Transcript Pricing Strategies for iOS Enterprise Applications

Pricing Strategies for iOS
Applications
By: Shailendra Sinhasane
Twitter: @sunshail
Mobisoft Infotech Pvt Ltd.
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 ~
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40-45% of all iOS revenues are from in-app purchases
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Only 10% from advertising
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Near about 50% of the games downloaded from the app
store were free with in-app purchase integrated
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In-app purchases will grow exponentially in coming years
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
To do
1. Try various in-app models to find the combination that maximize
your revenues
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Games: Subscription based casual gaming package + premium
payment for sending best scores
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E-books for kids: read once for free. Pay to read again
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Security: free trial (30 days) . Paid license for 1 year period
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Video: pay per gallery
2. Freemium strategy
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Strongest marketing play
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Risk reduction
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Developers should be focused on finding consumers who are
willing to pay, not trying to completely satisfy free-rider
consumers
In-App single purchase
Pros:
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This is probably the easiest path to implementation and
launch and it's straightforward and proven
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Virtual goods/currency through In-App
Cons:
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No ongoing revenue stream
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No access to user data - makes selling advertising difficult.
One potential workaround is to build in-app surveys,
which pushes data back.
Subscription - I
Pros:
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Revenue is sustainable
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Renew just as other web based subscriptions
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Easy extendable as an add-on
Cons:
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Requires user management solution
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Requires users to leave the app and visit the publisher's
website to subscribe
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Conversion rate lower than in-app purchases
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Success :
lifetime value of a subscriber > revenue lost from lower conversion
Subscription - II
Apple's subscription policy for publishers:
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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.
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Publishers can't link to an external-to-Apple location that sells
a subscription within the app.
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:
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Mobile budgets just aren't well-defined
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Apple changes strategic decision with third party ad integration
Location Based Offerings
Pros: Awesome mobile offerings into a high-fidelity advertising
environment
Cons:
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Complexity in integrating these systems
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Requires the device be connected to the internet
Social, Sharing & Aggregation
Pros:
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Cost-effective
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Viral marketing
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Better user engagement
Cons: Getting advertiser support on a product as nebulous as this is
challenging
Other payment integrations
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Paypal API integrations
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Carrier billing option – Very easy for users to pay
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Virtual credits
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Google Checkout
other mobile platforms
1 MoVend payment platform
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Easy integration – Supports Android, BlackBerry, Windows
Phone7
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Sales Track
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Better user engagement
2 Bango
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Supports all mobile
platforms including
iOS
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Operator billing
Thank You!
Connect:
Email: [email protected]
Twitter: @mobisoftinfo
Blog: mobisoftinfotech.com/blog