Technological Strategies & Monetization
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The document discusses the advantages and challenges of native, web, and hybrid mobile applications, highlighting the importance of cross-platform compatibility and user expectations. It outlines four main monetization strategies for apps: paid, ad-supported, freemium, and subscriptions, providing insights into implementation and pricing considerations. Additionally, it emphasizes the significance of distribution control and the long-term viability of mobile web as a content platform.
Technological Strategies & Monetization
- 1. Technological strategies & Monetization Ivano Malavolta ivano.malavolta@univaq.it http://www.di.univaq.it/malavolta
- 2. Roadmap • Native vs Web vs Hybrid Apps • Monetization Strategies
- 3. Mobile Web Mobile web seems to be the only long-term long- commercially viable content platform for mobile devices Reasons: • Fragmentation • The web • Distribution Control • Consumer expectations • Web Ubiquity
- 4. Fragmentation If you go native… there are too many platforms to be supported
- 5. The Web the only medium for information and services that lasts from over 15 years The web is an advanced technology • webGL • Local storage management • Positioning & mapping • Physical engines • Real-time data • Push • …
- 6. The Web
- 7. Distribution Control Before.. Before.. Operators Now Device and Platform makers Future Developers
- 8. Distribution Control $$$ Store A Store B Store C Store D
- 9. Consumer expectations Users expect things to just work they don’t care about what platform they have they simply expect that your app will be available for their device so… CROSS- YOU HAVE TO BE CROSS-PLATFORM
- 10. Web Ubiquity The web is the only platform that • works across devices • apps share the same set of standards • the same app can work also on a desktop
- 11. Web Ubiquity The mobile web is also • The easiest platform to learn • The cheapest to produce • The most standardized • The easiest to distribute
- 12. Native vs Web vs Hybrid Apps There are no golden rules here… It depends on a lot of factors, such as • Which type of app are you creating? • When do you need it? • What are your skills skills? http://bit.ly/GWOaP1
- 13. A first look at native VS Web… http://bit.ly/GWPgdm
- 14. Skills/tools Native Hybrid Mobile Web Objective-C HTML HTML Java CSS CSS C Javascript Javascript C++ Mobile development C# framework (like PhoneGap) VB.net
- 15. Distribution Native Hybrid Mobile Web App Store/Market App Store/Market Internet
- 16. Number of applications needed to reach major smartphone platforms Native Hybrid Mobile Web 4 1 1
- 17. Ongoing application maintenance Native Hybrid Mobile Web Difficult Moderate Low
- 18. Device Access Native Hybrid Mobile Web Full access: Full access: Partial access: (Camera, microphone, GPS, (Camera, microphone, GPS, (GPS, gyroscope, gyroscope, accelerometer, gyroscope, accelerometer, accelerometer, file upload) file upload, etc…) file upload, etc…)
- 19. Offline access Native Hybrid Mobile Web Yes Yes Yes
- 20. Native App PRO Lets you create apps with rich user interfaces and/or heavy graphics CONS • Development Time • Development Cost • Ongoing Maintenance • No portability (apps cannot be used on other platforms)
- 21. Native App - Example http://www.whatsapp.com/
- 22. Mobile Web App PRO Offers fast development, simple maintenance, and full application portability One mobile web app works on any platform CONS • Can’t handle heavy graphics • Can’t access camera or microphone
- 23. Mobile Web App - Example http://asidemag.com/
- 24. Hybrid App PRO Combines the development speed of mobile web apps with the device access and app store distribution of native apps CONS • Can’t handle heavy graphics. • Requires familiarity with a mobile framework
- 25. Hybrid App - Example http://flipboard.com/
- 26. Roadmap • Native vs Web vs Hybrid Apps • Monetization Strategies
- 27. Mobile Business Models There are 4 main ways to make money with apps: 1. Paid 2. Ad-supported 3. Freemium (virtual goods) 4. Subscriptions
- 28. Paid Apps You simply set a price for your app and sell it in a store/market There are 3 main stores: • Apple Store – 30% of revenue + 99$ subscription • Android Market – 30% of revenue + 25$ subscription • Windows Phone Marketplace – 30% of revenue + 99$ subscription
- 30. Price Definition The key is finding a balance between functionality and what users will find reasonable If users are not satisfied, then they will make bad reviews A bad review keeps potential users away Experiment with different price ranges TIP: TIP paid apps are downloaded far less, but may be perceived as being of higher quality
- 31. Price Ranges 4.99+ $ < .99 $ < 4.99 $ simple apps qualitative apps with http://bit.ly/HgYdxH great expectations http://bit.ly/HgYock complex apps utilities http://bit.ly/HgYmkR
- 32. Ideal Workflow 1. Analyze competitors and their apps price 2. Set an initial price (high) – Remember, new apps get more visibility 3. Experiment with price ranges to find the right balance TIP: TIP people love free and on sale stuff Putting your app “on sale for a limited time” helps a lot in getting visibility within the store and in dedicated blogs
- 33. Ads You develop your app and then you place ads within it Ad service providers will show ads in your app and pay you 60-70% of the money they collect from advertisers It is the easiest way to monetize free apps http://bit.ly/Hh4sBL
- 34. Ads workflow 1. Sign up to an ad service 2. Register your app to the service 3. Embed the ad code into your app 4. Get money from the ad service provider
- 35. Ad services There are hundreds of Ad services providers, like: • AdMob • Apple iAds • TapJoy • Mobclix • InMobi • … There are also mobile ads aggregators, like Inneractive http://inner-active.com/
- 36. Freemium (Virtual Goods) You distribute a free copy of the application but there are some paid “premium” services that you offer in addition to the basic free service You can also provide a discriminatory free: consumers get it free, businesses pay
- 37. Virtual goods Premium services may be anything: • calling credits for Skype • virtual items in games • “ego services” in social networks – like badges, virtual objects, etc. • new levels • extra features
- 38. Implementation You may realize it by: • Proposing two version of the same app: – the lite version, usually free – the full version, paid app with a complete set of features • Single app with in-app purchases for additional in- goods
- 39. Examples http://bit.ly/Hhal1L http://bit.ly/HhaaDy http://bit.ly/Hh9NsP
- 40. Subscriptions Users subscribe to a service and pay a regular fee to continue accessing the service Existing subscribers can input their username and password in the same way as on the website Those who want to subscribe can via your website
- 41. Subscriptions The revenue is sustainable and can auto-renew just as other Web-based subscriptions However, it requires users to leave the app and visit the publisher's website to subscribe
- 42. Examples ESPN Score Center Wired Magazine
- 43. How to choose your BM? http://bit.ly/GXo8bW
- 44. How to choose your BM? http://bit.ly/GXo8bW
- 45. If everything else fails… Build apps for someone else! That is, help companies who don’t have the expertise to build mobile applications and develop apps for them
- 46. References Chapters 9 -10- 14