Post on 09-May-2015
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BUILDING A BUSINESS ON MOBILE APPS
Anna Yashchenko AdMob by Google
850K Devices activated daily
Source: Apple, Google data, April 2011
Android
125 years of Angry
Birds played every day
600 million mobile playbacks
every day on YouTube
Source: Nielsen June 2010, Rovio December 2010, YouTube Internal Data 2010
Source: AdMob Network Data
Jan-10 through Mar-12
App and site use is exploding in Russia
Source: AdMob network data, August 2010 & 2012
Jan-10 Jan-11
Ad requests
Jan-2010 Jan-2012
40 m
1,5 bn
“Hockey stick” growth in ad requests
Source: AdMob Network Data, March – August 2011
AdMob Network Ad Requests Russia
… but growth driven from high end devices
Source: AdMob Network Data, March – August 2011
iPhone + Android
AdMob Network Ad Requests Russia
!"#$ %&'$ ()"$ *+,$ -).$ /+0$
… and tablets are just starting to take off
Source: AdMob Network Data, March – August 2011
iPad
AdMob Network Ad Requests Russia
We quickly discovered that ads were bringing in the majority of the revenue
Guilherme Schvartsman Founder & CEO of Best, Cool & Fun Games
Results 20M users 70% of revenue derived from ads through AdMob
Drove 45% of Ant Smasher downloads with advertising on AdMob
How Much Are Developers making?
YOU
Promote Measure Earn
PROMOTE
Ways to get discovered
• Build a brand – app description and icon matter
• Go social – leverage your social circles • Advertise – free vs. paid
400,000+ apps in the store
Advertise within other apps to get discovered
Increased ranking means more “discoverability”
Time
Active Users
Jumpstart your user base with paid advertising
Time
Active Users
Jumpstart your user base with paid advertising
More than one app? Use house ads for free advertising
Time
Active Users
App A
Jumpstart your user base with house ads
Time
Active Users
App A App B
Jumpstart your user base with house ads
Time
Active Users
App A
App B
Jumpstart your user base with house ads
EARN
Freemium User pays for additional
functionality
Paid downloads User pays a fee
to download
Advertising User clicks on ads
In-app purchase User purchases goods
within the app
Many ways to earn money
Advertisers are spending to reach their audience in
apps
Developers earning over
$100K / year has quadrupled
since 2009
User launches your app.
User clicks on ad placed in your app.
You get paid for each click.
Earning money with mobile advertising
Advertising math 101
$0.10 cost per click (CPC) 100,000 impressions
1,500 clicks
120,000 ad requests
Fill rate 100,000 120,000
83.3%
Click-through rate (CTR) 1,500 100,000
1.5%
Revenue 1,500 x $0.10 $150
eCPM $150 х 1000 100,000
$1.50
Network fluctuations
RPM varies across networks
Mediation reduces RPM fluctuations and maximizes revenue
32
Mediation enables multiple ad networks
33
Mediation
Ad network A
Ad network B
Ad network C
MEASURE
Download data and statistics are readily available in most
marketplaces
It’s easy to measure downloads
But what are my users doing?
Active Customers
Potential Customers
And where are downloads coming from?
Active Customers
Potential Customers
Analytics helps you make critical decisions
• Extend to a new platform?
• Acquire more users?
• Change my business model?
• Retire unused features?
• Develop a new app?
Get started with AdMob by Google
Measure
• Monetize with AdMob ad network
• Consider freemium, in-app purchases, etc.
• Drive downloads with paid advertising
• Cross-sell with house ads
• Track performance with Analytics
Promote Earn
www.guidetotheappgalaxy.com
To learn about mobile advertising, monetization and measurement visit:
The Guide to the App Galaxy
THANK YOU! www.admob.com