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App pricing and monetization strategies are outlined.
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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
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
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
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