Fortumo droidcon 2012
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Stanislav Gurba Business Development, Fortumo
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Transcript of Fortumo droidcon 2012
Stanislav Gurba Business Development, Fortumo
Platforms
¡ New smartphone sales in Q2 2011 and Q4 2011
¡ Every second smartphone sold is running Android.
Android 43%
Symbian 22%
iOS 18%
RIM 12%
Bada 2%
Microso: 2% Others 1%
Android 50,9%
iOS 23,8%
Symbian 11,7%
RIM 8,8%
Bada 2,1%
Microsoft 1,9%
Others 0,8%
¡ Smartphones in US (February 2012, comScore mobilens)
§ iOS and BlackBerry are installed on 49% of US smartphones
82,70%
7,70%
4,90% 4,70%
Nearly 83% of app store revenues are made on iOS.
¡ Glu Mobile: Android Revenues make only 1/10 of iOS revenues
¡ Distimo reports iOS had 6X the revenue of Android in 2011
¡ Challenge: Why develop for other platforms if iOS is making most of the revenues?
¡ iOS has the highest level of competition
¡ Rovio Angry Birds:
Android revenue = iOS revenue* *according to statement by Peter Vesterbacka at MWC 2010
¡ Answer: Every platform can bring you money
¡ Keywords: competition, experience, expertise, strategy
Going Global
¡ Challenge: Developers are only aiming at established and rich markets like US and Western Europe
¡ Android sales in 2011
¡ 40% of smartphones are sold in Asia-‐Pacific
¡ America: 63% vs Asia 19% -‐ 36 million less devices
techrunch.com
¡ Answer: You should have a monetization strategy for every region. § Asia Pacific § USA § Western Europe § Middle East § Latin America § Eastern Europe § CIS § Africa
App stores
¡ Challenge: Developers are ignoring alternative 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
Premium vs Freemium
¡ Challenge: Developers rely on premium distribution models.
§ Percentage of free apps:
0% 25% 50% 75% 100%
GetJar
Android Market
Windows Phone
Samsung Apps
Apple App Store
Amazon
BlackBerry App World
Nokia Ovi Store
¡ 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
¡ 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
¡ 75% of top 100 grossing iOS apps are games ¡ 65% of them are freemium
¡ Answer: Avoid selling your games and use Freemium models!
Earn money from free games
¡ Mobile ads ¡ Offers ¡ In-‐game purchases ¡ Sponsorships and special deals
Mobile ads
$15 billion in 2011.
¡ 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
Mobile offers
A great way to monetize non-‐paying users.
¡ 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!
In-‐app purchases ¡ What can be sold?
§ virtual credits § extra levels § trial version activation § extra features § personalization § banner-‐free version (weak)
¡ Consumable goods (virtual credits) 68% of in-‐app purchases
¡ Challenge: Developers are using ineffective payment methods
¡ 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...
or
¡ Answer Analyze your user base and select the most suitable payment method and additional methods if needed.
¡ Challenge: Bad user experience during payment flow
vs
¡ 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.
¡ 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
¡ Answer: Make your payment flow perfect!
¡ 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.
¡ Challenge: Wrong pricing policy
$2 in USA $2 in China
¡ Answer: Adjust the prices according to purchasing power.
¡ 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.
