Mobile applications have become very popular, with smartphone users being a key target audience. The document discusses three main monetization models for mobile apps - using ads, in-app purchases, and one-time paid downloads. It recommends integrating these monetization strategies and using mobile advertising to increase downloads and monetization over the lifecycle of a successful mobile app.

1. Mobile Advertising for Mobile
Applications
Aug 27, 2011 Bernard Tay

2. agenda
1 Mobile Application is big
2 Smartphone Users Are Target Audience
3 Ad-Funded, In-App or One-Time Download

3. Mobile Application Is BIG

6. Smartphone Users Are Target
Audience?

7. Worldwide
Smartphone Shares
SWE
NOR
FIN
30%
33%
29% RUS
GBR
DNK
25%
30% DEU
30% POL
CZE
NLD 18% KOR
FRA xx%
29%
33% CHN JPN
27% HKG 27%
AUT TUR
USA
CHE 35% 6%
ESP ITA 35%
21% 14%
31% TWN
34% ISR THA
33% 24% IND
MYS 26%
xx% 28%
23%
9%
SGP
IDN
ZAF
62% AUS
15% 17%
37%

9. The Spectacular Rise of the Tablet
Tablets predicted to reach 25% of PC The iPad is Apple’s fastest-selling
shipments in next two years device in history
500 Tablet Shipments (millions) iPad, iPhone, iPod Sales, 3 Quarters
12 After Launch (millions)
450
400 10
350
8
300
Tablets iPad
250 6
PCs iPhone
200
4 iPod
150
100
2
50
0 0
2010 2011 2012 0 Q1 Q2 Q3

10. » Private urban smartphone users
in China:
Devices:
54% currently have their first smartphone.
Brands:
They mainly use Nokia, Samsung, Apple.
Web-behaviour:
61% use the internet at least once a day via
smartphone. Still heavier web-usage via PC /
laptop.
Demographics:
More males use smartphones, they are younger
(up to 34 years), higher educated and full-time
employed.

11. Used Devices
» 97% of urban Chinese citizens use a Mobile Phone /
Smartphone
72%
Mobile phone / Desktop / PC Laptop / Netbook / MP3- / Media eReader Tablet PC or Handheld
Smartphone Notebook Webbook player with Slate / Pad gaming device
Web access
Base: All respondents, n=1000 Netcount
Q1: Which, if any, of the following devices do you currently use? Laptop / Desktop

12. Number and Type of Used Phones
» 30% of urban Chinese citizens have more than one phone
1% have four
phones
4
4% have three
phones 3
+dk dk
+dk
+ 2
+
25% have
+ two phones
dk
67% have
1 one phone
Base: All respondents, n=1000
Q2: And how many mobile phones or smartphones do you currently use?
Q6: And which of the following best describes your phones?

13. Share of Mobile Phones vs. Smartphones
» 35% of urban Chinese citizens use a smartphone for personal
reasons
Mobile
97% Phone
60%
Smart-
Phone
35%
Base: All respondents, n=1000
Q1: Which, if any, of the following devices do you currently use?
Q6: And which of the following best describes your phones?

14. Number of Smartphone & Usage Duration
» For 54% of urban smartphone users it is the first smart device
Don‘t know
No
Yes
Base: All main privately used smartphones, n=354
Q7: Is your … your first smartphone?
Q8: How long have you been using your smartphone?
14

15. Demographics 1/2
All respondents Private smartphone users
Female 50% 44%
Gender
Male 50% 56%
18 - 24 Years 17% 24%
25 - 34 Years 31% 39%
35 - 44 Years 23% 21%
Age
45 - 54 Years 18% 11%
55 - 64 Years 11% 5%
Average Ø 36,6 Ø 32,8
Low 22% 8%
Education Middle 26% 26%
High 51% 65%
Active (full + part time) 71% 81%
Employment Status
Inactive 29% 19%
Single 30% 40%
Living with partner 0% 0%
Marital Status
Married 69% 58%
Divorced/ separated 1% 1%
Base: All respondents, n=1000 / Private smartphone users, n=354

16. Demographics 2/2
All respondents Private smartphone users
1 Person 3% 3%
2 Persons 6% 7%
Household Size 3 Persons 37% 40%
4 Persons and more 53% 49%
Average Ø 4,0 Ø 3,9
0 Children 53% 53%
1 Child 36% 36%
Number of Children 2 Children 8% 8%
3 Children and more 2% 3%
Average Ø 0,6 Ø 0,6
Top (8.000 RMB or more) 20% 30%
Household
Middle (3.000 – 7.999 RMB) 39% 40%
income (monthly)
Low (less than 3.000 RMB) 33% 23%
Base: All respondents, n=1000 / Private smartphone users, n=354

17. Are These Your
Target Audience ? ✔

18. Ad-Funded, In-App Purchasing
And Paid ?

19. Ad-Funded In-App Purchase Pay Per Download
• Advertiser Pays • User Pays • User Pays
• CTR, eCPM, CPC • Virtual goods • Price of app
• Recurring Revenue inventory, price per • One-Time-Revenue
payment,
• Easy option for users • Great option for users
to experience full • Recurring Revenue who are willing to buy
features of apps • Great option for users the app right out, with
without paying to try the app with either previous
possibly limited knowledge of the app
features (via advertising ?)

21. Typical Lifecycle Of Successful App
Integrate
monetization SDK &
Publish to Appstore
Increase Userbase via
Mobile Advertising
Monetize & Use
HouseAds to further
drive downloads of
other versions (x &
up sell)

22. Key Takeaways
Mobile App business is exploding
and pads expected to drive even
more growth
Smartphone users are also the
right audience
3 main monetization models
available and should be combined
in an overall strategy
Time is right now, reach out to
Google Mobile team to get started