Post on 17-Jul-2015
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Monetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
Deepak ThakralVice President, Monetization
Email: dthakral@quixey.comTweet: @deepakthakral
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Agenda
1. App Monetization: Current State
2. The Case for App Re-
Engagement
3. Cross Promotion of App Function
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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62% of App Developers
are below
APP POVERTY LINE
App Monetization:State of the Union
$500
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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47%<$100
22%$500-$1000/mo.
19%$1K-$10K
12%>$10K/mo.
App Developers:Disappearing Middle Class*Source: VisionMobile
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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47%<$100
22%$500-$1000/mo.
19%$1K-$10K
12%>$10K/mo.
App Developers:Disappearing Middle Class
Have Nothings
• Of this, 24% make $0
• 23% make <$100/mo.
• Not sustainable
*Source: VisionMobile
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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47%<$100
22%$500-$1000/mo.
19%$1K-$10K
12%>$10K/mo.
App Developers:Disappearing Middle Class
Have Nothings
• Of this, 24% make $0
• 23% make <$100/mo.
• Not sustainable
Poverty Stricken
• 15% make $1-$500
• (62% below poverty line)
• Not sustainable
(hobbyists/explorers)
*Source: VisionMobile
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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47%<$100
22%$500-$1000/mo.
19%$1K-$10K
12%>$10K/mo.
App Developers:Disappearing Middle Class
Have Nothings
• Of this, 24% make $0
• 23% make <$100/mo.
• Not sustainable
Poverty Stricken
• 15% make $1-$500
• (62% below poverty line)
• Not sustainable
(hobbyists/explorers)
Strugglers
• Apps are reasonably
successful
• Opportunity cost
*Source: VisionMobile
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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47%<$100
22%$500-$1000/mo.
19%$1K-$10K
12%>$10K/mo.
App Developers:Disappearing Middle Class
Have Nothings
• Of this, 24% make $0
• 23% make <$100/mo.
• Not sustainable
Poverty Stricken
• 15% make $1-$500
• (62% below poverty line)
• Not sustainable
(hobbyists/explorers)
Strugglers
• Apps are reasonably
successful
• Opportunity cost
Haves
• Top 100 game could make
$10K/day
• Only 1.6% > $500K/app/mo.
• Top 5% make more than all
combined
*Source: VisionMobile
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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$43.3M
22.8M
Cumulative sales
since June launch
Downloads
The EliteEx. Kim Kardashian Hollywood
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
Freemium App
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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The good news is that app usage continues to
increase…..
Advertising & Consumer dollars follow…
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Mobile App Usage is on the Rise
Average Apps Used and Time Per Person Per
Month
30
25
20
15
10
5
Q4 2011 Q4 2012 Q4 2013
18:18
23:02
30:15
26.826.523.3
Source: Nielsen
Time per person (h:m)
Number of apps
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Time Spent on
iOS & Android Devices
• 86% of mobile time is spent on apps
vs 14% on browsers
• Gaming is 32% time spent on
Android and iOS
• 17% of time is basically spent on
*Source: Flurry
32%Gaming
14%Browser
8%Entertainment
11%Social
18%Other
86%Apps
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Mobile Advertising Growth
2014 Projection
2014 Growth
2018 Projection
$19B
78%
$58B
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
*Expected to be 37.4% of digital media ad spend
*Display ads expected to contribute 50% spend
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
2013 2014 2015 2016 2017 2018
US Total Media Ad Spending Growth, by Media,
2013-2018, % change
*Source: eMarketer
Mobile
Display
Search
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Majority of Ad Spending
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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*Source: Flurry
Ad Spend Versus Time Spent on Mobile
0%
10%
20%
30%
40%
50%
60%
70%
Google Facebook Other Apps
18%
49%
17% 18%
65%
33%
Time Spent
Ad Spent
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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So how can other apps focus on getting
more dollars from advertising & in-app
purchases?
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Typical Monetization Path
App Store
Downloads
Sign-In
App Install Campaigns
Download (Pay Per
Install)
Sign-In
Organic Promoted
Usage Usage
Discovery
Download
Activation
Usage
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Once you have Usage:
2. Offer In-App Purchases
• Games
1. Offer In-App Advertising
• Major Ad Networks
• 320 x 50 Small Banners
• 300 x 250 Large Banners
• Full Page Interstitials
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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1. Offer In-App Ads
Banner Ads 300x250 AdsFull Page Interstitials
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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2. Offer In-App Purchases
*Source: Angry Birds *Source: Kim Kardashian Hollywood
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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How many users do you need to generate advertising revenue?
Description Metrics Assumption
Monthly Active Users 50,000 Installs will be significantly higher
Daily Active Users 10,000 20% DAU/MAU
Session Duration 20 minutes/day
Frequency/month 20 days/month
DAUs * Duration * Freq 4,000,000 Total Minutes
Ad Impressions 8,000,000 2 ad imp/minute
eCPM for ad impressions $1 average '1000 imps
Average Monthly Revenue $8,000 Ad Imp * eCPM
ARPU - monthly actives $0.16 Avg Revenue Per User
Annual Revenue/User $1.92 Annual Revenue Per User
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Chase Installs or Re-Engagement
Metric #
Install Campaign acquisition goal for month 5,000 installs
Average CPI x $2
Campaign cost $10,000 Total
Users Active users: end of month 1 2,500
Active users: end of month 4 500
True acquisition cost
(Campaign cost ÷ Active users)
$10,000 ÷ 500 = $20 per user
Revenue Monthly Revenue/User 30 min
x 30 days
= 900 ad impressions
x $1 eCPM
= $0.90/Month or $10.80 per year
Monthly In-App Purchases $1 x 12 months = $12 per year
Annual Revenue ($0.90 x 12) + 12 = $22.80
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Chase Installs or Re-Engagement
Metric #
Install Campaign acquisition goal for month 5,000 installs
Average CPI x $2
Campaign cost $10,000 Total
Users Active users: Month 1 2,500
Active users: Month 2 500
True acquisition cost
(Campaign cost ÷ Active users)
$10,000 ÷ 500 = $20 per user
Revenue Monthly Revenue/User 30 min
x 30 days
= 900 ad impressions
x $1 eCPM
= $0.90/Month or $10.80 per year
Monthly In-App Purchases $1 x 12 months = $12 per year
Annual Revenue ($0.90 x 12) + 12 = $22.80
Annual Revenue: $22.80
Acquisition Cost: $20
Net Profit:
< $3 per user
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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The Case for Re-Engagement
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Installs ≠ Usage
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Discover
y
Usag
e
Downloa
d
Alternative Paths?
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Alternative Paths?
Discover
y
Usag
e
Downloa
d
Re-Engagement
The biggest challenge facing app developers is waking up their dormant users
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Two Paths for Re-Engagement
• User re-targeting Deep Linking
• Discovery Deep Search Deep Linking
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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How does app re-targeting work?
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Shops
Clothes
Views Movie
Trailer
Views Flight
to Hawaii
Views
Resorts in
Maui
Sue
32 years old
Loves to travel
Collect non-PII
Device
Information &
activity
Mobile Targeting
co. bids on ad
exchanges for
this Device
Show a deep
view/deep link to
the destination
app
Shopping
App
Movie App
Travel App
Hotel App
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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The capability to understand the
static and dynamic content of an app
and making it discoverable via a
search engine or contextual
placement
What is Deep Search?
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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• Deep linking is a method for
launching a native application via a
link
• Deep linking connects a unique URL
to a defined action in a mobile app,
seamlessly linking users to relevant
content and functions
What is Deep Linking?
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Quixey – Alibaba Deep Search Integration on YunOS
• Exclusive provider of mobile deep search
for Alibaba
• Recently launched Deep Search in the
Food vertical for Alibaba’s YunOS
platform
• User can search for “Thai Food” – from
the deep views rendered, can deep link
into popular apps
• They can also call or look up driving
directions directly from the deep view
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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TA restaurants
results geo-relevant to
phone's location
"Reserve" deep links
to TA booking page
Business listing deep
links to TA detail
page
Christine likes to search for Thai Food at lunch time in a mobile search
engine
Thai cuisine
search in Chicago
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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So why should you create deep links for your app?
1. App SEO
• Enables your deep links to be discoverable by
mobile search engines such as Quixey
2. App SEM
• Enables you to promote deep views as ads.
3. Companies promoting deep linking ads
• Facebook App Engagement
• Twitter App Engagement
• Quixey Promoted Deep View Ads
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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When considering re-targeting for your app campaign
1. Set your CPA goals
2. Consider a mobile analytics vendor for tracking
3. Pay for performance
4. Consider Privacy
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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proprietary & confidential
AppURL is an open deep linking standard promoted by Quixey
Resourceswww.appurl.org
www.mobiledeeplinking.org
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Mobile is for Doing!How cross-promotion of app functions will
create the highway of the future mobile
ecosystem
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Kevin’s Family
Miami
*Source: Happy family iz happy by Frédéric de Villamil / CC BY-SA
2.0
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Kevin’s Family
Miami
*Source: Happy family iz happy by Frédéric de Villamil / CC BY-SA
2.0
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Kevin’s Family
*Source: Happy family iz happy by Frédéric de Villamil / CC BY-SA
2.0
Flights
Hotels
Food
Activities
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Current Situation: Navigate through Each Individual App
*These are conceptual mockups used only to illustrate use case. They are not official designs.
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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But we can do better…
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Solution: Connect a Grid System of Apps
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Solution: Connect a Grid System of Apps
*Source: Happy family iz happy by Frédéric de Villamil / CC BY-SA
2.0
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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*These are conceptual mockups used only to illustrate use case. They are not official designs.
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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*These are conceptual mockups used only to illustrate use case. They are not official designs.
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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*These are conceptual mockups used only to illustrate use case. They are not official designs.
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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*These are conceptual mockups used only to illustrate use case. They are not official designs.
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Creating a Seamless Experience
*These are conceptual mockups used only to illustrate use case. They are not official designs.
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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How Can Your App be Cross-Promoted
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Games
What does this mean for the Developer?
Entertainment Social
Promote
physical
product
Activity ConcertSong GetawayChat
Promote
another
game
Finished
Level
MovieBook CabRestauran
t
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Quixey Functional Exchange (Currently in Beta)
Users
Ad
Impres
sions
Functional
Exchange
Promoted Deep Links
Promoted Functions
Search Engines
Publishers
Travel
Local
Entertainment
Shopping
SUPPLY ADVERTISERS
Ad Exchanges /Supply Platforms
OEMs
Promoted Entities
TRANSFORMING THE MOBILE ADVERTISING LANDSCAPE
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Developer
NetworkValue creation for Developers
The Quixey Developer Network allows
developers to integrate into Quixey’s technology
to optimize performances and provide them with
the official deep linking standard via AppURL.US: developer.quixey.com
China: developer.quixey.com.cn
: appurl.org
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Recap
1. App Monetization: Current State• The disappearing middle class of app developers
• App usage is increase, adv dollars growing
• Need to focus beyond installs
2. The Case for App Re-Engagement• User re-targeting
• Deep Search
• Deep Linking
3. Cross Promotion of App Function• Think of new revenue streams
• Complimentary functions
• Promoted and Organic
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
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Monetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
Q&A
Deepak ThakralVice President, Monetization
Email: dthakral@quixey.comTweet: @deepakthakral