Published on February 25, 2014
We Are Going Mobile Trends and Growth in App Economy
SNAPSHOT 1. Where do we stand? 6. How do you sell? 2. What is an Insight 7. Ways to monetize 3. Insight to an Idea 8. Applications worth Noticing 4. Type of mobile applications 9. Gaming – Business Models 5. The commandments 10. What to track?
Where do we stand? More than 60% of social media consumption happens though mobile devices 90% of users use multiple screens sequentially, where Smartphone triggers an activity Android in India holds 91% market share followed by Windows phone & IOS* 9.5% of the overall app downloads came from India (2nd after US)
What is an Insight? Disturbance in Discourse Discourse = Received ways of thinking or talking about a subject Disturbance = A new way of saying what we didn’t know how to say before Patterns are attractive but their overall success rate is pretty poor
Insight to an Idea Dong Nguyen’s Flappy Bird Flappy Bird has flied to Number 1 spot in 53 countries on Apple App Store*
Types of Mobile Applications Productivity Save my time Creativity Invest my time
The Commandments Thou shall focus on context and not patterns Thou shall not forget the user while designing Thou shall make your app name unique DON’T TRY TO GET BRANDS FOR YOUR APPLICATION Thou shall write a description which tells the usage upfront Thou shall not try to develop transactions but relationships RATHER MAKE A BRAND OF YOUR APPLICATION Thou shall establish the feedback loop
Developer Mindshare “37% of mobile developers use HTML5 as a platform, i.e. to develop mobile websites or webapps, while another 15% use HTML5 to go beyond the browser”
How do you sell? Blogs Contextual blogs Advertisements Banner Ads Expandables Interstitials Text Ads Partnerships Partner with OEMs and other applications
Choose The Right Format Average conversion rate across ad formats 3.06 On Android, the average conversions on 1.99 1.73 1.65 1.40 1.58 double that of 1.12 other ad formats 0.63 Banner Ads interstitial ads are almost Expandables iOS Interstitials Android Text ads
Monetize Direct App as a product Commissioned apps Indirect App as a channel In – app advertising Pay per Download Indirectly (brand awareness) In app purchases Developer services Subscriptions E-commerce sales Per device royalties Affiliate or CPI programs
The New Frontier The median revenues of developers involved in e-commerce are $2,750 per app/month, by far the highest among all app revenue models that can be employed
Revenue Distribution Start from iOS and then move to Android when launching because In terms of developer revenues per capita, iOS maintains its momentous gap to Android
Applications Worth Noticing COVER Description The app learns which apps you use most in various locations you frequent, and it makes them easily accessible with no user intervention
Applications Worth Noticing THEMER Description Let’s you apply themes to your phones with a click and organizes the apps. The beauty lies in how they try to sell other apps by categorizing the existing ones
Applications Worth Noticing SHOPKICK Description It recognizes a SmartPhone when it is next to a store, Sends points to the phone each time it passes by the store and allows the points to be redeemed when at the store
Applications Worth Noticing DUOLINGO Description Gamifies the concept of learning a new language by creating levels which force user to try more and hence learn more
Gaming – Business Models Around game advertising Banner & Skyscraper In-game advertising Billboards and Branded items in game world Try before buy Restricted versions of game Advertgames Selling the experience Skill-based Progression Buy a ticket to enter Episodic Entertainment Borrowing from the TV model
Gaming – Business Models Velvet Rope Players pay for VIP access Sponsored Games World of Warcraft or Conan Subscription Player to Player trading Micro-Transactions (Freemium) Pre-Sell the game World of Warcraft or Conan Small, Impulsive driven up selling Trade land, property and characters Kickstarter.com
The Rise of Freemium 2012 Indexed Revenues 2013 Indexed Revenues 7% 14% 43% 54% 93% 86% 57% 46% Games With In-app purchase Apps Excluding Games Without In-app purchase Games With In-app purchase Apps Excluding Games Without In-app purchase Freemium as a revenue model has not only been successful in gaming but has also become prevalent in nongaming categories such as messaging, music, news and dating
Advertising Network – Admob Choose an advertising network which suits your revenue model and user Monetize Publish Apps with Admob SDK Promote Advertise your app in others to increase downloads demography
What to Measure? Usage Session Length Lifetime Value ARPU Demography, Frequency, Time, User Flow, Cohort Analysis Assign values to the mobile user to compare/analyze Retention Rate Measure how many users continue to use your application after install Active Users MAU (Monthly Active Users) or DAU (Daily Active Users) The time mobile users are spending with your application Value of an user to your app business Launch/Load Time Ensuring that the launch/load time is consistent across all users Acquisition Acquiring more users based on the usage patterns
Candy Crush Saga 2X revenues in the December quarter last year The revenue model of the game was Freemium (in app purchases + in game advertising). Advertising serves as a powerful revenue stream because publishers can earn money even when no one is downloading the application
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