1. 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
Mobisoft Infotech Pvt Ltd. 1

2. 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?

3. 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

4. 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
~10k-17k
Sub 100 Free
100s-depending on category popularity
-Source: AdMob, Inc.

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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

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

14. 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

15. Thank You!
Connect:
Blog: mobisoftinfotech.com/blog 15