR)
1.5%
Clicks
1,500
Cost per Click (CPC)
$0.10
Revenue
$150
Google Confidential and Proprietary
Shake
9. Premium applications generate revenues by selling through the Google
Play platform
Google Premium App Monetization Solutions
Sales
Description
Virtual Goods,
Apps &
Content
Premium
Freemium
Subscription
Two-step App Purchase
Process
Fully-featured versions of
applications, typically ad-free and
differentiated from free
alternatives
Step 1
Business
Model
One-off transaction value of
application retail price
Step 2
Payment Methods
Carrier Billing
Typical
Applications
Utilities
Games
Productivity tools
Stored credit
card credentials,
most common
method
Direct charge to
carrier bill,
available with
over 75M users
Gift Card
Available in
USA across
select
retailers
Google Confidential and Proprietary
10. The Beautiful Widgets app, retailing at $1.99, has generated over $1M
of sales on Google Play
Sales
Virtual Goods,
Apps &
Content
Premium Application Case Study
Premium
Freemium
•
LevelUp Studio is a four-person
development team based in France
•
Their development team has been
solely focused on the Android
platform from v1.5
•
Their flagship title, ‘Beautiful
Widgets’ is a collection of widget
add-ons for Android devices
distributed through Google Play
Subscription
App Developer
Results Achieved
Application
•
Beautiful widgets has sold over
500,000 copies and generated over
$1M worth of revenues
Google Confidential and Proprietary
11. Freemium applications rely on in-app purchases of feature upgrades,
content and virtual goods
Google Freemium Monetization Opportunities
Sales
Description
Virtual Goods,
Apps &
Content
Premium
Freemium
Subscription
Freemium apps lack key features
or content, therefore enticing
users to make in-app purchases
to upgrade their app experience
Business
Model
Revenue generated through inapp purchases of feature
upgrades, additional content or
virtual goods
Typical
Applications
Games
Magazines
Food and Diet
In-App Billing
•
Supported by any application
published on Google play and
•
Checkout processing handled
automatically by Google Play
•
All purchases are tracked to avoid
multiple purchases of same items
Examples
•
•
•
Feature Upgrades (e.g. unlimited
streaming)
Content (e.g. gaming levels, wallpaper)
Virtual Goods (e.g. character
upgrades)
Google Confidential and Proprietary
12. Subscription applications generate revenues from recurring fees
charged to users for content
Google Subscription Monetization Solutions
Sales
Virtual Goods,
Apps &
Content
Premium
Freemium
Content Subscription Purchase
Subscription
Description
Subscription applications require
users to pay recurring fees for
access to premium content
Business
Model
Revenues generated from
monthly or annual subscription
fees
•
Typical
Applications
Music streaming
Fitness / Excercise
Magazines
Source: DeNA Consolidated Financial Results H1 2012
Accepts monthly and annual billing
intervals
•
All subscriptions are auto-renewing
•
Users informed of recurring charges
Google Confidential and Proprietary
13. In summary, Google has solutions across the three key phases of
mobile monetization
Source: DeNA Consolidated Financial Results H1 2012
Google Confidential and Proprietary
14. Technical implementation is easy and simple and you can start
monetizing very fast
Open an
Create an App
AdMob account entry within
the platform
Integrate the
AdMob SDK in
the App
Insert the
AdUnit in the
code of the App
Google Confidential and Proprietary