8/22/2011 1 World’s Largest Independent Mobile Ad Network The Economics of Building an Advertising Supported App Business
May 31, 2015
8/22/2011 1
World’s Largest Independent
Mobile Ad Network
The Economics of Building an
Advertising Supported App Business
San Francisco
We’re a Global Mobile Display Ad Network
London
Nairobi
Bangalore
Singapore
Tokyo
• 4 years of mobile expertise
• 10,000+ Publisher and Advertisers
• 36+ Billion monthly impressions
• 6 regional office and 6 additional sales offices
• Top talent from Google, Yahoo & Amazon
• 225+ countries
New York
Sydney
Berlin
Johannesburg
Chicago
Mumbai
A Selection of Publishers
A Selection of Advertisers
Mobile App Landscape
400K+ Apps in iTunes
Market dynamics change daily and hourly
Highly competitive
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Tablets - The New Opportunity
• iPad and Tablets are creating new markets
• Mobile eco-system is still emerging
• Top apps are worth millions of dollars
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Needham’s Charlie Wolf, raised his 2011
iPad sales forecast to 30 million.
Total iOS installed base 160+ mn.
Total Android installed base 150+ mn.
Revenue Models: Overview
There are four ways to make money
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Each has strengths and weaknesses
Some models are more appropriate than others
Paid Downloads Sponsorship
Advertising In App Purchase
Examples
Revenue Models: Paid Download
• Strength: Works best with gaming and utilities
• Weakness: Promotion is difficult
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Tiny Wings
Fruit Ninja
Words with
Friends
Revenue Models: Sponsorship
• Strength: Great for niche apps
• Weakness: Not scalable
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The Onion
Walgreens
Examples
Red Bull
Examples
Revenue Models: In App Purchase
• Strength: Requires loyal repeat usage
• Weakness: Difficult to achieve app loyalty
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Ebay
Eliminate
Tap Zoo
Farmville
Revenue Models: Advertising
• Strength: Can drive more revenue than paid
• Weakness: Requires large installed base
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Photobucket
Shotgun
Examples
Moco Space
App Monetization Matrix
Gaming Specialty Community Utility
Paid
Download
Advertising
Sponsor
In App
Purchase
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Recommended models by category
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Try Combining Models
• Experiment.
• Take advantage of global markets
• Mix models depending on stage of evolution.
Introduction Growth Maturity Decline
1 2 3 4
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Build a Business not Apps
• Build portfolio of apps
• Create synergy between apps
• Build brand
• Variable pricing
• Develop quality content
• Take maximum advantages of social channels
• Exploit global nature of app market
The Mobile Ad Opportunity
• A $1 Billion market in the U.S. today
• Globally it’s expected to exceed $20 B in 2013
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The Ad Network Concept
Advertiser A Advertiser B Advertiser C Advertiser D
Ad Network
Publisher A Publisher B Publisher C Publisher D
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How to Pick a Network
Some important questions to consider:
• In what regions are you trying to monetize?
• What platform are you developing for?
• Type of content games, music, cars?
• Is a third party platform right for you?
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How Publishers Make Money
Impression Fill Rate CPC CTR
Ad Network
Revenue
8/22/2011 19
Tips and Tricks
• Experiment with ad placement and format
• Use data to improve performance
• Use multiple ad networks
• Create your own mediation layer
• Develop directly for ad verticals (cars,
travel, finance, etc.)
• Test everything
• Iterate often
Think Globally
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Think Globally
eCPMs vary globally but not by a big margin
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Europe North America Asia (Excl. China and Japan)
Middle East Africa
129 125
10190
70
Index by region
Sourced from our Network
eCPMs Top 20 Countries
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Country Index Range Rank
Australia > 150 1
Malaysia > 150 2
Ireland > 150 3
Thailand > 150 4
South Africa > 150 5
Russian Federation > 150 6
New Zealand > 150 7
United Kingdom > 150 8
Italy > 150 9
USA > 150 10
Country Index Range Rank
UAE 120 to 149 11
Sweden 120 to 149 12
Norway 120 to 149 13
Germany 120 to 149 14
Singapore 120 to 149 15
Saudi Arabia 80 to 120 16
Brazil 80 to 120 17
France 80 to 120 18
Spain 80 to 120 19
Jordan 80 to 120 20
We are 100% compatible with:
With InMobi you get both reach and impact.
Compatibility
Froggy Jump Case Study
8/22/2011 24
Invictus Games Sees eCPMs as High as $5.99
for iPhone Game With InMobi
Shotgun Free Case Study
8/22/2011 25
Inedible’s Shotgun Free iPhone App Triples
International eCPMs With InMobi
Key Messages
8/22/2011 27
• Think globally
• Build a sustainable business
• Test and experiment
• Optimize based on data
• Have fun!
Thank You
8/22/2011 28
For a copy of this presentation please write to me