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World’s Largest IndependentMobile Ad Network

The Economics of Building anAdvertising Supported App Business

August 16, 2010

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InMobi: Mobile Ad Network

• 21.2 Billion impressions• 6 Offices• Live in 115 countries

• 185 M Consumers reached• 150 employees• Backed by Kleiner Perkins

San Francisco

London

Johannesburg

Mumbai

Bangalore

Tokyo

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A Selection of Partners

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Mobile App Landscape

• Highly competitive• Saturation point reached (iPhone)• Market dynamics change daily and hourly!

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The Opportunity

• Still huge opportunity for developers (long tale)• Android eco-system is still emerging• Top apps are worth millions of dollars

Since its release over 6.5 million copies of the game Angry Birds have been purchased.

Over 1 Million sold on Android.

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Revenue Models: Overview

There are only four ways to make money

Each has strengths and weaknessesSome models are more appropriate than others

Paid Downloads Sponsorship

Advertising In App Purchase

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Revenue Models: Paid Download

• Strength: Works best with gaming and utilities• Weakness: Promotion is difficult

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Revenue Models: Advertising

• Strength: Can drive more revenue than paid• Weakness: Requires large installed base

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Revenue Models: Sponsorship

• Strength: Great for niche apps• Weakness: Not scalable

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Revenue Models: In App Purchase

• Strength: Requires loyal repeat usage• Weakness: Difficult to achieve app loyalty

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App Monetization Matrix

Gaming Specialty Community Utility

Paid Download X XAdvertising X X XSponsor XIn App Purchase X X

• Recommended models by category

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Try Combining Models

• Mix models depending on growth stage• Experiment• Take advantage of global markets

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Build a Business not Apps

• Build a portfolio of Apps• Create synergy between apps• Use loss leaders to build brand• Variable pricing• Develop quality content• Volume of apps also matters• Take maximum advantages of social channels• Exploit global nature of App market

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Tips for Monetizing With Ads

• Test everything• Use data to improve performance• Experiment with ad placement• Experiment for ad format• Try multiple ad networks• Develop directly for ad verticals (cars, travel,

finance, real estate, etc.)

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Picking an Ad Network

• Some important questions:• In what regions are you trying to monetize• What platform are you developing for• Type of content games, music, cars• Consider a mediation platform: Mobclix

Think Globally

• eCPMs vary globally but not by a big margin

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Europ

e

North

Am

erica

Asia (E

xcl.

China

and

Japa

n)

Midd

le Eas

t

Africa

129 125

10190

70

Index by regionSourced from our Nework

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

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The InMobi Platform

• Largest independent mobile ad network• iOS friendly - full support for iAd format• Multi-platform iOS, Android, Blackberry, etc.• 40% of our traffic is outside the U.S.

• Live in 115 countries including US

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Our Network

North America3.2 Billion Ad Requests

Europe1.8 Billion Ad Requests

Africa2.8 Billion Ad Requests

Asia Pacific11.5 Billion Ad requests

Middle East 514 Million Ad Requests

• Can offer ad monetization for developers in almost every region, globally.

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InMobi World Developer Fund

• $2 Million Dollar World Developer Fund– Normally ad networks share revenue with publishers– We offer you 100% of revenue earned– Program lasts until the fund is gone

• Real support for developers