Mobile App Advertising and Monetization Trends 2012-2017: The ...

1.1x growth. • Massive growth in smart mobile devices dramatically expands opportunity to reach consumers. • As revenue per mobile device is also increasing, ...
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Mobile App Advertising and Monetization Trends 2012-2017: The Economics of Free March 2014

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1.  The revenue opportunity for publishers 2.  How do app publishers monetize their apps today? a.  Freemium b.  Paid c.  Paidmium d.  In-App Advertising 3.  App Monetization by Country 4.  Looking Ahead 5.  Key Takeaways

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Mobile  apps  are  outpacing  both  mobile  and  PC   browser-­‐based  ads  in  revenue  growth   Worldwide  Online  AdverBsing  and  Mobile  App  Revenue:  2012  to  2013  

Revenue  (USD)  

Browser-­‐Based  AdverDsing  

50B  

Mobile  Apps  

1.1x   1.1x  

40B   1.1x  

30B   20B  

2012  

2013  

Source:  App  Annie  &  IDC  

1.5x  

1.6x  

1.5x  

2.3x  

10B   PC  Online   Search   AdverDsing  

Device:  

PC  Online   Display   AdverDsing  

PC  

Other  PC   Mobile  Display   Mobile  Search   Mobile  In-­‐App   Mobile  App   AdverDsing*   AdverDsing   AdverDsing   AdverDsing   Store  Revenue   (iOS  App  Store   &  Google  Play)  

Mobile  

*  Other  PC  AdverDsing  includes  online  rich  media,  video  and  classified  adverDsing  

•  Mobile in-app advertising revenue is likely to continue taking share from PC advertising revenue as advertisers allocate their budgets for maximum return

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Worldwide  Combined  App  Store  and  In-­‐ App  AdverBsing  Revenue  per  Device*   150   Source:  App  Annie  &  IDC  

Worldwide  Combined  iOS  and  Android   Smartphone  and  Tablet  Installed  Base   2.0B   Source:  IDC   1.5B   1.0B  

1.7x  growth  

0.5B   0  

2012  

2013  

Indexed  Revenue  

Device  Installed  Base  

Mobile  app  revenue  growth  is  driven  by  gains  in   device  adopBon  and  revenue  per  device  

100   1.1x  growth   50   0  

2012  

2013  

*In-­‐app  adverDsing  across  all  app  stores;  app  store  revenue  across  iOS  App  Store  and  Google  Play  

•  Massive growth in smart mobile devices dramatically expands opportunity to reach consumers •  As revenue per mobile device is also increasing, mobile devices represent an increasingly powerful avenue of monetization

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1.  The revenue opportunity for publishers 2.  How do app publishers monetize their apps today? a.  Freemium b.  Paid c.  Paidmium d.  In-App Advertising 3.  App Monetization by Country 4.  Looking Ahead 5.  Key Takeaways

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App  publishers  use  a  variety  of  business  models  to   generate  revenue   Business  Model  

How  does  it  work?  

Top  3  Apps  by  iOS  and  Google   Play  Revenue  in  2013*  

Freemium  

Free  download  with  in-­‐app  purchases  

             Puzzle  &  Dragons                Candy  Crush  Saga                Clash  of  Clans  

Paid  

Paid  download  with  no  in-­‐app  purchases  

             Minecra[  –  Pocket  EdiDon                Pages                WhatsApp  Messenger**  

Paidmium  

Paid  download  with  in-­‐app  purchases  

             FIFA  13                Grindr  Xtra                Bloons  TD  5  

In-­‐App  AdverDsing   Contains  ads  (banner  ads,  video  ads,  etc.)   Dynamic  

Business  model  shi[s  depending  on  certain   factors  (app  shi[s  to  an  ad-­‐supported  model  if   the  user  does  not  make  in-­‐app  purchases,  etc.)  

N/A   N/A  

*Based  on  App  Annie  Intelligence  esDmates   **WhatsApp  Messenger  ranked  as  the  #3  paid  app  based  on  its  iOS  revenue  up  unDl  early  August  2013,  when  it  went  from  paid  to  freemium  on  iOS  

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The  opportunity  for  apps  also  extends  beyond  direct   moneBzaBon  in  the  app  stores   App  Name*  

MoneBzaBon  Strategy  

eBay  

Drive  online  shopping  conversion  

Nedlix  

Allow  current  subscribers  to  stream  content  on  the  go  

Walgreens  

Drive  shoppers  to  brick-­‐and-­‐mortar  stores  via  coupons,  inventory   informaDon  and  pharmacy  chat  

Bandsintown   Brings  users  to  musical  performances  through  local  concert   Concerts   noDficaDons  and  recommendaDons   Offers  consumers  the  ability  to  test  how  IKEA  products  would  look  in   IKEA  Catalog   their  homes  without  traveling  to  the  store  through  the  use  of   7   augmented  reality   *AddiDonal  informaDon  on  these  apps  available  on  App  Annie  Store  Stats    

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Freemium  and  In-­‐App  AdverBsing  tower  over  other   app  business  models   Mobile  App  Revenue  in  Key  Countries*   Indexed  Revenue  

200  

+56%  

+211%  

2012  

2013  

150   Source:  App  Annie  &  IDC  

100   50   0  

In-­‐App   AdverDsing  

Freemium  

-­‐29%  

-­‐23%  

Paid  

Paidmium  

*  Brazil,  Canada,  France,  Germany,   India,  Japan,  Russia,  South  Korea,   United  Kingdom  &  United  States     *  In-­‐app  adverDsing  across  all  app   stores;  app  store  revenue  across   iOS  App  Store  and  Google  Play

iOS  App  Store  &  Google  Play  

•  Freemium and In-App Advertising allow publishers the opportunity to cast a wider net and better monetize in the long-run through a potentially more consistent revenue stream •  Paid and Paidmium revenue both shrank from 2012 to 2013

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Freemium  is  more  prevalent  and  outperforms  other   app  store  moneBzaBon  models   App  Store  ComposiBon  by  Business  Model   Worldwide,  December  2013*   ComposiDon  By   Number  of  Apps  

8%   9%   Source:  App  Annie  

ComposiDon  By   Revenue  

4%  4%   Freemium  

Paid  

Paidmium  

*  Business  model  percentages  are  based  on  the  combinaDon  of  the  Top  1,000  apps  on  the  iOS  App  Store  and  the  Top  1,000  apps  on  Google  Play     from  App  Annie  Intelligence  

•  Freemium drives a disproportionate volume of app revenue across both stores •  Freemium apps are even more common on Google Play than on iOS App Store

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  It’s  never  too  late  to  switch  business  models!   App  Name*  

Change  in  MoneBzaBon  Strategy  

WhatsApp   Messenger  

In  a  Forbes  arDcle**,  the  WhatsApp  founders  revealed  that  they   would  switch  the  app  price  "from  free  to  paid  so  they  wouldn't  grow   too  fast"  with  a  freemium  business  model  in  place  since  July  2013  

Skype  

Though  app  stores  take  a  percentage  of  consumer  spend,  Skype   began  allowing  users  to  purchase  Skype  credits  through  app  stores   in  late  2012  to  limit  purchase  fricDon  

FIFA  14  

FIFA  13  was  the  #1  paidmium  app  for  2013,  and  Electronic  Arts  sDll   switched  over  to  a  freemium  business  model  for  the  even  more   successful  FIFA  14  

Real  Racing  3  

Real  Racing  2  uDlized  a  paidmium  business  model,  but  the  success  of   the  series  skyrocketed  with  the  release  of  freemium  Real  Racing  3  

*  AddiDonal  informaDon  on  these  apps  available  on  App  Annie  Store  Stats   **  hop://www.forbes.com/sites/parmyolson/2014/02/19/exclusive-­‐inside-­‐story-­‐how-­‐jan-­‐koum-­‐built-­‐whatsapp-­‐into-­‐facebooks-­‐new-­‐19-­‐billion-­‐baby/  

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1.  The revenue opportunity for publishers 2.  How do app publishers monetize their apps today? a.  Freemium (free download with in-app purchases) b.  Paid c.  Paidmium d.  In-App Advertising 3.  App Monetization by Country 4.  Looking Ahead 5.  Key Takeaways

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There  are  many  freemium  value  proposiBons  that  can   appeal  to  different  types  of  users   Freemium   MoneBzaBon  

Value  ProposiBon  

App  Examples*  

Usage  

Free  app  offers  limited  usage,  bandwidth,   hours  or  storage  space.  Pay  to  raise  or   remove  those  limits.  

Time  

Free  trial  of  full  funcDonality  for  a  limited                WhatsApp  Messenger   amount  of  Dme.  Pay  to  conDnue  using  a[er                Swi[Key  Keyboard   Dme  period  is  up.  

FuncDonality  

Pay  for  virtual  items,  speed-­‐ups,  content,   add-­‐ons,  upgrades,  services  or  capabiliDes.  

User  Experience  

Free  app  is  ad-­‐supported.  Remove  ads  by   paying  in-­‐app  or  through  a  separate  paid   download.  

CombinaDon  

The  app  uses  a  combinaDon  of  the  above.  

*  AddiDonal  informaDon  on  these  apps  available  on  App  Annie  Store  Stats  

             NYTimes                Dropbox  

             Clash  of  Clans                LINE                Skype                Say  the  Same  Thing                SoundHound                  Evernote                  (FuncDonality  and  Usage)  

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FuncBonality  is  the  most  common  value  proposiBon   used  by  freemium  app  publishers   Among  the  apps  you  manage  or  publish,  how  do  the   freemium  apps  moneBze  (select  all  that  apply)?   Usage  

Source:  App  Annie  Survey   February  2014  (n  =  1694)  

Time   FuncDonality   User  Experience   CombinaDon  

0%  

10%  

20%   30%   40%   Percent  of  Respondents  

50%  

60%  

•  Publishers need to select the right freemium technique to match each app’s function and user base

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The  freemium  model  is  very  successful,  even  with  a   small  proporBon  of  users  making  in-­‐app  purchases   If  your  apps  offer  in-­‐app  purchases,  please  esBmate  the  percentage  of  your  apps’   monthly  average  users  (MAUs)  who  make  at  least  one  in-­‐app  purchase:   0%  to  1%  

Source:  App  Annie  Survey  

2%  to  5%  

February  2014  (n  =  1169)  

6%  to  10%   11%  to  20%   21%  to  100%  

0%  

10%   20%   30%   Percent  of  Respondents  

40%  

•  Publishers can structure their apps to target the whales who make repeated purchases •  Are your in-app purchases structured in a way that caps revenue? Can your users purchase repeatedly?

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Indexed Revenue"

Freemium  model  now  dominates  games,  while   growing  steadily  outside  of  games   250" 200" 150" 100"

Worldwide  iOS  App  Store  Revenue   2012  vs.  2013   Apps that use in-app purchases" Apps that do not use in-app purchases"

App   Category  

Top  App  by  iOS   and  Google  Play   Revenue  in  2013  

Messaging            LINE  

SDckers  

Music   Streaming  

         Pandora  Radio   No  ads,   unlimited   listening  

News  

         NYTimes  

Unlimited   arDcles  

DaDng  

         Zoosk  

SubscripDon,   respond  to   suitors  

50" 0"

Examples  of   In-­‐App   Purchases  

2012" 2013" 2012" 2013" Apps  Excluding  Games   Source:  App  Annie  Intelligence   Games   •  Although more prevalent in games, the freemium business model has successfully expanded into other categories such as messaging, music, news and dating •  This is partially driven by “gamification” of apps, but may also reflect natural 15   limits to what consumers will pay for up front

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1.  The revenue opportunity for publishers 2.  How do app publishers monetize their apps today? a.  Freemium b.  Paid (paid download with no in-app purchases) c.  Paidmium d.  In-App Advertising 3.  App Monetization by Country 4.  Looking Ahead 5.  Key Takeaways

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Paid  apps  appearing  in  the  Top  1000  grossing  apps  on   iOS  and  Google  Play  most  commonly  in  the  $2-­‐$6  range  

Percent  of  Top  Apps  

30%  

Download  Price*  of  Apps  in  the  Top  1000  Grossing  Apps  on   iOS  App  Store  and  Google  Play,  December  2013   Source:  App  Annie  

20%   10%   0%  

Under  $2.00   $2  to  $3.99   $4  to  $5.99   $6  to  $7.99   $8  to  $9.99   $10  &  Over  

Download  Price   *  Download  price  as  of  December  31,  2013  from  App  Annie  Intelligence  

•  App store revenue is not directly correlated to app price, and publishers must select an appropriate price for their app and category

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1.  The revenue opportunity for publishers 2.  How do app publishers monetize their apps today? a.  Freemium b.  Paid c.  Paidmium (paid download with in-app purchases) d.  In-App Advertising 3.  App Monetization by Country 4.  Looking Ahead 18   5.  Key Takeaways

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There  is  sBll  opportunity  for  moneBzaBon  of  users   following  a  paid  download   Source  of  Paidmium  App  Revenue  in  2013  for  Key  Countries*   In-­‐App  Purchases   39%   61%  

Paid  Downloads  

*  Brazil,  Canada,  France,  Germany,  India,  Japan,  Russia,   South  Korea,  United  Kingdom  &  United  States   *  App  store  revenue  across  iOS  App  Store  and  Google  Play  

Source:  App  Annie  Intelligence  

•  Paidmium apps primarily generated revenue from their downloads, but users were still willing to spend a sizeable amount on in-app purchases

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1.  The revenue opportunity for publishers 2.  How do app publishers monetize their apps today? a.  Freemium b.  Paid c.  Paidmium d.  In-App Advertising (contains ads) 3.  App Monetization by Country 4.  Looking Ahead 5.  Key Takeaways

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Over  40%  of  surveyed  publishers  used  paid   adverBsing  within  their  apps   Do  you  display  paid  adverBsing  with  any  of  your  apps?  

Yes  

No  

0%  

Source:  App  Annie  Survey  

42%  

February  2014  (n  =  2039)  

58%   20%   40%   60%   Percent  of  Respondents  

80%  

•  Publishers must strike the right balance between monetizing through app stores and monetizing through in-app advertising

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In-­‐app  adverBsing  revenue  rides  on  the  back  of   popular  hits  with  desirable  ad-­‐placements   CumulaBve  Percent  of   Respondents  

If  you  display  paid  adverBsing,  how  much  revenue  do  you  earn  from  in-­‐app   adverBsing  per  month  across  all  of  your  apps?     100%   Source:  App  Annie  Survey  

80%  

February  2014  (n  =  658)  

60%   40%   20%   0%   0  

20K  

40K   60K   80K   Ad  Revenue  (USD)  

100K   +  

•  Breakout apps can make over $100K per month •  Developers in the 75th to 90th percentile can make up to $10K per month •  This illustrates the uniqueness of Flappy Bird reportedly making over $50K per day in in-app advertising

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  Hit  apps  also  drive  in-­‐app  ad  impressions  

CumulaBve  Percent  of   Respondents  

If  you  display  paid  adverBsing  within  your  app,  how  many  in-­‐app  ad  impressions  do   you  fill  each  month  across  all  apps?   100%   Source:  App  Annie  Survey  

80%  

February  2014  (n  =  678)  

60%   40%   20%   0%   0  

1MM   2MM   3MM   4MM   In-­‐App  Ad  Impressions  

5MM  +  

•  Apps need usage to generate advertising impressions, which is where downloads, engagement and user retention play a critical role

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Publishers  also  have  to  find  the  in-­‐app  adverBsing   format  that  best  fits  their  users   In  2014,  how  ocen  will  you  use  these  in-­‐app  ad  formats?   IntersDDal  Video  Ads   IntersDDal  Non-­‐Video   NaDve  Ads   IncenDvized  Ads   Pre/Mid/Post-­‐Roll  Video   Banner  Ads  

(n  =  393)     (n  =  497)     (n  =  451)     (n  =  361)     (n  =  304)     (n  =  713)    

0%   Less  Than  in  2013  

20%  

40%  

60%  

About  the  Same  as  in  2013  

80%  

100%  

More  Than  in  2013  

Source:  App  Annie  Survey,  February  2014  (n  =  807)  

•  Interstitial ads, incentivized ads and native ads appear set for the largest gains in 2014

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Ad  networks  are  the  primary  channel  for  selling     in-­‐app  ads   Through  which  channels  do  you  sell  your  in-­‐app  ads  (select  all  that  apply)?   Ad  Networks  

Source:  App  Annie  Survey  

MediaDon  Pladorms  

February  2014  (n  =  781)  

Direct  to  AdverDsers   Agencies   Real-­‐Time  Bidding  Exchanges  

0%  

20%   40%   60%   80%   Percent  of  Respondents  

100%  

•  Ad networks are still the most commonly used platform for publishers to fill ad inventory •  Mediation platforms and real-time bidding exchanges are gaining traction

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1.  The revenue opportunity for publishers 2.  How do app publishers monetize their apps today? a.  Freemium b.  Paid c.  Paidmium d.  In-App Advertising 3.  App Monetization by Country 4.  Looking Ahead 5.  Key Takeaways

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United  States  and  Japan  lead  in  mobile  app  revenue;   revenue  growth  occurred  across  key  countries   Indexed  Mobile  App   Revenue  

200  

Mobile  App  Revenue*  by  Country   1.7x  

2012  

150  

2.3x  

50   0  

Source:  App  Annie  &  IDC  

2.2x  

100  

United   States  

Japan  

2013  

1.7x  

2.0x  

1.7x  

2.2x  

South   United   Germany   Canada   Korea   Kingdom  

France  

2.1x  

2.2x  

3.0x  

Russia  

Brazil  

India  

*In-­‐app  adverDsing  across  all  app  stores;  app  store  revenue  across  iOS  App  Store  and  Google  Play  

•  When developers’ target countries to enter, they should first analyze the monetization potential of the market •  Japan and South Korea benefit from historically leading edge mobile technology and service environments

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SelecBng  the  mobile  app  business  model  that  fits  the   target  region  is  of  paramount  importance   Mobile  App*  Revenue  ComposiBon  in  2013  

App  Revenue  

100%   75%  

32%  

50%  

42%  

53%   60%   62%   64%   66%   72%   73%   77%  

In-­‐App   AdverDsing  

25%   0%  

App  Store  

India  

United   United   Germany   Canada   States   Kingdom  

South   Korea  

France  

Japan  

*In-­‐app  adverDsing  across  all  app  stores;  app  store  revenue  across  iOS  App  Store  and  Google  Play  

Brazil  

Russia  

Source:  App  Annie  &  IDC  

•  India and the United States skew towards in-app advertising, while Japan, Brazil and Russia lean towards app store revenue

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1.  The revenue opportunity for publishers 2.  How do app publishers monetize their apps today? a.  Freemium b.  Paid c.  Paidmium d.  In-App Advertising 3.  App Monetization by Country 4.  Looking Ahead 5.  Key Takeaways

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Mobile  in-­‐app  adverBsing  revenue  to  pass  PC  online   display  adverBsing  revenue  by  2017  for  key  countries   Online  AdverBsing  and  Mobile  App  Revenue  in  Key  Countries*:  2013  to  2017   Indexed  Revenue  

Browser-­‐Based  AdverDsing  

125  

1.1x  

2013  

100   1.3x  

75  

1.1x  

3.7x  

Mobile  Apps   Source:  IDC  

2017  

3.8x  

3.1x  

2.1x  

50   25   0  

Device:  

PC  Online   Search   AdverDsing  

PC  Online   Display   AdverDsing  

PC  

Other  PC   Mobile  Display   Mobile  Search   Mobile  In-­‐App   Mobile  App   AdverDsng**   AdverDsing   AdverDsing   AdverDsing   Store  Revenue   (iOS  App  Store   &  Google  Play)  

Mobile  

*Brazil,  Canada,  France,  Germany,  India,  Japan,  Russia,  South  Korea,  United  Kingdom  &  United  States   **Other  PC  AdverDsing  includes  online  rich  media,  video  and  classified  adverDsing  

•  Mobile in-app advertising revenue is likely to continue taking share from PC advertising revenue as advertisers allocate their budgets for maximum return

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Device  Installed  Base  

Combined  iOS  and  Android  Smartphone  and   Tablet  Device  Installed  Base  in  Key  Countries*   2.0B   Source:  IDC   1.5B   1.0B   0.5B  

2.3x  growth  

0   2013  

2017  

Indexed  Revenue  per  Device  

Increasing  mobile  devices  and  app-­‐related  revenue  per   device  create  a  huge  opportunity  in  mobile  by  2017   Indexed  App  Store  and  In-­‐App  AdverBsing   Revenue  per  Device  in  Key  Countries*   150   Source:  IDC   100   1.2x  growth   50   0   2013  

2017  

*          Brazil,  Canada,  France,  Germany,  India,  Japan,  Russia,  South  Korea,  United  Kingdom,  &  United  States   *          In-­‐app  adverDsing  across  all  app  stores;  app  store  revenue  across  iOS  App  Store  and  Google  Play  

•  Growing device adoption and increasing revenue per device will grow the opportunity for mobile app publishers almost three-fold by 2017

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Indexed  Mobile  App  Revenue  

Key  countries  expected  to  show  significant  app  revenue   growth,  creaBng  a  range  of  opportuniBes  for  publishers 400  

Projected  Mobile  App  Revenue*  by  Country   3.5x  

2013  

2017  

300   Source:  IDC  

200  

1.8x  

100   0  

3.2x  

United   States  

Japan  

3.5x  

1.5x  

United   Germany   South   Kingdom   Korea  

3.0x  

2.2x  

8.7x  

2.7x  

3.2x  

France  

Canada  

India  

Russia  

Brazil  

*In-­‐app  adverDsing  across  all  app  stores;  app  store  revenue  across  iOS  App  Store  and  Google  Play  

•  While the United States is set for phenomenal growth, other markets such as India and Germany also offer key opportunities for app monetization growth in the future

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Most  key  countries  expected  to  move  even  more   toward  in-­‐app  adverBsing  by  2017   Percent  of  App  Revenue   from  In-­‐App  AdverBsing  

ProporBon  of  App-­‐Related  Revenue  Contributed  by  In-­‐App  AdverBsing   100%   Source:  IDC  

75%   2013  

50%  

2017   25%   0%  

India  

United   United   Germany   Canada   States   Kingdom  

South   Korea  

France  

Japan  

Brazil  

Russia  

*In-­‐app  adverDsing  across  all  app  stores;  app  store  revenue  across  iOS  App  Store  and  Google  Play  

•  Outliers are Japan and South Korea, where in-app purchases are expected to remain the main source of revenue

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Aside  from  business  model,  what  are  other  key   publisher  consideraBon  points  for  app  moneBzaBon?   RecommendaDons  from  app  publishers:   •  Start  Early  –  Determine  how  to  moneDze  up  front,  not  a[er  building  your   app   •  Value  ProposiBon  –  Make  sure  your  app  provides  value  to  users   •  App  Discovery  –  Ensure  people  can  find  your  app   •  User  AcquisiBon  –  Need  a  large  user  base  to  bring  in  enough  revenue   •  App  Usage  –  Keep  users  engaged  to  drive  moneDzaDon   •  Ad  Sales  Channel    –  Be  sure  to  find  the  right  ad  network  for  your  app   •  Ad  Content    –  Show  ads  that  are  relevant  to  your  users   •  User  Experience  –  Do  not  let  moneDzaDon  strategy  degrade  user  experience   •  Track,  Analyze,  Research,  &  OpBmize  –  Measure,  iterate  and  improve     (See  your   App  Annie   AnalyDcs,  AdverDsing   AnalyDcs,  cSonstantly;   tore  Stats,  &  Intelligence)   moneDzaDon   strategy   keep  an  eye  on  market  trends  

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1.  The revenue opportunity for publishers 2.  How do app publishers monetize their apps today? a.  Freemium b.  Paid c.  Paidmium d.  In-App Advertising 3.  App Monetization by Country 4.  Looking Ahead 5.  Key Takeaways

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Key  Themes  &  Takeaways   •  Mobile  app  stores  (iOS  and  Google  Play)  and  mobile  in-­‐app  ads   grew  revenue  by  2.3x  and  1.6x,  respecDvely,  from  2012  to  2013   •  The  above  channels  outpaced  mobile  and  PC  browser-­‐based  ads,   which  grew  revenue  by  1.5x  and  1.1x,  respecDvely   •  Mobile  apps  moneDze  especially  well  through  freemium  and  in-­‐ app  adverDsing   •  Mobile  in-­‐app  adverDsing  revenue  is  projected  to  pass  PC  online   display  adverDsing  revenue  by  2017  when  looking  at  combined   revenue  across  key  countries*   *  Brazil,  Canada,  France,  Germany,  India,  Japan,  Russia,  South  Korea,  United  Kingdom  &  United  States  

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Key  Themes  &  Takeaways  (ConBnued)   •  United  States  will  remain  the  leading  source  of  mobile  app-­‐related   revenue,  with  3.5x  growth  from  2013  to  2017     •  Remarkable  8.7x  revenue  growth  from  2013  to  2017  is  expected   for  India’s  mobile  app-­‐related  revenue,  driven  largely  by  rapid   smartphone  adopDon   •  Publishers  should  consider  different  business  model  strategies   depending  on  the  geographic  region;  India  skews  toward  in-­‐app   adverDsing,  while  Japan  skews  toward  app  store  revenue   •  Ad  networks  are  sDll  the  most  commonly  used  pladorm  for   publishers  to  fill  ad  inventory;  mediaDon  pladorms  and  real-­‐Dme   bidding  exchanges  are  gaining  tracDon   Report  methodology  and  updates  are  available  here  

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