Product Design Product Design Pricing and Strategies Pricing and Strategies 2.
Pricing Strategies for iOS Applications
description
Transcript of Pricing Strategies for iOS Applications
![Page 1: Pricing Strategies for iOS Applications](https://reader036.fdocuments.net/reader036/viewer/2022082517/56813d0b550346895da6bc04/html5/thumbnails/1.jpg)
Pricing Strategies for iOS Applications
By: Shailendra SinhasaneTwitter: @sunshail
Mobisoft Infotech Pvt Ltd.
![Page 2: Pricing Strategies for iOS Applications](https://reader036.fdocuments.net/reader036/viewer/2022082517/56813d0b550346895da6bc04/html5/thumbnails/2.jpg)
Why Monetize?
• Generate money
• How?
– Compulsion Loops, there are ways to draw user back into the app
– Engagement, does it have engagement elements that could be monetized, i.e. virtual currency?
– Value, is it worth your users’ time?
![Page 3: Pricing Strategies for iOS Applications](https://reader036.fdocuments.net/reader036/viewer/2022082517/56813d0b550346895da6bc04/html5/thumbnails/3.jpg)
Some numbers ~
• 40-45% of all iOS revenues are from in-app purchases
• Only 10% from advertising
• Near about 50% of the games downloaded from the app store were free with in-app purchase integrated
• In-app purchases will grow exponentially in coming years
![Page 4: Pricing Strategies for iOS Applications](https://reader036.fdocuments.net/reader036/viewer/2022082517/56813d0b550346895da6bc04/html5/thumbnails/4.jpg)
Estimated download volume needed for Top 100 ranking:
App Store Position Est. # Downloads Needed
Top 10 ~50k-150k
Top 25 ~30k-50k
Top 25-50 ~17k-30k
Top 50-100 ~10k-17k
Sub 100 Free 100s-depending on category popularity
Download estimates
-Source: AdMob, Inc.
![Page 5: Pricing Strategies for iOS Applications](https://reader036.fdocuments.net/reader036/viewer/2022082517/56813d0b550346895da6bc04/html5/thumbnails/5.jpg)
Models
1. In-app purchases
2. Subscription
3. Ads
4. Location-based offerings
5. Social media sharing and aggregation
![Page 6: Pricing Strategies for iOS Applications](https://reader036.fdocuments.net/reader036/viewer/2022082517/56813d0b550346895da6bc04/html5/thumbnails/6.jpg)
To do1. Try various in-app models to find the combination that
maximize your revenues
• Games: Subscription based casual gaming package + premium payment for sending best scores
• E-books for kids: read once for free. Pay to read again
• Security: free trial (30 days) . Paid license for 1 year period
• Video: pay per gallery
2. Freemium strategy
• Strongest marketing play
• Risk reduction
• Developers should be focused on finding consumers who are willing to pay, not trying to completely satisfy free-rider consumers
![Page 7: Pricing Strategies for iOS Applications](https://reader036.fdocuments.net/reader036/viewer/2022082517/56813d0b550346895da6bc04/html5/thumbnails/7.jpg)
In-App single purchase
Pros:
• This is probably the easiest path to implementation and launch and it's straightforward and proven
• Virtual goods/currency through In-App
Cons:
• No ongoing revenue stream
• No access to user data - makes selling advertising difficult.
One potential workaround is to build in-app surveys,
which pushes data back.
![Page 8: Pricing Strategies for iOS Applications](https://reader036.fdocuments.net/reader036/viewer/2022082517/56813d0b550346895da6bc04/html5/thumbnails/8.jpg)
Subscription - IPros:
• Revenue is sustainable
• Renew just as other web based subscriptions
• Easy extendable as an add-on
Cons:
• Requires user management solution
• Requires users to leave the app and visit the publisher's website to subscribe
• Conversion rate lower than in-app purchases
• Success :
lifetime value of a subscriber > revenue lost from lower conversion
![Page 9: Pricing Strategies for iOS Applications](https://reader036.fdocuments.net/reader036/viewer/2022082517/56813d0b550346895da6bc04/html5/thumbnails/9.jpg)
Subscription - IIApple's subscription policy for publishers:
• Apple still gets a 30% cut of any subscription a reader signs up for inside the App Store.
• Publishers can now offer an app subscription for a different price than what they might sell their app for in the App Store.
• Publishers can't link to an external-to-Apple location that sells a subscription within the app.
![Page 10: Pricing Strategies for iOS Applications](https://reader036.fdocuments.net/reader036/viewer/2022082517/56813d0b550346895da6bc04/html5/thumbnails/10.jpg)
Advertising
Apple: iAd platform – Adv as an app
Third party : adMob, Medialets etc
Pros: Easier to command advertising premiums and less pressure to live up to metrics
Cons:
• Mobile budgets just aren't well-defined
• Apple changes strategic decision with third party ad integration
![Page 11: Pricing Strategies for iOS Applications](https://reader036.fdocuments.net/reader036/viewer/2022082517/56813d0b550346895da6bc04/html5/thumbnails/11.jpg)
Location Based Offerings
Pros: Awesome mobile offerings into a high-fidelity advertising environment
Cons:
• Complexity in integrating these systems
• Requires the device be connected to the internet
![Page 12: Pricing Strategies for iOS Applications](https://reader036.fdocuments.net/reader036/viewer/2022082517/56813d0b550346895da6bc04/html5/thumbnails/12.jpg)
Social, Sharing & Aggregation
Pros:
• Cost-effective
• Viral marketing
• Better user engagement
Cons: Getting advertiser support on a product as nebulous as this is challenging
![Page 13: Pricing Strategies for iOS Applications](https://reader036.fdocuments.net/reader036/viewer/2022082517/56813d0b550346895da6bc04/html5/thumbnails/13.jpg)
Other payment integrations
• Paypal API integrations
• Carrier billing option – Very easy for users to pay
• Virtual credits
• Google Checkout
![Page 14: Pricing Strategies for iOS Applications](https://reader036.fdocuments.net/reader036/viewer/2022082517/56813d0b550346895da6bc04/html5/thumbnails/14.jpg)
other mobile platforms
1 MoVend payment platform
• Easy integration – Supports Android, BlackBerry, Windows Phone7
• Sales Track
• Better user engagement
2 Bango
• Supports all mobile
platforms including
iOS
• Operator billing