This is the 2nd report of the mHealth Economics 2017/2018 program. The second report “How To Monetize Mobile Health Apps” gives detailed insights into download numbers, monthly active users, app marketing, revenues, business models and development costs of mHealth apps. The report shows the best ways to monetize mobile apps and how much money app publishers in healthcare are making. The report answers the following questions: – Which business models work best in healthcare? How much revenue does every business model generate? – How often are mHealth apps downloaded? What are monthly active user numbers in mobile health? – Which marketing channels work best for healthcare apps? – How to best monetize mHealth apps? How much money do mHealth app developers make? – What does it cost to develop mHealth apps? How long does it take? The 16-pages report provides detailed insights into the aspect of monetizing and developing mobile apps in the health industry. Who should read this report? App developers, product managers, project managers, investors, doctors/physicians, healthcare professionals and anyone interested in mobile health and digital health from pharma, health insurance, medical device companies, hospitals, telehealth services, IT-companies, agencies or telco. We would like to thank our research partners: Distribution Partners and Accelerators/Incubators * rockstart accelerator * Bayer – Grants4Apps * life tech brussels / impulse brussels * Flying Health Incubator * Personal Connected Health Alliance * Mobile World Capital Barcelona * Start-Up Chile * Masschallenge * Techstarts * HAX * Chinaccelerator * MOX * PlugAndPlay Media Partners * ECHAlliance * MEF * dhaca * mHealth Spot * App Entwicklerverzeichnis * Doctorpreneurs * Intersog * Healthcare Shapers * Health Insurance Professionals * Taurus Glocal * Telehealth & Telecare Aware * Mobilbranche.de * Health 2.0 Berlin * OSOZ * Healthetia * TIC Biomed * Prioridata * Medical Devices Startups * Mobile Health Association * #FDG Zurich * Caring Entrepreneurship Fund * WIP mHealth Economics Program This free report is part of our mHealth Economics program, the largest program on global study on mHealth app publishing. The program tracks the current status and future trends in digital health since 2010. It offers marketing and deep dives for insights into the digital health market with sponsoring options, webinars and market research into the digital health market – and an opportunities to reach out to digital health decision makers (25,000+ digital health app publishers & decision makers 100,000+ digital health report readers). ©Research2Guidance 2018

1. ©Research2Guidance 2018
MHEALTH DEVELOPER ECONOMICS
HOW MHEALTH APP PUBLISHERS ARE MONETIZING THEIR APPS
The largest research program on mHealth app publishing

2. RESEARCH2GUIDANCE IS A MARKET-LEADING ANALYST AND STRATEGY
CONSULTANCY FOR DIGITAL HEALTH
8 6 50
YEARS IN BUSINESS
10 CONSULTANTS
SPECIALIZED ON
DIGITAL HEALTH
RUNNING WORLD’S
BIGGEST ANNUAL
MHEALTH RESEARCH
PROGRAM SINCE 6 YEARS
SERVED 50 FORTUNE 500
CLIENTS TO DEFINE THE
MOBILE APP STRATEGY
HEADQUARTERED IN BERLIN
50K
CONTACT BASE OF
50K MHEALTH
DEVELOPERS AND
PUBLISHERS
LEADERS IN MOBILE APP STRATEGY FOR THE HEALTHCARE INDUSTRY
R2GAT A GLANCE
©Research2Guidance 2018

3. MHEALTH ECONOMICS – HOW MHEALTH APP PUBLISHERS ARE
MONETIZING THEIR APPS
Contents
1. About the mHealth Developer Economics program
What is it and how does it work?
2. Performance of mHealth apps: downloads and user numbers
How many downloads and users can mHealth app publishers expect?
Which marketing channels work best according to digital health decision makers?
3. Monetizing mHealth apps
How much money do publishers make with their mHealth portfolio?
Which business models do they use most?
4. Costs of developing mHealth apps
What are typical budget sizes to develop an mHealth app?
How much do publishers spend on marketing or external developers?
How long does it take to develop an mHealth app?
©Research2Guidance 2018
Second report of the mHealth Economics 2017/2018 program

4. MHEALTH APP DEVELOPER ECONOMICS IS THE LARGEST RESEARCH
PROGRAM ABOUT MHEALTH APP PUBLISHING GLOBALLY
The mHealth Developer Economics 2017, is the seventh edition of the largest global digital health study.
The report results are based on answers of more than 2,400 mHealth app developers and healthcare professionals.
Read through this summary presentation
Download the full 16 pages report
Share it
Get in contact: markus.pohl@research2guidance.com
Get Full mHealth Report For Free
©Research2Guidance 2018

5. 54.7%
24.1%
9.0%
6.1%
1.6% 0.6% 1.9% 0.3% 1.5%
< 5k 5k - 50k 50k - 100k 100k -
250k
250k -
500k
500k - 1M 1M - 5M 5M - 10M > 10M
Last year
Second last year
OUTREACH CURVE OF MHEALTH APPS: THE MAJORITY OF MHEALTH APPS
IS DOWNLOADED LESS THAN 5,000 TIMES
Downloads generated last year with all mHealth apps
Low download numbers High download numbers
From Europe Region From North America
42% > 3 years market experience 93%
10% >10 apps published 66%
8% External development budget >500k 50%
Source: Research2Guidance - mHealth App Developer Economics study 2017/2018 - n = 2,400
©Research2Guidance 2018
Downloads
per year
Download
Full Report Here

6. < 0.5 0.5 - 1 1 - 5 5 - 10 10 - 50 50 - 100 100 - 500 > 500
2017 46% 16% 15% 6% 9% 2% 3% 2%
46%
16% 15%
6%
9%
2% 3% 2%
83% OF MHEALTH APP PUBLISHERS HAVE LESS THAN 10,000 MONTHLY
ACTIVE USERS
Number of monthly active users of mHealth app portfolio
Source: Research2Guidance - mHealth App Developer Economics study 2017/2018 - n = 2,400
©Research2Guidance 2018
MAUs
(in Thousands)
83%
<10k MAUs
Download
Full Report Here

7. HEALTH ASSOCIATIONS ARE THE PREFERRED WAY TO GET DOWNLOADS –
EMAIL & APP EXHIBITION ABOVE AVG. BY EXPERIENCED PUBLISHERS
Marketing channels/activities working best for getting mHealth app downloads
48%
37%
29%
25%
20%
19%
15% 14%
10% 6% 6%
Full sample
Experienced publishers*
*Experienced publishers = first app published before 2010
Source: Research2Guidance - mHealth App Developer Economics study 2017/2018 - n = 2,400
©Research2Guidance 2018 Download
Full Report Here

8. 6% decrease in revenue
below US$10,000
Poverty Line
40%
16%
13% 10% 9% 7%
1%
3%
-5% -1% 3% 3% -4% 2%
1%
1%
No revenues Below 10K 10K - 50K 50K - 100K 100K - 1M 1M - 5M 5M - 10M Above 10M USD
Change
since last
year
MID-ANNUAL
REVENUE EARNERS
HIGH-ANNUAL REVENUE
EARNERS
LOW-ANNUAL REVENUE
EARNERS
56% OF MHEALTH APP DEVS MAKE <$10K/YEAR WITH THEIR WHOLE APP
PORTFOLIO. OVERALL THE SHARE OF LOW EARNERS IS DECREASING.
Revenue generate by organization with mHealth apps last year
Lowest earners High earners
Form Europe Region From North America
2.7 # of apps published 7.1
$146,000 External budget $334,000
89k # of downloads last year 3.7m
Via Premium content Monetization Via Licensing
Source: Research2Guidance - mHealth App Developer Economics study 2017/2018 - n = 2,400
©Research2Guidance 2018 Download
Full Report Here

9. 296k 11%
415k 22%
227k 16%
549k 7%
35k 9%
120k 5%
781k 9%
99k 23%
890k 8%
694k 9%
THE BUSINESS MODEL HAS A HIGH IMPACT ON REVENUE; LICENSING MOST
FREQUENT BUSINESS MODEL; DEVICE SALES GENERATE HIGHEST REVENUE
35%
26%
25%
24%
18%
16%
16%
10%
8%
Licensing (e.g. contract with other party
based on per-per-member)
Service sales (e.g. remote consulting,
coaching)
App development for 3rd parties
Sponsorship (e.g. by a Pharma
company)
Premium content
Pay per download
Device sales (e.g. sensors)
In-app advertising
Transactions (e.g. selling drugs)
This year
Last year
Main mHealth revenue sources from last year and according KPIs: # of download, revenue
Downloads
(last year)
Revenue >$1m
(last year)
Average
Comparision of app publishers using
these revenue sources:
Source: Research2Guidance - mHealth App Developer Economics study 2017/2018 - n = 2,400
©Research2Guidance 2018 Download
Full Report Here

10. 11%
of budget outsourced
for marketing (avg.)
$425,000
Total app develop-
ment costs (avg.)
47%
budget outsourced
(avg.)
$47,000
outsurced on
marketing (avg.)
$200,000
externally outsourced (avg.)
THE AVERAGE MHEALTH APP COSTS $425K UNTIL LAUNCH
External app development budget of last app until launch
Externally outsourced
Outsourced for marketing
Source: Research2Guidance - mHealth App Developer Economics study 2017 - n = 2,400
©Research2Guidance 2018 Download
Full Report Here

11. THE MAJORITY OF MHEALTH APP DEVELOPERS SPENDS LESS THAN $25K
EXTERNAL BUDGET PER APP. BUT HIGH INVESTMENTS BRING HIGH RETURN.
What was the external budget (E.g. for outsourcing to a third party) you spent on the development of
your last mHealth app until launch? (in USD)
Source: Research2Guidance - mHealth App Developer Economics study 2017 - n = 2,400
©Research2Guidance 2018
Low external budget (<25k) High external budget (>500k)
Europe (50%) Region North America (51%)
25% >5 apps published 38%
9% Dev. time of last app >24 months 46%
2% >1M downloads/year 19%
8% >$1M revenue/year 28%
0%
10%
20%
30%
40%
External budget
in USD
Download
Full Report Here

12. 84% OF ALL HEALTH APPS NEED 2 YEARS UNTIL LAUNCH. THE AVERAGE
DEVELOPMENT TIME IS 15 MONTHS.
How many months did/will you invest in the development of your last/current mHealth app until launch?
24%
32%
17%
12%
5% 4% 2% 2% 0% 2% 2%
1 - 6 7 - 12 13 - 18 19 - 24 25 - 30 31 - 36 37 - 42 43 - 48 49 - 54 55 - 60 >60 months
84%
Short-term app
development
Long-term app
development
Europe Region North America
20% Small company (<10 employees) 7%
4% External budget >$500k 51%
14% > 10,000 MAU 31%
10% Yearly revenue > $1m 24%
Source: Research2Guidance - mHealth App Developer Economics study 2017/2018 - n = 2,400
©Research2Guidance 2018
Average: 15 months
Download
Full Report Here

13. DOWNLOAD THE FULL MHEALTH ECONOMICS – HOW MHEALTH APP
▪ 7th edition
▪ 2,400+ mHealth app developers and healthcare professionals
▪ The report shows the best ways to monetize mobile apps and how much
money app publishers in healthcare are making
▪ Download numbers
▪ Monthly active users
▪ Revenues
▪ Business models
▪ and much, much more
▪ 16 pages, 8 charts
▪ Published March 2018
Get Full mHealth Report For Free
©Research2Guidance 2018
THE LARGEST STUDY ON MHEALTH AND DIGITAL HEALTH APPS
PUBLISHERS ARE MONETIZING THEIR APPS