monetizing mobile apps - #chipfiesta 2013

MONETIZING MOBILE APPS

MOHAMAD IQBAL

President of Nokia Indonesia Community Enthusiasts

Nokia Developer Champion

t: @ciebal

WHO AM I

A WordPress and Nokia Developer

A Community Influencer

Microsoft Student Partner, 2009

Nokia Developer Certified Trainer, 2012

Nokia Developer Champion, 2013

President of Nokia Indonesia Community Enthusiasts (nice.or.id)

PROLOGUE

Digital Content Business

DIGITAL CONTENT BUSINESS

Ring Back Tone

SMS Premium

Mobile Application

Music Store

Digital Ads

KENANGAN TERINDAH - SAMSON

3 Million Subscriber

21 Billion Revenue

BLACK OCTOBER

DIGITAL CONTENT BUSINESS

Ring Back Tone

SMS Premium

Mobile Application

Music Store

Digital Ads

CREDIT CARD

PYRAMID MOBILE PHONE USER

SUCCESS STORY

BATIK INDONESIA

Top Three

Download

WorldWide

> 30.000.000Downloads

KETO ADVENTURE

BEYOND THE WELL

HOW TO

Monetizing Mobile Apps

IMMEDIATE REVENUE

Paid Downloads

In-app Advertising

In-app Purchases

Try and Buy

Subscription

PAID DOWNLOAD

PAID DOWNLOAD

Simple: You set your price, people buy

Store keeps 30%

Higher Price != More Money

Don’t forget about ongoing costs: support, hosting, etc

IN-APP ADVERTISING

Monetize apps with ads.

Use your favorite ad solution to reach desired results

ADVERTISING

Typical with Free Apps

Need a lot of downloads to make any sizable money

Use your favorite ad solution to reach desired results

IN-APP PURCHASES

Integrate payment events for try-then-buy up-sell, subscription business models, digital goods,

& donations.

IN-APP PURCHASES

Easy way to sell digital content from within your app: virtual goods, subscriptions, add-ons, new levels

Convert free applications to paid ones by embedding try and buy

Seamless integration with operator billing

SUBSCRIPTION

SUBSCRIPTION

In Order to Get New Content, User Must Subscribe

Typically Magazines

LONG-TERM REVENUE

Branding

Service

BRANDING

Gameplay is a power, but character is more

GAMEPLAY

MERCHANDISE

SERVICE

CASE STUDY: SUMA MOBILE INDONESIA

TECHNOLOGY+

BUSINESS MODEL

KOMPAS AR

Angry Birds Magic

HOW TO SELL

Store

Big Company

StartUp Company

Government

Individual

Children

Groups

Students Political Parties

MONETIZING CONSIDERATIONS

User Expectations

Your Costs

Market

Do Some Math

USER EXPECTATIONS

Monetize and Price According to Category Expectations Simple Apps = Free + In-App Purchases or Paid

Niche Apps = Paid with Higher Price

News App = Advertising

YOUR COSTS

One Purchase == Customer for Life

Lifetime-Value of Customer Support, Infrastructure (Hosting, Bandwidth), APIs, Partners Instagram’s Monthly Hosting Bill: 2 nice cars each month!

MARKET

How Many People are in Your Target Market?

Now, How Many of those People Have Mobile Phones?

Next, How Many of those People with Mobile Phones will Purchase Your App?

DO SOME MATH

100 apps downloaded each day at $0.99 = $70 or $2,100 per month

$2,100 per month is $25,200 per year

Thinking of Doing Adwords? $0.25 per click + 25% conversion rate = cost $1.00 to make $0.70 Even worse with realistic 1-3% conversion rate

PARTING THOUGHTS

Each Monetization Strategy May Have Different Business & Marketing Strategies

Monetization Strategies Can Be Combined Together

Paid and Advertising are Easy to Dip Into

Just remember to watch your costs

Freemium will be the most interesting space to watch

QUALITY SPEAK

Make sure your customer want to use your product first and then we talk about business model. - @jpaine

THANK YOU!

ciebal.com

t: @ciebal f: /ciebal

moh.iqbal@kabitastudio.com