Monetization: How the Top Free Apps Make Money
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Transcript of Monetization: How the Top Free Apps Make Money
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Jan. 15th, 2015
Welcome, App Devs! Wi-Finetwork: Studentpassword: Improving
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Introduction
❖ Nick Culbertson - www.appstore.com/nickculbertson
❖ Next Month’s Meetup:
SHOW & TELL - Thursday, Feb 19th @ 7pm
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Overview❖ App Market Statistics*
❖ Monetization Options
❖ How the Pros Monetize
❖ Tips to Earn More in 2015
❖ *Charts from AppAnnie.com & statista.com
Monetization: How the Top Free Apps Make Money
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App Market Statistics: Questions
❖ 1. Has the App Store plateaued?
❖ 2. Which earns more: Paid or Free apps?
❖ 3. Which revenue model ranks supreme?
❖ 4. Is the game category too crowded?
❖ 5. Is Apple still the top dog?
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Apple App Download Growth
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Apple App # Growth
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Google Play # Growth
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Google Play vs. Apple
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Mobile App Downloads: The Future
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App Revenue
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Top Grossing Apple Apps❖ Top 10 Apps = All Free
❖ Top 25 Apps =
2 Paid (Trivia Crack* &
Minecraft)
❖ Top 100 Apps =
Only 6 Paid (3 contain IAP)
❖ No IAP for "Removing Ads”
❖ * Trivia Crack Free ranks
higher than Trivia Crack Paid
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Top Grossing Google Play Apps
❖ Top 100 Apps =
Only 2 Paid (Trivia
Crack* and Minecraft)
❖ 98/100 Are Games
❖ 22/100 Casino Games
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Top Grossing Windows Phone AppsOf the top 50 highest grossing Windows Phone apps, 44 used in-app purchases.
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Top Free iOS App Earners
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IAP Revenue in The Future
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Apple App Store Games Growth
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Apple Top Categories (find a niche)
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Google Play Trends
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iOS Trends
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App Market Statistics: Wrap-Up❖ 1. Has the App Store plateaued?
❖ 2. Which earns more: Paid or Free apps?
❖ 3. Which revenue model ranks supreme?
❖ 4. Is the game category too crowded?
❖ 5. Is Apple still the top dog?
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App Market Statistics: Wrap-Up❖ 1. Has the App Store plateaued? No, the App Store is GROWING!
❖ 2. Which earns more: Paid or Free apps?
❖ 3. Which revenue model ranks supreme?
❖ 4. Is the game category too crowded?
❖ 5. Is Apple still the top dog?
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App Market Statistics: Wrap-Up❖ 1. Has the App Store plateaued? No, the App Store is GROWING!
❖ 2. Which earns more: Paid or Free apps? “Free” apps are the top earners!
❖ 3. Which revenue model ranks supreme?
❖ 4. Is the game category too crowded?
❖ 5. Is Apple still the top dog?
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App Market Statistics: Wrap-Up
❖ 1. Has the App Store plateaued? No, the App Store is GROWING!
❖ 2. Which earns more: Paid or Free apps? “Free” apps are the top earners!
❖ 3. Which revenue model ranks supreme? IAP has the highest yield & compound growth is expected.
❖ 4. Is the game category too crowded?
❖ 5. Is Apple still the top dog?
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App Market Statistics: Wrap-Up❖ 1. Has the App Store plateaued? No, the App Store is GROWING!
❖ 2. Which earns more: Paid or Free apps? “Free” apps are the top earners!
❖ 3. Which revenue model ranks supreme? IAP has the highest yield & compound growth is expected.
❖ 4. Is the game category too crowded? Yes, but there is still room to grow. Finding a niche will be increasingly crucial.
❖ 5. Is Apple still the top dog?
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App Market Statistics: Wrap-Up❖ 1. Has the App Store plateaued? No, the App Store is GROWING!
❖ 2. Which earns more: Paid or Free apps? “Free” apps are the top earners!
❖ 3. Which revenue model ranks supreme? IAP has the highest yield & compound growth is expected.
❖ 4. Is the game category too crowded? Yes, but there is still room to grow. Finding a niche will be increasingly crucial.
❖ 5. Is Apple still the top dog? Yes, but Google Play is too big to ignore anymore. Windows Phone is silently growing.
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Monetization Options: Questions
❖ 1. How can you monetize your app?
❖ 2. Which earns more; Ads or IAP?
❖ 3. Which ad network should you use?
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Monetization Options: Defined❖ Native Ads - i.e. Facebook
❖ Banner Ads - i.e. Flappy Bird
❖ Interstitial (Video & Overlay) - i.e. Angry Birds Epic
❖ List Ads - i.e. Coin Dozer ;)
❖ More Apps - i.e. Chartboost
❖ Mediation - i.e. Admob
❖ Affiliate Links - i.e. Apple Affiliate Program
❖ In-App Purchases - i.e. Most Top Earning Apps
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Which Platform to Use
❖ Numerous Options
❖ Banner Ads - Admob
❖ Interstitial - Chartboost, AppLovin,
iAd, Tapjoy
❖ Implementation - CodeCanyon
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In-App Purchases
❖ Extra Content - i.e. Bonus Maps in Angry Birds
❖ Consumables - i.e. Extra health or Currency
❖ Subscriptions - i.e. Spotify
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Monetization Options: Wrap-Up
❖ 1. How can you monetize your app?
❖ 2. Which earns more; Ads or IAP?
❖ 3. Which ad network should you use?
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Monetization Options: Wrap-Up❖ 1. How can you monetize your app? There are several
options to monetize your apps through Ads & IAP.
❖ 2. Which earns more; Ads or IAP?
❖ 3. Which ad network should you use?
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Monetization Options: Wrap-Up
❖ 1. How can you monetize your app? There are several options to monetize your apps through Ads & IAP.
❖ 2. Which earns more; Ads or IAP? IAP earns more than Ads but is more risky. Try both!
❖ 3. Which ad network should you use?
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Monetization Options: Wrap-Up❖ 1. How can you monetize your app? There are several
options to monetize your apps through Ads & IAP.
❖ 2. Which earns more; Ads or IAP? IAP earns more than Ads but is more risky. Try both!
❖ 3. Which ad network should you use? Banner ads try Admob/Interstitials try Chartboost, Admob, AppLovin, Tapjoy, iAd, or others
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How the Pros Monetize: The List
❖ 1. Clash of Clans (Ranked 1 in Grossing)
❖ 2. Candy Crush (Ranked 3 in Grossing)
❖ 3. Big Fish Casino (Ranked 7 in Grossing)
❖ 4. Trivia Crack (Ranked 11 in Grossing/1 in Downloads)
❖ 5. Kim Kardashian (Ranked 20 in Grossing)
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Number of IAPs & Costs
❖ 1. Clash of Clans - 6 from $4.99 to $99.99
❖ 2. Candy Crush - 10+ from $.99 to $74.99 (top 10)
❖ 3. Big Fish Casino - 10+ from $1.99 to $99.99 (top 10)
❖ 4. Trivia Crack - 10+ from $.99 to $99.99 (top 10)
❖ 5. Kim Kardashian - 10+ from $1.99 to $99.99 (top 10)
* Median - 10+ from $1.99 to $99.99 (top 10)
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How the Pros Monetize: iPad❖ Case Study
1. Clash of Clans
2. Candy Crush
3. Big Fish Casino
4. Trivia Crack
5. Kim Kardashian
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Ad Networks Used❖ 1. Clash of Clans - Interstitial Image & Videos (Earn
Gems)
❖ 2. Candy Crush - None
❖ 3. Big Fish Casino - None (Interstitials for IAP)
❖ 4. Trivia Crack - AdMob Banner, Interstitial Image & Videos
❖ 5. Kim Kardashian - Interstitial Images & Videos, List Ads, No Banners
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First IAP Prompt
❖ 1. Clash of Clans - Ran out of Gems
❖ 2. Candy Crush - First Loss (Also on Level Select)
❖ 3. Big Fish Casino - Hit with Sales Immediately
❖ 4. Trivia Crack - Waiting for Other Player
❖ 5. Kim Kardashian - When Buying 1st Free Upgrades
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How the Pros Monetize: Conclusion
❖ 1. They Use Multiple Non-Obtrusive IAPs with Clear Benefit/Value
❖ 2. They Reward User Retention & Social Sharing
❖ 3. They Provide a Way to Earn Consumables
❖ 4. Ads Don’t Interfere with Gameplay
❖ 5. They Use Frequent Notifications
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5 Tips to Get More Revenue in 2015
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5 Tips to Get More Revenue in 2015❖ 1. Implement Interstitial/List Ads & IAP. Test Results.
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5 Tips to Get More Revenue in 2015❖ 1. Implement Interstitial/List Ads & IAP. Test Results.
❖ 2. Incentivize Users to Share, Rate & Keep Coming Back with In-App Rewards.
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5 Tips to Get More Revenue in 2015❖ 1. Implement Interstitial/List Ads & IAP. Test Results.
❖ 2. Incentivize Users to Share, Rate & Keep Coming Back with In-App Rewards.
❖ 3. Reach More Users i.e. Localize Your Apps, Put Your App on Other Platforms
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5 Tips to Get More Revenue in 2015❖ 1. Implement Interstitial/List Ads & IAP. Test Results.
❖ 2. Incentivize Users to Share, Rate & Keep Coming Back with In-App Rewards.
❖ 3. Reach More Users i.e. Localize Your Apps, Put Your App on Other Platforms
❖ 4. Implement Trending ASO Practices i.e. App Name, Keywords, Developer Name, Artwork
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5 Tips to Get More Revenue in 2015❖ 1. Implement Interstitial/List Ads & IAP. Test Results.
❖ 2. Incentivize Users to Share, Rate & Keep Coming Back with In-App Rewards.
❖ 3. Reach More Users i.e. Localize Your Apps, Put Your App on Other Platforms
❖ 4. Implement Trending ASO Practices i.e. App Name, Keywords, Developer Name, Artwork
❖ 5. Release More Apps!
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Thank You❖ Questions or Announcements?
❖ Next Meeting:
SHOW & TELL - Thursday, Feb 19th @ 7pm
❖ Chartboost Meeting - Thursday, January 29, 2015 6:00 PM
❖ Global Game Jam 2015 - Friday, Jan 23 @ 4 PM to Sunday, Jan 25 @ 4 PM
❖ Dev Night Out - www.meetup.com/DevsNightOut/ Wednesday, Feb 4 @ 7 PM