App Monetization in TaiwanJan 2015Tatsuo Sakamoto

Summary

● Mobile monetization situation is good & the market is growing fast

● Use top global solution providers + few local companies

Taiwan monetizes well

History of in-app payment

M/Y Event

Jun/2011 Taipei City Government’s lawsuit→ Apple accepted 7-day free trial, Google ceased the sale of paid apps

Dec/2012 Google won the lawsuit

Mar/2013 Apps back to Google Play→ Taiwan broke the top 5 in half a year

2014 Google Play started carrier billing (FET)

Growth of Smartphone Penetration

GlobalAverage

+23%+36%+89%

+14%

USTaiwanJapan HK Korea

mobile phone Users

Smartphone Users

+12%

59% 54% 65%72%

81%

Sources : GroupM, March 2014, eMarketer, June 2014

Growth of Mobile Games DLs and Revenue

2013 2014

IAP Revenue have achieved the 2X of 2013 in the 2014Q1-Q2

Total DLshave grown

+30% Q1 - Q2 2013

Vs.Q1 - Q2 2014

21 Billions DLs in 2013 App Store market size for game(iOS + GooglePlay)

$10.7B paid out in 2013$10.1B already paid out in 2014 Q1~Q2

Sources : App Annie

Revenue Growth of Key Countries (H1 2013-2014)

iOS250(%)Android

200

150

100

50

0

USA Japan Korea Taiwan HongKong Global Avr.

0

(%)600

500

400

300

200

100

Sources : App Annie

Standard monetization methods work

Reward ads In-app Purchase Ad network Paid app

Freemium is prevalent business model

USA

Japan

Korea

Taiwan

HongKong

Free + IAP

Paid + IAP

Paid App

Sources : Asia: The Leading App Market in the World January 2014, App Annie

200Top developers

193monetize

122monetize w/ Ad Network

Global players + local companiesReward Ad network

Confidential

eCPM : 30-40% of Japan (constantly growing)

Interstitial has become standard

70%

Interstitialadoption %

Confidential

[appendix] What’s Interstitial ads?

Thank you!