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World’s Largest Independent

Mobile Ad Network

The Economics of Building an

Advertising Supported App Business

San Francisco

We’re a Global Mobile Display Ad Network

London

Nairobi

Bangalore

Singapore

Tokyo

• 4 years of mobile expertise

• 10,000+ Publisher and Advertisers

• 36+ Billion monthly impressions

• 6 regional office and 6 additional sales offices

• Top talent from Google, Yahoo & Amazon

• 225+ countries

New York

Sydney

Berlin

Johannesburg

Chicago

Mumbai

A Selection of Publishers

A Selection of Advertisers

Mobile App Landscape

400K+ Apps in iTunes

Market dynamics change daily and hourly

Highly competitive

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Tablets - The New Opportunity

• iPad and Tablets are creating new markets

• Mobile eco-system is still emerging

• Top apps are worth millions of dollars

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Needham’s Charlie Wolf, raised his 2011

iPad sales forecast to 30 million.

Total iOS installed base 160+ mn.

Total Android installed base 150+ mn.

Revenue Models: Overview

There are four ways to make money

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Each has strengths and weaknesses

Some models are more appropriate than others

Paid Downloads Sponsorship

Advertising In App Purchase

Examples

Revenue Models: Paid Download

• Strength: Works best with gaming and utilities

• Weakness: Promotion is difficult

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Tiny Wings

Fruit Ninja

Words with

Friends

Revenue Models: Sponsorship

• Strength: Great for niche apps

• Weakness: Not scalable

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The Onion

Walgreens

Examples

Red Bull

Examples

Revenue Models: In App Purchase

• Strength: Requires loyal repeat usage

• Weakness: Difficult to achieve app loyalty

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Ebay

Eliminate

Tap Zoo

Farmville

Revenue Models: Advertising

• Strength: Can drive more revenue than paid

• Weakness: Requires large installed base

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Photobucket

Shotgun

Examples

Moco Space

App Monetization Matrix

Gaming Specialty Community Utility

Paid

Download

Advertising

Sponsor

In App

Purchase

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Recommended models by category

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Try Combining Models

• Experiment.

• Take advantage of global markets

• Mix models depending on stage of evolution.

Introduction Growth Maturity Decline

1 2 3 4

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Build a Business not Apps

• Build portfolio of apps

• Create synergy between apps

• Build brand

• Variable pricing

• Develop quality content

• Take maximum advantages of social channels

• Exploit global nature of app market

The Mobile Ad Opportunity

• A $1 Billion market in the U.S. today

• Globally it’s expected to exceed $20 B in 2013

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The Ad Network Concept

Advertiser A Advertiser B Advertiser C Advertiser D

Ad Network

Publisher A Publisher B Publisher C Publisher D

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How to Pick a Network

Some important questions to consider:

• In what regions are you trying to monetize?

• What platform are you developing for?

• Type of content games, music, cars?

• Is a third party platform right for you?

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How Publishers Make Money

Impression Fill Rate CPC CTR

Ad Network

Revenue

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Tips and Tricks

• Experiment with ad placement and format

• Use data to improve performance

• Use multiple ad networks

• Create your own mediation layer

• Develop directly for ad verticals (cars,

travel, finance, etc.)

• Test everything

• Iterate often

Think Globally

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Think Globally

eCPMs vary globally but not by a big margin

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Europe North America Asia (Excl. China and Japan)

Middle East Africa

129 125

10190

70

Index by region

Sourced from our Network

eCPMs Top 20 Countries

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Country Index Range Rank

Australia > 150 1

Malaysia > 150 2

Ireland > 150 3

Thailand > 150 4

South Africa > 150 5

Russian Federation > 150 6

New Zealand > 150 7

United Kingdom > 150 8

Italy > 150 9

USA > 150 10

Country Index Range Rank

UAE 120 to 149 11

Sweden 120 to 149 12

Norway 120 to 149 13

Germany 120 to 149 14

Singapore 120 to 149 15

Saudi Arabia 80 to 120 16

Brazil 80 to 120 17

France 80 to 120 18

Spain 80 to 120 19

Jordan 80 to 120 20

We are 100% compatible with:

With InMobi you get both reach and impact.

Compatibility

Froggy Jump Case Study

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Invictus Games Sees eCPMs as High as $5.99

for iPhone Game With InMobi

Shotgun Free Case Study

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Inedible’s Shotgun Free iPhone App Triples

International eCPMs With InMobi

Key Messages

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• Think globally

• Build a sustainable business

• Test and experiment

• Optimize based on data

• Have fun!

Thank You

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For a copy of this presentation please write to me

kk@inmobi.com