Wattpad AndroidTO 2011 - Android and Monetization
-
Upload
wattpad -
Category
Technology
-
view
1.380 -
download
0
description
Transcript of Wattpad AndroidTO 2011 - Android and Monetization
Unlimited Stories
Android and MonetizationAllen Lau
wattpad.com/allenlau@allenlau
social + mobile + eReading = new form of entertainment
WHO IS THIS GUY?
social + mobile + eReading = new form of entertainment
WHO IS THIS GUY?• CEO and Co-founder, Wattpad
– Community of readers and writers to discover and share stories– Wattpadders were spending 2 billion minutes on Wattpad in Q3
2011, most of them coming from mobile– Investors include Union Square Ventures, Golden Venture Partners,
W Media Ventures
• CEO and Co-founder, FeedM8– Mobile advertising company, sold to Upstream Systems
• CTO and Co-founder, Tira Wireless– VC backed mobile content publishing and deployment company
social + mobile + eReading = new form of entertainment
CURRENT MARKET
social + mobile + eReading = new form of entertainment
• Number of apps = 500,000+• Number of downloads per month = 1 billion+• % of paid apps = 66%• Payout to developers = $3 billion
CURRENT MARKET
• Number of apps = 500,000+• Number of downloads per month = 1 billion+• % of FREE apps = 66%• Payout to developers = 2% of iOS (2010)
Google is downright “not happy” about the purchases of paid apps– Eric Chu, Group Manager Android
Platform Manager, Jan 2011
social + mobile + eReading = new form of entertainment
WHY?
social + mobile + eReading = new form of entertainment
• Openness encourages– Free apps– Copyright infringing content– Spam
• Billing methods– Google Checkout vs iTunes– Billing reliability
WHY?
social + mobile + eReading = new form of entertainment
IT’S GETTING BETTER!
social + mobile + eReading = new form of entertainment
IT’S GETTING BETTER!• Mobile advertising is becoming a viable option• In-app purchase– Very important when competing with LOTS of free apps
• Operators Billing– AT&T, T-Mobile, Sprint– Vodafone UK, Vodafone Germany– NTT DoCoMo, KDDI, SoftBank, SKT
• 3rd Party payment provider– Urban Airship, Zong, Boku, Payfone
social + mobile + eReading = new form of entertainment
PREREQUISITE
social + mobile + eReading = new form of entertainment
PREREQUISITE• Great product• Lots of users
– It is a volume game– Don’t build apps for small niches (app for Mongolian food lover living in PEI
won’t work)– Some exceptions (more on this later)
• Build a business, not an app– Apps can be commoditized really quickly
social + mobile + eReading = new form of entertainment
ADVERTSING
social + mobile + eReading = new form of entertainment
ADVERTISING• eCPMs can be a few times HIGHER than iOS
– Mostly CPC ads– CPM ads are few and far between
• Advertising is a (high) volume game– eCPM is a step function of traffic
• Using multiple ad networks and mediation are VERY important• Geography matters
– Ad network is a local business
• Other ad formats– Video and other intrusive ads generate higher CPMs – Don’t sacrifice your UX
social + mobile + eReading = new form of entertainment
PAID APP/IN-APP PURCHASE
social + mobile + eReading = new form of entertainment
PAID APP/IN-APP PURCHASE• Paid app
– Hard to make it work when there are so many free apps and a suboptimal payment system
• In-app (freemium) is the preferable model– At least you are on equal ground with all the free apps!– Treat “free” as your marketing expenses– As long as you have enough “mium” to convince users to pay up
• Small niches, business apps, where price sensitivity is not an issue, is also a possibility
social + mobile + eReading = new form of entertainment
DO I NEED TO MAKE MONEY?
social + mobile + eReading = new form of entertainment
DO I NEED TO MAKE MONEY?• Remember - build a business, not an app• Can Android be your loss leader and make money elsewhere?
– Especially true for network effect based business
social + mobile + eReading = new form of entertainment
ONE THING TO REMEMBER
social + mobile + eReading = new form of entertainment
ONE THING TO REMEMBER• Traction is king• Engagement matters• When you have a billion users, you have a million ways to
make money• When you have no user, you have no way to make
money
social + mobile + eReading = new form of entertainment
Thank Youp.s. we are hiring ;-)
Allen Lau, CEO and co-founder
Suite 801-B4950 Yonge Street
Toronto ON M2N 6K1
wattpad.com/allenlau@allenlau