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Mobile Application
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Mobile App
Monetization
OPTISOL BUSINESS SOLUTIONS (P) LTD.,87/4, ARCOT ROAD, VADAPALANI CHENNAI - 600026
www.optisolbusiness.com | [email protected]
What’s fun without numbers?
Application Price Distribution (Source: http://www.pocketgamer.biz/ )
Freemium Vs Paid Vs Paidmium:
1. App on sale in the store2. Free app with ads3. Free app with in-app purchases4. Free app with paid subscription5. Free app with paid upgrade options
Monetization Options:
What is Freemium?
Basically, there will be two versions of the app. The free version is typically ad-supported/limited with features/content and the users can access most of the features easily. The paid version might be usually a premium or a pro version. This app will enable more content/privileges by unlocking few more features without any ads
This model leverages the free offer by mitigating the price as a barrier to entry and then converts the free app into a distribution channel for the paid app. Free app is your service messenger and affiliate for revenue.
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2.
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Freemium revenue for mobile apps was up 211 percent last year, according to a new report from mobile analytics company App Annie and IDC.
Freemium is ruling but in�app ads are chasing them hard
Free App +
Go Pro
Free +
Premium
Pull with free offering +
Push your valuables (content/Privileges/
Levels)App + Virtual goods
(Upgrades/Speed-up/Buy additional levels
/Content/Pay to remove ads etc)
Advertisements as part of your mobile app content or mixed as part of your process as like any TV advertisements.
There are many popular mobile advertising networks like Google’s AdMob that provides advertisements as a service that can consumed by mobile app via integrationThe decision point is to choose a right advertising network service provider that will sync up well with your app solution context and bring revenue.
Interestingly, less than half of the developers surveyed in IDC – App Annie said that they used in-app advertising, as 58 percent said that they did not use ads in their apps. Ad revenue from all of a developer’s apps is around $10,000 a month in the 75th to 90th percentile as per the survey
IDC numbers cited in the report suggest that the proportion of ad revenue to total app revenue will grow in every major mobile market by that point, with U.S. edging up to around the 60 percent level; Germany, the UK, France, and Brazil growing significantly; and only South Korea and Japan remaining below the 50 percent mark.
This is the ‘mium’ part of the freemium monetization model. The users are pulled with free app offer and then are presented with options to buy within app. This model is relevant and illustrated efficiently in games app. Games generally offer virtual currency/points/credits or the option to buy more levels. If your game is compelling an addictive to end users, this would be an excellent source of revenue.
In-App Ad:
In-app purchases
Candy Crush is a free app that generated 1.88 billion in revenue in 2013.
Mobile in-app ad revenue will surpass PC display ad revenue by 2017.
YesNo
Is market ready to pay to download
your app?
What is your app. key orientation?
Launch paid app in store
Personal/Social/
BusinessProcess
Free
Free with basic features
Free with ad with option to pay to
remove ad
Free
Free with limited content and
subscription option
Pay per premium content/article
Free with ad with option to pay to
remove ad
Content Oriented
Free
Free with in-app ad
Free with in-app purchases
Game
Which Monetization option to Choose?
Free with ad with option to pay to
remove ad
