Download - Advertsing Monetization Strategy
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October 24, 2013 Maurizio Lettieri - Strategic Partners Leader PBS Italy
Startup Boot Camp Advertising monetization strategy
Advertising Investment – 2012 vs 2011
Source: iab 2012 Internet, Nielsen other media
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Some examples of our publishers
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There are several sub-business models that exist within advertising and sales
Advertising
Sales
In-App Advertising
Virtual Goods, Apps & Content
Physical Goods
Premium
Freemium
Subscription
Direct
Indirect
Search
Display
App Developer
Growth 2012-16
2016 Global Market Size
$35.6B (Yankee
6/12)
$36.9B (Informa 12/12)
+160%
+360%
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Google provides a range of solutions to help application developers succeed in mobile
Advertising
Sales
In-App Advertising
Virtual Goods, Apps & Content
Physical Goods
Premium
Freemium
Subscription
Direct
Indirect
Search
Display
Google Mobile Solutions
Carrier Billing
Custom Search Ads for Apps
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In-App Search Advertising helps vertical search apps monetize your users search queries
Advertising
Google In-App Search Monetization Solutions
Description
Business Model
Example Applications
Typically a vertical search application that provides users with a mixture of organic and
promoted search results
Promoted search results monetized through Pay-Per-Click or Pay-Per-Action (e.g. Click-to-
Call)
Yoga moves Fitness routes
In-App Advertising
Search
Display
More Relevance = More Revenue
As seen on Google
Completely Customizable
Ability to customize the shape, size, number, and color of the ads to match your existing search results.
Leverage Google's familiar search ad formats and our partner search network of over one million advertisers.
Only the most relevant advertisements are served to users based on their search queries.
Custom Search Ads for Apps
Targeted ad unit based on in-app
search query
Easy to Integrate Custom Search Ads for Mobile implementation is straightforward through Google’s SDK
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AroundMe’s implementation of CSA for Apps resulted in 3x higher CPM and 5x higher CTR
Advertising In-App Advertising
Search
Display • AroundMe quickly identifies the
user’s position and allows them to search for the nearby shops and services (e.g. Movie Theatre, Restaurant, and Taxi)
• AroundMe previously served display advertisements adjacent to its search results, however moved to custom search advertisements in-line with its search results
• 3x higher average CPM over display banner ads
• 5x higher click-through rate Application
Custom Search Ads for Apps
App Developer
Attorno A Me
Sponsorship Case Study
Results Achieved AroundMe
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In-App Display Advertising is a popular method of monetizing mobile audiences
Advertising
Google Display Monetization Solutions
Description
Business Model
Typical Applications
Embedded advertising units within the application, ranging
from text to image to rich media
Ad impressions are monetized through a Cost-Per-Click (CPC) or Cost-Per-Mille (CPM) basis
Vertical content apps (e.g. news, fashion, etc)
Games and entertainment Utility and productivity apps
In-App Advertising
Search
Display
Full-screen ad
Tilt Shake
Interactive banner
Text ad Banner ad
App banner
Results
Impressions 100,000
Click-through rate (CTR) 1.5%
Clicks 1,500
Cost per Click (CPC) $0.10
Revenue $150
120,000 ad requests
83%
fill rate
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Premium applications generate revenues by selling through the Google Play platform
Google Premium App Monetization Solutions
Description
Business Model
Typical Applications
Fully-featured versions of applications, typically ad-free and
differentiated from free alternatives
One-off transaction value of application retail price
Utilities Games
Productivity tools
Sales Virtual Goods,
Apps & Content
Premium
Freemium
Subscription
Step 1 Step 2
Two-step App Purchase Process
Carrier Billing
Payment Methods
Gift Card
Stored credit card credentials, most common
method
Direct charge to carrier bill,
available with over 75M users
Available in USA across
select retailers
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The Beautiful Widgets app, retailing at $1.99, has generated over $1M of sales on Google Play
Sales Virtual Goods,
Apps & Content
Premium Application Case Study
• LevelUp Studio is a four-person development team based in France
• Their development team has been solely focused on the Android platform from v1.5
• Their flagship title, ‘Beautiful Widgets’ is a collection of widget add-ons for Android devices distributed through Google Play
• Beautiful widgets has sold over 500,000 copies and generated over $1M worth of revenues
Premium
Freemium
Subscription
App Developer
Application
Results Achieved
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Freemium applications rely on in-app purchases of feature upgrades, content and virtual goods
Google Freemium Monetization Opportunities
Description
Business Model
Typical Applications
Freemium apps lack key features or content, therefore enticing
users to make in-app purchases to upgrade their app experience
Revenue generated through in-app purchases of feature
upgrades, additional content or virtual goods
Games Magazines
Food and Diet
Sales Virtual Goods,
Apps & Content
Premium
Freemium
Subscription In-App Billing
• Supported by any application published on Google play and
• Checkout processing handled automatically by Google Play
• All purchases are tracked to avoid multiple purchases of same items
• Feature Upgrades (e.g. unlimited streaming)
• Content (e.g. gaming levels, wallpaper) • Virtual Goods (e.g. character
upgrades)
Examples
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Subscription applications generate revenues from recurring fees charged to users for content
Source: DeNA Consolidated Financial Results H1 2012
Google Subscription Monetization Solutions
Description
Business Model
Typical Applications
Subscription applications require users to pay recurring fees for
access to premium content
Revenues generated from monthly or annual subscription
fees
Music streaming Fitness / Excercise
Magazines
Sales Virtual Goods,
Apps & Content
Premium
Freemium
Subscription Content Subscription Purchase
• Accepts monthly and annual billing intervals
• All subscriptions are auto-renewing • Users informed of recurring charges
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In summary, Google has solutions across the three key phases of mobile monetization
Source: DeNA Consolidated Financial Results H1 2012
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Technical implementation is easy and simple and you can start monetizing very fast
Open an AdMob account
Create an App entry within the platform
Integrate the AdMob SDK in the App
Insert the AdUnit in the code of the App
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Monetisation solutions are not only for Apps
Desktop Mobile Apps