Technological Strategies & Monetization

Technological strategiesTechnological strategies&

MonetizationIvano MalavoltaIvano Malavolta

[email protected]

http://www.di.univaq.it/malavolta

Roadmap

• Native vs Web vs Hybrid Apps• Native vs Web vs Hybrid Apps

• Monetization Strategies

Mobile Web

Mobile web seems to be the only longlonglonglong----termtermtermtermcommercially viable content platform for mobile commercially viable content platform for mobile devices

Reasons:

• Fragmentation

• The web• The web

• Distribution Control

• Consumer expectations

• Web Ubiquity

Fragmentation

If you go native…

there are too many platforms to be supportedthere are too many platforms to be supported

The Web

the only medium for information and services that lastsfrom over 15 15 15 15 yearsyearsyearsyearsfrom over 15 15 15 15 yearsyearsyearsyears

The web is an advancedadvancedadvancedadvanced technologytechnologytechnologytechnology• webGL• Local storage management• Positioning & mapping• Physical engines• Physical engines• Real-time data• Push• …

The Web

Distribution Control

BeforeBeforeBeforeBefore........OperatorsOperators

NowNowNowNowDevice and Platform makers

FutureFutureFutureFutureDevelopers

Distribution Control

Store$$$

StoreA

StoreB

StoreStoreC

StoreD

Consumer expectations

UsersUsersUsersUsers expectexpectexpectexpect thingsthingsthingsthings totototo just workjust workjust workjust work

� they don’t care about what platform they have

�they simply expect that your app will be availablefor their device

so…

YOU HAVE TO BE CROSSYOU HAVE TO BE CROSSYOU HAVE TO BE CROSSYOU HAVE TO BE CROSS----PLATFORMPLATFORMPLATFORMPLATFORM

Web Ubiquity

The web is the only platform that

• works across devices• works across devices

• apps share the same set of standards

• the same app can work also on a desktop

Web Ubiquity

The mobile web is also

• The easiest platform to learnlearnlearnlearn

• The cheapest to produceproduceproduceproduce

• The most standardizedstandardizedstandardizedstandardized

• The easiest to distributedistributedistributedistribute• The easiest to distributedistributedistributedistribute

Native vs Web vs Hybrid Apps

There are no golden rules here…

It depends on a lot of factors, such as

• Which typetypetypetype ofofofof appappappapp are you creating?

• WhenWhenWhenWhen do you need it?

• What are your skillsskillsskillsskills? • What are your skillsskillsskillsskills?

http://bit.ly/GWOaP1

A first look at native VS Web…

http://bit.ly/GWPgdm

Skills/tools

NativeNativeNativeNative HybridHybridHybridHybrid Mobile WebMobile WebMobile WebMobile Web

Objective-CJavaCC++C#VB.net

HTMLCSSJavascriptMobile development framework (like PhoneGap)

HTMLCSSJavascript

VB.net

Distribution

Native Hybrid Mobile Web

App Store/Market App Store/Market Internet

Number of applications needed to reach major smartphone platforms


4 1 1

Ongoing application maintenance


Difficult Moderate Low

Device Access


Full access:(Camera, microphone, GPS, gyroscope, accelerometer, file upload, etc…)

Full access:(Camera, microphone, GPS, gyroscope, accelerometer, file upload, etc…)

Partial access:(GPS, gyroscope, accelerometer, file upload)

Offline access


Yes Yes Yes

Native App

PROPROPROPROLets you create apps with rich user interfaces Lets you create apps with rich user interfaces and/or heavy graphics

CONSCONSCONSCONS• Development Time• Development Cost• Development Cost• Ongoing Maintenance• No portability (apps cannot be used on other platforms)

Native App - Example

http://www.whatsapp.com/

Mobile Web App

PROPROPROPROOffers fast development, simple maintenance, and Offers fast development, simple maintenance, and full application portability

One mobile web app works on any platform

CONSCONSCONSCONSCONSCONSCONSCONS• Can’t handle heavy graphics• Can’t access camera or microphone

Mobile Web App - Example

http://asidemag.com/

Hybrid App

PROPROPROPRO

Combines the development speed of mobile web Combines the development speed of mobile web apps with the device access and app store distribution of native apps

CONSCONSCONSCONSCONSCONSCONSCONS

• Can’t handle heavy graphics.

• Requires familiarity with a mobile framework

Hybrid App - Example

http://flipboard.com/

Roadmap

• Native vs Web vs Hybrid Apps• Native vs Web vs Hybrid Apps

• Monetization Strategies

Mobile Business Models

There are 4 main ways to make money with apps:

1. Paid1. Paid

2. Ad-supported

3. Freemium (virtual goods)

4. Subscriptions

Paid Apps

You simply set a price for your app and sell it in a store/marketstore/market

There are 3 main stores:• Apple Store

– 30% of revenue + 99$ subscription• Android Market• Android Market

– 30% of revenue + 25$ subscription• Windows Phone Marketplace

– 30% of revenue + 99$ subscription

http://bit.ly/HgTyvH

Price Definition

The key is finding a balancebalancebalancebalance between functionality and what users will find reasonablewhat users will find reasonable

If users are not satisfied, then they will make bad bad bad bad reviewsreviewsreviewsreviews

A bad review keeps potential users away

ExperimentExperimentExperimentExperiment with different price ranges

TIPTIPTIPTIP: paid apps are downloaded far less, but may be perceived as being of higher quality

Price Ranges

< .99 $

< 4.99 $

4.99+ $

< 4.99 $

simple apps

complex appsutilities

qualitative apps withgreat expectationshttp://bit.ly/HgYdxH

http://bit.ly/HgYmkR

http://bit.ly/HgYock

Ideal Workflow

1. Analyze competitorscompetitorscompetitorscompetitors and their apps price2. Set an initialinitialinitialinitial price price price price (high)2. Set an initialinitialinitialinitial price price price price (high)

– Remember, new apps get more visibility

3. ExperimentExperimentExperimentExperiment with price ranges to find the right balance

TIPTIPTIPTIP: people love free and on sale stuff

Putting your app “on sale for a limited time” helps a lot in getting visibility within the store and in dedicatedblogs

Ads

You develop your app and then you placeplaceplaceplace adsadsadsads within it

Ad service providers will show ads

in your app and pay you 60-70% of

the money they collect from

advertisers

It is the easiest way to monetize

free apps

http://bit.ly/Hh4sBL

Ads workflow

1. Sign up to an ad service

2. Register your app to the service2. Register your app to the service

3. Embed the ad code into your app

4. Get money from the ad service provider

Ad services

There are hundreds of Ad services providers, like:

• AdMob• AdMob

• Apple iAds

• TapJoy

• Mobclix

• InMobi• InMobi

• …

There are also mobile ads aggregators, like Inneractive

http://inner-active.com/

Freemium (Virtual Goods)

You distribute a free copy of the application

but there are some paid “premium” services paid “premium” services paid “premium” services paid “premium” services but there are some paid “premium” services paid “premium” services paid “premium” services paid “premium” services that you offer in addition to the basic free service

You can also provide a discriminatory free: You can also provide a discriminatory free: consumers get it free, businesses pay

Virtual goods

Premium services may be anything:

• calling credits for Skype• calling credits for Skype

• virtual items in games

• “ego services” in social networks – like badges, virtual objects, etc.

• new levels• new levels

• extra features

Implementation

You may realize it by:

• Proposing two version of the same app:• Proposing two version of the same app:– the litelitelitelite version, usually free

– the fullfullfullfull version, paid app with a complete set of features

• Single app with inininin----appappappapp purchasespurchasespurchasespurchases for additionalgoodsgoods

Examples

http://bit.ly/HhaaDyhttp://bit.ly/Hhal1L

http://bit.ly/Hh9NsP

Subscriptions

Users subscribe to asubscribe to asubscribe to asubscribe to a service service service service and pay a regular fee to continue accessing the serviceto continue accessing the service

Existing subscribers can input their username and password in the same way as on the website

Those who want to subscribe can via your websiteThose who want to subscribe can via your website

Subscriptions

The revenue is sustainable and can auto-renew just as other Web-based subscriptionsother Web-based subscriptions

However, it requires users to leave the app and visit the publisher's website to subscribe

Examples

ESPN Score Center

Wired MagazineWired Magazine

How to choose your BM?

http://bit.ly/GXo8bW

If everything else fails…

BuildBuildBuildBuild appsappsappsapps forforforfor someonesomeonesomeonesomeone else!else!else!else!BuildBuildBuildBuild appsappsappsapps forforforfor someonesomeonesomeonesomeone else!else!else!else!

That is, help companies who don’t have the expertise to build mobile applications and develop apps for themdevelop apps for them

References

Chapters 9 -10- 14

Technological Strategies & Monetization

Education

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