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CHINA FOR THE WIN!

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CHINA FOR THE WIN! What Publishers Need to Know to Succeed in This Emerging Market Infrastructure for in-app video advertising


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A LITTLE ABOUT ME Colin Behr VP, Business Development & International @colinnathanbehr colin.behr@vungle.com


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10,000 196 countries served 2 Billion+ monthly video views 200 Million monthly unique devices top apps


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IF YOU REMEMBER ANYTHING FROM THE SESSION… The opportunity is vast Entering China is complex, but not impossible Control is worth the challenge


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HOW VAST? 550M mobile devices 240M mobile devices 96% have at least one gaming app installed 28% spend more than an hour a day playing Chinese mobile gamers install a new game every 3.48 days Sources: Nielsen: bit.ly/17gCjes; TalkingData: bit.ly/1JqaPVf; Venture Beat: http://ow.ly/JHAIZ; Pew Research: http://ow.ly/JHAPl


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2014 GROWTH IN MOBILE GAMES Developers 84% 236% Total Revenue Source: talkingdata.com/index/#/datareport/-1/en_us Users 162%


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7 Realities of Publishing in China


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Reality #1: Android dominates the market


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ANDROID DOMINATES THE MARKET 68% market share 32% market share Source: talkingdata.com/index/#/datareport/-1/en_us


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Source: xiaomishop.com


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GOOGLE’S MARKET SHARE IN CHINA “Chinese Android users only used Google Play for downloading 5.6% of all mobile apps on their devices.” -Umeng Analytics 68% 5.6% Source: Umeng Analytics; TalkingData


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Reality #2: 100s of app stores = a fractured market


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72.6% of apps in China are from alternative app stores Source: bit.ly/1Lemowm


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360 MOBILE ASSISTANT 360 is virus prevention software Huge Android app store 275 million monthly users 30 billion downloads Offers localization support to developers


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TENCENT MYAPP After captivating players in the US, MinoMonsters sought to reach an international audience. Partnering with Vungle, MinoMonsters attained a 6x increase in installs worldwide. Developed by Tencent, who started messenger QQ (829 million active users) Also connects to QQ browser and WeChat 110 million daily downloads (Dec 2014) King launched Candy Crush Saga on Tencent


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BAIDU After captivating players in the US, MinoMonsters sought to reach an international audience. Partnering with Vungle, MinoMonsters attained a 6x increase in installs worldwide. Search giant used by more than 700 million Has its own app store with direct integration to search results Recently acquired 91 Wireless, increasing its reach into app distribution


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Reality #3: Culturalization is critical


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LOCALIZATION VS. CULTURALIZATION PocketGems is a leading mobile game developer with over 150M downloads. Vungle drives a record-breaking volume of impressions for PocketGems worldwide. Source: bit.ly/1vHbYfA


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GOOD CULTURALIZATION PocketGems is a leading mobile game developer with over 150M downloads. Vungle drives a record-breaking volume of impressions for PocketGems worldwide. Use culturally relevant scenarios Tie thematically into holidays Run relevant advertising


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Reality #4: Mobile piracy is rampant


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MOBILE PIRACY IS RAMPANT PocketGems is a leading mobile game developer with over 150M downloads. Vungle drives a record-breaking volume of impressions for PocketGems worldwide. Consumer piracy Competitor piracy


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Reality #5: Social doesn’t mean Facebook and Twitter


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Wechat (Weixen) Messenger app Sina Weibo “Chinese Twitter” RenRen (means “schoolyard”) Social network for college students or connecting with old friends Tencent Weibo Microblogging with focus on communication among friends QQ & Qzone Messenger app & Facebook-style social network 73% of market share +


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Reality #6: Your APK must be hosted in country


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Reality #7: Monetization must go beyond IAPs


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SUCCESS WITH A PAID APP IS POSSIBLE, BUT HARDER Source: TalkingData bit.ly/1JqaPVf


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CHINESE USERS ARE SPENDING MORE MONEY IN APPS Source: talkingdata.com/index/#/datareport/-1/en_us


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CHINESE USERS ARE SPENDING MORE MONEY IN APPS Source: talkingdata.com/index/#/datareport/-1/en_us


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USE THE RIGHT BILLING PARTNERS TO BOOST IAPS Transactions by Payment Method Spend by Payment Method AliPay, 59% AliPay, 49% UniPay, 20% UniPay, 25% TenPay, 10% TenPay, 13% Service Card, 7% Service Card, 7% Pre-paid Card, 4% Pre-paid Card, 6% Source: TalkingData bit.ly/1JqaPVf


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In China, 9 in 10 smartphone owners clicked on a mobile advertisement in the past month. Source: “Mobile Advertising in China,” Price Waterhouse Cooper, May 2014


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In-app video ads extended user session length by 25%


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PLAN FOR MONETIZATION FROM THE BEGINNING Peak Median half-life of games: 2 months post-peak $ Source: Benchmarking the Half-Life and Decay of Mobile Apps, Flurry.com 2/20/14


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PARTNERS


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WHERE DOES THIS LEAVE YOU? DEPENDS ON YOUR SIZE.


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IF YOU REMEMBER ANYTHING FROM THE SESSION… The opportunity is vast Entering China is complex, but not impossible Control is worth the challenge


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MEET THE SPEAKERS! Join us tonight from 6-8pm @ Oola (RSVP in back) Ben Bear VP, Sales Colin Behr VP, Business Development and International Michal Pilawski VP, Product Jahed Momand Sr. UX Designer


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Q&A Questions?


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CHINA FOR THE WIN! What Publishers Need to Know to Succeed in This Emerging Market Infrastructure for in-app video advertising


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