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Monetising mobile apps, apppli ltd

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How apps makemoney
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Monetising mobile apps, apppli ltd

  1. 1. App Monetisation: Choosing the Best Business Model for Revenue Generation T: UK +44 (0) 20 71127100 | www.apppli.com
  2. 2. The Road from App Development to App Revenue  So you’ve created a professional, useful and attractive application and you want (ideally!) to make some money with it: what to do next?  Here are the possible monetisation models to consider: 1. Immediate Revenue  Third Party Supported  Advertising  Sponsorship  Payments  Paid Downloads  Subscriptions  In-app Purchases 2. Long-term Revenue  Establish and Exploit  Branding
  3. 3. The Pros and Cons of Third Party Revenue • By relying on third party revenue you can offer the app free and • Increase brand reputation • Increase App Store presence • Build a following • Ad Revenue = Clicks x CPC • Of all other revenue models out there, one payment model has become the most successful in the past several months…
  4. 4. Apps with In-App Purchasing  Now, in-app purchasing is driving revenue for the top grossing apps  End-users can purchase upgrades, more levels, virtual goods, or extra features from within the App  Top 20 grossing game apps - 60% drive revenue with in-app purchases.*  In-app purchases on free apps - 15% of total app revenue on iPad and 14% of all total app revenue on paid apps in Dec 2010.** * iTunes Top Grossing App Chart, March 4th, 2011. ** Distimo ***Flurry
  5. 5. A Few Apps with in-App Purchasing Functionality…
  6. 6. In-App Purchasing: The Pros • Enables you to create content, features, or offer services from within your app. • Allows you to create revenue while exploiting the high download rate of free applications. Users are willing to spend more on extra content! • Allows experimentation with different monetisation models (subscriptions, pay-per-feature transactions, etc).
  7. 7. In-App Purchasing: The Cons • It takes more time and effort to configure in-app purchasing capabilities. • Your app needs to have strong micro-transaction potential • You must be able to create additional content, functionalities or offer new services.
  8. 8. In Conclusion… • This talk has touched on the basic monetization models… • Best monetisation strategies often require experimentation with a combination of these models • Choosing the best monetisation model will depend on several factors: 1. The target market 2. The micro-transaction potential of the app 3. The kind of value it offers to users
  9. 9. Questions/Comments? Thank you! Email: diana@apppli.com

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