Technological strategies Technological strategies & Monetization Ivano Malavolta Ivano Malavolta [email protected] http://www.di.univaq.it/malavolta 

Roadmap • Native vs Web vs Hybrid Apps • Native vs Web vs Hybrid Apps • Monetization Strategies 

Mobile Web Mobile web seems to be the only long long long long- - - -term term term term commercially viable content platform for mobile commercially viable content platform for mobile devices Reasons: • Fragmentation • The web • The web • Distribution Control • Consumer expectations • Web Ubiquity 

Fragmentation If you go native… there are too many platforms to be supported there are too many platforms to be supported 

The Web the only medium for information and services that lasts from over 15 15 15 15 years years years years from over 15 15 15 15 years years years years The web is an advanced advanced advanced advanced technology technology technology technology • webGL • Local storage management • Positioning & mapping • Physical engines • Physical engines • Real-time data • Push • … 

The Web 

Distribution Control Before Before Before Before.. .. .. .. Operators Operators Now Now Now Now Device and Platform makers Future Future Future Future Developers 

Distribution Control Store $$$ Store A Store B Store Store C Store D 

Consumer expectations Users Users Users Users expect expect expect expect things things things things to to to to just work just work just work just work they don’t care about what platform they have they simply expect that your app will be available for their device so… YOU HAVE TO BE CROSS YOU HAVE TO BE CROSS YOU HAVE TO BE CROSS YOU HAVE TO BE CROSS- - - -PLATFORM PLATFORM PLATFORM PLATFORM 

Web Ubiquity The web is the only platform that • works across devices • works across devices • apps share the same set of standards • the same app can work also on a desktop 

Web Ubiquity The mobile web is also • The easiest platform to learn learn learn learn • The cheapest to produce produce produce produce • The most standardized standardized standardized standardized • The easiest to distribute distribute distribute distribute • The easiest to distribute distribute distribute distribute 

Native vs Web vs Hybrid Apps There are no golden rules here… It depends on a lot of factors, such as • Which type type type type of of of of app app app app are you creating? • When When When When do you need it? • What are your skills skills skills skills? • What are your skills skills skills skills? http://bit.ly/GWOaP1 

A first look at native VS Web… http://bit.ly/GWPgdm 

Skills/tools Native Native Native Native Hybrid Hybrid Hybrid Hybrid Mobile Web Mobile Web Mobile Web Mobile Web Objective-C Java C C++ C# VB.net HTML CSS Javascript Mobile development framework (like PhoneGap) HTML CSS Javascript VB.net 

Distribution Native Hybrid Mobile Web App Store/Market App Store/Market Internet 

Number of applications needed to reach major smartphone platforms Native Hybrid Mobile Web 4 1 1 

Ongoing application maintenance Native Hybrid Mobile Web Difficult Moderate Low 

Device Access Native Hybrid Mobile Web Full access: (Camera, microphone, GPS, gyroscope, accelerometer, file upload, etc…) Full access: (Camera, microphone, GPS, gyroscope, accelerometer, file upload, etc…) Partial access: (GPS, gyroscope, accelerometer, file upload) 

Offline access Native Hybrid Mobile Web Yes Yes Yes 

Native App PRO PRO PRO PRO Lets you create apps with rich user interfaces Lets you create apps with rich user interfaces and/or heavy graphics CONS CONS CONS CONS • Development Time • Development Cost • Development Cost • Ongoing Maintenance • No portability (apps cannot be used on other platforms) 

Native App - Example http://www.whatsapp.com/ 

Mobile Web App PRO PRO PRO PRO Offers fast development, simple maintenance, and Offers fast development, simple maintenance, and full application portability One mobile web app works on any platform CONS CONS CONS CONS CONS CONS CONS CONS • Can’t handle heavy graphics • Can’t access camera or microphone 

Mobile Web App - Example http://asidemag.com/ 

Hybrid App PRO PRO PRO PRO Combines the development speed of mobile web Combines the development speed of mobile web apps with the device access and app store distribution of native apps CONS CONS CONS CONS CONS CONS CONS CONS • Can’t handle heavy graphics. • Requires familiarity with a mobile framework 

Hybrid App - Example http://flipboard.com/ 

Roadmap • Native vs Web vs Hybrid Apps • Native vs Web vs Hybrid Apps • Monetization Strategies 

Mobile Business Models There are 4 main ways to make money with apps: 1. Paid 1. Paid 2. Ad-supported 3. Freemium (virtual goods) 4. Subscriptions 

Paid Apps You simply set a price for your app and sell it in a store/market store/market There are 3 main stores: • Apple Store – 30% of revenue + 99$ subscription • Android Market • Android Market – 30% of revenue + 25$ subscription • Windows Phone Marketplace – 30% of revenue + 99$ subscription 

http://bit.ly/HgTyvH 

Price Definition The key is finding a balance balance balance balance between functionality and what users will find reasonable what users will find reasonable If users are not satisfied, then they will make bad bad bad bad reviews reviews reviews reviews A bad review keeps potential users away Experiment Experiment Experiment Experiment with different price ranges TIP TIP TIP TIP: paid apps are downloaded far less, but may be perceived as being of higher quality 

Price Ranges < .99 $ < 4.99 $ 4.99+ $ < 4.99 $ simple apps complex apps utilities qualitative apps with great expectations http://bit.ly/HgYdxH http://bit.ly/HgYmkR http://bit.ly/HgYock 

Ideal Workflow 1. Analyze competitors competitors competitors competitors and their apps price 2. Set an initial initial initial initial price price price price (high) 2. Set an initial initial initial initial price price price price (high) – Remember, new apps get more visibility 3. Experiment Experiment Experiment Experiment with price ranges to find the right balance TIP TIP 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 

Ads You develop your app and then you place place place place ads ads ads 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 

Ads workflow 1. Sign up to an ad service 2. Register your app to the service 2. Register your app to the service 3. Embed the ad code into your app 4. Get money from the ad service provider 

Ad services There are hundreds of Ad services providers, like: • AdMob • AdMob • Apple iAds • TapJoy • Mobclix • InMobi • InMobi • … There are also mobile ads aggregators, like Inneractive http://inner-active.com/ 

Freemium (Virtual Goods) You distribute a free copy of the application but there are some paid “premium” services paid “premium” services paid “premium” services paid “premium” services but there are some paid “premium” services paid “premium” services paid “premium” services paid “premium” services that you offer in addition to the basic free service You can also provide a discriminatory free: You can also provide a discriminatory free: consumers get it free, businesses pay 

Virtual goods Premium services may be anything: • calling credits for Skype • calling credits for Skype • virtual items in games • “ego services” in social networks – like badges, virtual objects, etc. • new levels • new levels • extra features 

Implementation You may realize it by: • Proposing two version of the same app: • Proposing two version of the same app: – the lite lite lite lite version, usually free – the full full full full version, paid app with a complete set of features • Single app with in in in in- - - -app app app app purchases purchases purchases purchases for additional goods goods 

Examples http://bit.ly/HhaaDy http://bit.ly/Hhal1L http://bit.ly/Hh9NsP 

Subscriptions Users subscribe to a subscribe to a subscribe to a subscribe to a service service service service and pay a regular fee to continue accessing the service 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 Those who want to subscribe can via your website 

Subscriptions The revenue is sustainable and can auto-renew just as other Web-based subscriptions other Web-based subscriptions However, it requires users to leave the app and visit the publisher's website to subscribe 

Examples ESPN Score Center Wired Magazine Wired Magazine 

How to choose your BM? http://bit.ly/GXo8bW 

How to choose your BM? http://bit.ly/GXo8bW 

If everything else fails… Build Build Build Build apps apps apps apps for for for for someone someone someone someone else! else! else! else! Build Build Build Build apps apps apps apps for for for for someone someone someone someone else! else! else! else! That is, help companies who don’t have the expertise to build mobile applications and develop apps for them develop apps for them 

References Chapters 9 -10- 14