mCommerce & Monetization - Ohio University · • What is mCommerce? – mCommerce is the term used to classify purchases and sales of goods and services such as online banking, bill

mCommerce & Monetization

Mobile Media Innovation Module 5

MobileMediaModule• TheMobileMediaModuleisdesignedasatwo-week,broad-basedstudy

onthemobilelandscapethatcanbeappliedinmanycourses.• TheprogramwasimplementedatOhioUniversity’sScrippsCollegeof

CommunicationtosupportourScrippsInnovationChallengeandtobuildknowledgeofthemobilelandscapeacrossourcommunicationcurricula.

• Forimplementation,webroughtinanexpertinmobiledevelopmenttoteachinfourexistingclassesovertwoweeksinSpring2013.Facultyteachingthoseclassesbecamethestudentsandbuilttheircapacitytoteachthematerialinsubsequentsemesters.

• By“hackingthecurriculum”usingthe“modulemethod,”wewereabletoreachmorethan500studentsinonesemesterwithnewmaterial.

• Formoreinformation,contactDr.MichelleFerrier,associateprofessor,E.W.ScrippsSchoolofJournalism,[email protected].

MobileMediaInnovationModules

• Part1:FundamentalsofMobile• Part2:AudienceandUsage• Part3:SocialandMobile• Part4:MobileandJournalism• Part5:mCommerce andMonetization• Part6:AppDevelopment

• WhatismCommerce?

– mCommerceisthetermusedtoclassifypurchasesandsalesofgoodsandservicessuchasonlinebanking,billpaymentandinformationdeliveryacrosshandhelddevicesandmobilephone.

mCommerceandMonetization


• mCommerceexplainedin3minutes:

• http://www.youtube.com/watch?v=ClHLltQrAcA


WhyismCommerceimportant?

– 1outofevery3monthlyvisitorstotheaveragedigitalretailerwebsitecomesEXCLUSIVELYonmobileplatform

– Mobileappsdrivesmartphoneretailengagement,whilemobilebrowsingwinsontablets

– Smartphonesdriveahighershareofmcommercedollarsthantabletsbutlessonaperdevicebasis

– mCommercesalesandnumbersarelargelydrivenbyholidayseasons

– Gotothesource.

WhyismCommerceimportant?

BusinessModels• Thereare3businessmodelsassociatedwithapps.Theyare:• PAID• PAYMIUM• FREEMIUM

BusinessModels- PAID

BusinessModels- PAID• Paid- Chargecustomerstodownloadyourapp.• Youmustbesmartwithyourmarketing• Youmustpricecarefully• Worksbestifyouhaveanestablishedbranoralarge

followingofloyalcustomers• Paidappsaccountfor36%ofappsintheAppStore• DOESNOTworkwellforentertainmentappsorgames,but

workswellinotherrealms• CapturethelargestportionofrevenuesharesinBusiness,

Education,ProductivityandNavigationcategoriesoftheAppStore

BusinessModels– FREEMIUM• Freemium– Theappisprovided“free”butrevenueisgenerated

bychargingforextrafeatures,virtualgoods,andmostcommonly,in-gamecurrency.

• Bestforgamesandentertainmentapps• 92%ofrevenueontheAppStoreisgeneratedbyfreemiumapps• However,theyonlyaccountfor11%oftheappsintheAppStore.• YouneedHUGEdownloadnumberstomakemoneythisway• Appwillrequireconstantupdatesandsupporttomaintain

interest• Manylargecompaniesusethismodelanditismoredifficultfor

small,indiedeveloperstomakemoneythisway.

BusinessModels– PAYMIUM• Paymium- Anappthatispaidupfront,withadditionalrevenue

beinggeneratedbychargingforextrafeaturesviain-apppurchase.

• Canworkwellinplaceofyearlypaidupgradesasyoucanaddnewfeaturesovertimewithin-apppurchasestocontinuetoearnrevenuefromyourexistingcustomers.

• Accountforonly2%ofappsintheAppleAppStorebutgeneratethesameamountofrevenueaspaidapps.

BusinessModels

• So,whatbusinessmodelshouldyouchoose?– Thereisnocorrectanswerbutyoucan:• Planaheadforyourpricingstrategy• Startasearlyaspossible• Don’ttrytoforceaparticularpaymentmodelintoyourapp• Whenindoubt,launchasapaidappandthenassin-app-paymentstotheappandtweaktheexperienceuntilyouarehappywithconversionrates• Ifyoulaunchasapaidapp,releasewithintroductorypricesandthenincreaseafteracertainperiod

QuickDiscussionQuestions

• Whatwouldyourmarketingstrategybeforthefollowingtypesofapps?

– Productivity– Entertainment– Game

DiscussionQuestions• ArticleIII:“HowToStartanAppBusiness”• Howwouldyoumanagerunningacompanyandaprojectatthe

sametime?

• Howlongwouldyouconsidermarketing(andspendingmoney)onanappafteritisreleased?

• Whatstepswouldyoutaketodifferentiateyourappfromyourcompetitors?

• http://smallbusiness.foxbusiness.com/starting-a-business/2012/05/01/how-to-start-app-business/

Documents

mCommerce & Monetization - Ohio University · • What is mCommerce? – mCommerce is the term used to classify purchases and sales of goods and services such as online banking, bill