ROI for APIs: Using Hackathons to Evaluate Your API Program

Webinar: Business ROI for APIs

March 14th, 2013

Layer 7 Confidential 2Layer 7 Confidential

Webinar Housekeeping

Questions- Please use WebEx Chat any questions you have and we’ll

answer them at the end of this webinar

Twitter: Event hashtag: #L7webinar

Follow us on Twitter: • @Layer7• @ATTDeveloper• @TechCrunch• @LSH• @Alex_Donn• @Intalex

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Webinar Presenters: Business ROI for APIs

Leslie Hitchcock @LSHHackathon Events ManagerTechCrunch

Alex Donn @Alex_DonnHead of HackathonsAT&T

Alex Gaber @IntalexAPI EvangelistLayer 7


Agenda for Today’s Webinar

Topic: Business ROI for APIs

1. API Business Models

2. Building an API Brand

3. Hackathons for API Promotion and Success

4. Hackathon ROI for APIs

5. Developer API Challenges



Various Business Models Exist for APIs

• Per API Call• Per API Payload• Transactional Revenue• Firehose API• Platform API


1. API Business Models: Per API Call

Per API Call

Example:

TwilioText messages sent via an API are billed at $0.01 per message


1. API Business Models: Per API Payload

Per API Payload

Example:

AT&T Speech APIVoice transcriptions via an API are billed at $X.XX per word


1. API Business Models: Transactional Revenue API

Transactional Revenue API

Example:

Expedia EAN APIHotel is booked via anaffiliate application, earning the affiliate acommission


1. API Business Models: Firehose API

Firehose API

Example:

Twitter APILarge scale accessto API for partnersbuilding significantintegrations

Please email api at twitter.com with your use case, a brief description of your organization, and the requested access level(s) you require. As a general rule, firehose access is rarely granted. You may want to investigate using a service such as gnip or datasift to access this data.


1. API Business Models: Platform API

Platform API

Example:

Salesforce.comAPI Provided to customers to buildintegrations


2. Building a Brand Around Your API

Promoting a brand around your API helps you get marketplace traction and allows you to market your API as a business in and of itself.

• Approach your API like a product

• What engages consumers or B2B customers may

not be appropriate for a dev audience

• Analyze companies that are exclusively API

businesses such as Twilio, Stripe and Singly

• Invest in your API and promote it accordingly



Providing Integration with Mobile App Developer Tools

AT&T API

Plugin for

Appcelerato

r



Providing Integration with Mobile App Developer Tools

SendGrid

API Plugin

for Tiggzi



opportunity cost ($ per developer)

effort (enterprise vs social)

do your APIs solve a problem?



good general marketing

good brand building

good NPS

excellent $/developer


2012 Disrupt San Francisco Hackathon: By the Numbers

20

500+ Hackers

1100+ Hack

Presentation Attendees

40+ Hackathon

Sponsors


TechCrunch Hackathon Partnerships

21

Most successful Hackathon partnerships:

• API Workshops• Custom Contests• Themed Mini Hacks• Hack Day “Table Area”


2012 Disrupt Hackathon:Ford Partnership Use Study

Ford’s continued efforts in reaching TechCrunch’s developer audience have paid off, year over year.

What worked?• Marketing efforts on TechCrunch Event Site,

Hackathon Wiki and directly to Hackathon registrants drove participation in their mini Auto-themed hackathon

• Ford PR pitched API exclusively to TechCrunch writing team, independently of Disrupt sponsorship

• 70+ teams applied to participate in Ford’s mini-hackathon, up from approximately 30 in 2011

• 6 teams were chosen and competed for Ford’s prize: Ford Sync partnership and a trip to CES 2013

• Winner gained exposure through Ford in USA Today Money section

22


2012 Disrupt Hackathon:Locu Partnership Use Study

In first year out of incubation, seed-funded Locu had largest overall implementation of a sponsored API.

What worked?• TechCrunch targeted Locu for an API

Workshop (only 6 available)• Marketing efforts on TechCrunch Event

Site, Hackathon Wiki plus Locu social efforts made their API Workshop standing room only

• 150 hacks submitted, 20% used Locu API

23



On-site support

Solid virtual technical systems

Good documentation


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ROI for APIs: Using Hackathons to Evaluate Your API Program

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