Pricing Strategies for iOS Applications By: Shailendra Sinhasane Twitter: @sunshail Mobisoft Infotech Pvt Ltd.
Why Monetize? • Generate money • How? • Compulsion Loops, there are ways to draw user back into the app • Engagement, does it have engagement elements that could be monetized, i.e. virtual currency? • Value, is it worth your users’ time?
Some numbers ~ • 40-45% of all iOS revenues are from in-app purchases • Only 10% from advertising • Near about 50% of the games downloaded from the app store were free with in-app purchase integrated • In-app purchases will grow exponentially in coming years
Download estimates -Source: AdMob, Inc.
Models • 1. In-app purchases • 2. Subscription • 3. Ads • 4. Location-based offerings • 5. Social media sharing and aggregation
To do • 1. Try various in-app models to find the combination that maximize your revenues • Games: Subscription based casual gaming package + premium payment for sending best scores • E-books for kids: read once for free. Pay to read again • Security: free trial (30 days) . Paid license for 1 year period • Video: pay per gallery 2. Freemium strategy • Strongest marketing play • Risk reduction • Developers should be focused on finding consumers who are willing to pay, not trying to completely satisfy free-rider consumers
In-App single purchase • Pros: • This is probably the easiest path to implementation and launch and it's straightforward and proven • Virtual goods/currency through In-App Cons: • No ongoing revenue stream • No access to user data - makes selling advertising difficult. • One potential workaround is to build in-app surveys, • which pushes data back.
Subscription - I • Pros: • Revenue is sustainable • Renew just as other web based subscriptions • Easy extendable as an add-on Cons: • Requires user management solution • Requires users to leave the app and visit the publisher's website to subscribe • Conversion rate lower than in-app purchases • Success : lifetime value of a subscriber > revenue lost from lower conversion
Subscription - II • Apple's subscription policy for publishers: • Apple still gets a 30% cut of any subscription a reader signs up for inside the App Store. • Publishers can now offer an app subscription for a different price than what they might sell their app for in the App Store. • Publishers can't link to an external-to-Apple location that sells a subscription within the app.
Advertising • Apple: iAd platform – Adv as an app • Third party : adMob, Medialets etc • Pros: Easier to command advertising premiums and less pressure to live up to metrics • Cons: • Mobile budgets just aren't well-defined • Apple changes strategic decision with third party ad integration
Location Based Offerings • Pros: Awesome mobile offerings into a high-fidelity advertising environment • Cons: • Complexity in integrating these systems • Requires the device be connected to the internet
Social, Sharing & Aggregation • Pros: • Cost-effective • Viral marketing • Better user engagement Cons: Getting advertiser support on a product as nebulous as this is challenging
Other payment integrations • Paypal API integrations • Carrier billing option – Very easy for users to pay • Virtual credits • Google Checkout
other mobile platforms • 1 MoVend payment platform • Easy integration – Supports Android, BlackBerry, Windows Phone7 • Sales Track • Better user engagement 2 Bango • Supports all mobile platforms including iOS • Operator billing
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