Monetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases You recently launched your app and your first users love it. But what next? How do you grow your user base and how do you get users to re-engage with your app after the initial install? How do you drive greater monetization of your app with cross-promotion of functions and intents from other apps? As mobile evolves to accommodate the dynamism and functionality of apps, so must our monetization and advertising practices. Finding, building, and utilizing the right tools begins with the user—if we start by understanding user intent and focus on the best experience possible, we can understand how to integrate monetization models that are not only seamless, but enhancing to user experience. This presentation focuses on how mobile app search, deep linking and app-to-app cross promotion are changing the ecosystem and helping app developers create new channels of monetization that go beyond sponsored app installs, display banner ads, and in-app purchases. Specific examples on creating deep link schemas, promoting your apps and enabling other apps to promote your actions and transactions are also covered.

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Monetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
Deepak Thakral
Vice President, Monetization
Email: dthakral@quixey.com
Tweet: @deepakthakral

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Agenda
1. App Monetization: Current State
2. The Case for App Re-
Engagement
3. Cross Promotion of App Function

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62% of App Developers
are below
APP POVERTY LINE
App Monetization:
State of the Union
$500

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47%<$100
22%
$500-$1000/mo.
19%
$1K-$10K
12%
>$10K/mo.
App Developers:
Disappearing Middle Class
*Source: VisionMobile

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47%<$100
22%
$500-$1000/mo.
19%
$1K-$10K
12%
>$10K/mo.
App Developers:
Disappearing Middle Class
Have Nothings
• Of this, 24% make $0
• 23% make <$100/mo.
• Not sustainable
*Source: VisionMobile

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47%<$100
22%
$500-$1000/mo.
19%
$1K-$10K
12%
>$10K/mo.
App Developers:
Disappearing Middle Class
Have Nothings
• Of this, 24% make $0
• 23% make <$100/mo.
• Not sustainable
Poverty Stricken
• 15% make $1-$500
• (62% below poverty line)
• Not sustainable
(hobbyists/explorers)
*Source: VisionMobile

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47%<$100
22%
$500-$1000/mo.
19%
$1K-$10K
12%
>$10K/mo.
App Developers:
Disappearing Middle Class
Have Nothings
• Of this, 24% make $0
• 23% make <$100/mo.
• Not sustainable
Poverty Stricken
• 15% make $1-$500
• (62% below poverty line)
• Not sustainable
(hobbyists/explorers)
Strugglers
• Apps are reasonably
successful
• Opportunity cost
*Source: VisionMobile

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47%<$100
22%
$500-$1000/mo.
19%
$1K-$10K
12%
>$10K/mo.
App Developers:
Disappearing Middle Class
Have Nothings
• Of this, 24% make $0
• 23% make <$100/mo.
• Not sustainable
Poverty Stricken
• 15% make $1-$500
• (62% below poverty line)
• Not sustainable
(hobbyists/explorers)
Strugglers
• Apps are reasonably
successful
• Opportunity cost
Haves
• Top 100 game could make
$10K/day
• Only 1.6% > $500K/app/mo.
• Top 5% make more than all
combined
*Source: VisionMobile

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$43.3M
22.8M
Cumulative sales
since June launch
Downloads
The Elite
Ex. Kim Kardashian Hollywood
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
Freemium App

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The good news is that app usage continues to
increase…..
Advertising & Consumer dollars follow…

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Mobile App Usage is on the Rise
Average Apps Used and Time Per Person Per
Month
30
25
20
15
10
5
Q4 2011 Q4 2012 Q4 2013
18:18
23:02
30:15
26.826.523.3
Source: Nielsen
Time per person (h:m)
Number of apps

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Time Spent on
iOS & Android Devices
• 86% of mobile time is spent on apps
vs 14% on browsers
• Gaming is 32% time spent on
Android and iOS
• 17% of time is basically spent on
Facebook
*Source: Flurry
32%
Gaming
14%
Browser
8%
Entertainment
11%
Social
18%
Other
86%
Apps

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Mobile Advertising Growth
2014 Projection
2014 Growth
2018 Projection
$19B
78%
$58B
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
*Expected to be 37.4% of digital media ad spend
*Display ads expected to contribute 50% spend

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$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
2013 2014 2015 2016 2017 2018
US Total Media Ad Spending Growth, by Media,
2013-2018, % change
*Source: eMarketer
Mobile
Display
Search

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Majority of Ad Spending
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases

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*Source: Flurry
Ad Spend Versus Time Spent on Mobile
0%
10%
20%
30%
40%
50%
60%
70%
Google Facebook Other Apps
18%
49%
17% 18%
65%
33%
Time Spent
Ad Spent

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So how can other apps focus on getting
more dollars from advertising & in-app
purchases?

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Typical Monetization Path
App Store
Downloads
Sign-In
App Install Campaigns
Download (Pay Per
Install)
Sign-In
Organic Promoted
Usage Usage
Discovery
Download
Activation
Usage

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Once you have Usage:
2. Offer In-App Purchases
• Games
1. Offer In-App Advertising
• Major Ad Networks
• 320 x 50 Small Banners
• 300 x 250 Large Banners
• Full Page Interstitials

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1. Offer In-App Ads
Banner Ads 300x250 AdsFull Page Interstitials

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2. Offer In-App Purchases
*Source: Angry Birds *Source: Kim Kardashian Hollywood

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How many users do you need to generate advertising revenue?
Description Metrics Assumption
Monthly Active Users 50,000 Installs will be significantly higher
Daily Active Users 10,000 20% DAU/MAU
Session Duration 20 minutes/day
Frequency/month 20 days/month
DAUs * Duration * Freq 4,000,000 Total Minutes
Ad Impressions 8,000,000 2 ad imp/minute
eCPM for ad impressions $1 average '1000 imps
Average Monthly Revenue $8,000 Ad Imp * eCPM
ARPU - monthly actives $0.16 Avg Revenue Per User
Annual Revenue/User $1.92 Annual Revenue Per User

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Chase Installs or Re-Engagement
Metric #
Install Campaign acquisition goal for month 5,000 installs
Average CPI x $2
Campaign cost $10,000 Total
Users Active users: end of month 1 2,500
Active users: end of month 4 500
True acquisition cost
(Campaign cost ÷ Active users)
$10,000 ÷ 500 = $20 per user
Revenue Monthly Revenue/User 30 min
x 30 days
= 900 ad impressions
x $1 eCPM
= $0.90/Month or $10.80 per year
Monthly In-App Purchases $1 x 12 months = $12 per year
Annual Revenue ($0.90 x 12) + 12 = $22.80

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Chase Installs or Re-Engagement
Metric #
Install Campaign acquisition goal for month 5,000 installs
Average CPI x $2
Campaign cost $10,000 Total
Users Active users: Month 1 2,500
Active users: Month 2 500
True acquisition cost
(Campaign cost ÷ Active users)
$10,000 ÷ 500 = $20 per user
Revenue Monthly Revenue/User 30 min
x 30 days
= 900 ad impressions
x $1 eCPM
= $0.90/Month or $10.80 per year
Monthly In-App Purchases $1 x 12 months = $12 per year
Annual Revenue ($0.90 x 12) + 12 = $22.80
Annual Revenue: $22.80
Acquisition Cost: $20
Net Profit:
< $3 per user

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The Case for Re-Engagement

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Installs ≠ Usage
Mobile SearchMonetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases

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Discover
y
Usag
e
Downloa
d
Alternative Paths?

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Alternative Paths?
Discover
y
Usag
e
Downloa
d
Re-Engagement
The biggest challenge facing app developers is waking up their dormant users

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Two Paths for Re-Engagement
• User re-targeting  Deep Linking
• Discovery  Deep Search  Deep Linking

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How does app re-targeting work?
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Shops
Clothes
Views Movie
Trailer
Views Flight
to Hawaii
Views
Resorts in
Maui
Sue
32 years old
Loves to travel
Collect non-PII
Device
Information &
activity
Mobile Targeting
co. bids on ad
exchanges for
this Device
Show a deep
view/deep link to
the destination
app
Shopping
App
Movie App
Travel App
Hotel App

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The capability to understand the
static and dynamic content of an app
and making it discoverable via a
search engine or contextual
placement
What is Deep Search?

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• Deep linking is a method for
launching a native application via a
link
• Deep linking connects a unique URL
to a defined action in a mobile app,
seamlessly linking users to relevant
content and functions
What is Deep Linking?

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Quixey – Alibaba Deep Search Integration on YunOS
• Exclusive provider of mobile deep search
for Alibaba
• Recently launched Deep Search in the
Food vertical for Alibaba’s YunOS
platform
• User can search for “Thai Food” – from
the deep views rendered, can deep link
into popular apps
• They can also call or look up driving
directions directly from the deep view

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TA restaurants
results geo-relevant to
phone's location
"Reserve" deep links
to TA booking page
Business listing deep
links to TA detail
page
Christine likes to search for Thai Food at lunch time in a mobile search
engine
Thai cuisine
search in Chicago

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So why should you create deep links for your app?
1. App SEO
• Enables your deep links to be discoverable by
mobile search engines such as Quixey
2. App SEM
• Enables you to promote deep views as ads.
3. Companies promoting deep linking ads
• Facebook App Engagement
• Twitter App Engagement
• Quixey Promoted Deep View Ads

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When considering re-targeting for your app campaign
1. Set your CPA goals
2. Consider a mobile analytics vendor for tracking
3. Pay for performance
4. Consider Privacy

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proprietary & confidential
AppURL is an open deep linking standard promoted by Quixey
Resources
www.appurl.org
www.mobiledeeplinking.org

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Mobile is for Doing!
How cross-promotion of app functions will
create the highway of the future mobile
ecosystem

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Kevin’s Family
Miami
*Source: Happy family iz happy by Frédéric de Villamil / CC BY-SA
2.0

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Kevin’s Family
Miami
*Source: Happy family iz happy by Frédéric de Villamil / CC BY-SA
2.0

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Kevin’s Family
*Source: Happy family iz happy by Frédéric de Villamil / CC BY-SA
2.0
Flights
Hotels
Food
Activities

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Current Situation: Navigate through Each Individual App
*These are conceptual mockups used only to illustrate use case. They are not official designs.

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But we can do better…

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Solution: Connect a Grid System of Apps

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Solution: Connect a Grid System of Apps
*Source: Happy family iz happy by Frédéric de Villamil / CC BY-SA
2.0

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*These are conceptual mockups used only to illustrate use case. They are not official designs.

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*These are conceptual mockups used only to illustrate use case. They are not official designs.

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*These are conceptual mockups used only to illustrate use case. They are not official designs.

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*These are conceptual mockups used only to illustrate use case. They are not official designs.

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Creating a Seamless Experience
*These are conceptual mockups used only to illustrate use case. They are not official designs.

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How Can Your App be Cross-Promoted

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Games
What does this mean for the Developer?
Entertainment Social
Promote
physical
product
Activity ConcertSong GetawayChat
Promote
another
game
Finished
Level
MovieBook Cab
Restauran
t

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Quixey Functional Exchange (Currently in Beta)
Users
Ad
Impres
sions
Functional
Exchange
Promoted Deep Links
Promoted Functions
Search Engines
Publishers
Travel
Local
Entertainment
Shopping
SUPPLY ADVERTISERS
Ad Exchanges /Supply Platforms
OEMs
Promoted Entities
TRANSFORMING THE MOBILE ADVERTISING LANDSCAPE

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Developer
Network
Value creation for Developers
The Quixey Developer Network allows
developers to integrate into Quixey’s technology
to optimize performances and provide them with
the official deep linking standard via AppURL.US: developer.quixey.com
China: developer.quixey.com.cn
: appurl.org

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Recap
1. App Monetization: Current State
• The disappearing middle class of app developers
• App usage is increase, adv dollars growing
• Need to focus beyond installs
2. The Case for App Re-Engagement
• User re-targeting
• Deep Search
• Deep Linking
3. Cross Promotion of App Function
• Think of new revenue streams
• Complimentary functions
• Promoted and Organic

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Monetizing Your App Beyond Banner Ads, Sponsored App Installs, and In-app Purchases
Q&A
Deepak Thakral
Vice President, Monetization
Email: dthakral@quixey.com
Tweet: @deepakthakral