MT-5016 BUSINESS MODEL FOR HITECH PRODUCTS

Semester -1 2015/2016

Presented by
Keerthi Reddy Saripalli (A0147197U)
Srinidhi Narayanan (A0123563L)
Turab U Deen Ghouse Mohideen (A0133065N)
Vivek Adit Suresh (A0136343L)

INTRODUCTION
FUNCTIONAL FLOW OF
INMOBI

VALUE PROPOSITION
SCOPE OF ACTIVITIES
OUTLINE
VALUE CAPTURE
STRATEGIC CONTROL
FUTURE ACTIONS

Where Are We Todayand Where Are We Going?

Today
$

Digital Media

Non-Digital Media
1995

2015

2050?

INTRODUCTION
FUNCTIONAL FLOW OF
INMOBI

VALUE PROPOSITION
SCOPE OF ACTIVITIES
VALUE CAPTURE
STRATEGIC CONTROL
FUTURE ACTIONS

a Game Changer in
Mobile Advertising

Aims to
Solve the problems of annoying and irrelevant ads

(advertisers to consumers)-MIIP
Serves for the customers Psychological and Economic Needs
Refine its recommendations over time through reactions and
emotions expressed by the consumers
Connects brands to target customers

Customers Need-Mobile Advertsing

Rich media Ads

Virtual Goods Sales

Unarticulated

Customer
Needs
Articulated

Relevant and Timely Ads

Customer Interactions
Rich Customer Experience
Personalized Suggestions

Ads which fit in device

screen
In-Line Ads with apps

Unserved

Served

Customer
Needs

Format of Traditional Mobile Ads

Text

Product
ad

Click to
Call

App
Promotion

Map
Expandable

Adjustable
width
landscape ad

Customers Feedback on
Traditional Ads

InMobis Equation

Giving Consumers the

option to choose

Showing Relevant and

Timely Ads

Showing Respect and

Being a Friend

INMOBIS NEW APPROACH

InMobi introduces a new concept called MIIP, an animated pet monkey.

MIIP a discovery platform based on artificial intelligence

Creates a discovery zone for consumers within their favorite apps
Discovery zone shows ads to appropriate customers about relevant products and services.

Googles traditional push based advertising had been challenged and overtaken by Inmobi

An animated monkey character (MIIP) observes the surfing movements of consumers over the
phone.

Humanizes the discovery experience by suggesting the products that they might want to buy.
Shows ads in the form of curated stories to connect customers emotionally and psychologically.

MIIP - d-commerce platform

CREATES UNIQUE
DISCOVERY ZONE TO EACH
USER
A platform to discover products
that truly complement the
developers app and the users
context within it.

HUMANIZED INTERACTIONS
MIIP engages users with a
trusted advisor (Monkey Buddy)
that would make relevant
personalised suggestions

MIIP

PROVISION OF BUY BUTTON

Provides a buy button option to
have an easy and seamless
transaction.

USER FEEDBACK
The ability for the system to learn
from feedback about how users
like the offerings

Advantages of Personalised Advertisements

x2 Increase in Click
Through Rates (CTR)

x5.5 Increase in
Conversion of CTR to
Purchase

InMobi-Redefining Advertising
From a Product company to Customer Engagement Platform
Provides ad platform that makes it easy for developers to integrate with.
Unlike googles admob, which integrates with adwords (enables to create

advertisements) and adsense (online advertising platform) to design the ads,

InMobi has its own SDK(software development kit) embedded with Rich media
HTML5 to create and design the ads
Targets parameters like region, carrier network, types of devices, demographics
and time of the day- Used to group the customers.
Strike the right balance between user experience and monetization
Transforming advertising into moments of discovery to the customers

InMobi- An Independent Mobile Network!

Softbank
Corp
Invests
$200mn

Joins
Hands with
Stripe for
Payments

Acquires
Sprout for
Rich Media
Ads

Strong
Foundation
in China

Expertise
in
Big Data
Analytics

GLOBAL SCALE OF INMOBI

Founded in 2007 in India with a presence in 17 countries

Offered in iOS, Android, Windows, Blackberry
One of the 50 most disruptive companies of 2013 - MIT technology Reviews
Serves over a billion users a month
Monthly revenues exceeding $1.6 million

INTRODUCTION
FUNCTIONAL FLOW OF
INMOBI

VALUE PROPOSITION
SCOPE OF ACTIVITIES
VALUE CAPTURE
STRATEGIC CONTROL
FUTURE ACTIONS

FUNCTIONAL FLOW OF INMOBI

Advertisers

Ad
Reques
t

Customize Publishers/
Application
d Ad
Developers
Content

Provide their
SDK

Mobile Network
and Devices

Analytics and
User Data

End
Users

ROLE OF ADVERTISER

Advertisers

Ad
Reques
t

Customize
d Ad
Content

Provide their
SDK

Publishers/
Application
Developers

Mobile Network
and Devices

1. Creates Ad Request
2. Lists the preferred
publisher
3. Bids for the Publisher

End
Users

Provide their
SDK

Mobile Network
and Devices

ROLE OF INMOBI

1. Integrates advertiser and

Publishers
2. Creates ad designs for advertisers
3. Performs real time bidding
4. Maximises revenue of publisher
5. Performs Data analytics and checks
for frauds.
6. Creates discovery zones
7. Engages Customers
8. Influence the customers to make
purchases
Ad
Publishers/
Reques
Customize
Advertisers
Application
d Ad
t
Developers
Content

End
Users

ROLE OF PUBLISHER..

Advertisers

Ad
Reques
t

Customize
d Ad
Content

Provide their
SDK

Publishers/
Application
Developers

Mobile Network
and Devices

1. Connects with InMobi

2. Publishes the ads
suggested by InMobi
3. Maximises ad Revenue
with InMobis services
4. Receives in time
payments

End
Users

INTRODUCTION
FUNCTIONAL FLOW OF
INMOBI

VALUE PROPOSITION
SCOPE OF ACTIVITIES
VALUE CAPTURE
STRATEGIC CONTROL
FUTURE ACTIONS

VALUE PROPOSITION OFFERED BY InMOBI

Ad
Reques
Advertisers
t

Revenue
by
publishing
ads
Customize
d Ad
Publishers/
Content
Application

Provide their
SDK

Mobile Network
and Devices

Profits
from
increasing
sales ;
brand
building

Analytics and
User Data

End
Users

Better User
Experience
(eg:Price
Comparison,
Easy
checkouts,
safe

VALUE PROPOSITION FOR ADVERTISERS (BUY SIDE)

Lower cost compared to

web and print media
For example, the effective
cost for per thousand
impressions (CPM) for
desktop web ads is $3.5
while it is just $0.75 for
mobile ads

Customized ads ensuring

that right audience is
targeted.
InMobi enables you to
precisely target users
across 20,000+ audience
segments.

Wide reach out to the

users helps in brand
building.
Brands will now have
direct access to
consumer sentiments and
emotions enabling far
richer insights that can be
acted upon

Traditional retailers and

e-commerce merchants
can showcase their
catalogues to more than
a billion mobile users
and drive sales outside
their existing stores.

VALUE PROPOSITION FOR PUBLISHERS (SELL SIDE)

Simply connect
with InMobi and
no worry about the
sale of inventory.
Ease of Integration

InMobi selects the

highest paying bid
(from the
advertisers) and
displays it on the
publishers place,
thus maximizing
the revenue
earned by the
publishers.

Cross-promotion,
which involves the
practice of setting
up apps that
promote each
other to their
audiences, is a
wonderful, free way
to promote your
app.

Improving the
app content and
performance
based on the user
data

VALUE PROPOSITION FOR MOBILE USERS

Relevant
and timely
ads

Saves time
Minimal Ad
Load time

Easy
checkouts
and safer
transaction
s

Personalize
d Discovery

Rewarded
video ads

INTRODUCTION
FUNCTIONAL FLOW OF
INMOBI

VALUE PROPOSITION
SCOPE OF ACTIVITIES
VALUE CAPTURE
STRATEGIC CONTROL
FUTURE ACTIONS

SCOPE OF ACTIVITIES
INSIGHTS

SEGMENTS

ACTIONS
Virtual good sales
Ads
Rewards
Cross Promote
And more+

User events such as purchase

or level competition

Segment users by app usage

and user attributes

Monetization and Engagement

by segment

INSIGHTS

SEGMENTS

ACTIONS

Track engagement of user base on multiple dimensions

Revenue Trend-virtual goods

Engagement - time spent, app launches

Demography- country, carrier

Capture Insight- unique to an app with custom events

INSIGHTS

SEGMENTS

ACTIONS

Segmentation is done using Appographic TargetingDESIGNING OUR AUDIENCE

Combine various attributes from each targeting parameter and create
a new segment

INSIGHTS

SEGMENTS

ACTIONS

InMobi identified over 200 appographic segments

INSIGHTS

SEGMENTS

ACTIONS

IDENTIFY THE RELEVANT GROUPING

STEP: 1 Break down apps into the functional, design and interactive
elements that define them

INSIGHTS

SEGMENTS

ACTIONS

INTEGRATE THE USERS WITH APPS

STEP: 2 Understand the elements identified and classify the users based on
their unique app interests

INSIGHTS

SEGMENTS

Target Retailers and e-Commerce Merchants

Create Rich media content using HTML 5
Cross promotion of new apps to all users
Increase retention by rewarding highly engaged users
Clean new user experience by deferring ads for new
users.
Converting impressions to eCPM by using buy
buttons.
InMobis World Developer Fund: Attract new app
developers by returning the revenue earned on their
mobile advertising (Network Effects)
A dedicated team to support and look over the click
frauds, hack attacks, data breaches etc.

ACTIONS

INTRODUCTION
FUNCTIONAL FLOW OF
INMOBI

VALUE PROPOSITION
SCOPE OF ACTVITIES
VALUE CAPTURE
STRATEGIC CONTROL
FUTURE ACTIONS

VALUE CAPTURE
The models used to measure the cost of mobile advertising are used as parameters to
determine the effectiveness of the advertising campaign.

These are parameters measure the performance dimensions of the mobile ad networks.
Cost Per Click (CPC)

Advertisers pay the publisher (typically a website

owner or a host of website) when the ad is clicked. It
is defined simply as the amount spent to get an
advertisement clicked.

Cost Per thousand

Impressions (CPM)

A traditional Advertising Model where

advertisers pay publishers for every
thousand times ad is displayed

Cost Per
Acquisition(CPA)

Advertisers pay publishers when new

customers are acquired

Cost Per Impression (CPI)

Advertisers pay for every impression of the ads.

Similar to CPM

VALUE CAPTURE (cont..)

Inmobi makes money by charging 40% of the fee advertisers pay to

the publishers.

InMobi vs Admob in value capture

InMobi

AdMob

Support provided to publishers and app

developers to improve and optimize their
product.

No such service offered by Googles

admob

A flat eCPM (ratio of total earnings by

publisher to total impressions made) is
offered by InMobi irrespective of the
number of ad impressions.
Eg: In the case of InMobi eCPM is $0.2
irrespective of the increase in impressions.

Variable pricing is offered by Admob.

Eg: In the case of AdMob if <50,000
impressions eCPM is 0.2$ whereas for
>50,000 impressions eCPM is $1.5.

InMobi favors advertisers by flat eCPM, thus trying to grab the new advertisers and increase
its advertisers portfolio.(Network Effects)

INTRODUCTION
FUNCTIONAL FLOW OF
INMOBI

VALUE PROPOSITION
SCOPE OF ACTVITIES
VALUE CAPTURE
STRATEGIC CONTROL
FUTURE ACTIONS

Strategic Control
Appropriability

Acquisition

Maintain a strong appropriability about the know how of Inmobis mobile advertising.

Acquisition of Sprout, a technology company, to develop rich media content using

HTML5.

Being a regional firm, partnering with other regional leaders shall provide an
advantage to the firm to expand its business.
Partnership

InMobi expands China Network through Strategic Partnership with Gaming Leader
CocoaChina and APUS
Partnership with Talking Data in China - Ad Performance Analytics)

Engineering Partnership with Dell it is seen as an important step for InMobi which
would give them access to Dell Labs, Dell products for software tests

Network Effects

Increase its network effects by partnering with the more publishers which leads to more advertisers and vice-versa
InMobis World Developer Fund: To attract the new app developers and to make them loyal customers.

Expansion to other markets

Capture the first mover advantage in fastest growing mobile markets.

Countries in Africa like Nigeria, South Africa etc. offer a great opportunity

Promotions

Drives customers to in-store by featuring promotions and

coupons.

31% of the customers would like to see coupons to make

more use of more ads.

Ad Blockers A Threat?!
180 million ADB
over 225 billion App
downloads not
much of a threat

Google play actively bans all the ad blocker apps from the google play store (Runs
AdMob themselves). Google play is the most famous app store for android, so the
number of android users installs from other sources is very less.
Apps which uses flash may not run properly if adblocker is installed
Even most of the third party stores remove the ad blocker apps when they found
them on the store. Because, if they support such apps then other developers will stop
publishing their app in that store

INTRODUCTION
FUNCTIONAL FLOW OF
INMOBI

VALUE PROPOSITION
SCOPE OF ACTVITIES
VALUE CAPTURE
STRATEGIC CONTROL
FUTURE ACTIONS

Future Actions
In
Technological
upgrades

Introduction of 3D Mobile Ads

Ads for Wearable Devices

In
Partnerships

In order to capture value over Google, InMobi should deal with the
language, cultural and social differences that require expert knowledge
of each market. Acquisition of more companies that shall help the
company to penetrate into international markets

In Involving
Advertisers

Introduce priority pricing-Memberships for advertisers, provision to

subscribe, upgrade and renew the memberships and thereby improve
its value capture
Establishing supremacy in e-commerce

In Involving
Publishers

Removing the concept of flat eCPM and increasing eCPM with the
increase in number of impressions

THANKS
MATE!