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FQ Mobile Asia Congress - App Bytes 2011 - Session Speech & Panel

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FQ Mobile Asia Congress - App Bytes 2011 - Session Speech & Panel

  1. 1. Monetizing “That” Apps Mobile Asia Congress 2011
  2. 3. What are “that” apps?
  3. 4. 2 Freemium 1 Free 5 Sales 4 Data extensions 3 Paid TRADEOFFS Length of Usage Intensity of Usage Volumes $ 5 Main Models
  4. 5. Business Model #1: Free <ul><li>Penetration: Largest % of apps in Stores </li></ul><ul><li>Typical Revenue Model: Advertising </li></ul><ul><ul><li>Direct brand sponsorship, ad enablers, or ad networks </li></ul></ul><ul><li>Example: </li></ul>
  5. 6. <ul><li>Penetration: Fastest growing trend </li></ul><ul><li>Ideal Revenue Model: R evenue from upgrades </li></ul><ul><li>Examples: </li></ul>Business Model #2: Freemium
  6. 7. Business Model #3: Paid <ul><li>Penetration: Small % of App Store Apps. Almost non-existent in “That” apps. </li></ul><ul><li>Ideal Revenue Model: R evenue from paid downloads </li></ul><ul><ul><li>Higher value added apps have higher price points </li></ul></ul><ul><li>Example: </li></ul>
  7. 8. Business Model #4: Data Extensions <ul><li>Definition: Apps that enhance an existing product or service. Usually “first gen” Brand apps. </li></ul><ul><li>Ideal Revenue Model: Loss leader, revenue generated elsewhere. </li></ul><ul><li>Example: </li></ul>
  8. 9. Business Model #5: Sales <ul><li>Definition: Apps through which you can buy a product or service </li></ul><ul><li>Ideal Revenue Model: Profits from sales or affiliate commission </li></ul><ul><li>Examples: </li></ul>
  9. 10. Segmentation of App Types by Usage Intensity of Use Length of Use High High Low Low Facebook Moto Racer iFart Compass Local Gas Prices Traffic Reporter IMDB The Weather Channel Tune In Radio CNNGo Sudoku FruitNinja Love Test My Notes Talking Tom
  10. 11. Focus on “That” Apps > 30% of Smartphone users have used “That” apps
  11. 12. 2 Freemium 1 Free 5 Sales 4 Data extensions 3 Paid Focus on “That” Apps: 1+4
  12. 13. Mobile Marketing Grows
  13. 17. Monetize “ That ” Apps through brands ’ growing mobile marketing budgets
  14. 18. 4 categories of monetization for free apps Ads Multi-platform ads Exclusive ads Sponsors Sections Monthly promos License Whitelabel Powered apps Buy out Hot IP Potential synergy Base monetization Starting point “ basic earnings” Get some cash Requires negotiation “ making a living” Substantial money to be made if negotiated “ minting it” Most likely a tech company buyer “ now you are set” Substantial monetization
  15. 19. The simplest game in the book… but try targeting <ul><li>Ad enabler aggregates feeds from multiple ad networks or a single network in the case of the exclusive model </li></ul><ul><li>Earn revenue from CPMs (Impressions) and CPAs (Touch-thrus) </li></ul><ul><li>No threshold to start, can do from day 1 </li></ul><ul><li>CPMs can be about $1-10 range </li></ul><ul><li>Specialist apps can get more </li></ul><ul><ul><li>Targeting </li></ul></ul><ul><ul><li>Talk to ad networks </li></ul></ul><ul><ul><li>Push hard to get better rate </li></ul></ul>Ads Sponsors License Buy out
  16. 20. A bit of negotiation required… but better results <ul><li>Developer has agreements directly with ad agency or brand to fully brand the app </li></ul><ul><li>Best if you have a strong business or personal network </li></ul><ul><li>Higher CPMs, better integration of branding and app </li></ul><ul><li>Only possible if you can showcase how your “That” app is the right fit for a brand </li></ul>Ads Sponsors License Buy out
  17. 21. Power the apps that brands want <ul><li>Be prepared to white label your tech or License it to a brand </li></ul><ul><ul><li>Requires knowledge of licensing </li></ul></ul><ul><ul><li>Some negotiation </li></ul></ul><ul><li>Brands are constantly on the look-out for hot tech that can add the “cool factor” to their apps </li></ul>Ads Sponsors License Buy out
  18. 22. One-of-a-kind success story that no one can resist.. <ul><li>The dream case , where a larger company sees value in your IP to the extent that they can integrate it into their business </li></ul><ul><li>Might start off with a License deal at first that eventually leads to buy out </li></ul><ul><li>Does require you to constantly make noise and start approaching potential buyers </li></ul>Ads Sponsors License Buy out
  19. 23. Ads Sponsors License Buy out
  20. 24. Current Structure of Ad Industry <ul><li>Aggregate adverts from ad networks and feed them to developers to attempt to increase fill rates and CPM, </li></ul><ul><li>Ad enablers can service all mobile advertising, or just websites, applications or operators. </li></ul><ul><li>Monitor performance of applications </li></ul><ul><li>Generally offered free at the moment </li></ul><ul><li>Different focuses between companies (advertising, pure analytics, market research…) </li></ul><ul><li>Want to promote products via mobile advertising campaigns. </li></ul><ul><li>Size of budgets can vary hugely. </li></ul><ul><li>Aggregate adverts from mobile agencies </li></ul><ul><li>Either serves developers directly or passes on adverts to another aggregator layer, the ad enablers </li></ul><ul><li>Looking to grow the ecosystem by building great products and make a living </li></ul><ul><li>Agencies are hired by advertisers to plan and create campaigns </li></ul><ul><li>Some agencies focused solely on the mobile space </li></ul>Brands and advertisers Ad agencies Ad networks Ad enablers Developers / Publishers Consumers Analytics Providers
  21. 25. The biggest ad networks Money Flow
  22. 26. Current Structure of Ad Industry Lets focus on this Brands and advertisers Ad agencies Ad networks Ad enablers Developers / Publishers Consumers
  23. 27. What do Brands / Marketers / Advertisers care about?
  24. 28. Demographic & Local Targeted Reach User base threshold (active users) Syncs with brand values
  25. 29. The Opportunity Beckons….
  26. 30. Build a case for the Marketers. Show them that we understand.
  27. 31. The Winning Formula for Monetization Analytics Engagement Experience & Design
  28. 32. Analytics Analytical Tools
  29. 33. Social / Engagement <ul><li>Use social as a means to an end (engagement) and an end in itself (revenue) </li></ul>Building Social / Engagement
  30. 34. Mobile Internet Mobile User Experience Design
  31. 35. Process of Design
  32. 38. Principles
  33. 39. Principle 1: Interaction design is not guesswork <ul><li>Who are my users? </li></ul><ul><li>What are my users trying to accomplish? </li></ul><ul><li>How do my users think about what they’re trying to accomplish? </li></ul><ul><li>What kind of experiences do my users find appealing and rewarding? </li></ul><ul><li>How should my product behave? </li></ul><ul><li>What form should my product take? </li></ul><ul><li>How will users interact with my product? </li></ul><ul><li>How can my product’s functions be most effectively organized? </li></ul><ul><li>How will my product introduce itself to first-time users? </li></ul><ul><li>How can my product put an understandable, appealing, and controllable face on technology? </li></ul><ul><li>How can my product deal with problems that users encounter? </li></ul><ul><li>How will my product help infrequent and inexperienced users understand how to accomplish their goals? </li></ul><ul><li>How can my product provide sufficient depth and power for expert users? </li></ul>Get answers to all questions up front
  34. 40. Principle 2: DO NOT expect design’s to meet all users' needs <ul><li>Focus on target users </li></ul>Rapid Release Webzine Share button
  35. 41. Principle 3: Make the important important <ul><li>Set priorities </li></ul><ul><li>Conversation </li></ul><ul><li>Friends </li></ul><ul><li>Dynamic </li></ul><ul><li>QQ box </li></ul><ul><li>More </li></ul>
  36. 42. Principle 3: DO NOT let users think. <ul><li>Allow users to learn less </li></ul>Same Graphic Feature More graphics and less text. Tips that are not disturbing.
  37. 43. Principle 4: Keep it natural <ul><li>Proper invisible design clues </li></ul>Scene simulation Common icons
  38. 44. Principle 5: Give them feedback - Interact <ul><li>Give them feedback . </li></ul>Show actions Press Events
  39. 45. Research Methods
  40. 46. Persona <ul><li>What different sorts of people might use this product? </li></ul><ul><li>How might their needs and behaviors vary? </li></ul><ul><li>What ranges of behavior and types of environments need to be explored? </li></ul><ul><li>Experience goals, which are related to visceral processing: how a user wants to feel? </li></ul><ul><li>End goals, which are related to behavior: what a user wants to do? </li></ul><ul><li>Life goals, which are related to reflection: who a user wants to be? </li></ul>
  41. 47. Persona Profile <ul><li>Name: </li></ul><ul><li>Age: </li></ul><ul><li>Job: </li></ul><ul><li>Type: Share/Scan/… </li></ul><ul><li>Patterns of behavior: </li></ul><ul><li>Brief description: </li></ul><ul><li>Experience Goal: Feel smart or in control/ Have fun/ Feel cool or hip or relaxed… </li></ul><ul><li>End Goal: Stay connected with friends and family/Find music that I’ll love/Get the best deal </li></ul><ul><li>Life Goal: Live the good life/Succeed in my ambitions to/ Be a connoisseur of … </li></ul>
  42. 48. Scenario <ul><li>In what setting (s) will the product be used? </li></ul><ul><li>Will it be used for extended amounts of time? </li></ul><ul><li>Is the persona frequently interrupted? </li></ul><ul><li>Are there multiple users on a single workstation or device? </li></ul><ul><li>With what other products will it be used? </li></ul><ul><li>What is the expected end result of using the product? </li></ul>
  43. 49. Task Analysis <ul><li>Why the user is performing the task (that is, the underlying goal) </li></ul><ul><li>Frequency and importance of the task </li></ul><ul><li>Cues — what initiates or prompts the execution of the task </li></ul><ul><li>Dependencies — what must be in place to perform the task, as well as what is </li></ul><ul><li>dependent on the completion of the task </li></ul><ul><li>People who are involved and their roles and responsibilities </li></ul><ul><li>Specific actions that are performed </li></ul><ul><li>Decisions that are made </li></ul><ul><li>Information that is used to support decisions </li></ul><ul><li>What goes wrong — errors and exception cases </li></ul><ul><li>How errors and exceptions are corrected </li></ul>
  44. 50. The Winning Formula for Monetization Analytics Engagement Experience & Design
  45. 51. Take all your facts and insights… <ul><li>… and advertisers will come start chasing you! </li></ul>Experience & Design Engagement Analytics Demographic & Targeted Reach User base threshold (active users) Sync with Brand Values
  46. 52. Panel Introductions Aneesh Varma Director of Innovation & Co-Founder, FabriQate Marcus Sigurdsson Lead Digital Catalyst, McCann Worldwide Nemo Sun Director of Marketing, 3G.cn Donald Anderson Director of Marketing, CNN - Turner
  47. 53. Live Jeopardy (with no real money) HKD 100 HKD 500 Audience ? HKD 100 HKD 500 Audience ? HKD 100 HKD 500 Audience ? HKD 100 HKD 500 HKD 1000 Platforms Technologies Localization Advertising Let ’s Make History
  48. 54. Platforms What does the Native vs HTML5 debate mean to you ?
  49. 55. Platforms What does location based services / targeting mean for you?
  50. 56. Technologies What kind of “that” apps do you believe would appeal in your context?
  51. 57. Technologies Would you consider a license / buy out deal of a technology if all your potential customer's were using it?
  52. 58. Localization How do you look and segment end-users from China and Hong Kong?
  53. 59. Localization What does design & user experience mean for you?
  54. 60. Advertising What do you think about growing need for Analytics vs. Privacy ?
  55. 61. Advertising Is advertising more about numbers than creativity?
  56. 62. Advertising If you are a brand advertising in a free app – isn ’t this a paradox? Your goal is to get conversions / revenue / sales. Users using free apps are usually the “ cheaper ” ones and probably not likely to purchase your products. Is this true? Thoughts?
  57. 63. Audience ?
  58. 64. Let ’s Make History (open for Panel & Session Attendees) There is no name for “ That ” apps today. ‘ Utility-with-Data feed ’ … just doesn ’ t cut it. Lets define a name today that will be cited by our industry & generations to come…
  59. 65. Crowd Sourced Name Ideas <ul><li>WowApps </li></ul><ul><li>Magic </li></ul>
  60. 66. It ’ s a Magic app
  61. 67. We are happy to talk more: friends @ FabriQate.com

Notas do Editor

  • Remove brand app
  • Gimik apps bottom left Games top left – with execptions Utility apps bottom right Content / Media apps top right - High Intensity / Length of Use
  • Compounded Annual Growth Rate You are the only ones positioned to earn that Ad Revenue which should hit 5billion USD soon which would soon surpass
  • Average license rates are 12-15K USD for license + customization today globally
  • How are others who are like you using “That” apps for their usage?
  • Webservice + Utility Utility apps that pull content offline. The apps that make the Smartphone&apos;s smart The apps that you use to convince your friends your phone is better