Monetary Model

Monetary Model:

In App Advertisements:

In-App advertising is growing very quickly and makes up about 72% of all total mobile ad spend (business2community.com). This is partially attributed to the free-to-download apps becoming a standard in the app marketplace. Through the placement of native ads on the different community, intstagramesque news feeds, fitbitmom can begin to generate a revenue without charging moms. fitbitmom can use data collected through app and organize it in a similar way to Twitter Analytics to attract advertisers. In-App advertisements need to be non-intrusive during daily use, in respect to the audiences’ availability. This will be a good start when the app is launched because users will be attracted to the free download and this will save money in other areas rather than spending it on traditional media.

• Native ads
• If applicable, discounts for users will be integrated
• Interactive polls and quizzes
• Use video content as one type of ad available

In App Purchases:

Although fitbitmom could be free, we can still offer in app purchases. This can allow users to get the most out of the app. Whether its doing a “loyalty club” with customized workouts just for the user or some type of meal type prep for her and the baby, this can be a beneficial.

• Monthly/ yearly subscriptions
• Increases sessions lengths the user spends in the app
• Ensures marketers money is being invested confidently with users
• Possible baby merchandise
• Upgraded version of a feature within the app
• In-app advertising spend, in particular, is expected to grow at a 23% CAGR, outpacing mobile app store growth, to exceed $200 billion in 2021.*2

Sponsorships:

Having brands and advertisers sponsor different parts of the app allows advertising help to enhance your app and have users be more engaged. Having an incentive program in place can reward users with points, discounts, prizes, etc

• Advertisers gain inclusion in your app by funding rewards for your users, who earn these rewards by engaging more with your app.
• App developers and marketers earn revenue, advertisers get more ad space, and users benefit from free promos
• Ex. “Pampers Diapers 5k”
• *1- 63 percent of smartphone owners say they are more likely to click on a mobile ad that offers a coupon to a nearby store.4

Emails:

Send out daily/weekly emails to users to help drive them to app. Have some type of incentive for signing up (ex. Discounts off products, exclusive articles, etc)

• Users rarely change email
• Makes marketing easy to see content
• Engaged a push notification on smart phone
• *1-Users who enable push have 88 percent higher engagement and nearly three times higher retention than those who disable it.
• According to Wiselytics, the total life of a Facebook post is only a few hours, while a tweet’s lifespan is just over an hour. Email, on the other hand, has a lifespan of 12 days.

Partnerships:

Teaming up with another company can boosts revenue extremely. Having a partner with similar interests or target audiences can help with advertising and attraction of users. Showing the customer that both companies can benefit the customer gives more of an opportunity to spend more time in the app.

• Athletic Clothing (Rebook, Lululemon)
• Pampers, Huggs
• Amazon
• TV shows about Family and Moms (like on ABC, Blackish, American Housewife, and NBC’s This is US)

Research:

• Top20% of smart phone users uses more than 45 apps every month
• Total time spent in apps worldwide in 2016 reached 1.6 trillion hours, an increase of more than 50% year over year. Across mature markets, users on average are spending two hours per day — which equates to one month out of every year — in apps.
• Forecast that time spent in apps will more than double to 3.5 trillion hours in 2021.
• This has already led worldwide mobile app store and in-app advertising combined spend to exceed $134 billion in 2016