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We Are Going Mobile
Trends and Growth in App Economy
SNAPSHOT
1. Where do
we stand?
3. Insight to an
Idea
2. What is an
Insight
4. Type of
mobile
applications
5. The
commandments
7. Ways to
monetize
6. How do you
sell?
8. Applications
worth Noticing
9. Gaming –
Business Models
10. What to
track?
Where do we stand?
 More than 60% of social media
consumption happens though mobile
devices
 90% of users use multiple screens
sequentially, where Smartphone
triggers an activity
 Android in India holds 91% market
share followed by Windows phone &
IOS*
 9.5% of the overall app downloads
came from India (2nd after US)
What is an Insight?
Disturbance in Discourse
Discourse = Received ways of thinking or talking about a subject
Disturbance = A new way of saying what we didn’t know how to say before
Patterns are attractive but their overall success rate is pretty poor
Insight to an Idea
Flappy Bird has flied to Number 1 spot in 53 countries on Apple App Store*
Dong Nguyen’s Flappy Bird
Types of Mobile Applications
Productivity
Save my time
Creativity
Invest my time
The Commandments
 Thou shall focus on context and not patterns
 Thou shall not forget the user while designing
 Thou shall make your app name unique
 Thou shall write a description which tells the usage upfront
 Thou shall not try to develop transactions but relationships
 Thou shall establish the feedback loop
DON’T TRY
TO GET BRANDS
FOR YOUR
APPLICATION
RATHER MAKE A
BRAND OF YOUR
APPLICATION
Developer Mindshare
“37% of mobile developers use
HTML5 as a platform, i.e. to
develop mobile websites or web-
apps, while another 15% use
HTML5 to go beyond the browser”
How do you sell?
 Blogs
 Contextual blogs
 Advertisements
 Banner Ads
 Expandables
 Interstitials
 Text Ads
 Partnerships
 Partner with OEMs and other applications
Choose The Right Format
1.40
1.65 1.73
1.99
1.12
0.63
3.06
1.58
Banner Ads Expandables Interstitials Text ads
Average conversion rate across ad formats
iOS Android
On Android, the average
conversions on
interstitial ads are almost
double that of
other ad formats
Monetize
Direct
App as a product
Commissioned apps
Pay per Download
In app purchases
Subscriptions
Per device royalties
Indirect
App as a channel
In – app advertising
Indirectly (brand
awareness)
Developer services
E-commerce sales
Affiliate or CPI
programs
The New Frontier
The median revenues of developers involved in e-commerce are
$2,750 per app/month, by far the highest among all app revenue
models that can be employed
Revenue Distribution
Start from iOS and then move to Android
when launching because In terms of
developer revenues per capita, iOS
maintains its momentous gap to Android
Applications Worth Noticing
Description
The app learns which apps you use most in
various locations you frequent, and it makes
them easily accessible with no user
intervention
COVER
Applications Worth Noticing
Description
Let’s you apply themes to your phones with
a click and organizes the apps. The beauty
lies in how they try to sell other apps by
categorizing the existing ones
THEMER
Applications Worth Noticing
SHOPKICK
Description
It recognizes a SmartPhone when it is next to
a store, Sends points to the phone each
time it passes by the store and allows the
points to be redeemed when at the store
Applications Worth Noticing
DUOLINGO
Description
Gamifies the concept of learning a new
language by creating levels which force
user to try more and hence learn more
Gaming – Business Models
In-game advertising
Billboards and Branded
items in game world
Around game
advertising
Banner & Skyscraper
Try before buy
Restricted versions of game
Skill-based Progression
Buy a ticket to enter
Advertgames
Selling the experience
Episodic Entertainment
Borrowing from the TV
model
Gaming – Business Models
Subscription
World of Warcraft or Conan
Velvet Rope
Players pay for VIP access
Micro-Transactions
(Freemium)
Small, Impulsive driven up
selling
Player to Player trading
Trade land, property and
characters
Sponsored Games
World of Warcraft or Conan
Pre-Sell the game
Kickstarter.com
The Rise of Freemium
86%
46%
14%
54%
Games Apps Excluding Games
2012 Indexed Revenues
With In-app purchase Without In-app purchase
93%
57%
7%
43%
Games Apps Excluding Games
2013 Indexed Revenues
With In-app purchase Without In-app purchase
Freemium as a revenue model has not only been successful in gaming but has also become prevalent in non-
gaming categories such as messaging, music, news and dating
Advertising Network – Admob
Monetize
Publish Apps with Admob SDK
Promote
Advertise your app in others to
increase downloads
Choose an
advertising
network which
suits your
revenue model
and user
demography
What to Measure?
Usage
Demography, Frequency, Time,
User Flow, Cohort Analysis
Lifetime Value
Assign values to the mobile user
to compare/analyze
Retention Rate
Measure how many users
continue to use your
application after install
Active Users
MAU (Monthly Active Users) or
DAU (Daily Active Users)
Session Length
The time mobile users are
spending with your application
ARPU
Value of an user to your app
business
Launch/Load Time
Ensuring that the launch/load
time is consistent across all users
Acquisition
Acquiring more users based on
the usage patterns
Candy Crush Saga
2Xrevenues in the
December
quarter last year
The revenue model of the game was Freemium (in app purchases + in game advertising).
Advertising serves as a powerful revenue stream because publishers can earn money even when
no one is downloading the application
It’s Your Time To Speak Up
Thanks!

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We are going mobile

  • 1. We Are Going Mobile Trends and Growth in App Economy
  • 2. SNAPSHOT 1. Where do we stand? 3. Insight to an Idea 2. What is an Insight 4. Type of mobile applications 5. The commandments 7. Ways to monetize 6. How do you sell? 8. Applications worth Noticing 9. Gaming – Business Models 10. What to track?
  • 3. Where do we stand?  More than 60% of social media consumption happens though mobile devices  90% of users use multiple screens sequentially, where Smartphone triggers an activity  Android in India holds 91% market share followed by Windows phone & IOS*  9.5% of the overall app downloads came from India (2nd after US)
  • 4. What is an Insight? Disturbance in Discourse Discourse = Received ways of thinking or talking about a subject Disturbance = A new way of saying what we didn’t know how to say before Patterns are attractive but their overall success rate is pretty poor
  • 5. Insight to an Idea Flappy Bird has flied to Number 1 spot in 53 countries on Apple App Store* Dong Nguyen’s Flappy Bird
  • 6. Types of Mobile Applications Productivity Save my time Creativity Invest my time
  • 7. The Commandments  Thou shall focus on context and not patterns  Thou shall not forget the user while designing  Thou shall make your app name unique  Thou shall write a description which tells the usage upfront  Thou shall not try to develop transactions but relationships  Thou shall establish the feedback loop DON’T TRY TO GET BRANDS FOR YOUR APPLICATION RATHER MAKE A BRAND OF YOUR APPLICATION
  • 8. Developer Mindshare “37% of mobile developers use HTML5 as a platform, i.e. to develop mobile websites or web- apps, while another 15% use HTML5 to go beyond the browser”
  • 9. How do you sell?  Blogs  Contextual blogs  Advertisements  Banner Ads  Expandables  Interstitials  Text Ads  Partnerships  Partner with OEMs and other applications
  • 10. Choose The Right Format 1.40 1.65 1.73 1.99 1.12 0.63 3.06 1.58 Banner Ads Expandables Interstitials Text ads Average conversion rate across ad formats iOS Android On Android, the average conversions on interstitial ads are almost double that of other ad formats
  • 11. Monetize Direct App as a product Commissioned apps Pay per Download In app purchases Subscriptions Per device royalties Indirect App as a channel In – app advertising Indirectly (brand awareness) Developer services E-commerce sales Affiliate or CPI programs
  • 12. The New Frontier The median revenues of developers involved in e-commerce are $2,750 per app/month, by far the highest among all app revenue models that can be employed
  • 13. Revenue Distribution Start from iOS and then move to Android when launching because In terms of developer revenues per capita, iOS maintains its momentous gap to Android
  • 14. Applications Worth Noticing Description The app learns which apps you use most in various locations you frequent, and it makes them easily accessible with no user intervention COVER
  • 15. Applications Worth Noticing Description Let’s you apply themes to your phones with a click and organizes the apps. The beauty lies in how they try to sell other apps by categorizing the existing ones THEMER
  • 16. Applications Worth Noticing SHOPKICK Description It recognizes a SmartPhone when it is next to a store, Sends points to the phone each time it passes by the store and allows the points to be redeemed when at the store
  • 17. Applications Worth Noticing DUOLINGO Description Gamifies the concept of learning a new language by creating levels which force user to try more and hence learn more
  • 18. Gaming – Business Models In-game advertising Billboards and Branded items in game world Around game advertising Banner & Skyscraper Try before buy Restricted versions of game Skill-based Progression Buy a ticket to enter Advertgames Selling the experience Episodic Entertainment Borrowing from the TV model
  • 19. Gaming – Business Models Subscription World of Warcraft or Conan Velvet Rope Players pay for VIP access Micro-Transactions (Freemium) Small, Impulsive driven up selling Player to Player trading Trade land, property and characters Sponsored Games World of Warcraft or Conan Pre-Sell the game Kickstarter.com
  • 20. The Rise of Freemium 86% 46% 14% 54% Games Apps Excluding Games 2012 Indexed Revenues With In-app purchase Without In-app purchase 93% 57% 7% 43% Games Apps Excluding Games 2013 Indexed Revenues With In-app purchase Without In-app purchase Freemium as a revenue model has not only been successful in gaming but has also become prevalent in non- gaming categories such as messaging, music, news and dating
  • 21. Advertising Network – Admob Monetize Publish Apps with Admob SDK Promote Advertise your app in others to increase downloads Choose an advertising network which suits your revenue model and user demography
  • 22. What to Measure? Usage Demography, Frequency, Time, User Flow, Cohort Analysis Lifetime Value Assign values to the mobile user to compare/analyze Retention Rate Measure how many users continue to use your application after install Active Users MAU (Monthly Active Users) or DAU (Daily Active Users) Session Length The time mobile users are spending with your application ARPU Value of an user to your app business Launch/Load Time Ensuring that the launch/load time is consistent across all users Acquisition Acquiring more users based on the usage patterns
  • 23. Candy Crush Saga 2Xrevenues in the December quarter last year The revenue model of the game was Freemium (in app purchases + in game advertising). Advertising serves as a powerful revenue stream because publishers can earn money even when no one is downloading the application
  • 24. It’s Your Time To Speak Up Thanks!

Hinweis der Redaktion

  1. Source: Avendus/ TRAI 2013+ |IDC, Q2, 2013*
  2. Truth = It can be boring and uninspiring, if the truth needs to be happening its too late, the truth confuses us Consumer = Insight doesn’t always come from a consumer (take biscuits for example) but should be relevant to him Deep = Don’t go deeper go sideways Source: Flamingo research (http://slidesha.re/1jlhouI)
  3. Source: http://tcrn.ch/1iEd4TK *Source: http://bit.ly/1eb44Rp
  4. Source: Vision mobile developer economics report
  5. For apps with short app sessions, static interstitials get the point across immediately and are found to be the most effective in driving engagement. On the other hand, for more engaging apps with longer app sessions, video interstitials deliver higher eCPMs. Static interstitials typically are observed to provide CTRs as high as 20% while video-interstitials are found to deliver superior ad engagement. Source: Inmobi mobile report
  6. Median revenue is highest in the case of E-commerce sales
  7. Amazon introduced its Mobile Associates API recently, which allows developers to feature Amazon products — and earn up to six percent of their purchase price when users buy them The amount of money developers can make here is vastly higher, per user, than traditional advertising which is why in just two quarters the number of developers using this strategy jumped from five percent to eight percent
  8. Source – Appannie Index Report