Date post: | 23-Aug-2014 |
Category: |
Mobile |
Upload: | shaurya-tyagi |
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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 Noticing9. Gaming –
Business Models10. 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 DiscourseDiscourse = 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
ProductivitySave my time
CreativityInvest 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
Banner Ads Expandables Interstitials Text ads
1.41.65 1.73
1.99
1.12
0.63
3.06
1.58
Average conversion rate across ad formats
iOS Android
On Android, the average conversions oninterstitial ads are almost double that ofother ad formats
Monetize
DirectApp as a product Commissioned apps
Pay per Download
In app purchases
Subscriptions
Per device royalties
IndirectApp 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 advertisingBillboards and Branded items in game world
Around game advertisingBanner & Skyscraper
Try before buyRestricted versions of game
Skill-based ProgressionBuy a ticket to enter
Advertgames Selling the experience
Episodic EntertainmentBorrowing from the TV model
Gaming – Business Models
SubscriptionWorld of Warcraft or Conan
Velvet RopePlayers pay for VIP access
Micro-Transactions (Freemium)Small, Impulsive driven up selling
Player to Player tradingTrade land, property and characters
Sponsored GamesWorld of Warcraft or Conan
Pre-Sell the gameKickstarter.com
The Rise of Freemium
Games Apps Excluding Games
86%
46%
14%
54%
2012 Indexed Revenues
With In-app purchase Without In-app purchase
Games Apps Excluding Games
93%
57%
7%
43%
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
MonetizePublish Apps with Admob SDK
PromoteAdvertise your app in others to
increase downloads
Choose an
advertising
network which
suits your
revenue model
and user
demography
What to Measure?
UsageDemography, Frequency, Time, User Flow, Cohort Analysis
Lifetime ValueAssign values to the mobile user to compare/analyze
Retention RateMeasure how many users continue to use your application after install
Active UsersMAU (Monthly Active Users) or DAU (Daily Active Users)
Session LengthThe time mobile users are spending with your application
ARPUValue of an user to your app business
Launch/Load TimeEnsuring that the launch/load time is consistent across all users
AcquisitionAcquiring more users based on the usage patterns
Candy Crush Saga
2X revenues 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!