Mobile App Strategies

Pricing and Monetization

Pricing Strategies

The art and science of pricing

• Consider your app

– What do competitors charge?

– What sets my app apart?

– How can it be monetized? • Compulsion loop

• Engagement

More on pricing strategies at blog.w3i.com or twitter @w3i

Freemium vs. Paid

• iOS freemium games generate

$14.66/user * VentureBeat

• In 2009 free apps received more than 4x

number of installs over paid * AdMob

2

4

6

5

10

iTunes Top Grossing 11/9/2010

5 out of 10 top grossing iPhone Apps

are using the free-to-play model

Price cut. The magic of $.99

• EA Christmas 2010 Strategy

– #4, #7, #8, #10, #11, #12 paid iPhone apps

– #1, #2, #4, #7, #9, #10 paid iPad apps

• Support price cuts with publicity

Looking ahead

• W3i in collaboration with Distimo, will

publish pricing research in Q1 2011,

follow us for the latest.

@w3i

blog.w3i.com

The Monetization Puzzle

Paid Installs and App Monetization

Setting the foundation

• Are you sure its good?

– Compulsion Loops

– Engagement

– Value

Emerging Strategies

• Display Advertising

• In-App Purchase

– access/subscription

• In-App Purchase

– virtual goods/enhancement

Display Advertising

• For developers, easy way to monetize

impressions.

• For advertisers, high level of risk and

high cost of acquisition.

In-App Purchases

access/subscriptions

• For developers, an alternative to “lite”

version.

In-App Purchases

virtual goods/enhancement

• For developers capitalize on your game

mechanics.

• For advertisers, low risk, value add to

consumers.

Free 37 Paid

63

App Store Top Grossing 100 -

11/12/2010

75% of

revenue

from

virtual

goods

How It Works

1 User Plays

Game

2 User Wants

Background

3 User Selects

App

4 User Installs

App, Gets Points

5 User Claims

Background

6 User Checks

History

Want more?

@w3i

hashtag #appschat

blog.w3i.com

Join the community. Contact Rob.

Rob Weber

Vice President and Co-Founder

robert.weber@w3i.com

(320) 257-7551

W3i, LLC

1900 Medical Arts Avenue S

Suite 200

Sartell, MN 56377