Advertsing Monetization Strategy

Google Confidential and Proprietary Google Confidential and Proprietary

October 24, 2013 Maurizio Lettieri - Strategic Partners Leader PBS Italy

Startup Boot Camp Advertising monetization strategy

Advertising Investment – 2012 vs 2011

Source: iab 2012 Internet, Nielsen other media

Google Confidential and Proprietary

Some examples of our publishers


There are several sub-business models that exist within advertising and sales

Advertising

Sales

In-App Advertising

Virtual Goods, Apps & Content

Physical Goods

Premium

Freemium

Subscription

Direct

Indirect

Search

Display

App Developer

Growth 2012-16

2016 Global Market Size

$35.6B (Yankee

6/12)

$36.9B (Informa 12/12)

+160%

+360%


Google provides a range of solutions to help application developers succeed in mobile

Advertising

Sales

In-App Advertising

Virtual Goods, Apps & Content

Physical Goods

Premium

Freemium

Subscription

Direct

Indirect

Search

Display

Google Mobile Solutions

Carrier Billing

Custom Search Ads for Apps


In-App Search Advertising helps vertical search apps monetize your users search queries

Advertising

Google In-App Search Monetization Solutions

Description

Business Model

Example Applications

Typically a vertical search application that provides users with a mixture of organic and

promoted search results

Promoted search results monetized through Pay-Per-Click or Pay-Per-Action (e.g. Click-to-

Call)

Yoga moves Fitness routes

In-App Advertising

Search

Display

More Relevance = More Revenue

As seen on Google

Completely Customizable

Ability to customize the shape, size, number, and color of the ads to match your existing search results.

Leverage Google's familiar search ad formats and our partner search network of over one million advertisers.

Only the most relevant advertisements are served to users based on their search queries.


Targeted ad unit based on in-app

search query

Easy to Integrate Custom Search Ads for Mobile implementation is straightforward through Google’s SDK


AroundMe’s implementation of CSA for Apps resulted in 3x higher CPM and 5x higher CTR

Advertising In-App Advertising

Search

Display •  AroundMe quickly identifies the

user’s position and allows them to search for the nearby shops and services (e.g. Movie Theatre, Restaurant, and Taxi)

•  AroundMe previously served display advertisements adjacent to its search results, however moved to custom search advertisements in-line with its search results

•  3x higher average CPM over display banner ads

•  5x higher click-through rate Application


App Developer

Attorno A Me

Sponsorship Case Study

Results Achieved AroundMe


In-App Display Advertising is a popular method of monetizing mobile audiences

Advertising

Google Display Monetization Solutions

Description

Business Model

Typical Applications

Embedded advertising units within the application, ranging

from text to image to rich media

Ad impressions are monetized through a Cost-Per-Click (CPC) or Cost-Per-Mille (CPM) basis

Vertical content apps (e.g. news, fashion, etc)

Games and entertainment Utility and productivity apps

In-App Advertising

Search

Display

Full-screen ad

Tilt Shake

Interactive banner

Text ad Banner ad

App banner

Results

Impressions 100,000

Click-through rate (CTR) 1.5%

Clicks 1,500

Cost per Click (CPC) $0.10

Revenue $150

120,000 ad requests

83%

fill rate


Premium applications generate revenues by selling through the Google Play platform

Google Premium App Monetization Solutions

Description

Business Model


Fully-featured versions of applications, typically ad-free and

differentiated from free alternatives

One-off transaction value of application retail price

Utilities Games

Productivity tools

Sales Virtual Goods,

Apps & Content

Premium

Freemium

Subscription

Step 1 Step 2

Two-step App Purchase Process

Carrier Billing

Payment Methods

Gift Card

Stored credit card credentials, most common

method

Direct charge to carrier bill,

available with over 75M users

Available in USA across

select retailers


The Beautiful Widgets app, retailing at $1.99, has generated over $1M of sales on Google Play


Apps & Content

Premium Application Case Study

•  LevelUp Studio is a four-person development team based in France

•  Their development team has been solely focused on the Android platform from v1.5

•  Their flagship title, ‘Beautiful Widgets’ is a collection of widget add-ons for Android devices distributed through Google Play

•  Beautiful widgets has sold over 500,000 copies and generated over $1M worth of revenues

Premium

Freemium

Subscription

App Developer

Application

Results Achieved


Freemium applications rely on in-app purchases of feature upgrades, content and virtual goods

Google Freemium Monetization Opportunities

Description

Business Model


Freemium apps lack key features or content, therefore enticing

users to make in-app purchases to upgrade their app experience

Revenue generated through in-app purchases of feature

upgrades, additional content or virtual goods

Games Magazines

Food and Diet


Apps & Content

Premium

Freemium

Subscription In-App Billing

•  Supported by any application published on Google play and

•  Checkout processing handled automatically by Google Play

•  All purchases are tracked to avoid multiple purchases of same items

•  Feature Upgrades (e.g. unlimited streaming)

•  Content (e.g. gaming levels, wallpaper) •  Virtual Goods (e.g. character

upgrades)

Examples


Subscription applications generate revenues from recurring fees charged to users for content

Source: DeNA Consolidated Financial Results H1 2012

Google Subscription Monetization Solutions

Description

Business Model


Subscription applications require users to pay recurring fees for

access to premium content

Revenues generated from monthly or annual subscription

fees

Music streaming Fitness / Excercise

Magazines


Apps & Content

Premium

Freemium

Subscription Content Subscription Purchase

•  Accepts monthly and annual billing intervals

•  All subscriptions are auto-renewing •  Users informed of recurring charges


In summary, Google has solutions across the three key phases of mobile monetization

Source: DeNA Consolidated Financial Results H1 2012


Technical implementation is easy and simple and you can start monetizing very fast

Open an AdMob account

Create an App entry within the platform

Integrate the AdMob SDK in the App

Insert the AdUnit in the code of the App


Monetisation solutions are not only for Apps

Desktop Mobile Apps


For more info

Maurizio Lettieri [email protected]

Advertsing Monetization Strategy

Technology

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