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Monetizing Mobile Apps
- 1. Monetizing Mobile Apps James Smith CTO Heyzap @loopj 1
- 2. Decide how to monetize early • Sell your app through iOS/Android app store • Sell your app directly from your website • Make your app free, monetize with ads • Make your app free, charge for content or upgrades 2
- 3. Sell your app through an app store • Built in distribution, reviews, existing market • Will cost you 30% of each transaction • Have to comply with market rules • Higher barrier to entry “iOS users in general are more willing to pay for an app than Android users” - makingmoneywithandroid.com 3
- 4. Free, Ad supported • Reduces friction at point of download • Revenue varies between platforms “Android game revenue was 1/8 to 1/10 of iOS revenue” - Glu Mobile 4
- 5. In-app purchases • Can be very lucrative • Works better with apps/games with high depth and long term retention • Need to make in this mechanic from the start “More than half of iOS’s top 25 grossing games are now free and make money off selling virtual currency and goods.” - insidemobileapps.com 5
- 6. Sell your app through your website • Might make sense if you have existing traffic • Avoid per-transaction costs • Might be able to avoid platform restrictions • Not allowed without jailbreak on iOS • High friction on Android 6
- 7. Consider up front costs • Development and design costs • Cost of tools and software • iOS developer account ($99) • Google market distribution cost ($20) 7
- 8. On-going costs add up • User acquisition! • Ad purchases • CPI purchases • Cross promotion deals • Re-invest 8
- 9. Reduce user acquisition cost: go viral • Viral channels are a multiplier • Bake viral in from the start for best results • Use something like Heyzap for one-line viral integration “Typical game k-factors are now between 0.05 and 0.20” - Kontagent 9
- 10. Some stats • Mobile ad revenue $3.3 billion in 2011 • Mobile virtual goods $2.1 billion in 2011 • 25-34 age group most lucrative for in-app purchases, consider your demographic 10
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