Presentation Transcript

1. Andrei Dementjev COO, Fortumo

   How app monetization is different from what we have learned from the web?

2. Platforms
3. Platforms New smartphone sales in Q2 2011 Every second smartphone sold is running Android.
4. Platforms Smartphones in US (July 2011, comScoremobilens) iOS and BlackBerry are installed on 49% of US smartphones
5. App store revenues in 2010 Nearly 83% of app store revenues are made on iOS.
6. Platforms  Glu Mobile: Android Revenues make only 1/10 of iOS revenues Challenge: Why develop for other platforms if iOS is making most of the revenues?
7. Platforms iOS has the highest level of competition by Distimo
8. Platforms Rovio Angry Birds: Android revenue = iOS revenue Answer:Every platform can bring you money Keywords:competition, experience, expertise, strategy
9. Going Global Challenge: Developers are only aiming at established and rich markets like US and Western Europe
10. Going global Android sales in 2011 40% of smartphones are sold in Asia-Pacific
11. Smartphonesvs Feature phones America: 29% vs Asia 70% vs EMEA 31%
12. Global reach Answer:You should have a monetization strategy for every region. Asia Pacific USA Western Europe Middle East Latin America Eastern Europe CIS Africa
13. App stores
14. App stores Challenge: Developers are ignoring alternative app stores
15. App stores Alternative stores: Opera Mobile App Store GetJar Appia (Pocketgear) AndAppStore Handango OnlyAndroid Insyde Market Amazon App Store SlideME Appoke YAAM Regional stores: Andronavi (Japan) Wandoujia (China) Appchina (China) Fasmicro App Store (Africa) HiAPK (China) Operator stores: Vodafone Live! OrangeWorld O2 Active Manufacturer stores: HTC Market Samsung Apps LG smartWorld Shop4Apps (Motorola) and many more.. ..2 000 000 000 downloads on GetJar only
16. Premium vs Freemium Challenge:Developers rely on premium distribution models.
17. Premium vsfreemium Percentage of free apps:
18. Premium vsfreemium Why Premium is bad? App stores are full of low quality apps App purchase is an investment Cultural differences Weak and non effective billing solutions Free competitors Limited distribution options Piracy
19. Premium vsfreemium Why Freemium is good? More downloads Target long tail (just like offers) People are used with free apps Ability to adjust to different ability to pay Better global reach More distribution options Lower dependence from app stores Piracy
20. Premium vsfreemium 75% of top 100 grossing iOS apps are games 65% of them are freemium Answer:Avoid selling your gamesand use Freemium models!
21. Earn money from free games Mobile ads Offers In-game purchases Sponsorships and special deals
22. Mobile ads $15 billion in 2011.
23. Mobile ads Challenge:Mobile ads makes my game slow and ugly. Answer:Do it smart! What's critical: Ad coverage Respect low-end devices Try different advertisers Think about UI and design Place ads on loading screens
24. Mobile offers A great way to monetize non-paying users.
25. Mobile offers Pros: great for monetizing non paying users global reach Cons: be careful with what you offer you may be promoting competitors don't overload your game by offers don't replace payments with offers!
26. In-app purchases What can be sold? virtual credits extra levels trial version activation extra features personalization banner-free version (weak)
27. In-app purchases Consumable goods (virtual credits) 68% of in-app purchases
28. In-app purchases Challenge: Developers are using ineffective payment methods
29. In-app purchases In-app payment methods: App store billing (Google checkout) – mostly credit card based, high store margins. Mobile operator billing (direct billing, premium sms) – good coverage and conversion rates, low revenue shares. Credit cards (Visa, Mastercard) – bad coverage, high revenue shares, kills conversion rate. Paypal – works in limited number of the countries Prepaid cards, kiosks and vouchers – low conversion rates Direct debit and others...
30. In-app purchases or AnswerAnalyze your user base and select the most suitable payment method and additional methods if needed.
31. In-app purchases Challenge: Bad user experience during payment flow vs
32. In-app purchases In-app payment is impulsive Every new screen kills conversion by 10-15% Customers are not yet familiar with mobile purchases Payment should look secure Answer: Golden rules of in-app payment: the user should reach to the payment with a maximum of 3 clicks.
33. In-app purchases Challenge: Developers ignore small details. Currency Localization Terms and conditions Operator/billing provider logos (+ 15% conversion) Helpdesk and customer care Track user reviews and comments A/B testing
34. In-app purchases Answer: Make your payment flow perfect!
35. In-app purchases Challenge: Wrong game balance Game is too difficult => they leave before buying Game is too easy => they don’t need to buy Too few free levels => they are not yet addicted Too many free levels => they had enough Answer:Develop the perfect balance for introducing paid content.
36. In-app purchases Challenge: Wrong pricing policy $2 in USA $2 in China Answer:Adjust the prices according to purchasing power.
37. In-app purchases Challenge: Lack of offline mode support. According to Localytics, 15% of mobile apps are launched while offline . Answer:Your game should be prepared to work and monetize while offline.
38. Thank you! Спасибо! Andrei Dementjev andrei@fortumo.comskype: andrei.dementjev