Andrei Dementjev COO, Fortumo

Platforms

 New smartphone sales in Q  Every second smartphone sold is running Android.

 Smartphones in US (July 2011, comScore mobilens)  iOS and BlackBerry are installed on 49% of US smartphones

Nearly 83% of app store revenues are made on iOS.

 Glu Mobile: Android Revenues make only 1/10 of iOS revenues  Challenge: Why develop for other platforms if iOS is making most of the revenues?

 iOS has the highest level of competition by Distimo

 Rovio Angry Birds: Android revenue = iOS revenue  Answer: Every platform can bring you money  Keywords: competition, experience, expertise, strategy

Going Global  Challenge: Developers are only aiming at established and rich markets like US and Western Europe

 Android sales in 2011  40% of smartphones are sold in Asia-Pacific

 America: 29% vs Asia 70% vs EMEA 31%

 Answer: You should have a monetization strategy for every region.  Asia Pacific  USA  Western Europe  Middle East  Latin America  Eastern Europe  CIS  Africa

App stores

 Challenge: Developers are ignoring alternative app stores

 Alternative stores:  Opera Mobile App Store  GetJar  Appia (Pocketgear)  AndAppStore  Handango  OnlyAndroid  Insyde Market  Amazon App Store  SlideME  Appoke  YAAM  Regional stores:  Andronavi (Japan)  Wandoujia (China)  Appchina (China)  Fasmicro App Store (Africa)  HiAPK (China)  Operator stores:  Vodafone Live!  OrangeWorld  O2 Active  Manufacturer stores:  HTC Market  Samsung Apps  LG smartWorld  Shop4Apps (Motorola) and many more downloads on GetJar only

Premium vs Freemium  Challenge: Developers rely on premium distribution models.

 Percentage of free apps:

 Why Premium is bad?  App stores are full of low quality apps  App purchase is an investment  Cultural differences  Weak and non effective billing solutions  Free competitors  Limited distribution options  Piracy

 Why Freemium is good?  More downloads  Target long tail (just like offers)  People are used with free apps  Ability to adjust to different ability to pay  Better global reach  More distribution options  Lower dependence from app stores  Piracy

 75% of top 100 grossing iOS apps are games  65% of them are freemium  Answer: Avoid selling your games and use Freemium models!

Earn money from free games  Mobile ads  Offers  In-game purchases  Sponsorships and special deals

Mobile ads $15 billion in 2011.

 Challenge: Mobile ads makes my game slow and ugly.  Answer: Do it smart!  What's critical:  Ad coverage  Respect low-end devices  Try different advertisers  Think about UI and design  Place ads on loading screens

Mobile offers A great way to monetize non-paying users.

 Pros:  great for monetizing non paying users  global reach  Cons:  be careful with what you offer  you may be promoting competitors  don't overload your game by offers  don't replace payments with offers!

In-app purchases  What can be sold?  virtual credits  extra levels  trial version activation  extra features  personalization  banner-free version (weak)

 Consumable goods (virtual credits) 68% of in-app purchases

 Challenge: Developers are using ineffective payment methods

 In-app payment methods:  App store billing (Google checkout) – mostly credit card based, high store margins.  Mobile operator billing (direct billing, premium sms) – good coverage and conversion rates, low revenue shares.  Credit cards (Visa, Mastercard) – bad coverage, high revenue shares, kills conversion rate.  Paypal – works in limited number of the countries  Prepaid cards, kiosks and vouchers – low conversion rates  Direct debit and others...

or  Answer Analyze your user base and select the most suitable payment method and additional methods if needed.

 Challenge: Bad user experience during payment flow vs

 In-app payment is impulsive  Every new screen kills conversion by 10-15%  Customers are not yet familiar with mobile purchases  Payment should look secure  Answer: Golden rules of in-app payment: the user should reach to the payment with a maximum of 3 clicks.

 Challenge: Developers ignore small details. Currency Localization Terms and conditions Operator/billing provider logos (+ 15% conversion) Helpdesk and customer care Track user reviews and comments A/B testing

 Answer: Make your payment flow perfect!

 Challenge: Wrong game balance  Game is too difficult => they leave before buying  Game is too easy => they don’t need to buy  Too few free levels => they are not yet addicted  Too many free levels => they had enough  Answer: Develop the perfect balance for introducing paid content.

 Challenge: Wrong pricing policy $2 in USA $2 in China  Answer: Adjust the prices according to purchasing power.

 Challenge: Lack of offline mode support. According to Localytics, 15% of mobile apps are launched while offline.  Answer: Your game should be prepared to work and monetize while offline.

Спасибо! Andrei Dementjev skype: andrei.dementjev