Session 2: Building an Ad Supported App Business - Gregory Kennedy, head of InMobi’s developer community will share business strategies for developer and entrepreneurs who want to create an ad support app business.

1. 11/6/10 1 World’s Largest IndependentMobile Ad NetworkThe Economics of Building anAdvertising Supported App BusinessAugust 16, 2010

3. 150 employees

4. Backed by Kleiner Perkins

5. 21.2 Billion impressions

6. 6 Offices

7. Live in 115 countriesLondon San Francisco Tokyo Bangalore Singapore Johannesburg

8. 11/6/10 3 A Selection of Partners

9. Mobile App Landscape Saturation point reached (100K+ Apps) Market dynamics change daily and hourly Highly competitive 11/6/10 4

10. The Opportunity Still huge opportunity for developers (long tale) Mobile eco-system is still emerging Top apps are worth millions of dollars 11/6/10 5 Since its release over 6.5 million copies of the game Angry Birds have been purchased.

11. There are only four ways to make money Revenue Models: Overview 11/6/10 6 Paid Downloads Sponsorship Advertising In App Purchase Each has strengths and weaknesses Some models are more appropriate than others

12. Revenue Models: Paid Download Strength: Works best with gaming and utilities Weakness: Promotion is difficult Examples 11/6/10 7 Angry Birds Halloween Fruit Ninja

13. Strength: Can drive more revenue than paid Weakness: Requires large installed base Revenue Models: Advertising 11/6/10 8 Photobucket Moco Space Examples Shotgun

14. Revenue Models: Sponsorship Strength: Great for niche apps Weakness: Not scalable 11/6/10 9 The Onion Examples Walgreens

15. Revenue Models: In App Purchase Strength: Requires loyal repeat usage Weakness: Difficult to achieve app loyalty Examples 11/6/10 10 Tap Zoo Ebay Eliminate

16. App Monetization Matrix 11/6/10 11 Recommended models by category

18. Experiment

19. Take advantage of global marketsIntroduction Growth Maturity Decline 1 2 3 4

21. Create synergy between apps

22. Use loss leaders to build brand

23. Variable pricing

24. Develop quality content

25. Take maximum advantages of social channels

27. 11/6/10 15 The Ad Network Concept Advertiser A Advertiser B Advertiser C Advertiser D Ad Network Publisher A Publisher B Publisher C Publisher D

29. What platform are you developing for?

30. Type of content games, music, cars?

31. Is a third party platform right for you?Types of Network: Blind Network Vertical Network Targeted Network

32. 11/6/10 17 How Publishers Make Money Ad Network Revenue Impression Fill Rate CPC CTR

34. Use data to improve performance

35. Use multiple ad networks

36. Create your own mediation layer

37. Develop directly for ad verticals (cars, travel, finance, etc.)

38. Test everything

40. Think Globally eCPMs vary globally but not by a big margin 11/6/10 20 129 Index by region Sourced from our Network 125 101 90 70

41. eCPMs Top 20 Countries 11/6/10 21

42. We are 100% compatible with: WithInMobi you get both reach and impact. Compatibility

43. 11/6/10 23 Our Network InMobi can offer developers monetization in all regions around the globe. Europe 1.8 Billion Ad Requests North America 3.2 Billion Ad Requests Middle East 514 Million Ad Requests Asia Pacific 11.5 Billion Ad requests Africa 2.8 Billion Ad Requests

44. Froggy Jump Case Study 11/6/10 24 Invictus Games Sees eCPMs as High as $5.99 for iPhone Game With InMobi

45. Shotgun Free Case Study 11/6/10 25 Inedible’s Shotgun Free iPhone App Triples International eCPMs With InMobi

46. InMobi World Developer Fund 11/6/10 26 $2 Million Dollar World Developer Fund Normally ad networks share revenue with publishers We offer you 100% of revenue earned Program lasts until the fund is gone Real support for developers

47. Austin Special Offer 11/6/10 27 Join Our Dev Community http://inmobi.com/onlinecampaigns/austindev/

48. Key Messages 11/6/10 28 Think globally Build a sustainable business Test and experiment Optimize based on data Have fun!