3. The art and science of pricing
• Consider your app
– What do competitors charge?
– What sets my app apart?
– How can it be monetized?
• Compulsion loop
• Engagement
More on pricing strategies at blog.w3i.com or twitter @w3i
4. Freemium vs. Paid
• iOS freemium games generate
$14.66/user* VentureBeat
• In 2009 free apps received more than 4x
number of installs over paid
* AdMob
5. 5 out of 10 top grossing iPhone Apps
are using the free-to-play model
5
2 10
6
4
iTunes Top Grossing 11/9/2010
6. Price cut. The magic of $.99
• EA Christmas 2010 Strategy
– #4, #7, #8, #10, #11, #12 paid iPhone apps
– #1, #2, #4, #7, #9, #10 paid iPad apps
• Support price cuts with publicity
7. Looking ahead
• W3i in collaboration with Distimo, will
publish pricing research in Q1 2011,
follow us for the latest.
@w3i
blog.w3i.com
13. In-App Purchases
virtual goods/enhancement
• For developers capitalize on your game
mechanics.
• For advertisers, low risk, value add to
consumers.
75% of
revenue
from
virtual
Free goods
Paid 37
63
App Store Top Grossing 100 -
11/12/2010
14. How It Works
1 User Plays 2 User Wants 3 User Selects
Game Background App
4 User Installs 5 User Claims 6 User Checks
App, Gets Points Background History
15. Want more?
Join the community. Contact Rob.
@w3i Rob Weber
Vice President and Co-Founder
hashtag #appschat
robert.weber@w3i.com
(320) 257-7551
W3i, LLC
blog.w3i.com 1900 Medical Arts Avenue S
Suite 200
Sartell, MN 56377