This is one of the talks that I have been looking forward to the most. talking about successful business models in mobile should not be novel but it seems to be. My takeaways.
The evolution of App business models in three years in a market that has grown from $3.1billion to 417.5billion in three years.
The traditional 2X2 matrix for choosing your App business model.
Choices, choices – the brutal truth – for most cases, advertising models REALLY, REALLY suck – 80% of Apps are used only once from download.
The Ilja Laurs three-step formula for maximising App revenue…
Three Steps to Revenue Heaven
1 User Value = ƒ(Stickiness, Utility, Billing conversion)
- Work on the product to maximize stickiness and utility to maximize user value
2 Scale = ƒ (Marketing, Marketability)
- Maximize user value to increase marketing, choose the right business model to maximize marketability
3 Revenue = ƒ(Scale, User Value)
- Try to maximize user value and scale
Ilja also, as promised spent a little bit of time talking about Angry Birds…
Ilja & Get Jar worked closely with Rovio (they are after all, all Scandihoovian so hang out together in the same saunas). Angry Birds was a paid app for iPhone but the Android App was free and ad supported.
- Over 1 million Android downloads in the first 24 hours of launch – (Over 2 million the first week)
- More then 200 press mentions on top blogs, news sites and even across radio over the first few days of launch
- 2,000 Tweets the first hour after launch
- Global distribution in over 200 countries on Android
- The number 1 most downloaded Android app ever
Conclusion:
- Free/ad supported business model for Android proven right
You can download the presentation in two parts here:
Part one – Business Models. App Business Models presentation – BLN Money in Mobile #BLNMiM – Ilja Laurs GetJar
Part two – The Angry Birds Case Study. App Business Models – BLN Money in Mobile #BLNMiM – Angry Birds Case Study from GetJar
YOU WOULD BE MAD TO MISS, the next BLN event…
BLN Growth Forum, 5th July 2011.
Themes:
- Making it big – targeting big markets and maintaining your lead.
- Successful sales– making profitable sales a core goal. How to sell against market leaders.
- Putting people first – creating a culture to attract and retain the people you need.
- Growth strategies – maximising value from startup to IPO and beyond.
Speakers:
- Jonathan Milner, Founder & CEO, Abcam
- Warren East, CEO, ARM
- Neil Gaydon, CEO, PACE plc
- Stuart Miller, CEO, ByBox
- Mo Bulbrook, Head of International, Cheapflights Media
- Tim Weller, CEO, Incisive Media
- Mary Turner, CEO, AlertMe
- Martin Leuw, NED, IRIS Software Group
- Mark Gerhard, CEO, Jagex Games Studio
- Ariel Eckstein, Managing Director EMEA, LinkedIn
- Peter Bauer, CEO, Mimecast
- Nigel Payne, Director and Prev CEO, Sporting Bet plc
- Andy Leaver, VP EMEA, Workday
Supporters:
- The Growth Forum is produced by the BLN in partnership with BDO.
- The Growth Forum is supported by BDO, Mills and Reeve, Kleinwort Benson, Intel Capital
- Media Partner Business Weekly
BLN Growth Forum, 5th July 2011
This is great, insightful analysis. Thanks very much Mark and the BLN team.