We Are Going Mobile

Trends and Growth in App Economy

SNAPSHOT

1. Where do we stand?

3. Insight to an Idea

2. What is an Insight

4. Type of mobile

applications

5. The commandments

7. Ways to monetize

6. How do you sell?

8. Applications

worth Noticing9. Gaming –

Business Models10. 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 DiscourseDiscourse = 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

Flappy Bird has flied to Number 1 spot in 53 countries on Apple App Store*

Dong Nguyen’s Flappy Bird

Types of Mobile Applications

ProductivitySave my time

CreativityInvest 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

Thou shall write a description which tells the usage upfront

Thou shall not try to develop transactions but relationships

Thou shall establish the feedback loop

DON’T TRY

TO GET BRANDS

FOR YOUR

APPLICATION

RATHER MAKE A

BRAND OF YOUR

APPLICATION

Developer Mindshare

“37% of mobile developers use

HTML5 as a platform, i.e. to

develop mobile websites or web-

apps, 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

Banner Ads Expandables Interstitials Text ads

1.41.65 1.73

1.99

1.12

0.63

3.06

1.58

Average conversion rate across ad formats

iOS Android

On Android, the average conversions oninterstitial ads are almost double that ofother ad formats

Monetize

DirectApp as a product Commissioned apps

Pay per Download

In app purchases

Subscriptions

Per device royalties

IndirectApp as a channel In – app advertising

Indirectly (brand awareness)

Developer services

E-commerce sales

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

Description

The app learns which apps you use most

in various locations you frequent, and it

makes them easily accessible with no user

intervention

COVER

Applications Worth Noticing

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

THEMER

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

In-game advertisingBillboards and Branded items in game world

Around game advertisingBanner & Skyscraper

Try before buyRestricted versions of game

Skill-based ProgressionBuy a ticket to enter

Advertgames Selling the experience

Episodic EntertainmentBorrowing from the TV model

Gaming – Business Models

SubscriptionWorld of Warcraft or Conan

Velvet RopePlayers pay for VIP access

Micro-Transactions (Freemium)Small, Impulsive driven up selling

Player to Player tradingTrade land, property and characters

Sponsored GamesWorld of Warcraft or Conan

Pre-Sell the gameKickstarter.com

The Rise of Freemium

Games Apps Excluding Games

86%

46%

14%

54%

2012 Indexed Revenues

With In-app purchase Without In-app purchase

Games Apps Excluding Games

93%

57%

7%

43%

2013 Indexed Revenues

With In-app purchase Without In-app purchase

Freemium as a revenue model has not only been successful in gaming but has also become prevalent in non-gaming categories such as messaging, music, news and dating

Advertising Network – Admob

MonetizePublish Apps with Admob SDK

PromoteAdvertise your app in others to

increase downloads

Choose an

advertising

network which

suits your

revenue model

and user

demography

What to Measure?

UsageDemography, Frequency, Time, User Flow, Cohort Analysis

Lifetime ValueAssign values to the mobile user to compare/analyze

Retention RateMeasure how many users continue to use your application after install

Active UsersMAU (Monthly Active Users) or DAU (Daily Active Users)

Session LengthThe time mobile users are spending with your application

ARPUValue of an user to your app business

Launch/Load TimeEnsuring that the launch/load time is consistent across all users

AcquisitionAcquiring 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

It’s Your Time To Speak Up

Thanks!