Pricing Strategies for iOS Applications The purpose of this presentation is to present the exiting opportunities in smart phone application development arena and to give an overview of tools and technologies involved in application development for the 2 major smart phone platforms namely, iPhone and Android. By: Shailendra Sinhasane Twitter: @sunshail Mobisoft Infotech Pvt Ltd. 1

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 3

Estimated download volume needed for Top 100 ranking: Download estimates Estimated download volume needed for Top 100 ranking: App Store Position Est. # Downloads Needed Top 10 ~50k-150k Top 25 ~30k-50k Top 25-50 ~17k-30k Top 50-100 ~10k-17k Sub 100 Free 100s-depending on category popularity -Source: AdMob, Inc.

Models 1. In-app purchases 2. Subscription 3. Ads 4. Location-based offerings 5. Social media sharing and aggregation 5

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 6

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. 7

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 8

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. 9

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 10

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 11

Social, Sharing & Aggregation Pros: Cost-effective Viral marketing Better user engagement Cons: Getting advertiser support on a product as nebulous as this is challenging 12

Other payment integrations Paypal API integrations Carrier billing option – Very easy for users to pay Virtual credits Google Checkout 13

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 14

Thank You! Connect: Email: shail@mobisoftinfotech.com Twitter: @mobisoftinfo Blog: mobisoftinfotech.com/blog 15