Inside Mobile Apps has this great article on how Rovio is now generating about the same revenue on Android as they are on iOS with the Angry Birds game. The author lists the following insights to this telling fact:
1. We’re comparing a platform with primarily one-off revenue to a platform with continuous revenue. On iOS, Angry Birds monetizes mostly through paid downloads. Now that the app has seen about 100 million installs across all platforms, Rovio is not getting the same initial bump in paid download revenue from Apple’s app store. On Android, the company doesn’t offer paid Angry Birds apps, but sees recurring revenue from advertising. 2. Android’s pool of apps is smaller and less competitive with only 150,000 apps to Apple’s 350,000. In fact, Angry Birds advertising inventory is so large that it equals AdMob’s inventory from 2 1/2 years ago. It’s so enormous that other AdMob-dependent developers have told us that it’s hard for them to fill their inventory because Rovio’s titles absorb so much. 3. The sheer number of users is starting to work in Android’s favor. Android recently overtook Blackberry-maker RIM as the leading smartphone platform in the U.S. in January, according to Comscore. While there aren't many developers/brands who have realized the success that Rovi has with Angry Birds, there is a lot to learn from watching their platform/monetization strategy. In particular, their strategy with Android in utilizing the Freemium model to generate revenue at a level comparable to the iOS platform is impressive. In relation to Inside Mobile Apps points above, it is also worth noting the following: 1. Rovio has accomplished their success on Android through Advertising. It will be interesting to see where they go with virtual goods on the platform and what the revenue pie chart will look like a year from now. 2. The Angry Birds game is already attracting large brands as advertisers (Bing, Best Buy etc.). There is room for some major creativity to go into campaigns and having a network that large should provide a good sandbox to play and experiment in with new ad units and ideas. 3. This may be comparing apples to oranges but it can't be out of the question (especially given where mindshare is these days) to think the Android user base could soon be viewed as a rival to a major TV network. If that is the case, Angry Birds would be a top-rated Primetime show. 10 years ago, advertisers would have considered a spot on the tv show Friends as the perfect way to launch a major campaign. This year, the way to go may be a interstitial video when Rovio launches the next level in Angry Birds Seasons.
