Monetization: How the Top Free Apps Make Money

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Transcript of Monetization: How the Top Free Apps Make Money

Jan. 15th, 2015

Welcome, App Devs! Wi-Finetwork: Studentpassword: Improving

Introduction

❖ Nick Culbertson - www.appstore.com/nickculbertson

nickculbertson@gmail.com

❖ Next Month’s Meetup:

SHOW & TELL - Thursday, Feb 19th @ 7pm

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

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?

Apple App Download Growth

Apple App # Growth

Google Play # Growth

Google Play vs. Apple

Mobile App Downloads: The Future

App Revenue

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  

Top Grossing Google Play Apps

❖ Top 100 Apps =

Only 2 Paid (Trivia

Crack* and Minecraft)

❖ 98/100 Are Games

❖ 22/100 Casino Games

Top Grossing Windows Phone AppsOf the top 50 highest grossing Windows Phone apps, 44 used in-app purchases.

Top Free iOS App Earners

IAP Revenue in The Future

Apple App Store Games Growth

Apple Top Categories (find a niche)

Google Play Trends

iOS Trends

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?

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?

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?

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?

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?

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.

Monetization Options: Questions

❖ 1. How can you monetize your app?

❖ 2. Which earns more; Ads or IAP?

❖ 3. Which ad network should you use?

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

Which Platform to Use

❖ Numerous Options

❖ Banner Ads - Admob

❖ Interstitial - Chartboost, AppLovin,

iAd, Tapjoy

❖ Implementation - CodeCanyon

In-App Purchases

❖ Extra Content - i.e. Bonus Maps in Angry Birds

❖ Consumables - i.e. Extra health or Currency

❖ Subscriptions - i.e. Spotify

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?

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?

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?

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

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)

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)

How the Pros Monetize: iPad❖ Case Study

1. Clash of Clans

2. Candy Crush

3. Big Fish Casino

4. Trivia Crack

5. Kim Kardashian

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

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

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

5 Tips to Get More Revenue in 2015

5 Tips to Get More Revenue in 2015❖ 1. Implement Interstitial/List Ads & IAP. Test Results.

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.

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

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 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!

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