making money in the android ecosystem
DESCRIPTION
Making Money in the Android EcosystemAndroid Market, In-app Billing and alternativesAndroid advertising and marketingAnalyzing the numbersAlternate revenue streamsPresenter: Paul Houghton, Futurice. Length: 30 minTRANSCRIPT
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Fututrends 3
Mobile Market Analysis
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Fututrends 4
2009: Android, 3.9% 2010: Android, 22.7%
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Making Money in the Android Ecosystem
• Where? – Android Market – In-app Billing – Alternative Markets
• How? – Android Advertising – App Marketing – Alternate Revenue Streams
• Recommendations Making Money in the Android Ecosystem 6
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Making Money in the Android Ecosystem
• Where? – Android Market – In-app Billing – Alternative Markets
• How? – Android Advertising – App Marketing – Alternate Revenue Streams
• Recommendations Making Money in the Android Ecosystem 7
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Android Market
• 34% paid apps – (Apple: 66%) – 37% are $1 or less, vs. 61% last summer
• 6.2 apps per developer – (Apple: 4.8)
• 32% of Apps are location-based • 7.5% access user contacts – (Apple: 11%)
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DroidDream
• Security nightmare – >50 repackaged apps raid private
security info to remote servers – Google is “analyzing” – Re-flash the phone – READ the permissions which an application asks
for. Most users do not.
• App makers should – LIMIT permissions your app asks for
• or increasingly smart users will not install it – RESPOND to online discussion of your app
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• If your app isn’t professional – Low user ratings – No users – You wasted 100% of your money
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In-app Billing
• New • Sell – virtual stuff – game levels – extra services
• 70/30 like normal billing • Subscription model coming
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Alternative Markets
• Three types enter the gold rush – Indies
• Independent opportunists, mostly doomed to fail • Some are worth working with until then
– OEMs • Preloaded store on one brand of phone • Usually small, nice place to be
– Operators • Big markets, big money, big corruption ambition • Important since sometimes these guys remove
Market from the phone, or block it as the network level
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Fututrends 19
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GetJar
• 100m down/month • 200 countries • Primary revenue is “Sponsored
Apps” section of website – Advertise your app here if you have an
alternate revenue stream – PPD: Pay Per Download
• No premium apps – “Coming”
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AppBrain
• Alternate web interface for Android Market • You might like the UI better, but… – Only apps available in US show up – AppBrain app must be installed on user’s phone
to initiate install
• Normal Google Checkout • Largely obsolete due to recent
Google Market web updates
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Appsfire
• Alternate web interface for Market • Good in-phone App – Recommendations adapted based on installed
apps – Discounted apps, popular lists, expert
recommendation lists, video previews
• Normal Google Checkout • Ad supported
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SlideME
• Focus on promoting small, independent developers • Web, or SAM app on to phone • Own payment system • For selling to users outside of
Google Market geographic reach
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Mobihand OnlyAndroid
• Discounts and “Deal of the day” • On-phone app also • Normal web shop, credit card
checkout, accessorize in the same purchase
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Approov
• New entrant • Web interface only – Minimalistic aesthetic – Includes Google Market search results
• Free apps only • Upload your free app here along
with a video
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Shop4apps
• By Motorola • Argentina, Brazil, China, Mexico • Free, automated app testing • In-app advertising for China
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• Coming soon • Windows Phone is a good
example of what to expect • A nice, small place to promote
your app if you get placement
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• AT&T uses Google Market • AT&T cripples Android firmware – Remove “Settings -> Applications -> Allow
install from unknown sources” – So all 3rd party app stores are blocked
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• Verizon V Cast Store • Android 2.2+ • Pre-approval required, like Apple – Free
• Same 70/30 split as elsewhere – just no sharing the 30 with Google
• Carrier billing only – Premium is blocked on many company phones
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• THE BEAST is coming • Bundled with rest of Amazon – ebooks – books and gadgets
• Great recommendation tech and loyal customer base
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• Chinese markets – 36% are repackaged free apps from Market
• 25% of repackaged apps require MORE user permissions than the original application
– 2% pirated software (Apple: 85%) – 61% of apps are unique -> serve a local need
• Russia and the east – There is no culture of paying for software – Piracy is the norm
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Beyond the western world
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Android Advertising
• AdMob SDK has 40% market share – Bought by Google – Normal 60/40 split
• A few apps use multiple SDKs • Include when
– High number of page views/per day – Cheap/young target audience – “Me too” service
• Avoid when – You make money indirectly based on how many people
have your application
• Buy when – You make more/newuser than ads/newuser cost you
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Europe: Mobile Ad Revenues
• Only 37% banners – and Ad network keeps 40% -> 22%, maybe
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Real Time Bidding
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Alternate Revenue Streams
• Flip burgers and play lotto • Sell direct – fremium – online subscriptions – associated service – associated product
• PPI • Consult
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Recommendations
1. Google Market + Checkout – Sell it, if you are worth it, basic level must be free
• Higher price, avoid “volume will make up for it” trap – Ad-based if cheap users/high page count
• Consider Mobclix as an alternative – Best for most: alternate revenue off-market
2. Marketing – Blog, SPAM, promo video, spin off a TV show, address
book viral, anything to spread the word – Premium apps- advertise in markets+web+apps!
• Alternative revenue models, consider GetJar ads
3. Be Global – Design for localization, multi-resolution from day 1 – Alternate markets later (repackager self defense)
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