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Developers Compass

to the App Galaxy


A playbook for winning in the
Indian Apponomy

APPollo

We would like to thank the following, whose valuable contribution in the form of
insights, best practices and expert opinions has been instrumental in making this
playbook a worthy read:

Priori Data
Nielsen
eMarketer
Dean Gonsalves (VP Design, Robosoft Technologies)
Deepak Abbot (Senior VP - Product Growth, Paytm, Ex Getsmartapp.com)
Mohit Vijay (Product & Strategy Consultant, Reverie Language Technologies),
Prashant Dixit (VP & Business Head, VMAX)

Advance praise for


the book
This book is an ocean of insights and best practices that
will go a long way in helping budding app developers get
started with their journey. A must read for app
developers in India.
Manish Agarwal - CEO, Nazara Technologies
___________________________________________________________________________________

This is the most comprehensive App Growth Guide I have


come across ever. Extensive research and key data points
will help developers in better planning. Android App
developers should treat this as a bible and refer to it at
every stage of their App Growth.
Deepak Abbot - Senior VP - Product Growth, Paytm
___________________________________________________________________________________

"Such a plethora of interesting insights and statistics! I


am sure app developers will find this book very helpful, no
matter what stage of their app business journey they are
at. I highly recommend Indian app developers to give this
book a read."
Vishal Gondal - Founder & CEO, GOQii
___________________________________________________________________________________

"The book is a treasure trove of data, it packs in stats,


key insights & guides from prominent industry leaders and
introduction of tools which will accelerate new developers
onboarding into the ecosystem."
Ravi Vyas - Founder & CEO, PureMetrics

Foreword

Dippak Khurana

Thousands of apps, big and small, famous or not so


famous, are driving Indias app ecosystem ahead.
Apps, that are passionately created by the numerous
app developers in India, aimed at simplifying their
users lives. Although there are plenty of such apps
being created, we seldom get to hear about them. We
know that Indian developers make great apps. It is
when it comes to understanding marketplace
dynamics, app design & development, distribution &
marketing, and monetization, that they are constantly
discovering something new.

Co-Founder & CEO, VMAX

And so the idea of Developers Compass to App Galaxy was born. Think of this as
a playbook that will help app developers win in the Indian app ecosystem. In our
interactions with app developers, we have often seen that they struggle with
questions around critical aspects of their apps business such as getting the app
idea and design right, taking it to the users it is meant for, engaging and retaining
them and maximizing its revenue. This playbook will serve as a handy guide, where
developers can find useful insights, best practices and tips & tricks that will provide
answers to many of these questions.
For those who are developing apps, this playbook brings all the insights required to
effectively market and monetize their apps and grow their app business. For the
budding app developers, it will serve as a guide in the journey from an idea to a
flourishing app business. We believe that not just the budding ones, but even
existing app developers can find something useful in here, especially when they are
in doubt or need to validate their app business strategy.
This playbook has been passionately put together with an aim to simplify an app
developers life. We hope you enjoy reading it as much as we enjoyed creating it for
you and what you find in here will stay with you through your journey.

Foreword

Contents
A Flourishing Indian Apponomy
Section 1:
Marketplace Strategy
A. Marketplace dynamics - apps & games
B. Download patterns - apps & games
C. Consumer usage pattern
D. Best practices among top 10 apps & games across genres

06

App Conceptualization
A. Doing market research
B. Developing an app idea
C. How to validate your app idea

19

Section 2:
Design & Development
26
A. The type of app that you should create (Native, Hybrid or a Web App)
B. Choosing the suitable IDE (Integrated Development Environment)
C. Popular game development engines
D. Popular crash testing and bug tracking tools
E. Popular user analytics tools
F. Popular app store analytics tools
Section 3:
App Distribution
A. Google Play Store
B. Third-party app stores
C. Company or app website
D. Mobile app discovery platforms
E. App review sites

39

APP

ollo

Contents

Contents
Continued
Section 3:
App Marketing
A. Organic User Acquisition Strategies
1. App Store Optimization
2. Social Media Marketing
3. Public Relations (PR)
4. Cross-Promotion
5. App Deeplinking
6. Referral Marketing
7. Other organic user acquisition strategies
B. Inorganic User Acquisition Strategies

45

User Engagement & Retention Strategies


A. Choosing the right growth metric for your app
B. App Engagement & Retention Tactics
1. Push Notifications
2. In-app messages
3. Retargeting
4. Localization

56

APPo

llo

Section 4:
App Monetization
A. Monetization models available to app developers
B. How to select the right monetization model
C. Why app design and user experience is crucial to choosing the
suitable ad format
D. What app developers need to know when selecting an ad partner
E. What is an ad mediation platform

Contents

70

Prologue
APP

ollo

The year is 2016.


India is seeing a spontaneous rise of apps. Many global
apps have made major inroads into the country. However today,
India is brimming with many local apps that let people do everything from
mobile payments, online shopping and ordering food to hailing a cab and
live-streaming popular TV content.
People in India have come to love apps and their love for these apps is also making
many of them create apps. They have acquired the knowledge and skill to develop
these apps and are building them in large numbers. However, much is yet to be
known about the different aspects of these apps, such as market dynamics, design
and development, distribution, marketing and monetization.
Our bot APPollo, on a mission to find everything related to apps in India
has discovered an app galaxy, a vast expanse of lesser known insights
about various aspects of an apps lifecycle. APPollos exploration
logs of this app galaxy hold the key to unlocking secrets that
can help app startups back home create successful apps that
can transform into flourishing app businesses.
VMAX brings you these logs as the Developers Compass to
Indias App Galaxy, a playbook that provides a map to help
mobile app developers navigate through the various aspects of
an apps journey from an idea to business. In this Developers
Compass, developers will find answers to questions around:

1.
2.
3.
4.

Marketplace Strategy & App Conceptualization


App Design & Development
App Distribution & Marketing
App Monetization

We are sure that this playbook will serve as a handy guide to the indie app developers
app lifecycle needs. It will also make for a worthy read for app developers looking to
validate their approach to tackling the various aspects of their apps lifecycle. Go on,
use this Developers Compass to unravel the secrets to your apps journey.

Prologue

11

ollo

P
AP

APPollo

A Flourishing

Indian Appon my
Before embarking on the journey to the app galaxy,
APPollo probed into the Indian mobile ecosystem to gather enough
intelligence that would help it prepare for its mission.
Heres APPollos account of its findings:

APPollo

A Flourishing Indian Apponomy

Log 1: Smartphone User Base Growth


APPollo's Log: I started off my journey trying to know more about smartphone
usage in India. What I found out was: Indias love affair with smartphones
continues.
The countrys appetite for smartphone adoption continues to grow as smartphone
numbers are expected to hit an estimated 204 million in 2016, making India the
second-biggest smartphone market, globally.

244
204
168

Smartphone Users
in India (In Millions)

Source: eMarketer

2015

2016

2017

Log 2: Mobile OS Share (%)


When it comes to mobile operating systems, Indians have a sweet tooth for Android.
Android in all its flavors, dominates the Indian market.

94%

3%
2%
1%

of the mobile
web traffic in India
comes from Android

2015 Smartphone
OS-wise Share of
Web Traffic (%)
Android

Windows

iOS

Others

Source: StatCounter

This made me wonder, If there are so many smartphone users around, they must
be using a lot of apps. So I looked at how Indian smartphone users go about using
apps.

A Flourishing Indian Apponomy

Log 3: App Downloads


Looking at app usage among Indian smartphone users, I deduced that India has a
humongous Appetite.
Over 4.35 billion apps were downloaded from Google Play Store in India between
April 2015 and March 20161
App downloads grew 16% between Q1 of April 2015 and Q1 of March 2016.1
India is the top country globally in terms of Year-on-Year (YoY) market share growth
for Google Play Store and ranks 3rd in terms of total app downloads.1

100

USA

64

BRAZIL

27

INDIA
Source: Priori Data

I was right. Indian smartphone users access an astounding number of apps and
games on a daily basis. The booming Indian Apponomy (app economy) is a proof of
their ever-growing love for apps. I had to find out how big the Indian Apponomy
really was.

Log 4: Size of Indian Apponomy


In my quest to uncover more insight on the Indian Apponomy, I found vast amounts
of data that helped me understand how big the apponomy is. Heres what I
discovered on sizing up the Indian Apponomy:
In 2015, the Indian Apponomy was estimated at USD 2352 million
Mobile ad revenue made up for 84%1 to the total Indian Apponomy revenue
Such a flourishing app economy called for analysing the factors that are driving it.
New questions arose, such as how many apps do these users download? What
kind of apps are popular among them? Users want these apps, but do they pay for
them or prefer to get them for free? I continued further on my journey to find
answers to all such questions.
1 Priori Data
2 Vserv Estimates

A Flourishing Indian Apponomy

Marketplace Strategy
APPollos journey across India in search of a deeper understanding of the
Indian Apponomy revealed a lot about what kind of apps are popular in the
country and how people engage with apps. However, heres what APPollo
discovered about the marketplace dynamics of the app ecosystem in India:
I looked further into the Indian Apponomy, and I found distinct characteristics
of app users in the country. Their app choices determined how developers
offered their apps, the reach or engagement for these apps and the impact
that they could have on the developer's strategy.

APPollo

Section 1: Marketplace Strategy & Conceptualization

A Deep Dive Into The Market Dynamics Of


Indian Apponomy

Log 1: Marketplace Dynamics


Looking at the sheer number of apps and games Indian consumers access I
concurred that Indias Apponomy is huge.

1. As of March 2016, Google Play Store had 4,92,553 apps to offer in India. Of these,
3,47,345 were apps while the number of games came up to 1,45,208

2. There are 2,07,706 app publishers in the country with 2.4 apps on an average per
publisher

3. At 4.8, the personalization category has the highest average number of apps per
publisher

4. Among games, simulation category has 3.2 games, the highest average number of
games per publisher

5. Among app genres, 'Business' has the highest number of developers publishing
apps of the genre as they hope to reach out to customers who are more willing to
pay for in-app purchases

6. One-touch games such as Subway Surfer, Fruit Ninja and Temple Run see higher

traction among users. As these games are typically found in the Arcade genre, it
sees the highest number of app developers publishing their apps

Section 1: Marketplace Strategy & Conceptualization

76

App

No.of
Apps

No.of
Publishers

Average No. of
Apps/Publisher

Books and Reference

19,784

7,474

2.6

Business

21,780

14,416

1.5

3,429

1,941

1.8

Communication

12,625

8,920

1.4

Education

23,527

12,342

1.9

Entertainment

17,798

8,912

2.0

9,565

7,591

1.3

Health and Fitness

14,577

9,135

1.6

Libraries and Demo

3,955

2,591

1.5

Lifestyle

20,374

9,997

2.0

Maps & Navigation

12,492

8,481

1.5

Medical

12,734

7,194

1.8

Music and Audio

16,588

7,182

2.3

News and Magazines

11,909

6,996

1.7

Personalization

29,943

6,283

4.8

Photography

14,614

4,834

3.0

Productivity

13,772

10,407

1.3

9,923

7,171

1.4

13,002

9,283

1.4

9,867

1.6

APP Sub-category

Comics

Finance

Shopping
Social
Sports

Marketplace

16,030

Tools

19,876

12,702

1.6

Travel and Local

16,721

8,920

1.9

Video Players & Editors

7,529

5,110

1.5

Weather

4,798

2,745

1.7

Section 1: Marketplace Strategy & Conceptualization

Games

Marketplace
No.of
Apps

No.of
Publishers

Average No. of
Apps/Publisher

11,129

6,488

1.7

8,383

4,968

1.7

Arcade

16,473

11,880

1.4

Board

5,303

3,858

1.4

Card

5,036

3,153

1.6

Casino

5,262

2,246

2.3

Casual

20,003

9,135

2.2

Educational

9,973

4,888

2.0

Music

1,992

1,453

1.4

Puzzle

17,332

9,970

1.7

Racing

7,609

3,709

2.1

Role Playing

3,854

2,340

1.6

10,492

3,246

3.2

Sports

4,823

3,183

1.5

Strategy

5,129

3,779

1.4

Trivia

8,103

3,908

2.1

Word

4,312

2,792

1.5

GAMES Sub-category
Action
Adventure

Simulation

Priori Data,March 2016

Wow! Their preference for certain app & game genres is vastly different from
users in other parts of the world! I believe that its not just the apps and
games that Indian smartphone users consume but their usage patterns that
would throw up some interesting facts about this Apponomy. I must find out
more!

Section 1: Marketplace Strategy & Conceptualization

Log 2: Download Patterns

Analysing their app usage patterns


tells us that
India is a Free Apponomy
1. Between April 2015 and March 2016, India saw over 4.35 billion apps being
downloaded

4.35

Billion+
Downloads

2. Apps constituted 72% of the total downloads between FY2015 and 2016 while
games made up for the remaining 28%. Globally, apps constituted 59% of total
downloads while games made up for the remaining 41%.

3. 99% of the apps downloaded in India between FY'2015 and 2016 were Free or Free
with In-App Purchase (IAP)
a. Over 50% of game downloads were Free with IAP
b. Only 18% of app downloads were Free with IAP

10

Section 1: Marketplace Strategy & Conceptualization

App Download

Pattern
Total
Downloads

Free
(#)
(#)

Free w/IAP
(#)
(#)

Paid
(#)

Books and Reference

26,885,146

71%

28%

1%

Business

39,785,440

79%

20%

1%

6,007,275

81%

19%

0%

394,151,877

57%

43%

0%

81,592,793

83%

16%

0%

204,239,360

86%

14%

0%

Finance

44,068,555

96%

3%

0%

Health and Fitness

42,154,736

80%

19%

1%

Libraries and Demo

16,432,856

94%

5%

0%

Lifestyle

193,240,713

93%

7%

0%

Maps & Navigation

44,947,271

83%

17%

0%

Medical

25,194,218

91%

8%

1%

123,226,811

66%

34%

0%

59,939,097

95%

5%

0%

Personalization

178,683,313

91%

8%

0%

Photography

353,620,084

84%

16%

0%

Productivity

212,682,895

77%

23%

0%

Shopping

209,402,487

98%

2%

0%

Social

134,724,083

85%

14%

0%

Sports

42,219,767

70%

29%

1%

Tools

395,813,110

86%

14%

0%

Travel and Local

132,034,096

87%

13%

0%

Video Players & Editors

111,867,066

87%

13%

0%

Weather

50,514,919

63%

36%

0%

APPS Sub-category

Comics
Communication
Education
Entertainment

Music and Audio


News and Magazines

Section 1: Marketplace Strategy & Conceptualization

11

Game Download

Pattern
Total
Downloads

Free
(#)
(#)

Free w/IAP
(#)
(#)

Paid
(#)

163,323,210

39%

60%

0%

44,761,266

67%

32%

1%

Arcade

112,247,347

40%

59%

0%

Board

12,290,201

77%

22%

1%

Card

19,911,937

69%

30%

1%

Casino

18,891,811

14%

85%

0%

Casual

156,534,932

50%

50%

0%

Educational

29,455,646

56%

44%

1%

Music

15,856,878

49%

51%

0%

Puzzle

79,953,870

52%

47%

1%

Racing

170,097,911

44%

55%

0%

27,563,373

40%

59%

1%

Simulation

111,923,550

56%

43%

0%

Sports

138,048,884

52%

47%

0%

Strategy

62,069,129

58%

42%

0%

Trivia

21,447,559

44%

56%

0%

Word

45,599,586

61%

39%

0%

GAMES Sub-category
Action
Adventure

Role Playing

Source: Priori Data, Apr'15 - Mar'16

So many free apps! Unlike some other Apponomies of the world, the Indian
Apponomy is surely a Free one. However, just because they come free, do
Indian smartphone users love these apps and games more? How long do these
apps keep them engaged? I was about to find out.

12

Section 1: Marketplace Strategy & Conceptualization

Log 3: Consumer Usage Pattern


Examining usage patterns suggests varying degrees of reach and engagement
for apps & games

1. App developers wanting to make apps with mass appeal should focus on the
following genres:

a. Within apps, Tools have the highest reach among app users at 98%,
followed by Video Players & Editors (88%) and Productivity (83%)
Note: Despite high reach, the Communication & Social genre has been
excluded as it is dominated by a few big players and any new player will need
significant budgets to compete against them
b. Among game genres Casual Gaming has the highest reach at 33%, followed
by Arcade (28%), Action (25%) and Racing (21%)

2. Games witness higher engagement / stickiness (almost 4 minutes per session)


compared to apps (1 min per session)

a. Within gaming genres, Casual, Role Playing and Strategy games have
much higher engagement compared to others
b. Games with longer session length or time spent will have higher chances of
monetization through in-app purchases and ads

Reach & Engagement

APPollo

Section 1: Marketplace Strategy & Conceptualization

12
13

App Usage

Average Session
Average No.
of Sessions Per Length By Users
(Min/Session)
Day By Users

APPS Sub-Category

Reach
(%)

Time Spent
Per Day By
Users (Min)

Books and Reference

34%

1.2

0.7

1.8

Business

45%

1.3

1.3

1.0

Comics

0.4%

2.3

0.4

5.7

Communication

99%

58.2

52.8

1.1

Education

29%

2.1

1.1

1.8

Entertainment

78%

2.8

2.9

1.0

Finance

40%

2.1

2.1

1.0

Health and Fitness

14%

0.7

0.8

0.8

Libraries and Demo

2%

0.5

0.5

1.0

Lifestyle

67%

2.7

3.2

0.9

Maps & Navigation

25%

1.1

1.3

0.8

7%

0.7

0.5

1.3

Music and Audio

70%

3.2

2.9

1.1

News and Magazines

41%

4.1

2.6

1.5

Personalization

26%

2.3

21.0

0.1

Photography

59%

2.8

2.5

1.1

Productivity

83%

4.4

6.9

0.6

Shopping

76%

6.1

5.1

1.2

Social

86%

17.4

10.6

1.6

Sports

20%

5.5

4.9

1.1

Tools

98%

11.9

14.4

0.8

Travel and Local

66%

1.5

1.3

1.2

Video Players & Editors

88%

14.7

4.1

3.6

Weather

14%

0.4

0.4

1.0

Medical

14

Pattern

Section 1: Marketplace Strategy & Conceptualization

Game Usage

Pattern
Average Session
Average No.
of Sessions per Length by Users
(Min/session)
Day by Users

Reach
(%)

Time Spent
per Day by
Users (Min)

25%

8.1

1.6

5.0

6%

4.1

1.0

4.3

Arcade

28%

4.6

1.3

3.4

Board

4%

4.5

1.1

4.3

Card

6%

11.6

2.3

5.0

Casino

6%

9.2

2.4

3.9

Casual

33%

13.3

3.2

4.2

Educational

3%

2.3

0.9

2.7

Music

2%

2.1

1.1

2.0

Puzzle

19%

6.2

1.4

4.6

Racing

21%

4.2

1.0

4.1

Role Playing

2%

3.8

0.6

6.0

Simulation

6%

3.4

1.2

2.8

Sports

20%

9.5

1.9

4.9

Strategy

14%

26.4

7.0

3.8

Trivia

3%

3.4

2.8

1.2

Word

2%

9.1

13.5

0.7

GAMES Sub-category
Action
Adventure

Source: Nielsen Smartphone Panel, March 2016

Just because the apps they consume are free, does not mean that these
users dont value them. They spend as much as 14 minutes a day on apps and
close to a 26 minutes a day on games. Such an insight could go a long way in
making it easier for developers to start formulating a good engagement
strategy.

Section 1: Marketplace Strategy & Conceptualization

14
15

Log 4: Marketplace Best Practices


My study into market strategies revealed so much! The kind of downloads,
ratings and reviews, apps & games witness can affect market strategy
decisions. Even the frequency of app updates and the size of apps have a
significant impact on marketplace strategy. Based on these parameters, Ive
put together two possible scenarios that can give developers an approximate
idea of what their market strategy can look like based on their goals.

Scenario 1:
To feature in the top 10 list of the Business app genre, a developer could target

1.
2.
3.
4.
5.

Average monthly downloads of 214,252


Average user rating of 4.3
Average number of reviews globally per quarter: 48,796
Number of app updates per quarter: 5
Limit the app size to 21 MB

Scenario 2:
To feature in the top 10 list of the Arcade games genre, developer could target

1.
2.
3.
4.
5.

16

Average monthly downloads of 4,962,030


Average user rating of 4.4
Average number of reviews globally per quarter: 581,727
Number of app updates per quarter: 4
Limit the app size to 44 MB

Section 1: Marketplace Strategy & Conceptualization

Best Practices

Top 10 Apps

Average
Monthly
Downloads

Avg.
Ratings

Avg. No
of Global
(#) /
Reviews
Quarter

Avg No. of
Updates
(#)
/ Quarter

Avg App
Size
(In MBs)

Books and Reference

336,180

4.4

24,707

25

Business

214,252

4.3

48,796

21

8,890,976

4.4

631,296

20

Education

265,372

4.6

48,034

Entertainment

485,412

4.3

58,185

13

Finance

124,083

4.2

7,477

Health and Fitness

193,042

4.6

76,014

14

Lifestyle

274,978

4.1

53,279

Maps and Navigation

335,288

4.1

29,880

11

36,109

4.3

4,848

Music and Audio

646,314

4.3

76,510

11

News & Magazines

133,018

4.3

10,810

Personalization

763,931

4.5

306,427

Photography

4,018,716

4.4

631,245

30

Productivity

1,692,503

4.5

112,843

10

753,145

4.2

71,834

12

Social

8,230,956

4.2

2,008,509

10

28

Sports

138,373

4.4

17,692

11

4,433,450

4.6

1,293,395

150,688

4.2

13,114

2,111,510

4.3

237,934

14

354,398

4.3

34,956

22

APPS Sub-category

Communication

Medical

Shopping

Tools
Travel and Local
Video Players & Editors
Weather

Section 1: Marketplace Strategy & Conceptualization

17

Best Practices
GAMES Sub-category

Average
Monthly
Downloads

Top 10 Games
Avg.
Ratings

Avg. No
of Global
Reviews /
Quarter

Avg No. of
Updates
/ Quarter

Avg App
Size
(In MBs)

2,288,799

4.4

228,129

54

431,612

4.5

92,273

95

Arcade

4,962,030

4.4

581,727

44

Board

331,383

4.3

14,974

16

Card

407,784

4.4

22,370

20

Casino

201,986

4.4

42,337

19

Casual

2,441,311

4.4

663,964

58

Puzzle

1,746,639

4.2

69,737

24

Racing

2,088,520

4.4

416,442

45

Role Playing

377,797

4.5

60,635

57

Simulation

481,939

4.3

87,442

55

Sports

1,042,132

4.4

170,858

53

Strategy

2,596,895

4.5

774,542

60

208,577

4.4

75,173

15

Action
Adventure

Trivia

Source: Priori Data (Jan'16 - Mar'16); Google Play Store

Note: The analysis was carried out using data from Q1 of 2016, considering
top 10 apps in each genre basis their reach. The benchmarks deduced above
are subject to data from the aforementioned period. You can arrive at your own
benchmarks for your app to be featured among the top 10, based on current
Play Store numbers.

18

Section 1: Marketplace Strategy & Conceptualization

App Conceptualization
After mining all this data, I found out that there is a sea of information
locked away in a dimension of apps, that can help throw light on every
aspect of the app lifecycle. What I learnt during my exploration is that
based on market strategy, app developers can research further and
come up with an app idea. However, this app idea would also need
validation, and this is where my journey led me to next.

Section 1: Marketplace Strategy & Conceptualization

202
19

Log 1: Doing Market Research


Before app developers can develop apps, they need to know what works and what
does not. It is important to do your market research before embarking on the app
journey.
The first step is to research app stores to find segments that are popular and
trending.

1. How to identify trends in the app store


a. It is important to remember that your smartphone will show the app store for
your country. Furthermore, each countrys app store will show trends specific
to that region

b. A good place to look is the Top Charts section which will give you an idea as
to which apps and genres are successful

c. Also, it is important to note how the apps are making money. For example, apps
in the top grossing section make money from in-app purchases while paid apps
make money through upfront payment

2. How to follow app trends outside of the app store


a. You can leverage Google Trends to find out what keywords are popular. Be sure
to monitor rising search terms as well

b. With Google Trends, you can set different parameters to help derive better
results. It is important to set a time frame that is less than 12 months so
that you can be sure that you are seeing the most relevant results

c. Also, select those categories which will automatically generate the most
popular search terms within categories

d. You can do a deep dive into your results by going to the Advanced Options and
Filters tab and set it to bring results from mobile devices with full internet
browsers and then set the match type to exact match. Doing so will get
you highly accurate results on how people search on their smartphones

20

Section 1: Marketplace Strategy & Conceptualization

Log 2: Developing an App Idea


Surely, looking at app store and Google trends would give developers insights
around what kind of apps are popular and decide what app they want to build.
However, it is only when they come up with an entirely new and unique app idea or
vastly improve upon an existing app idea, can they hope to find success.

A. Developing a new idea


1. Listen to problems
People discuss a lot of problems on forums and social networking platforms. You
can leverage these platforms to find out the problems that users face.
E.g. You can use tools such as twitter.com/search to search for problem
keywords such as: I wish there wasI hate...

www.twitter.com/search

Section 1: Marketplace Strategy & Conceptualization

20
21

2. Inspiration from real life


a. Start off by thinking of all the things that you do in real life. It does not matter
whether or not you think you could make a good app out of it, just write
everything down. What parts of your daily life do you enjoy, and the ones you
dont. Write down even the smallest things in life that you either enjoy or are
annoyed by:

b. We are not necessarily trying to solve the problem here, but instead we are
trying to give the user a way to deal with the problem

c. People love convenience and apps such as Flipkart, Swiggy, Bigbasket which
deliver this proposition, strike an instant chord with the users

B. Improving on an existing idea


No app is perfect and you should leverage this fact to identify the opportunity for
your app. App reviews on app stores can act as rich source of information for this.
Following are some aspects where you can spot app improvement opportunity:

a. Bad design
b. Missing features
c. Doesnt function properly or has many bugs
d. Price is too high
There could be some criticism to this approach that copying someones app idea is
immoral and wrong. However, the plan here is NOT to copy the app idea, but to
IMPROVE on it!
If the app is seeing a good response as it is, imagine how well the app will be
received if its better! All thats needed is to figure out what to improve about the
app so that potential customers will pick your app over the existing app.
At the end of this exercise, you may have a market strategy in place. Based on
the problem it is meant to solve, you might have an idea for your app in place.
However, my analysis suggests that before you set your plan in motion, you need
to validate if the idea will actually work.

22

Section 1: Marketplace Strategy & Conceptualization

Log 3: Validating an App Idea


I had reached an important juncture in the planning stage of apps lifecycle. It is
imperative that the developer ascertains if the app idea will work, before embarking
on its development. Making course corrections during the development stage can
lead to several complexities.Therefore, it is important to know how to validate
your app idea:
The first step to validating your potential app idea, is to check if there is a demand
for it on the app stores

1. Is there demand for your app concept on the Google Play Store?
a. You can browse the Play Store to search for an app which has some similarity
to your app idea

b. App store intelligence platforms can provide you tools that offer data points
such as the current and historical rankings for an app, daily/monthly downloads.
If these apps are getting a lot of downloads, it strengthens your hypothesis
that it is a good market to focus on

2. Find out how many people are searching for your solution
To do this, head to Google Search. Type in words associated with your app idea
such as the problem you are trying to solve, the benefit or other terms associated
with your concept. Put the keyword(s) in the search box, select the target country
or countries and Google will show you the number of average local and global
monthly searches. This is a good indicator of demand.

Tools you can use


Google Trends:
a. Identify trends outside the Play Store
b. Correlation between what people search for and success of an app
c. Set words associated with your idea
d. Select the target country or countries
e. Identify rising search terms
f. Download CSV for deeper list of topics

Section 1: Marketplace Strategy & Conceptualization

20
23

Google Keywords Tool:


a. Keywords tool: Volume of searches
b. Advanced settings: Mobile-based search patterns
Metric to use:
Search volume & traffic estimation

3. Estimate the size of your target market


Before you start developing your idea into an app, it is always important to
understand if there exists an opportunity sizeable enough for your app
development efforts to yield the desired returns.

Tools you can use


Facebook Ad Tool
This tool lets you go further than just looking at best sellers or trends with its
granular target group profiling capabilities

Online Survey Tools


These include tools such as SurveyMonkey, Google Forms and TypeForms which help
you gain a better understanding of the users by surveying them. When surveying
users, you can ask for their liking and the willingness to download or pay for your
app. This will enable you to perform the back-of-envelope math to see whether the
market is worth your time.

24

Section 1: Marketplace Strategy & Conceptualization

For Validation of Respondents


a. Maximum potential prospect
b. User base
c. Number of sign-ups
d. Email IDs received
e. Survey-specific findings

4. Create an MVP (Minimal Viable Product)


Nothing beats an actual customer using your app. So how do you get to the
customer when you're at the idea stage and don't want to spend a huge sum of
money building an app they don't want?

a. You can build a Minimum Viable Product (MVP) or a prototype on the


following lines:
PowerPoint slide presentation
Landing page
Stripped-down app with the core features offered

b. Test the MVP: Once youve got the prototype ready, install it on your phone
and let family, friends and a few test users play around with it. Watch what they
do and listen to what they say. Take it to the coffee shop, or consider signing
up for a user testing service such as Usertesting.com

c. Collect Feedback: Getting feedback on your prototype is essential - but it can


be intimidating too. Take the time to really engage in this step, and the payoff
will be huge.
These tools can help give an indication of demand, although none of these methods
are foolproof. However, whenever possible, validate your app ideas to the greatest
extent possible before you actually start working on it.
Based on this information, I have created a flight plan that will take me through
this app galaxy where I aim to uncover many more insights that can simplify an app
developers life.

Section 1: Marketplace Strategy & Conceptualization

20
25

Design
& Development
App
Design And
Development
(Cover
Page)
The flight plan I had charted for the App Galaxy, took me to Planet
App Design & Development. My findings on this planet would go a
long way in making it easier for app developers to create apps. In
my journey across this planet, I uncovered many insights on the
approach that developers should take to app development.

APPollo

26

Section
2: Design
& Development
Section 1:
Marketplace
Strategy
& Conceptualization

Log 1: Choosing
The Right
of App
Design
& Development
Log Type
1
Your app strategy and conceptualization would play a key role in deciding the type
of App (native, hybrid or a web app) that you should create. The platform you
choose in the end will depend on your priorities in these areas. There are
trade-offs you may have to make depending on your budget and needs.

Features
Cross Platform
Support

Native Apps

Web Apps

Hybrid Apps

No

Yes

Yes

Native only

Web only

Native/Web

Development Time

High

Low

Medium

Development Cost

Low

High

Medium

User Interface

Good

Average

Good

Device Level Access

High

Low

Medium

Performance

High

Low

Medium

Offline Mode

Supported

Not
supported

May be
supported

Distribution

App store

Mobile
browser

App store

Code Portability

Low

High

High

Maintenance

High

Low

Medium

Apps requiring
high standards of
UI/UX, or apps
requiring complex
device
functionality

Content-heavy
apps, that take
advantage
of pre-existing
Web content, such
as retail apps or
e-readers

Responsive
Web content that
will be
accessed on
various
hardware types

Development
Language

Suitable for

Source: Information collected from respective company websites & public sources

Section 2: Design & Development

27

Expert Opinion

The Framework for Designing Great Apps


Out there is a universe of apps, millions of them and
yet we resonate with only a few. Most of them
either get lost in the galaxies of randomness or die
in a quick supernova, one-show burst. There must
be something or a force that keeps the
percentage of success so dauntingly far out of
reach. Is it sleek UX/UI or great engineering? In my
view, creating an app is not just a matter of
wireframes and coding.There is much more to it and
it starts before the act of creation itself.

Dean Gonsalves
VP Design, Robosoft Technologies

For success to manifest, it needs a framework that channels creative energies


into the desired output. So instead of just tips & tricks, here is a simple and
effective framework that will help achieve some delta in world of app creation.

Intent
Intent is the underlying cause of creation, giving purpose to form and function; and
design is a medium to render that Intent. If the intent is clear, focused and
well-expressed, it will have a positive impact on design which in turn, will have a
cascading effect on everything inclusive of your app. Design is rendering intent
is a profound statement to ponder on. Notice a well designed product and you can
trace it back to a strong and well-articulated intent. A butter and a hunting knife
both exist in the same universe (Fig 1.0), but their intents are completely
different. Design embodies the difference, rendering the purpose effectively. You
can't go hunting with a butter knife!

Fig 1.0

28

Section 2: Design & Development

Expert Opinion
An intent statement should not be broad or all-encompassing. In fact, its potency
lies in it being precise, focused and real - highlighting the true strength. For
example, you are a food app and your intent statement reads we deliver food on
time, every time. Then your promise is about delivery in relation to time and you
need to have a deep understanding of that relationship. Fine-tune your app
features to elegantly fulfill that delivery promise rather than get distracted by
secondary features such as excessive offers, personalization of food, among
others. Keep it simple.

Emotional Quotient
At the very core of our existence lie emotions. We need to be conscious about the
power of emotions to drive behavior, and our behaviors are always a result of our
emotional state of mind.
Everything has emotions built in, and through the products we create, we
transfer these emotions - positive or negative, consciously or unconsciously to
the user. Hence, we need to be extremely sensitive about our ability to identify
with emotions. The Emotional Quotient does just that, it helps define the
emotional composition that a thing or product is made up of. Example (Fig 2.0) a
hunting knife has 2 basic emotions the blade embodies aggression while the
handle speaks comfort. And once this is understood, design decisions can be
objective and not subjective. The knife is a tool and a weapon, you need aggression
to cut even a tomato and in battle, the comfort will give you confidence to act not
react.

Fig 2.0
In this case, the emotions of aggression and comfort make clear filters to validate
any new features or design suggestion - from form to function, fonts to color,
marketing strategy to business. Now apply this to your app, what is your EQ?

Section 2: Design & Development

29

Expert Opinion
Pain Points
If you are creating something useful, it should relieve someones pain. That is the
the litmus test of your intention. The more pain you relieve, the stronger will be
your users gratitude. This goes beyond discounts, offers and advertising.The
first step in building your feature list is crafting an experience map, which
provides insights into the users lives and pain-patterns.

Fig 3.0
This experience map will indicate the high and low points in the user journey - what
they are thinking, feeling and doing. Overlay your product proposition and see how
it enhances the low points; those which elevate the pain are your must have
features. For example (Fig 3.0) ordering food from outside is always accompanied
by the emotion of joy, but if the app is overloaded with many irrelevant food
options, it leads to confusion. So do not confuse abundance with choice. Your
focus on clarity and pain is always the best filter to validate that.

Intuitive Design
When designing the app, take care to ensure that all the elements are intuitive.
This is so that when the user launches your app, they can start exploring your
offerings immediately rather than spending time learning how to use your app.
When the design of the app is intuitive,everything seems familiar. Let your UX
help users act rather than react.

30

Section 2: Design & Development

Expert Opinion
Follow platform conventions. These help ensure that the app functions according
to users expectations and avoid a steep learning curve. Similarly, the design
elements have to convey the right emotions and not mislead the user. Icons
should convey the right meaning and not leave room for interpretation. Pick the
right colors by selecting the ones that align with the emotional quotient. Colors,
when used well, indicate the hierarchy of your content and highlight ways to move
forward (Buttons, links, error messages etc.) Lastly, keep the communication
concise and clear.
For example (Fig 4.0) a button should indicate what it actually means rather than
leaving it to the interpretation of the user. Book Now means once you press the
button a booking is guaranteed as opposed to Request to Book which denotes
that your request is taken and a confirmation will happen only after certain
conditions are fulfilled. The user knows what to expect when he/she clicks that
button and is mentally and emotionally prepared for the outcome.

Fig 4.0
To summarize, a great app is not just an app; it is a powerful idea that is
strengthened by intent and thrives on emotions. Be empathetic, use your common
sense and trust your intuition. Most importantly, seek the truth not the frills and
you will create something worthy of that coveted spot on your users smartphone.

Section 2: Design & Development

31

Log 2: Android Platform Version Share


In my journey through Indias App Galaxy, I discovered that Android is the dominant
OS platform. Google Play Store today has over 1 billion active Android users and
1.5 million devices activated daily, with devices being made by over 200 original
equipment manufacturers (OEMs).
According to a VisionMobile report, Android today has 79% mindshare amongst
app developers.1

Android Platform Distribution


Lollipop
5.0 - 5.1

35%
Ice Cream
Sandwich 4.0

Marshmallow
6.0

1%

19%
16%

Jellybean
4.1 - 4.3

2% Gingerbread
2.3

28%

Kitkat 4.4
Source : Developers.android.com, Global September 5, 2016
(Percentage have been rounded and may not total to 100%)
1 VisionMobile Q3'2016 report

32

Section 2: Design & Development

Log 3: Android
Screen Sizes
Design
& Development
Log 1 and Densities
Once I inferred that Android is the preferred platform of choice for app development,
I moved on to exploring the planet and uncovered data on factors that can impact
app development and user experience. Screen size and density are two such factors
which play an important role in your app development on Android OS. Heres what
you need to know:
The operating system handles most of the work of adapting your app to the current
screen
You should create screen-specific resources for precise control of your UI
Generalized
densities

ldpi
mdpi
tvdpi
(low)
(medium)
(high)
~120 dpi ~160 dpi ~213 dpi

hdpi
(extra
high)
~240 dpi

xhdpi
(extra
extra
high)
~320 dpi

xxhdpi
(extra
extra
extra
high)
~480 dpi

Total

Screen
size

Small
(2-3) inch

1.6%

1.6%

Normal
(3-5) inch

3.5%

0.2%

39.5%

28.4%

15.5%

87.1%

Large
(4-7) inch

0.2%

4.1%

2.1%

0.5%

0.5%

7.4%

XLarge
(7-10) inch

2.9%

0.3%

0.7%

3.9%

Total

1.8%

10.5%

2.3%

40.3%

29.6%

15.5%

Source: Developers.android.com, Global September 5, 2016


Any screen configurations with less than 0.1% distribution are not shown

I had gathered enough data to help app developers make decisions around the type
of app and the choice of OS platform. The next step is to choose a development
environment that is suitable to your app development needs.

Section 2: Design & Development

33

Log 4: Choosing the Suitable IDE


An integrated development environment (IDE) is a software suite that
consolidates the basic tools developers need to write and test software. Typically,
an IDE contains a code editor, a compiler or interpreter and a debugger that the
developer accesses through a single graphical user interface (GUI). Many IDEs
also include code completion features that intelligently complete code
automatically.
However, with so many options to choose from selecting the right IDE that suits
your needs and skillsets might prove to be challenging. The following table should
help to simplify this decision.
Selection
Criteria

IDEs

Supported
Platforms
Supported
Languages

Learning Curve

Android
Studio

Eclipse

Android

iOS,
Android

C++,
Java

C/C++,
JavaScript

Moderate

Smooth

Yes

Xamarin
Studio
iOS, Android,
Windows
Phone

(#)
Visual Studio (#)

Apache Cordova
(Formerly
PhoneGap)

iOS, Android,
Windows Phone

iOS, Android

C#, Visual Basic,


F#, C++, HTML,
JavaScript, Python

HTML,
JavaScript
and CSS

Moderate

Smooth

Yes

Yes

Supports only few


Native APIs. Does
not support third
party Plug-in support

C#

Moderate

Plug-in Support

Extensive

Version Control
Support

Yes

Yes

Yes

Yes

Yes

Forums &
Tutorials Support

Yes

Yes

Yes

Yes

Yes

Pricing

Free

Open
source

Free

Free

Free

Source: Information collected from respective company websites & public sources

34

Section 2: Design & Development

Log 5: Game
Development
Design
& Development
LogEngines
1
Designing games for mobile needs a slightly different approach. There are game
engines available, software frameworks that provide the basic elements of a game,
such as 2D or 3D graphic rendering, physics, sound, AI and animation. I therefore
decided to look at the Popular Game Development Engines (GDE):

Selection
Criteria

GDEs

Supported
Platforms

Supported
Languages

Learning Curve
GUI & User
Friendliness
Plug-in Support

Forums &
Tutorials

Pricing

Built Size of
the Game
Suitable for
(Type of Game/
App)

Unity 3D

Cocos 2D
(#)

(#)

Unreal Engine

iOS, Android, Tizen,


Windows Phone

Almost all gaming


platforms

C#,Javascript,Boo

Objective-C, C++, C#,


Java, JavaScript and Ruby

C++ (However, a lot of


development possible
without writing any
code using
Blueprints a
visual programming
environment where
nodes are connected
with lines

Smooth

Comparatively difficult

Smooth

Best

Recently launched

NA

Extensive plug-in
support

Good plug-in support

Good plug-in support

Very active forums


& huge collection
of tutorials

Yes

Very active forums


& huge collection
of tutorials

Almost all gaming


platforms

$75/month (Although
free license covers
majority features)
Slightly higher
Suited for solo mobile
games developers
who arent pushing
the limits of what
platforms can do

Open source

Comparatively smaller
2D Game development

Before publishing
developer has to pay
certain amount
Slightly higher
Best suited for console
gaming or games with
high-end graphics

Source: Information collected from respective company websites & public sources

Section 2: Design & Development

35

Log 6: Crash Testing & Bug Tracking


Lets face it, mobile apps can crash or develop bugs during the development
process. Developers and testers have to go through several routine stages in
order to submit every bug or investigate a crash. Using reporting tools, it is easy
to collect enough data and shorten this tedious manual process to a few simple
steps. By choosing one of these tools, you can optimize the work during a project
and save lots of time and effort. Heres a look at a few Popular Crash Testing and
Bug Tracking Tools

Selection
Criteria

Tools

Platforms
Supported

Apteligent
(Formerly
Crittercism)

Fabric
(Formerly
Crashlytics)

iOS,Android,
Windows Phone

TestFairy

Splunk Mint
HockeyApp (#)(Formerly
(#)
Bugsense)

iOS,
Android

iOS,
Android

iOS,
Android,
Windows
Phone

iOS,
Android,
Windows
Phone

Firebase

iOS,
Android

App
Distribution

No

Yes

Yes

Yes

Logs

Yes

Yes

Yes

Yes

Yes

Yes

User
Feedback

No

No

Yes

Yes

Yes

Yes

Video
Recording

No

No

Yes

No

No

No

Breadcrumbs

Yes

Yes

Yes

Yes

Yes

NA

Analytics

Yes

Yes

Partial

Yes

Yes

Yes

Team
Management

Yes

Yes

NA

Yes

NA

NA

Proguard
Support

Yes

Yes

Yes

Yes

Yes

NA

Users Or
Number of
Apps for Free

30,000 Monthly Unlimited


Active Users

100 Users
& 2 Apps

$10 /month
for 5 apps

NA

NA

Yes

Free

Source: Information collected from respective company websites & public sources

36

Section 2: Design & Development

Log 7: User Analytics


Once you get your app or game going, and youve done your bit of bug testing you
start giving it out to users. The data that comes out of real world usage is the
litmus test for your app. Therefore its important to analyze how users are
engaging with your app. User analytics tools give you the data to help you
understand how people are using your app, where the pain points are and how to
make your app the best it can be. Ive charted out a few Popular User Analytics
Tools:
Google
Analytics

Flurry

(#) Mixpanel(#)

Localytics

Metrics (DAU/MAU/WAU,
retention, monetization
metrics (revenue,
ARPU, etc.))

Yes

Yes

Yes

Yes

Traffic Analysis/User
Acquisition Tracking

Yes

Yes

Yes

Yes

In-App Event Tracking

Yes

Yes

Yes

Yes

Funnels

Yes

Yes

Yes

Yes

User Segmentation

Yes

Yes

Yes

Yes

Push Notifications

No

No

Yes

Yes

A/B Testing

Yes

No

Yes

Yes

iOS, Android

iOS, Android,
Windows Phone,
BlackBerry

iOS, Android

iOS, Android,
Windows Phone,
BlackBerry

Free

Free

Free upto
25,000
data points

Free upto
10,000
MAUs

Features

Tools

Supported Platforms

Pricing

Source: Information collected from respective company websites & public sources

Section 2: Design & Development

37

Log 8: App Store Analytics


After app developers have made their app available on the app store, and users
have started downloading and using it, it is important to understand where their
app stands on an app store. Here are a few Popular App Store Analytics Tools:
Vendor

Priori Data

AppAnnie

Sensor Tower
(#)
(#)

Apptopia

Store Stats
(Rank history)

Yes

Yes

Yes

Yes

Downloads Estimates

Yes

Yes

Yes

Yes

Download & IAP


Revenue Estimates

Yes

Yes

Yes

Yes

Ad Revenue Estimates

No

No

No

Yes

Usage Data (DAU/MAU)*

No

Yes

No

Yes

Audience Estimates
(Demographic)

No

Yes

No

No

Breakout Predictions

Yes

No

No

Yes

ASO/Keyword Ranking

Yes

Yes

Yes

NA

Data

Source: Information collected from respective company websites & public sources
* DAU - Daily Active Users, MAU - Monthly Active Users

It is important to remember that the app or game you want to build will decide
your weapon of choice when it comes to development environments. While it is
necessary that you thoroughly test the app before putting it out in the wild, user
and app store analytics tools will play a critical role in fine-tuning your app. After
this, its time to caste the net wider and go after your potential app users.

38

Section 2: Design & Development

App Distribution
My travels across Planet App Design and
Development led me to a sector that held the
secrets to getting app distribution and marketing
right. I decided to log everything that I found.

0.5 kms

Google Play

APPollo

Section 3 : Distribution & Marketing

39
39

Log 1: App Distribution Avenues


There are several key steps to perfecting app distribution:

A. Google Play Store


The Play Store is a good place to start with. But before you submit your app, you
can follow this checklist for publishing an app on the Play Store and ensure that
youve met all the requirements.

App Title: 30 character limit


App Icon: High-res icon, 512 x 512 32-bit PNG (with alpha)
App APK size:

The maximum size for an APK published on Play Store is 100 MB


You can use up to two (2) APK Expansion Files, each up to 2GB in size, for
each APK

Description:

Your app description within 4000 character limit.

App Type: App or Game


App Category: A potential app category which your app or game will fit into
Screenshot:

Upto 8 (2 mandatory)
JPEG or 24-bit PNG (No alpha)
Dimensions : 320x480, 480x800 or 480x854 pixels

Video:

30 seconds - 2 min
Less than 50 MB

Promo graphic (optional):

JPG or 24-bit PNG (No alpha)


Dimensions : 180x120 pixels

Feature graphic:

Feature graphic: 1024x 00 JPG or 24-bit PNG (No Alpha)

Support information:

E-mail, privacy policy, website URL, user permissions & consent

40

Section 3 : Distribution & Marketing

B. Third Party App Stores


The next step is to consider third party app stores which can help drive app
downloads further. In fact, submitting your app to alternative app stores will
increase expected downloads for your app by more than 200%1 in comparison to
Google Play Store alone.
Heres a breakup of how third party app stores work along with the revenue share
for app developers:

Name

Opera
Mobile
Store

Monthly
Users
(In
millions)

Daily
Downloads
(In
millions)

Global No.
of Apps

No. of
Publishers

105

3,00,000

11,000+

No. of
Countries

Revenue
Share

230

70 : 30

India,
Indonesia,
Russia, the
Middle East,
SEA and
Brazil

100 per cent


revenue
sharing with
qualified
developers for
a certain
period of time

9Apps

250

26

NA

NA

Amazon
App Store

NA

NA

6,00,000

63,325

200

70 : 30

Mobango

20

1,20,000

30,000+

Global

100% to the
developer

Aptoide

100

5,00,000

NA

All

70 : 30

GetJar

849,036

NA

Global

100% to the
developer

SlideME

NA

40,000

NA

Global

70 : 30

Developer Registration Fees is free for all the above app stores
1 One Platform Foundation
Source : Information collected from respective company websites & public sources

Section 3 : Distribution & Marketing

41

C. Company or App Website


Though your app will show up in app store searches, it is always a good idea to
build your own web presence. Doing so allows you to connect with your users and
promote your app in ways that are not just possible with app stores.
Furthermore, it leads to greater visibility in search and lets you benefit from
organic search traffic. In fact, 24% of users discover apps through the app's
website.2
When you build a web presence here are a few things that are a must-have for
your app website:

a. App description
b. App screenshots & videos
c. Call-to-action buttons
d. Social share buttons
e. App store badges
f. Reviews from happy users & app review sites
g. Media mentions & testimonials
h. Pop-up to allow your app users to provide ratings

APPo

llo

D. Mobile App Discovery Platforms


App discovery platforms are dedicated mobile apps (often linked to a larger
platform) designed from ground up to help app users find other apps. These range
from daily deal apps (also known as free app a day apps) to deal finder apps.

Daily Deal Apps


a. These app companies offer app developers a single deal a day to get
users to download their app

b. The developers apps are available to users cheaply or for free thereby
helping boost downloads. This in turn, helps push their app up the charts

c. The increase in downloads comes at a small cost though, as some app


discovery platforms need developers to pay a one-off cost, while others work
on a Cost Per Install (CPI) basis
E.g. App of the Day, AppGratis
2 Google app marketing insights

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Section 3 : Distribution & Marketing

Deal Finders
a. These app companies help users find discounted apps across app stores
b. These platforms can alert users when an app aligned with their personal tastes
and preferences is available for a discount

c. Some companies augment this approach through personalized recommendations,


social sharing and enhanced search tools
E.g. Free My App, Best Apps Market
Free my
Apps

E.

App
Gratis

Best Apps
Market

App of
the day

App Review Sites


Heavy spenders discover new apps & games on popular review sites and blogs,
while friends and family are the primary source of discovery for light spenders,
according to a 2016 Nielsen study on mobile gaming.3

a. App reviews on these sites can be free or paid for


b. Some app review sites only review apps based on criteria such as quality and
ratings, but this is only after an app developer pitches his app for review. Many
of them charge for app reviews and offer other promotional packages

c. Promotional packages may include social media promotion (retweets, posts to


their Facebook page, etc.), video reviews, app demos and a feature on the sites
landing page. Some sites would even ask developers for previews and interviews

3 Nielsen, Mobile Gaming, 2016,


http://www.nielsen.com/us/en/insights/news/2016/attention-thats-the-secret-to-mobile-game-success.html

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43

Promoting your app on an app review sites can have its own benefits:
a. An app review, whether good or bad can provide valuable feedback for improving
your app

b. These reviews are based on the reviewers personal experience of your app. By
highlighting the top features of your app, these sites will not only create a
strong impression of your app, but also correct any wrong impressions created
by bad reviews or low rating on app stores

c. A review from such a site is often seen as a stamp of approval by app users.
An endorsement from a trusted authority would certainly give a boost to the
credibility of an app

d. App review sites offer more technical, unbiased insight into an app rather than
a flavored opinion by a blog

e. It also helps push up the ranking of an app on Google Play Store due to the
multiple inbound links from these sites

However, there are a few things to remember before taking this


approach:
a. The app review site's popularity and following will determine the amount of
exposure your app gets

b. At some point the selection process may become biased and some sites may
even charge a cost to expedite the review process

c. Always follow review site guidelines while submitting your app


Below are a few examples of app review sites

Free

Paid

My journey across this planet has been really insightful. There are many avenues
for app distribution but this is just half the story. Unless an app is marketed well,
even if it reaches the users, they may not buy into the idea and download it. I had
to find out more about how apps can be marketed well.

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Section 3 : Distribution & Marketing

App Marketing
I arrived at my next stop: Planet App Marketing. Here I found out that
distribution and marketing are two sides of the same coin. Distribution will
help you take your app to its potential users, but marketing will ensure that
they find it worth their time and download it.

Bharat

Section 3 : Distribution & Marketing

45

Log 1: Organic User Acquisition


The first step to successfully marketing your app is focusing on acquiring users.
The data I found, suggests that user acquisition can be drilled down further into
organic and inorganic user acquisition strategies. I first look at Organic User
Acquisition Strategies:

1. App Store Optimization


App Store Optimization (ASO) is a proven way of ensuring greater user acquisition
for your apps. Studies suggest that 40% of the users discover apps by directly
browsing the app store.1 Organic user acquisition can be vastly improved by
employing some basic ASO strategies that boost app store ranking and visitor
conversion rates.

How Google Play Store rankings work


There are a few factors that have a major influence on app store rankings:

App Reviews and Ratings - The number & quality of reviews are an important
indicator. It is necessary to listen to your users and improve the app using the
feedback

Downloads - Download growth over the last 30 days is more important than the
latest 24 hours

Engagement - If your users continue to keep your app installed on their device it
is an indicator that they like it. However, it is important to track the 7th, 15th and
30th day open rates for your app, as they will be a true sign of users actually
engaging with your app

Uninstalls - If users uninstall the app soon after downloading or there is an


increase in uninstalls after a recent update, it will adversely impact rankings

Social Signals - App stores also consider the social sentiment about your app.
For instance, Google regularly uses +1s for apps on its Play Store as a measure
to recommend these apps to other users

What is ASO
ASO is to app stores what SEO is to websites. ASO helps improve an apps
visibility by increasing its ranking in search results and in top charts on app stores
1 Google app marketing insights

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How you should go about your ASO


A. Keyword Optimization
The keywords that your app can be most identified with form the basis of keyword
optimization. Besides the keyword field, having suitable keywords in your app
description, and a keyword in the app name, helps the search engine rank your app
better.
For Google Play Store, the first few lines (167 characters) of your app description
are critical for keyword optimization, both on the store and in web search.
Using free keyword research tools such as Google Keyword Planner, you can find
the keywords that people are actually using when looking for an app in the Play
Store.
Avoid using competitor names or trademarks as keywords as this may get you
reported.

B. App Icon
Your apps icon will be its greatest identity. Therefore, a lot of care must be taken
to design the app icon such that it displays clearly, whether it is on the home
screen, in the app drawer, or sitting inside a folder.

C. Screenshots
Screenshots are a great way of previewing what your app looks like. Use
screenshots that portray realistic usage of your app while highlighting the most
important features.
To publish your app on the Play Store, you must provide a minimum of 2
screenshots or maximum of 8 in JPEG or 24-bit PNG. Regardless, if your app is for
multiple markets, youll also want to localize your screenshots (if required) to
ensure best results.
While listing screenshots, list them according to the user flow of your app.

D. App Previews or Videos


An app preview is the first impression or a quick taste that users get when they
look at your app on the Play Store. Moreover, your app preview video will be used
across all stores in various markets. Therefore it is important that you focus only
on key features, keeps it simple and avoid using voice-overs (unless absolutely
required).

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47

E. Reviews & Ratings


Your app reviews & ratings also influence where it will show up in the search
result. Hence you should pay close attention to the following:

a.
b.
c.
d.
e.

The average star rating


The total number of reviews
The amount of keywords used in each review
The frequency of reviews written
How recent the reviews are and their ratings per update

You need to build a steady flow of positive comments and full star ratings by
building user feedback into your app marketing plans. Here are a few actions you
can take to ensure better user ratings for your app:

Ask for feedback


Use email, push notifications or in-app messaging to reach out to your loyal users
and ask them for an honest review.

Use in-app pop-up messages


Users are more likely to rate your app positively if an action they performed went
smoothly. Therefore, use pop-up messages to urge them to review your app just
after theyve completed a task such as making a purchase.

Use app engagement ads


Retarget your superusers with display and social media ads to encourage them to
use your app more.

Use email
Segment your app users by OS and send them emails (with links to your app in the
correct store) asking for a review. Also include a Call-To-Action (CTA) to review
your app in your email signature line.

Take an outside view of your app


Do not get emotional or personal when replying to a negative review. Instead thank
the user for the feedback and go back to check if the concerns are real.

Counteract negative feedback


Create an in-app form or provide a support email for users to report bugs or
issues.

Respond to negative feedback


Respond to users who reported bugs after fixing the issue, urging them to
reconsider their rating.

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2. Social Media Marketing


When it comes to social media marketing, treat your app as a brand. Your brand
lives on various platforms, as an app, on its website, social media platforms
(Facebook, Twitter, LinkedIn). It is important to establish your app as a brand
on social media as 52% of the users discover apps through friends,
family and colleagues, and social media is where they are likely to connect
with them.2

A. Importance of Social Media


Increasing your web traffic

Promoting your app via social media can help drive more traffic
to your apps website, thereby creating a steady flow of
users. It also helps boost the websites SEO, thereby
increasing the chances of your app showing up in organic
searches.

AP

Relationship building & engagement

It can prove to be a powerful tool for relationship building and engaging with
your app users as you can tap into user sentiment better and respond to your
users faster. You can continue to engage them through targeted and
retargeted social media ad campaigns.

Increasing sales

A strong social media presence and good social media marketing can help you
build great brand loyalty for your app. It will bring you customers you did not
know existed and bring you more app downloads.

B. Social Media Best Practices


Identify and use the social network that best suits your app user base
Your social media presence should be where your user is. Analyze your
app users social media habits to determine the social networking platforms
they frequent. Social media marketing can be incredibly time-consuming, so focus
on engaging your users on the platforms they frequent the most, or talk on about
your apps.
2 Google app marketing insights

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49

Set Goals
Define how you expect your social media strategy to improve your app business.
Here are two possible outcomes that you would want to achieve with their measures
of success:
Goal

KPI*

Increase awareness
about your app

Number of followers

Improve user
engagement

Clicks, likes, shares,


comments, brand
mentions received
(*Key Performance Indicator)

Once you have identified the social network that suits your goals, create
a plan for posts based on user engagement goals specific to that platform
For instance, if it is a new app, you would want to post anywhere between once
and thrice on Facebook, tweet at least 5 times a day and post at least once on
Google+ and Instagram. Please note that this is only a sample and should not be
considered as a definite benchmark. The frequency of your posts or tweets will vary
based on your social media goals.

Have a clear and consistent branding across all your profiles


a. Identifying your app as a brand should be easy
b. Using same logo, color pattern and imagery is critical for branding
c. A similar tone of voice is also important
Keep track of your analytics on weekly basis
a. Reach or exposure: Measure the size of your potential audience
b. Volume: Track the conversation size and number of brand mentions
c. Engagement: Analyze the quantity and type of engagement your accounts and
posts get
d. Audience: Learn who participates in a conversation, along with the most active
users and influencers
e. Content: Monitor your topperforming (and worstperforming) posts

Track your competitors


a. Quantify your reach with market context
b. Measure responsiveness against market leaders
c. Compare engagement rates
d. Measure your share of voice
e. Dig deeper with content analysis

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Section 3 : Distribution & Marketing

3. Public Relations (PR)


Nothing gets you the attention the way media can. Getting your app reviewed or
talked about by a popular journalist or blogger is one of the best ways of reaching
out to your intended audience.
But there is a trick to getting PR right and here are some things to consider:

How you should pitch


You can approach them by writing a simple E-mail giving them an overwhelming
reason as to why they should feature your app
Must have elements of your pitch
a. The name of your app exactly as it is spelt on the app store
b. A powerful one line descriptor that will create an instant impact
c. What it does, why it is different and the audience it is intended for
d. Free or Paid (mention the price if paid)
e. Link to your product page: Your app's website
f. Link to the app store product page
g. One or two screenshots
h. A video (important!) 30 seconds to a minute
i. Skype IDs, Twitter handle

Few things to keep in mind:


a. Identify the correct contact person
b. Reviewing an app takes time. So have patience
c. Make a first light contact: Some blog reviewers advise to make a light contact
with the blog if they dont know you, telling them about the upcoming app and
asking permission to let them know when its out.

4. Cross-promotion
Its a low cost user acquisition strategy in which you can promote your new app to
the users of your existing apps or other partner apps. You can also set up direct
deals with other non-competing app developers to cross promote your apps within
each others apps through mediation platforms.
E.g. A restaurant app tying up with a food delivery app for cross-promotion

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51

Benefits
a. Your existing users are more likely to try your new app as you have already
established credibility with them
b. Costs nothing as the developer can use 'House Ads' to cross-promote

Considerations
a. Ensure you are not losing out on users of your existing apps
Tips
a. In case of games, target users on the basis of their game progression.
Showing an ad for a new game to a user in advanced stages makes more
sense than to one in early stage
b. A more games button in your existing apps home screen can be an
effective tool to tap into interested audience for your new app

5. App Deeplinking
Deeplinking is both a user acquisition as well as a re-engagement tool. Deeplinking
enables launching of the relevant section of a native mobile application via a link, if
the app is installed, or a fallback to an app store page if its not installed.

Benefits
a. Enhances your apps discoverability through app indexing, which lets you
capitalize on organic search traffic
b. Deeplinking connects a unique url to a defined action or location (homepage,
product pages, and shopping cart) in a mobile app, seamlessly linking users to
relevant content
c. Also helps you understand what is drawing users to your app
d. Enables a seamless experience for users

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Section 3 : Distribution & Marketing

6. Referral marketing
Nothing works like referrals. Youre more likely to try an app out if it comes highly
recommended from a friend, relative or peers. Many successful app companies
such as Dropbox, WhatsApp and Uber have managed to expand their user base by
getting existing app users to recommend the app to others. A good way of getting
your current app users to refer your app to others is incentivizing the referral
where you not only reward the user for recommending it to someone, but also
reward that person for trying out your app.

Why it works
a. 92% of respondents trusted referrals from friends they knew2
b. The lifetime value of a new referral customer is 16% higher3
c. It is two-sided, both the user who referred your app and the one that your app
was referred to, get rewards which they value. The rewarding mechanism is
straightforward and easy to grasp
d. Only 39% of marketers use referral marketing regularly, but 43% of those who
do use it acquire more than 35% of their new customers with it4

Tips
a. Reward users for referring the app to their friends. This boosts up your user
base quickly and thus improve app store rankings
b. Clearly communicate the benefit that the user gets for referral
c. Ask for a referral after a positive moment (achievement) in your app
d. Minimise effort with autofill & social share integrations for a frictionless
experience

7. Additional organic user acquisition strategies


a. Emails | b. Business cards | c. Podcasts | d. Speaking opportunities
f. App awards
2 Nielsen Global Trust in Advertising Survey, Q3 2011, 3 Wharton School of Business, 4 Gigaom Research

Section 3 : Distribution & Marketing

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53

Log 2: Inorganic User Acquisition


Although weve explored the many ways to acquire users organically, inorganic
user acquisition can often provide that extra push needed to help you reach your
user acquisition goals. Therefore, next I looked at logging the data I found about
inorganic user acquisition strategies:
Inorganic user acquisition strategies primarily involve paid acquisitions. While ASO
will help you convert organic traffic, paid acquisition will help you gain more users
for your app and scale your growth.
However, there are some things you should know about paid install campaigns:

a. While the tendency is to think that ads only help with paid acquisitions, a recent
research points out that on average, every 1 paid install drives 3
organic installs5

b. By boosting downloads through paid acquisition campaigns, even for a short


amount of time, your app benefits from increased ranking and visibility on the
stores, resulting in more organic installs

c. Users who discover an app via an ad network are more likely to come back for
a second, third and fourth session than organic users

d. Measuring app installs and identifying the channel that gives you best results
is the key

e. Be cautious about the cost of acquisition


f. Deeplinking in your campaign leads to better user experience
App install campaigns are offered by
a. Leading social networks such as Facebook and Twitter, and search engines
such as Google
5 AppsFlyer Guide to Mobile Ad Analytics, 6 Localytics 2015 App Marketing report

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Section 3 : Distribution & Marketing

Name

Monthly Active
Users / Reach

Share Of
Mobile Users

Facebook

1.13 Bn

91%

Twitter

310 Mn

83%

Google Search

1 Bn+

More than 50%

b. Ad networks such as Chartboost, Appnext, Inmobi and Vserv


Ad Networks:
Ad networks provide many benefits for app developers:
a. They act as single point of access to a broad range of premium media
sources, including other apps

b. Besides setting up your CPI campaigns, many ad networks have adopted afull
stack approach, including programmatic buying that is optimized for your KPIs
and also include monetization tools

c. While ad networks offer different pricing, bidding and targeting models, they
also vary in ad product types, from banner ads and interstitials to native ads
and rich media ads
In my journey across Planet App Marketing, I learnt that app developers can often
get blindsided by the need to get their apps out in the market and ignore a critical
aspect. Your apps need to get noticed if they want to find any success. There are
approaches, organic and inorganic, that can bring the attention followed by users.
However, acquiring users is one thing, engaging and retaining them is a whole
different ball game. Thats where I was headed next.

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55

Design
& Development
App User
Engagement
(Cover Page)
& Retention
Strategies
My study of user acquisition strategies led to another important
conclusion. Merely acquiring users is not enough. It is also
important to ensure that they are engaged and retained.
Only then will the app grow and continue to sustain.

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Section 3 : Distribution & Marketing

Based on my findings I have come up with these User Engagement & Retention
Strategies.
Before looking at the strategies, here are 5 reasons why you should focus

more on user engagement & retention:


1. 58% of app users uninstall within the first 30 days1
2. 75% of users who log only one app session in the first 30 days will uninstall
the app1

3. Users who had the longest first app session length also returned to an app
within 1 to 12 hours1

4. 60% chance that users who did not come back to your app within seven days
never return1

5. Only 14% of users who complete 11 or more sessions in the first 30 days will
uninstall the app, showing that early engagement is the key to retention1

To understand user engagement and retention you need to first understand the
users. This is where user analytics comes in the picture. User analytics tools can
help you get a first hand understanding about your audience. However, with a
range of metrics offered by analytics tools it is important to narrow down a few
key metrics, which you should track on a frequent (weekly) basis.

Log 1: Choosing the Right Growth Metric


When it comes to analyzing user behavior, there are a range of metrics to look at.
However, the end goal varies from app to app, so does the way users engage with
them. Therefore it becomes necessary to define growth metrics or Key
Performance Indicators (KPIs) that can be clear indicators of your apps success.

1. What defines the success of your app?


Mere app download numbers do not define the success of an app. It is also
important to measure how much users engage with your app and for how long.
What is it that they do on the app, and how do their actions result in the intended
outcome defined for your app? For instance, for a fitness app, the DAU/MAU &
Average Number of Sessions can be defined as its primary engagement metrics.
For a photo editing app, where success depends upon the number of pictures taken
or how many times the user has edited pictures, one can look at Number of
Sessions as the primary growth metric.
1 Localytics

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57

2. What factors affect your app's success?


A. Selection of growth metrics or KPIs will also depend upon what stage of
user lifecycle is important for you

The user lifecycle can be simplified down into a model called AARRR, which is an
excellent marketing concept introduced in 2007 by renown growth hacker: Dave
McClure. AARRR stands for:

a. Acquisition Metrics (getting users to install your app) - Downloads, Installs,


Cost Per Acquisition (CPA)

b. Activation Metrics (First key events) - Registration, session length, screens


per session, one day retention

c. Retention Metrics (getting users to use your app for as long as possible) DAU/MAU, Churn rate/Uninstalls, Number of sessions, Average session length

d. Referral Metrics (getting users to tell people in their networks to use your app)
Number of referrals per user, referral conversion rate

e. Revenue Metrics (maximizing the money you make in aggregate from each app
user) - ARPU, LTV

B. Monetization model of an app will also impact the choice of a growth


metric

a. IAP: Apps using in-app purchase as a monetization model should also look
at percentage of paying users, Average Revenue Per User (ARPU) & Lifetime
Value (LTV) as growth metrics

b. Advertising: Apps monetizing through in-app ads should look at DAU/MAU,


number of sessions, average session length as growth metrics

c. Freemium apps: Should look at conversions to paid users as growth metrics

C. Understanding Behaviour Flow


It is important to understand the behaviour flow in an app. It is especially
important to understand which screens are popular and what are the dropoff
points in an app. Visual analytics can aid in this crucial understanding.

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Section 3 : Distribution & Marketing

Visual Analytics:
App analytics tools record all touch events of your users and show as a heat map.
It can help app developers to optimize location for placement for ad slots, buttons,
etc.

Visual analytics includes


1. Touch heatmaps
2. User recordings
3. Realtime in-app analytics

App developers can get answers to these questions with touch heatmaps:

a. Which areas of my screen are getting more touches?


b. Where should I locate my ads?
c. Where should I locate my in-app purchase messages?
d. Which buttons are mostly used? Which of them must be changed immediately?
e. Should I change the sizes and locations of my buttons?
Two examples of such tools:

A detailed analysis of the way users engage with your app, the kind of time they
spend on it, what aspects of your app please them or annoy them, will give you a
much deeper understanding of what it takes to engage and retain them. You can
then adopt a strategy to ensure greater engagement and retention.

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59

Expert Opinion

6 Best Practices for Better


App Engagement and Retention
Since the advent of app stores, driving app installs
has been the primary growth strategy for almost
every developer. It has still not lost its sheen but
today, smart marketers are going several levels up
and focusing on engagement.This is leading to higher
retention.

Deepak Abbot
Senior VP - Product Growth, Paytm
Ex Getsmartapp.com

Today, uninstall rates, particularly on Google Play


Store, are exceptionally high for most developers.
Much of this can be attributed to poorly-developed
apps but a lot of seemingly good apps are also
making grave mistakes leading to poor retention.

Before you go crazy about driving engagement, you need to ensure that the core
product offering is what users want and not what you want to push. Early
indicators such as positive feedback from users, word of mouth, app reviews,
conversions & transactions can help you ensure this and validate the product.
Once you are confident that the core works, its time to get down to fixing the
leaks and ensuring that all the right engagement hooks are taken care of.
Retention is directly dependent on how much attention youve paid to every detail.
Here are 6 ways to help drive better engagement for your apps:
1. Onboarding: First experience matters. Here are a few quick pointers on
getting it right:
a. Keep it short: Just get to the core product real fast. Be paranoid about
every pixel/screen that may keep the user away from experiencing your
product/offering
b. Permissions: (iOS & Android (Marshmallow onwards)) Delay as much as you
can. Ask What You Must, not What You Should. Ask at the right time
c. Instructions or Coachmarks If your app needs too many coach marks, you
are doing it wrong
d. Login Gate: Nothing puts users off more than a login. Is it possible to show
them a sneak peek of your offering without login? Is it totally avoidable? Can
you keep it real quick with just a mobile number and no passwords?
e. Sign Up: If you must have it, showcase the real benefits of signing up

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Section 3 : Distribution & Marketing

Expert Opinion
2. Personalization: Can you customize the experience for each user without
asking too many details upfront? For example: show frequent tasks upfront, auto
save user preferences, auto-filter features not used at all, customize notification
frequency based on users interactions, use location & context (device data) to
customize the results and so on.
3. Communication Strategy: Find the right mix of how you want to communicate
with the user. Use Push, In-app Notification, Email, SMS smartly. Create right
segments (use right tools to achieve that) and target better. Know when to use
what channel. Dont over or under-communicate. Learn this balance by studying
the data closely and improve as you move along. It can be different for each app
4. Good Technology: Good code can help you improve your retention multi-fold:
a. Bugs & Sluggish Performance: Keep an eye on every single crash or bug
reported and fix instantly
b. Space on Phone: make sure your app consumes less space after installing.
Users dont like apps taking too much space
c. 2G Compatible: Countries like India still have over 150 million users on
slow connections. Make sure your app works in these conditions. Be very
meticulous in cutting down slow services
d. Battery Consumption: Users dislike apps that suck battery
e. Privacy: Never capture data that you dont need. Respect users privacy
5. Attention to Detailing & UX matters: Follow best practices suggested by Google
& Apple.Optimize user flows, pay attention to user funnels, get your copy right
and I8N & L8N best practices in place. Heres a good starting point for
understanding better UX design for apps:
https://www.thinkwithgoogle.com/topics/create-better-mobile-user-experience.html

6. Compliment with Marketing: You have done all the good work with the product
and now it is time to reap the benefits. To further cement your efforts, you can
use Facebook & Googles re-engagement campaigns to drive users back in case
some forget to come through organic means. Make sure that you setup deep links
for re-engagement campaigns to work better and have better segmenting &
targeting to ensure that they come back to the most relevant screens.
Once you have done all this, make sure to connect with your actual users often
through user meets or focused forums. Direct feedback helps you overcome your
blind spots. All the best with your efforts.

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61

Expert Opinion
Image: Apps survival funnel to understand when and why users drop for most
apps

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Section 3 : Distribution & Marketing

Log 2: App Engagement & Retention Tactics


Armed with insights about how users engage with your app, you can use the
following ways to ensure that they stay engaged and retained:

1. Push Notifications
A push message is a notification from a smartphone app that displays on home
screen while that app is not actively in use. Push notifications appear as pop-up
dialogs, banners and small badges on each app's icon.
E.g. A sports app sending score updates

Benefits
a. Push notifications improve user retention to 65%1
b. Push-enabled users average 3x more app launches than those who have not
enabled push messages2
c. Segmented push messages can double the open rate compared to push
messages blasted to everyone

Tips
a. Push messages actually have the greatest click rate at 6.7%2 in the afternoon
(from 12 P.M. - 5 P.M.)
b. Notifications that have fewer than 10 words have almost double the average
click rate than those with more than 11 words2
c. Push notifications with personalized content, such as a name or event
parameter, see four times the open rate of generic messages3
d. Use push notifications to convey users about new features, updates with social
share button to keep them engaged
1,2 Localytics; 3 Leanplum

Push notification services are offered by companies such as:

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56
72

2. In-app messages
An in-app message is a rich, visual notification that appears as a direct response
to what a user is doing (or, is not doing, but should be doing) in your app. These
messages are automated (or, triggered by behavior) and set up by the app
developer to appear at key points of interactivity.
E.g.: In-app message introducing the user to an apps feature

Benefits
a. In-app messages can triple user retention and increase app launches by 27%4
b. Helps guide users through the app towards the penultimate in-app action
c. Compared to push messages, it can support more complex messages with
more room for longer copy and images
d. In-app messages can be rolled out more subtly and tested without
compromising the overall user experience

Tips
a. Use similar design elements, fonts as that of your app to make them look like a
seamless part of the app
b. In-app message requesting users to rate your app after a positive moment
(achievement) in the app can help improve the apps rating

3. Retargeting
Retargeting is a form of advertising that lets mobile app marketers send relevant
messages to their customers while they are using other mobile apps or mobile
websites. The user sees the ad, clicks on it, and gets directed to the advertisers
app, sometimes to a specific section or deep link. Retargeting is generally most
effective after youve built up an engaged user base.

Benefits
a. Costs less compared to acquiring a new customers. In fact cost per purchaser
is at least 40% lower than new acquisition cost per purchaser, with potential
to double the number of purchasers6
b. Helps you leverage on users who already know your app. In fact, 80% of your
companys future revenue will come from just 20% of your existing customers
c. Can be effective on un-engaged and highly engaged users
d. Helps you revive dormant users and resurrect lapsed users
4 Localytics, 5 Fiksu, 6 Gartner

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Tips to create amazing retargeting campaigns


Segment your audience
To get better campaign performance, segment your retargeting campaigns by
where users are in the purchase or app lifecycle.

Match offers to user segments


You need to decide on the right messaging and offer that fits perfectly with your
retargeting campaign segment and goal.

Decide on which KPIs fit your strategy


Every campaign has its conversion goal and the metrics necessary to properly
analyze the conversion:

Goal

KPI

Install

- Cost per install (CPI)


- Retention rate
- Lifetime Value (LTV)

Engagement

- Daily/Monthly active users (DAU/MAU)


- Number of sessions
- Average session length

In-app purchase

- Revenue
- Conversion rate
- ARPU

Exclude Converted Users


Make sure you track which users converted or have carried out transactions
and exclude them from seeing the same ads (sometimes referred to as a kill
pixel or burn code).Continuing to serve ads to users who have already
converted may annoy them.

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65

4. Localization
a. Localization is the process of adapting a product or content to a specific
market in order to appeal to the linguistic, business, cultural, and social
patterns of the target audience belonging to that particular market

b. It broadly includes translation, transliteration, and multilingual search,


input and display capabilities

Why you should consider localizing your app:


a. Only 10% of Indians speak English. However 56% of the digital content is in
English, whereas content in Indian languages on Internet accounts for less
than 0.1%7

b. According to IAMAI, 75% of the growth in India will stem from rural local
language users

c. In the last year alone, Hindi content on the web has grown by 94%8
d. Games4Alls Indian Rummy a card game was able to double its users and
increase engagement by 300% with its localized version9

Services that can help you get started:


a. Google Translate:
For simple words or phrases, Google Translate is a quick and free option

b. Google App Translation Service:


Purchase professional translations through Google Play Stores Developer Console

c. Reverie language technologies:


The Language-as-a-Service platform provides localization services such as
local-language translation, transliteration, input, and search through a set of APIs.
It is a plug-n-play concept, which can be integrated into the business
infrastructure. It enables people to consume digital content in their preferred
language

7,8 Thinkwithgoogle.com; 9 Androiddocs.com

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Expert Opinion

Your apps in your users languages

Mohit Vijay
Product & Strategy Consultant,
Reverie Language Technologies

The number of mobile internet users in India is


expected to reach 600 million by 2020 from 306
million in December, 2015. As per IAMAI, the mobile
internet user base in rural India is growing faster
than that in Urban India, fueled by infrastructure
development, affordable devices and digital
initiatives by the Indian government.
India has a literacy rate of 74% but only 10% of
the population understands English.Considering the
fact that less than 0.1% of the content on Internet
is available in local languages, the need for it in India
is immense.

In China, the only country with a comparable internet user base of 632 million, the
entire internet ecosystem is built by focusing on the needs of non-English literate
population.
8 out of 10 businesses of Alibaba Group are in local language and special emphasis
has been given to languages which has resulted in higher internet adoption & user
engagement. A McKinsey report suggests that by 2020, Internet will be
responsible for 15-22% of productivity growth, will create 46 million jobs and will
contribute to 7% of Chinas GDP.
In India, thousands of app developers build for an overcrowded English-speaking
market. However, there are immense opportunities outside the traditional Englishliterate market segment, and there have been stellar growth stories of companies
like Dailyhunt, Mocept Inc. and many others who grew phenomenally by going
multi-lingual.
By 2020, the user base with local language needs on internet is expected to be
more than twice the user base of English literate user group.To successfully cater
to needs of local language users, it is very important to understand the needs and
challenges of a non-English literate user so that we can develop a solution to cater
to their unique needs & preferences.

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67

Expert Opinion
KPI

Dailyhunt which aggregates news in multiple languages has been able to reach
22 million MAU and 3 billion page views/month in just 3 years of its launch.

Understanding local language users


A mature user who has been using a smartphone for quiteKPI
some
KPI time has evolved
over time by continuously exploring new features that come with every major OS
update.
However non English-literate users, who are expected to join the Internet
bandwagon for the first time, will possibly be first-time smart phone users as well,
with limited to almost no knowledge about phones, apps and Internet. Considering
these characteristics, the following should be kept in mind while developing any app
targeted at local language users:
Simplistic UI: Keep the UI very simple with only the basic features in initial
screens
Keep the size of the app as low as possible so that it works fine on low
bandwidth as well
Goal

Avoid email registration as a required field as many users might not have email
address
Avoid complex terminologies like Cash on Delivery (COD), One-time Password
(OTP), net banking
Keep the default language of the app to what has been selected in the device

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Expert Opinion
Building businesses catering to the needs of non-English literate users
Research (primary and secondary) shows that this specific user base is very active
in messaging, social, entertainment (Audio & Video) and media publishing space
(News). Their engagement on E-commerce platforms is relatively less when
compared to engagement in entertainment & news segments but has been rising
rapidly (30% MOM growth rate in some cases). Developers building their mobile
apps/websites around these verticals can expect a comparatively higher user
acquisition rate with lower spends.
Moreover, users in this segment are highly price sensitive. Hence it is imperative
for the businesses to work out a cost effective multi-lingual strategy. Since
manual translation is expensive and not scalable for the range of the 22 languages
in India and for quality output, outsourcing the language aspect to language
computing companies that uses a combination of machine and manual translations
is the recommended way forward.

Way forward
With increased focus from government and private companies such as Google to
connect users by providing free internet, internet penetration is expected to
increase rapidly. The new connected user base definitely presents a huge
opportunity for Internet-enabled products & services and realizing the potential,
companies such as Google (Indic Initiative) and Facebook (Available in 8 Indian
languages) have already rolled out plans to bridge the language divide. Going
forward, other large and small businesses will have to develop language first
strategies if they want a pie from this huge untapped market segment.

KPI

User analytics enables you to understand users and their engagement with the app
better, and helps you put measures in place to ensure that they stay engaged.
Although I deduced that growing app downloads, good user engagement and
retention are all signs of an app growing they are not enough for the app to sustain
itself. App developer will eventually have to look at ways that ensure that their apps
make money. The final leg of my journey would take me to Planet App Monetization
a massive but lesser explored terrain that held the secrets to making money out
of your apps and growing your app business.

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69

App Monetization
When it comes to India, people are less likely to buy an app. How does an
app business sustain itself then? The only way an app business can sustain
and grow is if the apps make money. How does an app make money? What
other monetization model can app developers choose? The answer to these
questions were waiting for me on Planet App Monetization.

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Section 4 : Monetization

Goal

Log 1: App Monetization Models


KPI
There are many ways through which app developers can make money out of their
apps. Each of them have certain pros & cons and are best suited for particular
type of apps. These are the various monetization models available to app
developers:

1. Pay per download


Description
Apps charge users an upfront fee to download the app
Developers can set their own price starting as low as INR 10

Pros
Earn revenue upfront with every new download
Consumers who have paid for an app are more likely to turn into engaged
users (since they spent money to purchase the app vs. choosing a free one)

Cons
Success depends upon the ability to convince users to buy the app instead of
free alternatives
Value proposition offered by a paid app should be strong enough to compete with
alternatives
App stores may take upto a 30% cut of the revenue from paid apps

Suited For
Apps with a niche audience looking for a high-end solution
Apps which provide unique feature set and/or content
Business-to-business apps can gain traction with this model as
enterprises are willing to invest in useful products on useful products

2. In-App Purchases (IAP)


Description
This monetization model depends upon selling of digital goods within the app
Digital goods can be virtual currency, power-ups, unlocked features, faster
progression through levels,emoticons, stickers,time-bound content access,etc.

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71

Pros
Easy to incorporate in the existing framework of the app
The profit margin is usually high with this model because app developers are
selling digital goods
Can be used in conjunction with other business models such as advertising

Cons
App stores may take upto 30% of the revenue for virtual goods purchased inside
an app
According to AppsFlyer, only 3.1% of users in India spend money on in-app
purchases compared to 5.2% globally

Suited For
Apps with multiple levels of content or features where basic features can be
offered for free and advanced can be paid for

3. Freemium
Description
The app is free to download, however users can upgrade to a premium version of
the app with more features for a fee
Freemium is a combination of free, ad supported and paid models

Pros
Since the app is offered for free, it lets developers attract a large group of users
and get them hooked to the app
Users are able to test the service before committing, which means less risk for
them
For many app types, developers will be able to charge for the premium version on
a monthly basis

Cons
Success depends upon the ability to find a balance between features which need
to be part of paid vs. those in free versions
If app developers offer too many features for free, it will be too hard to convince
the existing user base to pay for an upgrade. And if they dont offer enough for
free, itll be hard to get users to see the apps value

Suited For
Apps that have a clearly valuable and intriguing free version and compelling paid
perks

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4. In-App Advertising
Description
In this monetization model, advertisers pay app developers to place advertisements in their app
Ads can be shown based on user's interests, location, demographics, and other
intent signals
Developers can do this independently (directly work with advertiser) or work with
a mobile ad partner that has relationships with many advertisers, making it easy
for developers to start showing ads in their app right away

Pros
Effectively lets developers monetize their non-paying user base
Easy to incorporate as there are easy-to-implement tools and ad platforms that
enable developers to start making money from ads quickly
An eMarketer estimate suggests that mobile advertising will be a USD 104
billion market by 2016
Consumers are becoming more receptive to mobile ads due to engaging ad
formats

Cons
Success depends upon getting the ad format and its placement right, as an ad
that breaks the user experience can lead to users exiting the app or abandoning
the app altogether
If not done correctly, it will lead to an intrusive user experience

Suited For
Any app which cannot be a paid app and wants to monetize its non-paying users
There are many app monetization approaches that app developers can use to their
advantage. Each has its pros and cons. However, the uniqueness of the Indian
Apponomy renders some of these models ineffective. I decided to find out why.

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73

Log 2: Selecting the Right Monetization Model


Analysing the monetization models and the Indian app user scenario resulted in
data that can help Indian developers select the right monetization model:

1. Paid Downloads:
3 in 4 people expect apps to be free1
Globally, free downloads account for 97% of total app downloads while in India
they account for almost 99%1

2. In-App Purchases (IAP):


Blame it on the lack of credit card penetration, or their aversion to paying for
in-app content, IAP is not a big hit among Indian app users. In fact, only 3.1% of
mobile app users in India spend money on in-app purchases compared to 5.2%
globally. This means that this option is not likely to yield the best returns for you
in this apponomy2

3. Mobile Advertising:
Advertisers want to advertise in your apps
Advertising spend on mobile in India is pegged at USD 240 million in 2016 and
is estimated to reach USD 1.5 billion by 2020, growing at a strong CAGR of
65%3
Mobile saw a 116% rise in ad spends between 2014 and 20154
Out of all the available monetization models, advertising is the most popular
revenue model among app developers globally5
A hybrid approach of IAP+Mobile ads can prove to be the optimum approach
Through proper segmentation, developers can monetize users who are most likely
to pay through IAP, while the non-paying users can be monetized through in-app ads
Innovative ad formats such as rewarded video can act as a trigger for non-paying
users to make an in-app purchase
Easy-to-implement tools and ad platforms are making it simple & easy for
developers to start making money from ads quickly
1 Priori Data, 2 AppsFlyer 2016 IAP spends report, 3 KPMG FICCI 2016 Report
4 IAMAI-IMRB 2016 Digital Advertising Report, 5 VisionMobile Commerce of Things Report

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Section 4 : Monetization

The next stop in my journey across Planet App Monetization was where I found out
more about mobile advertising. Merely choosing the mobile advertising model is
not enough. To ensure that the ad experience is engaging and non-intrusive,
developers need to know what ad format can best suit their app and user
experience. So I drilled deeper into the surface and uncovered a lot more data that
could throw light on mobile ad formats.

Log 3: Choosing the Suitable Ad Format


There are many ad formats available for developers to choose from. However, every
format has its pros and cons and cannot be used in all mobile advertising
instances. The app design and user experience is crucial to choosing the
suitable ad format

Native
Pros
Non-intrusive and natural user experience
57% higher CTR than traditional banner ads6
Deliver 6X higher conversions than traditional banner ads thereby increasing
monetization potential7

Cons
Requires effort to adapt the ad to match the surrounding look and feel of the app

Recommended For
Apps & games

Best Practices
Ensure that the ad is designed in a way that it blends with your app content.
This can be done by ensuring that elements such as the ad font and color are
similar to those in the app.
Clearly label the native ad as "Sponsored", "Promoted" or "Ad" to distinguish it
from the rest of the app content
6,7 IPG Media Labs Exploring effectiveness of Native Ads

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75

In-Stream Video
Pros
Drives higher user engagement resulting in better conversion rates
Flexible and includes a variety of options such as: pre-roll, mid-roll, post-roll
Holds higher revenue earning potential for developers

Cons
Performance can be affected by mobile data speeds

Recommended For
Apps & games

Best Practices
Provide a skip option to the user after 5 sec of the ad
Pre-cache the video ad to counter any latency related issue

Rewarded Video
$

Pros
Ad unit is unobtrusive to the user as it is an opt-in experience
High completion rate as users voluntarily opt-in leading to higher revenue
potential

Cons
Developer needs to create right hooks in app where the user feels the need of
virtual currency

Recommended For
All games & apps with virtual currency

Best Practices
Have a wallet in your app to provide the user a centralized view of his in-app
currency
Reward users basis progress in the game. Loyal users get bigger rewards

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Section 4 : Monetization

Banner
Pros

Very quick to deploy


Easy to integrate
Can be executed in large volumes

Cons
Low CTR and conversion rates (though these numbers can be improved with
campaign optimization strategies)

Recommended For
All apps

Best Practices
Avoid placing banner ads over text, images, and other clickable portions of the
app to prevent accidental clicks

Interstitial
Pros
Since it offers larger space and higher exposure than banner ads, it
holds a comparatively higher revenue earning potential
CTR almost 2-3X higher than banner ads
Can offer animated and interactive content

Cons
Requires measured approach and consideration regarding placement

Recommended For
All apps and games

Best Practices
Ad placement should not be in way that its appearance surprises users or
interrupts the natural user flow in the app. The ad should be placed in such a way
that it appears at an appropriate moment, for instance when a user completes
an action such as completing a level or a purchase in the app

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77

Expert Opinion

Good App User Experience + Right Ad Experience =


Successful App Monetization
A good user experience is critical to the success of
an app. Users will steer away from an app or simply
uninstall if they find that it is not intuitive or user
friendly.
A few experts have already touched upon the
various aspects of an apps lifecycle, such as good
app design, user experience and localization. What I
would like to throw light upon now is how a mobile ad
experience can affect your user experience.
Say youve got a great app and it is quite popular
among its users. Its time your app sustained itself
Prashant Dixit
and so, you look at monetizing it. However,
VP & Business Head, VMAX
everything right from your choice of ad formats to
their design and placement in the ad will impact your
user experience, either positively or negatively depending on the choices you make.
Therefore, heres what you need to know:
1. Ads that your users will like
The user analytics tools that you use would have given you a good idea of what your
app users are like. You know their app usage patterns, the time spent on the app
and even what they like or dislike about your app. On one hand, these insights will
help you decide when to serve them ads. However, when combined with the right
advertising platform these insights can help you show ads in your app which are
relevant and contextual to your users.
Showing an irrelevant ad to your app users can affect user experience as it can
often be perceived as something that breaks the users flow in the app. It will also
not yield the desired result as users will simply not click on an ad they do not find
relevant. Therefore, look for a platform that can help you put these user insights
to good use and serve relevant ads in your app.
2. Choosing the right ad format
Your app experience will decide the ad experience you choose. Here are a couple of
examples that will help you choose an ad format that is best suited for your app
experience:

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Expert Opinion
a. Native ads: Native ads when tailored to match your content experience can
blend in seamlessly, resulting in a smooth, unobstructed user experience. High
levels of customization give native ads the ability the blend in with any app
experience, be it news, music apps and even mobile games, as long as their design
and placement matches the app experience. Users love them too and industry
studies suggest that 53% users prefer to view a native ad over a banner ad. 85%
of mobile users are said to be visually engaged by native ads.
b. Rewarded video: If you have a gaming app, rewarded video is the way to go. You
can incentivize the users engagement with the ad with in-game currency. The
nature of rewarded video ads is such that they appear as an extension of the
gaming experience thereby enhancing the overall user experience. In fact, users
look forward to engaging with such ads and industry figures back this trend. 62%
of mobile game players engage with a video ad for incentives while 54% users
prefer rewarded videos as a way to pay for a mobile game.
Other ad formats such as video, interstitial and banner when used the appropriate
way can also help ensure that user experience remains unaffected.
3. Serving ads at the right time
Nothing annoys users more than an app experience interrupted by a mistimed
ad. Ensure that your ads are placed smartly and appear at the right time. Here
are a few best practices to keep in mind when looking to deliver a seamless ad
experience:
a. If you know that your user base is often in a location where mobile internet
connectivity can be spotty, deploy ads in your apps wisely. If its video ads, a good
idea would be to ensure that the ad is served only when the user is connected via
Wi-Fi. In case of other ad types, it would be advisable to have the ads preloaded
whenever good connectivity is available, even if they need to be served at a later
point.
b. Look for breaks in the app user flow to serve an ad. Dont serve an ad before or
while a user is completing an activity. Users find this very obtrusive and may avoid
using your app or abandon it altogether.
Remember that the right ad format and right ad type are half the formula to
successful app monetization. The way you leverage your ad experience to enhance
your app experience will determine whether users engage with your ad, which is
critical for your app monetization to deliver maximum yield.

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79

My learnings from the last two stops suggest that an important piece of the
mobile advertising model is choosing the right ad partner. The choice of ad partner
determines the quality of ads and the value developers can get out of them.

Log 4: Selecting An Ad Partner


I have analyzed all the data derived from this leg of the journey and heres what
you need to know when selecting an ad partner:

1. What ad formats does the ad partner provide?


Developers need to strike a balance between ads and user experience as the risk
of user retention falling is high. You should be sure to check if the ad platform they
are considering has the range of ad formats from native (which are less intrusive),
video, rewarded video, offerwall to traditional ad formats such as banner and
interstitial that fit best with your design and user flow.

2. What are the eCPM & Fill rates offered by the partner?
Effective cost per mille (eCPM) is the ratio of earnings to the total number of
impressions in thousands. Fill rate is the ratio of number of ads delivered to the
number of ads requested.
Choosing a mobile ad network solely based on its average eCPM has a limitation
because eCPM measures performance on a relative basis. Only when combined
with the fill rate and the estimated monthly impressions can app developers get a
good sense of the expected earnings in absolute terms. An ad network with high
eCPM but a low fill rate, may make developer's less money, overall, compared to an
ad network with a lower eCPM, but higher fill rate (assuming impressions are
equal). Following example will help you better understand how the two metrics
affect your revenue:

80

Network 1

Network 2

Impressions

1,000,000

1,000,000

Fill Rate

30%

90%

eCPM

$2

$1

Total Revenue

$600

$900

Section 4 : Monetization

There are many factors that will cause significant fluctuations in eCPM, such as
the seasonality of advertising campaigns and the quality of traffic developers send
from their apps. App developers need to anticipate fluctuations, especially if they
are working with a single mobile ad network, and use the networks average eCPM
to get an order-of-magnitude feel of what to expect.

3. How are their payouts?


It is always imperative to check in advance the following payment terms to avoid
unpleasant surprises.

Payment methods:
Mobile ad networks often support a limited number of payment methods and
developers must make sure that their individual circumstances can be covered
before they start integration.

Payment schedule:
This is usually not a deal breaker, but some networks offer a faster payment
schedule than others.

Minimum payouts:
Mobile ad networks have a minimum payout threshold which usually varies for
different payment options.

4. What technology is being offered?


App developers can also evaluate a mobile ad network based on its technology.

SDK:
A lightweight SDK that has been battle-tested enough will ensure that the apps
performance will not be impaired at any time across multiple platforms

Dashboard:
A fully-featured dashboard can offer thorough monitoring and effortless
fine-tuning which helps in both maximizing revenues and increasing transparency

Ad Server:
This component is the most difficult to evaluate but among others, low-latency
infrastructure and yield optimization algorithms are the backbone for a good
eCPM, so you can use that as a proxy

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81

5. How is the customer support and does the ad partner offer ease of
integration and documentation?

Can app developers quickly get in touch with someone to answer their questions
or is it difficult to reach an actual person?
Most developers will have questions when integrating an ad network, so it is
important to be able to easily get in touch with someone.
Also, developers need to check what documentation and online resources does the
ad partner offer to help get answers to questions outside of normal business
hours.
Ad partners offering a dedicated account manager can go a long way in helping the
developer.
However, there is an abundance of ad networks, each with their own unique set of
demand. As a result the best demand is spread across various ad networks. To
cohesively capture this demand, they must work with multiple networks
simultaneously.
Individually integrating each ad network would however lead to:
Increase in app size due to multiple ad network SDK integration
Wastage of time on managing multiple apps on separate ad network
dashboards
Risk of low revenue or fill if the selected networks cannot scale with the
app or offer the performance the developer was seeking not to mention
the fact that the demand from each network isnt optimized
Ad mediation can solve this disconnect. By organizing and aggregating disparate
ad networks, mediation can enable transparency and access of all available
demand sources into one, centralized platform.

So what is an ad mediation platform?


It is a technology which enables a developer to show ads from multiple ad sources
through a single SDK. Additionally, it optimizes key ad network data like response
time, fill rate, eCPM and CTR. These metrics can then be mapped against filters
such as region, app type, and device format in real time, to help developers find
the most relevant and highest paying demand for their ad supply.

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What are the benefits of an ad mediation platform?


a. Maximized revenue yield by creating competition among ad partners for
each ad spot

b. High fill rates as ads are sourced from multiple ad agencies, programmatic
buyers (DSPs), global and regional ad networks and your ad spots are open to
multiple ad partners

c. Whether it is display, video, native or incent, you can use the ad type that
is best suited to your app monetization needs

d. Gives you complete control of your app monetization plan as it allows you to
set:
CPM threshold for programmatic buyers
CPC benchmark for ad agency campaigns
Weightage for ad networks of choice
In addition to this, it also allows you to customize your plan at a country-level.

e. Helps you get a transparent and unified view of your apps monetization across
all ad partners through one single dashboard

f. Keeps your app light by avoiding multiple SDK integration from different ad
partners

g. Some platforms also offer features such as ad revenue auto-optimization in


which the platform through a set of algorithms, finds the best source from
multiple ad partners, be it for any ad type. This ensures maximum yield for your
VMAX is one such app monetization platform that offers these features,
simplifying life for app developers. Through a single SDK, app developers get access
.
to multiple ad types and ad partners. With features such as free mediation,
Real-Time Bidding (RTB), direct deals and unified reporting, VMAX delivers maximum
yield for app developers.
My journey, exploring Indias Apponomy concludes here. I have successfully logged
everything that I think developers will find useful through the entire lifecycle of their
apps. This playbook should serve as a handy guide to all their requirements when it
comes to understanding the Indian app market and its dynamics, developing and
marketing apps in this Apponomy and finally, growing their app business through
monetization.
End of log.
APPollo

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83

ABOUT VMAX
VMAX is the leading app monetization platform in
India & Southeast Asia. The platform is a simple yet
comprehensive solution for app publishers looking to
boost their ad revenue. VMAX empowers app
publishers by offering them complete control,
access to multiple ad partners and all ad types. The
VMAX platform delivers highest yield from ads for
app publishers combined with exceptional features
like free mediation, real-time bidding (RTB), direct
deals and unified reporting. With an unmatched
on-ground & local presence in India & Southeast
Asia, VMAX extends dedicated support in making
ad monetization hassle-free.

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APPollo

Connect with us:

You can connect with us on social media: www.vmax.com/socialmedia


You can also write to us at: hello@vmax.com

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