1. How To Make Money In the Mobile Apps Business Mobile Monday Lansing March 26 th 2012

2. Lets Make Some Assumptions! You will or currently have apps on an app store Mobile Apps will live on an app store They will be made publically available for all We will touch on non-app store mobile app opportunities

3. Quick Intro – Matt Tubergen 10 Years in Mobile Made ringtones before ringtones were cool Then mobile gaming took off w/THQ Learned that DIY agency life is hard, for shizzle Mobile freemium gaming investment Back to MI, TechSmith lowers its acceptance criteria

4. Quick Overview Market Recap Top Business Models Discovery - Growth Mechanisms Best Practices for Any App Questions/Discussion

5. How Many Apps? Over 1 million apps in apps stores worldwide 59.6% of the apps are iOS Android is 32.3%, Blackberry 4.4% Est. 1,000 new apps added daily to iOS Est. 1,400 new apps a day added on Android market Top categories include (By volume of apps) Entertainment - 16.78% Games – 12.36% Lifestyle – 8.02% Utilities – 7.13%

6. Where is the Demand?

7. Top Business Models 88% of top 250 grossing iOS apps are freemium Android piracy on the rise, advertising it is!

8. Paid = Premium Some Aspects of Premium Apps: Higher retention rates of users Perception of value is controlled by price and app store collateral Revenue is realized only once Paid apps are costly to promote

9. Premium – What Can You Control Price Point Icon, Keywords, Description, Screenshots App Content Premium – What Cant You Control Placement/Features # of installs Rating

10. Premium Best Practices Lower the barrier to entry, make a free version to drive visibility Launch with a high price point, never start with a sale unless you have built in brand awareness Cross promotion in all existing applications

11. Sales and Pricing Pricing changes can drive discovery but do so wisely No more then once every 30 days Reduce price by at lease 50% Off-sale pricing is not static, consider the market Sales are not a pricing strategy, its a marketing strategy Have a reason for a sale Tie sales to a change in content

12. Freemium – Free with Strings Aspects of Freemium Barrier to entry is low Lifetime value is revenue measurement Potentially unlimited max revenue from user Predictable ROI against paid marketing

13. Freemium – What Can You Control # of Installs Icon, Keywords, Description, Screenshots App Content IAP pricing, ad placements, frequency Retention Freemium – What Cant You Control Features/Placement Ratings

14. Freemium – Understanding Lifetime Value Know your relative LTV and increase levers it to increase revenue LTV is: Revenue per user by X period multiplied by X periods In other words Retention * Monetization = Lifetime Value

15. Freemium Best Practices Never limit how much you will let people pay Use Metrics to verify your business Consumption, sources and sinks Incent sharing and activity with virtual goods/other value

16. Monetization Streams In App Purchases Never allow for spending limits Increase source/sinks Advertising Banner Cross Promotion Incentivized Branded Experiences Subscriptions Understand your Whales

17. Ad Revenue Characteristics Standard Banner $1-$3 eCPM Static Full Screen Interstitial $2-$10 Video Preload $4-$25 eCPM Watch your frequency!!!

18. Tricks to Retention Incent return behavior/usage Give reasons to re-enter Focus heavily on the first minute of experience Better to keep people then make them stay Measure on day, week, month and other

19. Best Practices for Any App Know your market, focus on fulfilling and speaking to your app store category Time your launch per marketplace Launch on Thursdays for iOS

20. Discovery – Best Practices for Any App Build a checklist before you start Prepare and submit promotional material for each store Prepare and submit promotional material for targeted app review sites or relative blogs Build a promotional calendar Events or holidays to showcase content or price Update icon, imagery, test, keywords accordingly

21. Discovery – Best Practices Continued Always cross promote Leverage in app notifications Get More Apps menu Barter with other apps, companies Use a mediation layer such as adwhirl

22. What We Did Not Cover Paid apps with IAPs Subscription Pricing Payment Providers

23. Non-App Store $$ Work for hire development Mobile ads Consulting/Strategy Enterprise mobility is exploding

24. Questions?