BUILDING A BUSINESS ON MOBILE APPS

Anna Yashchenko AdMob by Google

850K Devices activated daily

Source: Apple, Google data, April 2011

Android

125 years of Angry

Birds played every day

600 million mobile playbacks

every day on YouTube

Source: Nielsen June 2010, Rovio December 2010, YouTube Internal Data 2010

Source: AdMob Network Data

Jan-10 through Mar-12

App and site use is exploding in Russia

Source: AdMob network data, August 2010 & 2012

Jan-10 Jan-11

Ad requests

Jan-2010 Jan-2012

40 m

1,5 bn

“Hockey stick” growth in ad requests

Source: AdMob Network Data, March – August 2011

AdMob Network Ad Requests Russia

… but growth driven from high end devices

Source: AdMob Network Data, March – August 2011

iPhone + Android

AdMob Network Ad Requests Russia

!"#$ %&'$ ()"$ *+,$ -).$ /+0$

… and tablets are just starting to take off

Source: AdMob Network Data, March – August 2011

iPad

AdMob Network Ad Requests Russia

We quickly discovered that ads were bringing in the majority of the revenue

Guilherme Schvartsman Founder & CEO of Best, Cool & Fun Games

Results 20M users 70% of revenue derived from ads through AdMob

Drove 45% of Ant Smasher downloads with advertising on AdMob

How Much Are Developers making?

YOU

Promote Measure Earn

PROMOTE

Ways to get discovered

•  Build a brand – app description and icon matter

•  Go social – leverage your social circles •  Advertise – free vs. paid

400,000+ apps in the store

Advertise within other apps to get discovered

Increased ranking means more “discoverability”

Time

Active Users

Jumpstart your user base with paid advertising

Time

Active Users

Jumpstart your user base with paid advertising

More than one app? Use house ads for free advertising

Time

Active Users

App A

Jumpstart your user base with house ads

Time

Active Users

App A App B

Jumpstart your user base with house ads

Time

Active Users

App A

App B

Jumpstart your user base with house ads

EARN

Freemium User pays for additional

functionality

Paid downloads User pays a fee

to download

Advertising User clicks on ads

In-app purchase User purchases goods

within the app

Many ways to earn money

Advertisers are spending to reach their audience in

apps

Developers earning over

$100K / year has quadrupled

since 2009

User launches your app.

User clicks on ad placed in your app.

You get paid for each click.

Earning money with mobile advertising

Advertising math 101

$0.10 cost per click (CPC) 100,000 impressions

1,500 clicks

120,000 ad requests

Fill rate 100,000 120,000

83.3%

Click-through rate (CTR) 1,500 100,000

1.5%

Revenue 1,500 x $0.10 $150

eCPM $150 х 1000 100,000

$1.50

Network fluctuations

RPM varies across networks

Mediation reduces RPM fluctuations and maximizes revenue

32

Mediation enables multiple ad networks

33

Mediation

Ad network A

Ad network B

Ad network C

MEASURE

Download data and statistics are readily available in most

marketplaces

It’s easy to measure downloads

But what are my users doing?

Active Customers

Potential Customers

And where are downloads coming from?

Active Customers

Potential Customers

Analytics helps you make critical decisions

•  Extend to a new platform?

•  Acquire more users?

•  Change my business model?

•  Retire unused features?

•  Develop a new app?

Get started with AdMob by Google

Measure

•  Monetize with AdMob ad network

•  Consider freemium, in-app purchases, etc.

•  Drive downloads with paid advertising

•  Cross-sell with house ads

•  Track performance with Analytics

Promote Earn

www.guidetotheappgalaxy.com

To learn about mobile advertising, monetization and measurement visit:

The Guide to the App Galaxy

THANK YOU! www.admob.com