choosing your app monetization strategy

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CHOOSING YOUR APP San Francisco | Bangalore SOURCEBITS

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Indie developers, startups and enterprises alike need to have a clear understanding of app monetization strategy, one of the most important aspects of mobile app marketing, in order to reach their financial goals. With various methods of app monetization available, choosing the right approach is one of the most difficult - and vitally important - decisions a developer or company will make.

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Page 1: Choosing Your App Monetization Strategy

CHOOSING YOUR APP

San Francisco | Bangalore

SOURCEBITS

Page 2: Choosing Your App Monetization Strategy

© SOURCEBITS 2015. A GLOBO COMPANY.

Free Freemium Paid Paidmium

▮ Its the most difficult and vitally important decisions a developer or company will make.

▮ Getting the right pricing strategy is key to revenue.

Choosing The Right Monetization Strategy

▮ The mobile app market is estimated to generate over $77 billion in revenue annually.

▮ A small percentage of developers and mobile app companies earn the majority of mobile revenue.

Page 3: Choosing Your App Monetization Strategy

© SOURCEBITS 2015. A GLOBO COMPANY.

Free

Freemium

Paid

Paidmium

Page 4: Choosing Your App Monetization Strategy

© SOURCEBITS 2015. A GLOBO COMPANY.

FreemiumPaid

Paidmium

Free

Page 5: Choosing Your App Monetization Strategy

© SOURCEBITS 2015. A GLOBO COMPANY.

PaidPaidmium

Free

Freemium

Page 6: Choosing Your App Monetization Strategy

© SOURCEBITS 2015. A GLOBO COMPANY.

Paidmium

Free

Freemium

Paid

Page 7: Choosing Your App Monetization Strategy

© SOURCEBITS 2015. A GLOBO COMPANY.

Source: Flurry Analytics and the Apple App Store.

84%

6%

80%

15%

90%

6%

84%

10%

100%

80%

60%

40%

20%

0%

$5.99+

$4.99

$3.99

$2.99

$1.99

$0.99

Free

2010 2011 2012 2013

90% of apps on the app store are free.

Page 8: Choosing Your App Monetization Strategy

© SOURCEBITS 2015. A GLOBO COMPANY.

From year 2012 to 2013, App Revenue from Free Apps increased by 211%. While revenue from Paid Apps decreased by -29%.

Mobile App Revenue in Key Countries

2012

2013

200

150

100

50

0In App

Advertising

+56%

Freemium

+211%

Paid

-29%

Paidmium

-23%

Brazil, Canada, France, Germany, India, Japan, Russia, South Korea, UK & USA

Page 9: Choosing Your App Monetization Strategy

© SOURCEBITS 2015. A GLOBO COMPANY.

Freemium is the No.1 Pricing Strategy In Most App Categories

Games

Social

Newsstand

Music

Entertainment

News

Education

Books

Productivity

Navigation

90%

88%

99%

65%

68%

95%

43%

77%

29%

22% 55%

70%

22%

56%

5%

31%

31%

5%

8%

24%

4%

7%

Free apps with in-app purchases Paid Apps Paid Apps with in-app purchases