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Monetization Models A Case Study based discussion Chandra V, Head of Products, InMobi [email protected]
32

Adaptive Marketing - Monetization and Pricing Models for the New world

Jan 13, 2015

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Head of Product Management, InMobi speaks at Product Professionals Event Hosted by Adaptive Marketing in Bangalore, India. Product Management and how to monetize and price?
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Page 1: Adaptive Marketing - Monetization and Pricing Models for the New world

Monetization Models A Case Study based discussion

Chandra V, Head of Products, InMobi [email protected]

Page 2: Adaptive Marketing - Monetization and Pricing Models for the New world

Topics of Discussion • Pricing Design & Pricing Approaches• Marketplaces

– One-sided, Two-sided and Multi-sided marketplaces

• Two-sided marketplaces• Discussions around

– Naukri– Google – Drop Box/Evernote – LinkedIn– Mobile

• Monetization in two-sided marketplaces– Ad Supported– Direct sell ( Digital Goods or assets ) – Subscription– Freemium – Marketplace– Marketplace of marketplaces– Sponsorhips

Page 3: Adaptive Marketing - Monetization and Pricing Models for the New world

Pricing DesignPricing

Driver

Profitability

Mkt Share (Units)

Revenue (Sales)

Signal (Mktg)

Types

Competition

Cost

Value

Stages

Penetration, Skimming

Diversification, Captive

Bundling, Acclerators

Special Offers

Formula

Tier

Usage

Loyalty

Mix

MSRP

Sell ThroughPayment Terms

Page 4: Adaptive Marketing - Monetization and Pricing Models for the New world

Pricing Approaches

Actual Cost of Product

Add: Target return

Price to Channel

Add:Markup of Channel

Cost-based Pricing

Price to Customers

Competitive Pricing

Perceived differentiation of company’s offering

Price to Customers

Competition-based Pricing

CustomersCustomer’s Perceived Value

Price to Customers

TargetCost Product

Value-based Pricing

Channel/ companymarkups

Page 5: Adaptive Marketing - Monetization and Pricing Models for the New world

Cost Per Revenue Dollar (CPRD)

Page 6: Adaptive Marketing - Monetization and Pricing Models for the New world

Marketplaces• Marketplace - “the world of commercial activity where goods and services are

bought and sold.”

ebay

Buyer

Seller

Craigslist

Lessee

Lessor

LinkedIn

HeadHunters

Passive Job

Seeker

Shaadi dotcom

Bride Seeker

Groom seeker

Page 7: Adaptive Marketing - Monetization and Pricing Models for the New world

What marketplace is this ?

Us Merchant CCABank

Page 8: Adaptive Marketing - Monetization and Pricing Models for the New world

Value Propositions

Page 9: Adaptive Marketing - Monetization and Pricing Models for the New world

Value Proposition

Different Kinds of value provided by Firms/Individuals/Technologies, to their Customers

• Newness • Performance• Customization • “Getting the job done”• Design• Brand/Status • Price• Cost reduction • Risk reduction• Accessibility• Convenience/usability

Page 10: Adaptive Marketing - Monetization and Pricing Models for the New world

Applying this lens to everything around us ?

Us Merchant CCABank

Page 11: Adaptive Marketing - Monetization and Pricing Models for the New world

Naukri – Marketplace of Jobs seekers/providers

Finding a Job

Professional Development

User Intent

..

Page 12: Adaptive Marketing - Monetization and Pricing Models for the New world

Naukri – Marketplace of Jobs seekers/providers

Job Seeker Marketplace

Billboards Employers Job Seeker

Page 13: Adaptive Marketing - Monetization and Pricing Models for the New world

Naukri – Marketplace of Jobs seekers/providers

Page 14: Adaptive Marketing - Monetization and Pricing Models for the New world

Monetization models seen on Naukri

• Ad Supported

• Subscription Sells

– Database sells to Recruiters & Consultants

• Services revenue

Page 15: Adaptive Marketing - Monetization and Pricing Models for the New world

Google – Marketplace of Information seekers and marketersEnd user of Google Search

Marketers

Marketplace

Publisher

Page 16: Adaptive Marketing - Monetization and Pricing Models for the New world

Monetization models seen on Google O&O Inventory

• Ad Supported

Page 17: Adaptive Marketing - Monetization and Pricing Models for the New world

Ad Networks

• Ad Networks bring together Publishers and Advertisers (who would otherwise, not be able to discover and work with each other).

User

Page 18: Adaptive Marketing - Monetization and Pricing Models for the New world

Ad Sense

Page 19: Adaptive Marketing - Monetization and Pricing Models for the New world

Going off on a tangent ..

Page 20: Adaptive Marketing - Monetization and Pricing Models for the New world

Freemium

Free + Premium

Page 21: Adaptive Marketing - Monetization and Pricing Models for the New world

Freemium

Free + Premium

Page 22: Adaptive Marketing - Monetization and Pricing Models for the New world

Subscription

Page 23: Adaptive Marketing - Monetization and Pricing Models for the New world

Direct Sells (Apps)

Page 24: Adaptive Marketing - Monetization and Pricing Models for the New world

Virtual Goods

Page 25: Adaptive Marketing - Monetization and Pricing Models for the New world

Sponsorships

Page 26: Adaptive Marketing - Monetization and Pricing Models for the New world

Subsidized, two sided marketplaces

Users

Page 27: Adaptive Marketing - Monetization and Pricing Models for the New world

Infrastructure Monetization (IaaS, PaaS, SaaS)

Page 28: Adaptive Marketing - Monetization and Pricing Models for the New world

Summary• Monetization in marketplaces

– Ad Supported– Direct sell ( Digital Goods or assets ) – Subscription– Freemium – Marketplace– Marketplace of marketplaces– Sponsorships– Subsidized pricing

Page 29: Adaptive Marketing - Monetization and Pricing Models for the New world

Q & A

Thank you

Page 30: Adaptive Marketing - Monetization and Pricing Models for the New world

Appendix

Page 31: Adaptive Marketing - Monetization and Pricing Models for the New world

Strategic Pricing Process

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Customers Values Prices Costs Products

Value CreationCPV, Economic Value

Price StructureMetrics, Fences

Price & Value Comn.ROI Tools, collateral

Pricing Policy

Negotiation, Discounting

Price LevelPrice setting

Strategic Pricing Phases

Typical customer-led pricing design

Page 32: Adaptive Marketing - Monetization and Pricing Models for the New world

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Pricing is a function of Communicating Value