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World’s Largest Independent
                     Mobile Ad Network

                  The Economics of Building an
            Advertising Supported App Business



8/22/2011                                        1
We’re a Global Mobile Display Ad Network
•   4 years of mobile expertise         •   6 regional office and 6 additional sales offices
•   10,000+ Publisher and Advertisers   •   Top talent from Google, Yahoo & Amazon
•   36+ Billion monthly impressions     •   225+ countries



                                        London
         San Francisco
                                                     Berlin
             Chicago
                          New York                                                     Tokyo
                                                                    Mumbai

                                                                        Bangalore

                                                 Nairobi

                                                                              Singapore


                                                     Johannesburg
                                                                                       Sydney
A Selection of Publishers
A Selection of Advertisers
Mobile App Landscape

                     400K+ Apps in iTunes
            Market dynamics change daily and hourly
                    Highly competitive




8/22/2011                                             5
Tablets - The New Opportunity

   • iPad and Tablets are creating new markets
   • Mobile eco-system is still emerging
   • Top apps are worth millions of dollars



                        Needham’s Charlie Wolf, raised his 2011
                        iPad sales forecast to 30 million.

                        Total iOS installed base 160+ mn.

                        Total Android installed base 150+ mn.




8/22/2011                                                         6
Revenue Models: Overview

            There are four ways to make money

             Paid Downloads              Sponsorship




                Advertising            In App Purchase


                Each has strengths and weaknesses
            Some models are more appropriate than others

8/22/2011                                                  7
Revenue Models: Paid Download

   • Strength: Works best with gaming and utilities
   • Weakness: Promotion is difficult




              Tiny Wings         Words with
                                 Friends

                                               Examples

              Fruit Ninja




8/22/2011                                                 8
Revenue Models: Sponsorship

   • Strength: Great for niche apps
   • Weakness: Not scalable




             The Onion          Red Bull


                                           Examples

             Walgreens




8/22/2011                                             9
Revenue Models: In App Purchase

   • Strength: Requires loyal repeat usage
   • Weakness: Difficult to achieve app loyalty




             Ebay                 Tap Zoo


                                                  Examples

             Eliminate            Farmville




8/22/2011                                                    10
Revenue Models: Advertising

   • Strength: Can drive more revenue than paid
   • Weakness: Requires large installed base




             Photobucket        Moco Space


                                             Examples

             Shotgun




8/22/2011                                               11
App Monetization Matrix

  Recommended models by category

                 Gaming   Specialty   Community   Utility


   Paid
   Download


   Advertising


   Sponsor


   In App
   Purchase



8/22/2011                                                   12
Try Combining Models

  • Experiment.
  • Take advantage of global markets
  • Mix models depending on stage of evolution.


      Introduction   Growth      Maturity         Decline




            1        2            3               4
8/22/2011                                                   13
Build a Business not Apps

  •    Build portfolio of apps
  •    Create synergy between apps
  •    Build brand
  •    Variable pricing
  •    Develop quality content
  •    Take maximum advantages of social channels
  •    Exploit global nature of app market




8/22/2011                                           14
The Mobile Ad Opportunity
• A $1 Billion market in the U.S. today
• Globally it’s expected to exceed $20 B in 2013




8/22/2011                                          15
The Ad Network Concept


            Advertiser A   Advertiser B               Advertiser C   Advertiser D




                                         Ad Network




            Publisher A    Publisher B                Publisher C    Publisher D




8/22/2011                                                                           16
How to Pick a Network

  Some important questions to consider:

  •    In what regions are you trying to monetize?
  •    What platform are you developing for?
  •    Type of content games, music, cars?
  •    Is a third party platform right for you?




8/22/2011                                            17
How Publishers Make Money

                                     Ad Network




            Impression   Fill Rate                CPC   CTR




                                      Revenue




8/22/2011                                                     18
Tips and Tricks

  • Experiment with ad placement and format
  • Use data to improve performance
  • Use multiple ad networks
  • Create your own mediation layer
  • Develop directly for ad verticals (cars,
    travel, finance, etc.)
  • Test everything
  • Iterate often




8/22/2011                                      19
Think Globally




8/22/2011        20
Think Globally

 eCPMs vary globally but not by a big margin

             129         125                                        Index by region
                                                          Sourced from our Network
                                           101
                                                             90
                                                                              70




            Europe   North America   Asia (Excl. China   Middle East         Africa
                                        and Japan)



8/22/2011                                                                             21
eCPMs Top 20 Countries

            Country    Index Range   Rank     Country      Index Range   Rank

        Australia         > 150       1        UAE         120 to 149     11

        Malaysia          > 150       2       Sweden       120 to 149     12

            Ireland       > 150       3       Norway       120 to 149     13

        Thailand          > 150       4      Germany       120 to 149     14

      South Africa        > 150       5      Singapore     120 to 149     15

  Russian Federation      > 150       6     Saudi Arabia    80 to 120     16

     New Zealand          > 150       7        Brazil       80 to 120     17

    United Kingdom        > 150       8       France        80 to 120     18

             Italy        > 150       9        Spain        80 to 120     19

             USA          > 150       10      Jordan        80 to 120     20




8/22/2011                                                                       22
Compatibility

       We are 100% compatible with:




     With InMobi you get both reach and impact.
Froggy Jump Case Study

   Invictus Games Sees eCPMs as High as $5.99
            for iPhone Game With InMobi




8/22/2011                                       24
Shotgun Free Case Study

        Inedible’s Shotgun Free iPhone App Triples
             International eCPMs With InMobi




8/22/2011                                            25
Key Messages

•    Think globally
•    Build a sustainable business
•    Test and experiment
•    Optimize based on data
•    Have fun!




8/22/2011                           27
Thank You



            For a copy of this presentation please write to me




                        kk@inmobi.com




8/22/2011                                                        28

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In mobi developer_presentation

  • 1. World’s Largest Independent Mobile Ad Network The Economics of Building an Advertising Supported App Business 8/22/2011 1
  • 2. We’re a Global Mobile Display Ad Network • 4 years of mobile expertise • 6 regional office and 6 additional sales offices • 10,000+ Publisher and Advertisers • Top talent from Google, Yahoo & Amazon • 36+ Billion monthly impressions • 225+ countries London San Francisco Berlin Chicago New York Tokyo Mumbai Bangalore Nairobi Singapore Johannesburg Sydney
  • 3. A Selection of Publishers
  • 4. A Selection of Advertisers
  • 5. Mobile App Landscape 400K+ Apps in iTunes Market dynamics change daily and hourly Highly competitive 8/22/2011 5
  • 6. Tablets - The New Opportunity • iPad and Tablets are creating new markets • Mobile eco-system is still emerging • Top apps are worth millions of dollars Needham’s Charlie Wolf, raised his 2011 iPad sales forecast to 30 million. Total iOS installed base 160+ mn. Total Android installed base 150+ mn. 8/22/2011 6
  • 7. Revenue Models: Overview There are four ways to make money Paid Downloads Sponsorship Advertising In App Purchase Each has strengths and weaknesses Some models are more appropriate than others 8/22/2011 7
  • 8. Revenue Models: Paid Download • Strength: Works best with gaming and utilities • Weakness: Promotion is difficult Tiny Wings Words with Friends Examples Fruit Ninja 8/22/2011 8
  • 9. Revenue Models: Sponsorship • Strength: Great for niche apps • Weakness: Not scalable The Onion Red Bull Examples Walgreens 8/22/2011 9
  • 10. Revenue Models: In App Purchase • Strength: Requires loyal repeat usage • Weakness: Difficult to achieve app loyalty Ebay Tap Zoo Examples Eliminate Farmville 8/22/2011 10
  • 11. Revenue Models: Advertising • Strength: Can drive more revenue than paid • Weakness: Requires large installed base Photobucket Moco Space Examples Shotgun 8/22/2011 11
  • 12. App Monetization Matrix Recommended models by category Gaming Specialty Community Utility Paid Download Advertising Sponsor In App Purchase 8/22/2011 12
  • 13. Try Combining Models • Experiment. • Take advantage of global markets • Mix models depending on stage of evolution. Introduction Growth Maturity Decline 1 2 3 4 8/22/2011 13
  • 14. Build a Business not Apps • Build portfolio of apps • Create synergy between apps • Build brand • Variable pricing • Develop quality content • Take maximum advantages of social channels • Exploit global nature of app market 8/22/2011 14
  • 15. The Mobile Ad Opportunity • A $1 Billion market in the U.S. today • Globally it’s expected to exceed $20 B in 2013 8/22/2011 15
  • 16. The Ad Network Concept Advertiser A Advertiser B Advertiser C Advertiser D Ad Network Publisher A Publisher B Publisher C Publisher D 8/22/2011 16
  • 17. How to Pick a Network Some important questions to consider: • In what regions are you trying to monetize? • What platform are you developing for? • Type of content games, music, cars? • Is a third party platform right for you? 8/22/2011 17
  • 18. How Publishers Make Money Ad Network Impression Fill Rate CPC CTR Revenue 8/22/2011 18
  • 19. Tips and Tricks • Experiment with ad placement and format • Use data to improve performance • Use multiple ad networks • Create your own mediation layer • Develop directly for ad verticals (cars, travel, finance, etc.) • Test everything • Iterate often 8/22/2011 19
  • 21. Think Globally eCPMs vary globally but not by a big margin 129 125 Index by region Sourced from our Network 101 90 70 Europe North America Asia (Excl. China Middle East Africa and Japan) 8/22/2011 21
  • 22. eCPMs Top 20 Countries Country Index Range Rank Country Index Range Rank Australia > 150 1 UAE 120 to 149 11 Malaysia > 150 2 Sweden 120 to 149 12 Ireland > 150 3 Norway 120 to 149 13 Thailand > 150 4 Germany 120 to 149 14 South Africa > 150 5 Singapore 120 to 149 15 Russian Federation > 150 6 Saudi Arabia 80 to 120 16 New Zealand > 150 7 Brazil 80 to 120 17 United Kingdom > 150 8 France 80 to 120 18 Italy > 150 9 Spain 80 to 120 19 USA > 150 10 Jordan 80 to 120 20 8/22/2011 22
  • 23. Compatibility We are 100% compatible with: With InMobi you get both reach and impact.
  • 24. Froggy Jump Case Study Invictus Games Sees eCPMs as High as $5.99 for iPhone Game With InMobi 8/22/2011 24
  • 25. Shotgun Free Case Study Inedible’s Shotgun Free iPhone App Triples International eCPMs With InMobi 8/22/2011 25
  • 26. Key Messages • Think globally • Build a sustainable business • Test and experiment • Optimize based on data • Have fun! 8/22/2011 27
  • 27. Thank You For a copy of this presentation please write to me kk@inmobi.com 8/22/2011 28