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World’s Largest IndependentMobile Ad Network

The Economics of Building anAdvertising Supported App Business

August 16, 2010

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We’re a Mobile Ad Network

• 21.2 Billion impressions• 6 Offices• Live in 115 countries

• 185 M Consumers reached• 150 employees• Backed by Kleiner Perkins

San Francisco

London

Johannesburg

Tokyo

Singapore

Bangalore

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A Selection of Partners

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Mobile App Landscape

Saturation point reached (100K+ Apps)

Market dynamics change daily and hourly

Highly competitive

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The Opportunity

• Still huge opportunity for developers (long tale)• Mobile eco-system is still emerging• Top apps are worth millions of dollars

Since its release over 6.5 million copies of the game Angry Birds have been purchased.

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Revenue Models: Overview

There are only four ways to make money

Each has strengths and weaknessesSome models are more appropriate than others

Paid Downloads Sponsorship

Advertising In App Purchase

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Examples

Revenue Models: Paid Download

• Strength: Works best with gaming and utilities• Weakness: Promotion is difficult

Angry Birds Halloween

Fruit Ninja

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Revenue Models: Advertising

• Strength: Can drive more revenue than paid• Weakness: Requires large installed base

Photobucket

Shotgun

Examples

Moco Space

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Revenue Models: Sponsorship

• Strength: Great for niche apps• Weakness: Not scalable

The Onion

Walgreens

Examples

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Examples

Revenue Models: In App Purchase

• Strength: Requires loyal repeat usage• Weakness: Difficult to achieve app loyalty

Ebay

Eliminate

Tap Zoo

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App Monetization Matrix

Gaming Specialty Community Utility

Paid Download X X

Advertising X X X

Sponsor X

In App Purchase X X

Recommended models by category

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Try Combining Models

• Mix models depending on growth stage• Experiment• Take advantage of global markets

Introduction Growth Maturity Decline

1 2 3 4

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Build a Business not Apps

• Build a portfolio of apps• Create synergy between apps• Use loss leaders to build brand• Variable pricing• Develop quality content• Take maximum advantages of social channels• Exploit global nature of app market

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The Mobile Ad Opportunity

• A $1 Billion market in the U.S. today • Globally it’s expected to exceed $20 B in 2013

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The Ad Network Concept

Advertiser A Advertiser B Advertiser C Advertiser D

Ad Network

Publisher A Publisher B Publisher C Publisher D

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How to Pick a Network

Some important questions:• In what regions are you trying to monetize?• What platform are you developing for?• Type of content games, music, cars?• Is a third party platform right for you?

BlindNetwork

VerticalNetwork

TargetedNetwork

Types of Network:

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How Publishers Make Money

Impression Fill Rate CPC CTR

Ad Network Revenue

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Tips and Tricks

• Experiment with ad placement and format• Use data to improve performance• Use multiple ad networks• Create your own mediation layer• Develop directly for ad verticals (cars,

travel, finance, etc.)• Test everything• Iterate often

Think Globally

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Think Globally

eCPMs vary globally but not by a big margin

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Europe North America Asia (Excl. China and

Japan)

Middle East Africa

129 125

10190

70

Index by regionSourced from our Network

eCPMs Top 20 Countries

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Country Index Range Rank

Australia > 150 1

Malaysia > 150 2

Ireland > 150 3

Thailand > 150 4

South Africa > 150 5

Russian Federation* > 150 6

New Zealand* > 150 7

United Kingdom > 150 8

Italy > 150 9

USA > 150 10

Country Index Range Rank

UAE* 120 to 149 11

Sweden 120 to 149 12

Norway 120 to 149 13

Germany 120 to 149 14

Singapore 120 to 149 15

Saudi Arabia* 80 to 120 16

Brazil* 80 to 120 17

France 80 to 120 18

Spain 80 to 120 19

Jordan* 80 to 120 20

We are 100% compatible with:

With InMobi you get both reach and impact.

Compatibility

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Our Network

North America3.2 Billion Ad Requests

Europe1.8 Billion Ad Requests

Africa2.8 Billion Ad Requests

Asia Pacific11.5 Billion Ad requests

Middle East 514 Million Ad Requests

InMobi can offer developers monetization in all regions around the globe.

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Froggy Jump Case Study

Invictus Games Sees eCPMs as High as $5.99 for iPhone Game With InMobi

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Shotgun Free Case Study

Inedible’s Shotgun Free iPhone App Triples International eCPMs With InMobi

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InMobi World Developer Fund

• $2 Million Dollar World Developer Fund– Normally ad networks share revenue with publishers– We offer you 100% of revenue earned– Program lasts until the fund is gone– Real support for developers

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Austin Special Offer

• Join Our Dev Community• http://inmobi.com/onlinecampaigns/austindev/

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Key Messages

• Think globally• Build a sustainable business• Test and experiment• Optimize based on data• Have fun!