This document discusses mobile app monetization and distribution trends. It provides statistics showing that apps are a dominant media source and that mobile gaming is the top app category. It also discusses that users prefer free apps and don't like ads. The document then summarizes Tapjoy, a platform that allows users to earn coins within apps to exchange for content, and provides Tapjoy's user base, app network, and funding statistics. Lastly, it discusses strategies for app distribution, increasing user retention and engagement, and monetizing apps through direct payments and the Tapjoy platform.

1. App Monetization &
Distribution Trends
Charles Rim, Managing
Director
Korea/ SE Asia
March 2013

2. Changing the way people
discover, share and engage
with mobile content.

3. Apps are the Dominant Media
Source: Zokem, inMobi

4. Usage is Persistent Throughout the Day
• 85% of consumers “can’t live without their
smartphone”
• 88% of consumers “use their smartphone every day”
lying in bed waiting for
something
watching TV commuting
spending time
with family
in the bathroom while shopping at social
gatherings

5. Source: Flurry Analytics, Dec 2011; Nielsen, 2011
Mobile Gaming is the #1 App
U.S. Mobile App
Consumption,
Time Spent Per Category
Consumers average 47 minutes per day playing games

6. Users Don’t Like to Pay to Try New
Apps

7. Users Don’t Like Display Advertising
Especially in games
where they could click
on an ad by mistake

8. 1
Most Top-Grossing Apps in App Store are Free

9. Freemium vs Premium

10. Freemium vs Premium
Google Play Revenue Growth US 2012

11. Tapjoy Big Idea:
Mobile Value Exchange

12. 1
Consumers
Advertis
ers
Developers
The Tapjoy Platform

13. 1
Tapjoy Mobile Value Exchange
I can earn coins by
engaging with ads in
Tapjoy’s Marketplace.
How it Works
I need more coins to build on my land in Triple Town.
1
2
I can buy coins
with real money.

14. 1
Tapjoy’s Mobile Value Exchange (continued)
I can then engage in any of the actions — like watch a Ford
video — to earn Coins.
After which, I can perform secondary
actions (determined by the advertiser)
and have more Coins to use in my
game.
4
3

15. Consumers Choose
• Brand defines the desired
activity based on goals:
– Video Distribution (CPV)
– Customer Acquisition (CPA)
– App Engagement (CPE)
– Retargeting (CPV, CPA & CPE)
– App Installations (CPI)
• Brand only pays for completed
engagements
• No media waste

16. Tapjoy Market Presence
free-to-use apps
included in the
Tapjoy network
75
K

17. Tapjoy by the Numbers
339 MM
Mobile Users
5,300+
Active Apps
1.2 MM
Daily Ad
Engagements

18. About Tapjoy
Founded 2007
Headquarters San Francisco
Offices in the US, Europe and Asia
Reach 900+ million mobile
consumers on Android, iOS,
Windows Phone 7 and HTML5
Funding $70.5 million from
• J.P. Morgan Asset Management
• Rho Ventures
• North Bridge Venture Partners
• InterWest Partners
• D.E. Shaw Ventures

19. Launching your App:
Key Distribution
Strategies

20. Self-Publish or Get Published?
Get Published?
• Make sure you get adequate, hard
commitments on marketing budget and
promotional efforts, including agreed upon
KPIs/metrics.
• Know what you’re giving up and getting in
return.
• Get references – Who have they worked with
before? How did it work out? Ask other
developers.
Self-Publish?
• You should have at least $100K-$200K to
promote your app or be pretty sure
Apple/Google are going to feature your app
• Ideally you already have a built-in user base
playing your previously launched titles that you
can use for cross promotion

21. How are developers promoting apps?
Mobile Acquisition Channels
• Rewarded installs
• Non-rewarded installs
• Video ads
• Dev-to-dev cross promotion
• Social discovery (FB, Twitter, etc.)
• Organic discovery (top charts,
search, word of mouth, etc.)
• Featured placements

22. Getting Featured

23. Getting Featured
Featured!

24. Getting Featured
• Well Known IP
• Prior Hits
• Territories Available
• Languages Supported
• Supported Devices / OS versions
• Technology Supported
• Retina Display, Multitasking, Gyroscope,
Accelerometer, Location Services, Game Center,
etc.
• App Store Landing Page
• One-liner that captures what makes your app
special
• User Reviews/Ratings
• Video trailer on Google Play
What they’re looking for:
And of course…a great game!

25. Increase User Retention: Engagement
Campaigns
• Build deeper engagement
by encouraging users to
complete specific actions
within your app.
• For example,
• Play to Level-2
• Complete The Tutorial
• Share on Facebook
• Re-target users who have
already installed your
app, and have them
return.
Motivate new users to
install Tap Defense
and advance to level-
3.
Objective:
Case Study:
Tap Defense
70%
New Users
Advanced to
Level 10
21%
Returned to
Game the
Next Day
6%
New Users
Monetize on
First Day
Results:

26. • Give your users a reward for
coming back every day
• In the later days of the reward cycle
give the users bigger or exclusive
rewards
• Show them what they earned and
also show them what is coming up
Increase User Retention: Daily Rewards

27. Reward Friend Invites & Social Sharing
Reward users
for inviting their
friends

28. Key Monetization
Strategies

29. • Choose a smaller region to test in
– Everybody uses Canada, so go with another English-
speaking country (ex. AU, NZ, SG)
– Get 5K+ DAUs flowing through your app
• Focus on retention (next-day, 7-day, 14-day)
– Aggressive targets: 40%+ next-day, 25%+ 7-day, 15%+ 14-
day
– Tutorial completion rate goal at 70%
• Monetization measurement
– High end: $1 ARPDAU
– Realistic ARPDAU range: $0.04-$0.15
– % DAUs monetized: 1%-5%
• Take care of any bugs
• Proceed with a full launch only when you’re happy with the
performance of your bucket test
Testing the waters

30. Monetization: Direct Pay + Tapjoy
Combining Tapjoy & Direct Pay allows Apps to monetize significantly more
users
Direct Pay
Users can buy Coins, with real money
Fewer than 5% of users monetize via direct pay
Tapjoy Monetization
Users can earn Coins, for Free
Apps can monetize the other 95% of users, who never pay, but still want to
play
1
2
1
2

31. Tapjoy Increases DEAD TRIGGER Revenue: 66% (Android) & 48% (iOS)
Case: DEAD TRIGGER
• Tapjoy increased revenue by
66% on Android & 48% on
iOS
• Tapjoy accounts for 60% of
Android & 32% of iOS total
revenue
• Tapjoy ARPDAU is $0.03
DEAD TRIGGER
“It has been an absolute delight working with Tapjoy. Integrating them into our DEAD
TRIGGER game was a great decision and our revenue has increased significantly thanks
to them.”
-Marek Rabas (CEO, MADFINGER

32. Asian Developers
& International Markets

33. Why Go Global?
• The obvious reasons:
• Market size & revenue opportunities!
• Publishing on the App Store: Just press “All Regions”

34. Asian Developers Know How to Monetize…!
Japan and
Korea are now
SUPERPOWE
RS rivaling
USA
USA
21%
Korea
11%
Japan
6%
Other
62%
Download
Share
USA
26%
Korea
18%
Japan
29%
Other
27%
Revenue
Share

35. Understand your Target Region: Korea
Korean Carriers
~30MM
Smartphone Users
78%
Own an Android
(19% on iOS)
The Key Players to Consider Before Launching your
App
KakaoTalk
70MM+ Users Worldwide
95%+ of KR smartphones
Messaging, VOIP, now
Games!
T-Store
19M Registered Users
2.6MM DAU, 10.8B
Downloads
KRW 235B in Turnover
($222M)

36. Developer Contact Information
• Knowledge Center
– https://knowledge.tapjoy.com/en
• Includes developer for advertiser and developer for publisher’s SDK
integration guides.
– SDK Download: https://dashboard.tapjoy.com/sdk
• Integration Help Desk
– integrations@tapjoy.com
– Cf., Account, Billing, Reporting question: support@tapjoy.com
• Technical Account Managers in Asia
– Korea: John Kim john.kim@tapjoy.com
– China: Song Peng song.peng@tapjoy.com
– Japan: (coming in March)

37. © 2012 Tapjoy, Inc. All Rights Reserved. Tapjoy and the Tapjoy logo are trademarks or registered trademarks of Tapjoy, Inc.
All third party logos and trademarks mentioned are the property of their respective owners.
Questions?
jennifer.cho@tapjoy.com
(distribution/monetization)
John.kim@tapjoy.com
(technical)