Private & Confidential I 2011 1
The Hitchhiker's Guide to the World
of App Monetization
Private & Confidential I 2011 2
Industry’s Main
Concepts
Terms and Buzz Words
Private & Confidential I 2011
In-App Payments
3
“I refuse to answer that question on
the grounds that I don't know the
answer” D. Adams
Private & Confidential I 2011 4
Download the app for free NOW and pay later through a variety of revenue models:
- “Try and buy”- Virtual goods- Subscription model
In-App Payment
Private & Confidential I 2011 5
Fact! 35% of the 300 top-selling free games use some sort of
virtual currency as a form of payment in the App Store 49% of all iPhone-related revenue is derived from in-app
purchases
(As of June 2011; Source: Distimo)
In-App Payment
Private & Confidential I 2011 6
When purchasing a mobile app, the user must choose from the following payment alternatives:
iOS iTunes account
Android: Carrier Billing PayPal Google Checkout Credit Card
Payment Methods
Private & Confidential I 2011 7
Fact! The “Carrier-Billing” payment method is likely to generate payment 10 times more than any other method.
Payment Methods
Private & Confidential I 2011 8
The final net payment to the developer (after the middle-men take their cuts) is different in every geo-territory
Apple’s App Store – 30% - 70% Android App Market – 30% - 70% PayPal – 3.4% +€0.35 Carriers:
Payouts
Country /
Price level
#1 #2 #3 #4 #5
Price Payout (exc. VAT)
Price Payout (exc. VAT)
Price Payout (exc. VAT)
Price Payout (exc. VAT)
Price Payout (exc. VAT)
Canada (CAD) 2.00 53% 2.00 53% 2.50 54% 2.50 54% 3.00 44%
China (CNY) 2.00 43% 2.00 43% 2.00 43% 2.00 43% 2.00 43%
France (EUR) 0.35 50% 0.50 50% 1.50 50% 3.00 50% 6.00 50%
Private & Confidential I 2011 9
Fact! In most cases, the net payout from the carriers will be
between 40%-60% of the price.
Payouts
Private & Confidential I 2011 10
Alternative Payments- “I really wish I'd listened to what my mother told me when I was young."- "Why, what did she tell you?"- "I don't know, I didn't listen.“
D. Adams
Private & Confidential I 2011
“Alternative Payment”
You! Your user!
In-App Item
Money…
Standard payment:
Alternative payment
You! Your user!
An advertiser!
Free In-App Item
ActionMoney…
Private & Confidential I 2011 12
Action:- Incentivized download (TBD)- Submit your mail- Watch a video- Vote- “Like” (Facebook)
Fact! The developer’s cut is usually 70% of the amount paid by the advertiser
Alternative Payment
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Incentivized Downloads
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You! Your user!
Game coins
Another developer
Pay for the item
Download, install and open
Cash Free content
Better ranking
Private & Confidential I 2011 14
Fact! At its peak, Tapjoy generated income of $8M monthly from
incentivized downloads While Apple clamped down on incentivized app downloads,
this option it still available on Android devices
Incentivized Downloads
Private & Confidential I 2011 15
Advertisement“Who said anything about panicking? This is still just the culture shock. You wait till I've settled down into the situation and found my bearings. Then I'll start panicking.”
D. Adams
Private & Confidential I 2011 16
CPC / CPA / CPL / CPI and More
CPC - Cost-per-Click (only if necessary)
CPI - Cost-per-Install
CPA - Cost-per-Action (install, register, use)
CPL – Cost-per-Lead (mail submission)
Fill rate - The percentage of ad requests that are filled with
ads
(when an ad is displayed to the end user)
Fact! The fill rates of most ad networks range between 50%-60%
Private & Confidential I 2011 17
How can you monetize your app?
You can define paid In-App items You can add an ad banner You can add offers
Contextual offers that 3rd parties are willing to pay for
Offer Wall
Private & Confidential I 2011 18
Lunkwill: Do you... Deep Thought: Have an answer for you? Yes. But you're not going to like it. Fook: Please tell us. We must know! Deep Thought: Okay. The answer to the ultimate question of life, the universe, and everything is...
Deep Thought: 42.
The Ultimate Fact!
Private & Confidential I 2011
LogiaPay- The market’s most comprehensive in-app payment solution offering every available payment method
LogiaReach – Upload your app to the stores of various 1st tier mobile operators using our existing relationships
LogiaAd – Use Logia’s optimized ad-network solution to increase revenues from your advertising space
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For those of you who are not satisfied with this answer, Logia can offer a more practical one –> A set of monetization tools for maximizing your revenues:
Private & Confidential I 2011
Thank You!
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