ModevCon: Monetizing 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

1

Monetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases

Deepak ThakralVice President, Monetization

Email: [email protected]: @deepakthakral

mailto:[email protected]


2

Agenda

1. App Monetization: Current State

2. The Case for App Re-

Engagement

3. Cross Promotion of App Function


3

62% of App Developers

are below

APP POVERTY LINE

App Monetization:State of the Union

$500


4

47%<$100

22%$500-$1000/mo.

19%$1K-$10K

12%>$10K/mo.

App Developers:Disappearing Middle Class*Source: VisionMobile


5

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


6

47%<$100

22%$500-$1000/mo.

19%$1K-$10K

12%>$10K/mo.


Have Nothings


• 23% make <$100/mo.

• Not sustainable

Poverty Stricken

• 15% make $1-$500

• (62% below poverty line)

• Not sustainable

(hobbyists/explorers)



7

47%<$100

22%$500-$1000/mo.

19%$1K-$10K

12%>$10K/mo.


Have Nothings


• 23% make <$100/mo.

• Not sustainable

Poverty Stricken

• 15% make $1-$500


• Not sustainable


Strugglers

• Apps are reasonably

successful

• Opportunity cost



8

47%<$100

22%$500-$1000/mo.

19%$1K-$10K

12%>$10K/mo.


Have Nothings


• 23% make <$100/mo.

• Not sustainable

Poverty Stricken

• 15% make $1-$500


• Not sustainable


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



9

$43.3M

22.8M

Cumulative sales

since June launch

Downloads

The EliteEx. Kim Kardashian Hollywood


Freemium App


10

The good news is that app usage continues to

increase…..

Advertising & Consumer dollars follow…


11

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


12

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

Facebook

*Source: Flurry

32%Gaming

14%Browser

8%Entertainment

11%Social

18%Other

86%Apps


13

Mobile Advertising Growth

2014 Projection

2014 Growth

2018 Projection

$19B

78%

$58B


*Expected to be 37.4% of digital media ad spend

*Display ads expected to contribute 50% spend


14

$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


15

Majority of Ad Spending



16

*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


17

So how can other apps focus on getting

more dollars from advertising & in-app

purchases?


18

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


19

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


20

1. Offer In-App Ads

Banner Ads 300x250 AdsFull Page Interstitials


21

2. Offer In-App Purchases

*Source: Angry Birds *Source: Kim Kardashian Hollywood


22

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


23

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


24

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


25

The Case for Re-Engagement


26

Installs ≠ Usage



27

Discover

y

Usag

e

Downloa

d

Alternative Paths?


28

Alternative Paths?

Discover

y

Usag

e

Downloa

d

Re-Engagement

The biggest challenge facing app developers is waking up their dormant users


29

Two Paths for Re-Engagement

• User re-targeting Deep Linking

• Discovery Deep Search Deep Linking


30

How does app re-targeting work?

30

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


31

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?


32

• 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?


33

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


34

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


35

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


36

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


37

proprietary & confidential

AppURL is an open deep linking standard promoted by Quixey

Resourceswww.appurl.org

www.mobiledeeplinking.org

http://www.appurl.org

http://www.mobiledeeplinking.org


38

Mobile is for Doing!How cross-promotion of app functions will

create the highway of the future mobile

ecosystem


39

Kevin’s Family

Miami

*Source: Happy family iz happy by Frédéric de Villamil / CC BY-SA

2.0

https://www.flickr.com/photos/fdevillamil/5674635631

https://www.flickr.com/photos/fdevillamil/


40

Kevin’s Family

Miami


2.0




41

Kevin’s Family


2.0

Flights

Hotels

Food

Activities




42

Current Situation: Navigate through Each Individual App

*These are conceptual mockups used only to illustrate use case. They are not official designs.


43

But we can do better…


44

Solution: Connect a Grid System of Apps


45

Solution: Connect a Grid System of Apps


2.0




46



47



48



49



50

Creating a Seamless Experience



51

How Can Your App be Cross-Promoted


52

Games

What does this mean for the Developer?

Entertainment Social

Promote

physical

product

Activity ConcertSong GetawayChat

Promote

another

game

Finished

Level

MovieBook CabRestauran

t


53

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


54

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


55

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


56

Monetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases

Q&A

Deepak ThakralVice President, Monetization

Email: [email protected]: @deepakthakral

mailto:[email protected]

ModevCon: Monetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases

Mobile

Transcript of ModevCon: Monetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases