A presentation I made for Samsung Developer Workshop in Indonesia. Sorry for disabling the download feature. If you want the file, just send me an email at rangga.wiseno@gmail.com

1. Apps Monetizing:
How to get money from Apps
@RanggaWiseno – Application Dev. Head
@dheinaKu – Senior Android Developer
@digital_buana

2. How Do We Got Here
Rise of Mobile
[Source: NeoLane Infographic]

3. How Do We Got Here
Indonesia?
You have 180 million cell phones..
But did you know that you have only about 18% Internet Penetration?
Your going to have Internet Explosion!
Eric Schmidt – Executive Chairman Google (2011)

4. How Do We Got Here
Indonesia?
Total Population: 245 Millions

5. How Do We Got Here
Conclusion
- There’s a Huge Market there
- Not only Global, but local market is also growing
• Indonesian lead APAC Market on Growth
- In Indonesia, the Internet Boom is not started yet
• Huge penetration of Mobile Device vs Bandwidth Quality
• Time to invest on Future Business

6. The Business Model
a Preface
+ + =
A Good Apps Users Monetization Business
One Big Question:
Are you making an app or making a business?

7. IF you’re making a business then:
- Make sure you build a great apps (Product):
• An app that solves user’s needs
- Make sure you try to grab your user (Marketing):
• An app doesn’t sell itself, at least for the start
Except: you’re Facebook, Twitter, Google, or other developers
who already gained attention from media and users
- Make sure you have Monetization plan (Sales):
• Except you’re a very wealthy philanthropist
The Business Model
a Preface

8. The Business Model
Product
“A market is never saturated with a good product,
But it is very quickly saturated with a bad one”
Henry Ford

9. Common misconception:
Developing Product is not a Line, It’s a circle
Great product not build by a single concentrated development,
But through iteration
The Business Model
Product

10. The Business Model
Product – What Circle

11. Few tips suggestions:
- Identify the problem first
• Give product that solved user’s need
• Do not reinvent the wheel
- Always differentiate
• What’s your Unique Selling Proposition (USP)?
- Always have tracking platforms
• Traffic Analytics: Google Analytics
• Customer’s Feedback: Playstore Developer Console
• Social Media Presence: Hootsuite, Klout, etc
The Business Model
Product - Tips

12. The Business Model
User
“Your Most Unhappy Customers
are the greatest source of Learning”
Bill Gates

13. What today users are:
- Very Social
• Easiness to share and interact with others
• Highly chance to go viral = Double Edged Sword
What users used to be and still:
- Never been wrong
(at least that what’s they thought of their selves)
• What’s wrong? The communication
- Want to be served
• Ever heard User Education?
The Business Model
User - Behavior

14. - Find your user based:
• Example: Movie Holic (people who like movie)
- Promote to User:
• Example: Go to Movie Holic forum, start promoting your apps,
How your apps is supporting their Movie addiction
- Engage with User:
• Always listen to User’s Feedback
• Educate User (how to use apps, etc) when needed
• Always follow up User
The Business Model
User – Promoting your Apps

15. - Social Media / Forums:
- Ad Exchange:
- App Store / Play Store
- Email (passive)
The Business Model
User – Platform for Promotion / User Engagement

16. Few tips suggestions:
- Engage User every where
• Play Store / App Store
• Social Media
- Always Respect and Respond to user’s feedback
• Always remember that you don’t know the age, sex,
technology background, location when you reply from feedback
(email, play store review, etc)
- Always save the feedback to Development Ideas
(or Bugs and Error)
• Remember the product cycle before?
The Business Model
User - Tips

17. The Business Model
Monetization
“In The End, all business operations can be reduced
to three words: People, Product, and Profits”
Lee LaCocca

18. The Business Model
Monetization – Tree Structure
Monetization
Free Paid
FreemiumAds In-app Purchase
Subscription
App Purchase
Content
Premium
Subscription
Feature
Premium
Feature
Pay per Use
(or Token Based)
Transaction
Pay per View
Native
Advertising
Non
Native
House
Ads
Ad
Network
Ad
Mediation
Consumable Non
Consumable
Pay per Upgrades

19. Few tips suggestions:
- Play by number not by price
• Higher price not always means Higher Revenue
Higher Price could be Lower User / Transaction
• 100 k User with 1$ Transaction is better than 10k User with 10$
Why? More User = More Viral effect = More Growth
- For Paid Apps:
Always have the free version (freemium)
(except you’re God-like famous for your portfolio)
- For Ads:
Always track your eCPM revenue
The Business Model
Monetization - Tips

20. The Business Model
Monetization Case Study – Freemium Content
“Content is King”
Bill Gates

21. The Business Model
Monetization – Freemium Content

22. The Business Model
Monetization – About Spoin
- Samsung’s Payment Gateway
• Serve as User’s wallet for payment in Apps
• Indonesia only for now
- Feature:
• For Developer: web service API
• For User: Local top up channel, Transfer,
Convert Money, View Reports, Export Reports
- Top up Channel:
• Mandiri Multipayment
• Mocash BRI
• Credit Card: Visa / Master Card

23. The Business Model
Monetization Case Study – Non Native Ads
“Advertising has us chasing cars and clothes.
working jobs we hate, so we can buy things we don’t need.”
Chuck Palahniuk

24. The Business Model
Monetization – Ads - Glossary
- CPM (Cost per Mile):
Price per 1000 views (paid by Advertiser)
- CPC (Cost per Click):
Price per Click (paid by Advertiser)
- Fill Rate:
Number of Displayed ads / Number of Views
- CTR (Click Through Rate):
Number of Clicks / Number of Views

25. The Business Model
Monetization – House Ads – Business Model

26. • Price for Ads is good, BUT..
–Very very low Fill Rate (below 15%)
–Too much Advertising Spot not supported by
Fill Rate means
• Less User Experience without more money
The Business Model
Monetization – House Ads - Problems

27. The Business Model
Monetization – House Ads - Questions
Do you have channels to Advertisers?
and
Do you have enough User based
to attract them?

28. The Business Model
Monetization – Ad Network – Business Model

29. The Business Model
Monetization – Ad Networks - Conditions

30. The Business Model
Monetization – Samsung Ad Solution

31. The Business Model
Monetization – Samsung Ad Solution

32. • eCPM is realtime and very fluctuative, depend on:
– Apps dowload status (exp: rank on store)
– Ad Network Condition:
• Current Advertiser
• Financial Condition
• Development effort for each integration:
– Using Ad Network A means use A SDK
(too much development effort and updates to store)
The Business Model
Monetization – Ad Network - Problems

33. What is Ad Mediation?
The Business Model
Monetization – Ad Mediation

34. The Business Model
Monetization – Ad Mediation

35. • Mediate Payment
– All Payment (register account, etc) is still done by Ad
Network
• Real Time Bidding
– Fill Rate is managed through backfill priority (manual),
not by Real Time eCPM Comparing Algorithm
The Business Model
Monetization – Ad Mediation NOT

36. END….. (Go To Technical Section)