Ignition West: How to make money in mobile apps
May 2, 2012, 7:47am PDT | Length: 00:01:46
At Ignition West in San Francisco, Todd Chaffee, managing director of Institutional Venture Partners, talks about the best strategy for monetizing content on mobile devices.
>> Well do you have any portfolio companies, Todd phonetic, that are inaudible mobile in a new and interesting way? And how are they doing it besides the ad market place or if it's in the ad market place, how are they doing it because that inaudible is very scary?
>> Todd: The secret mobile at the moment is create such a fantastic app that people will pay for it. I mean that's -- it's just the reality -- the mobile phone is not conducive to advertising. It's intrusive. You know it's just not going to work very well. There are some very innovative business models that are starting emerge but at the end of the day it's really going to be how great is your app, will somebody pay for it and there's a few things like -- I don't know if you've noticed OMG pop phonetic, the play --
>> Who could not notice OMG pop?
>> Todd: I mean that thing has just taken off like a rocket and the engagement metrics and that's what you're just looking at right here are off the charts. Sixty-two percent of the people that have downloaded our daily app inaudible users. That's phenomenal.
>> Why is that app so addictive?
>> Todd: It's a great -- it's fundamentally a great app and it's got biocomponents phonetic and it's social and one thing we tell our portfolio companies, socialize mobilize. I mean you have to have at this -- basically you have to have very strong integration into Facebook and Twitter and you have to have your mobile strategy, both the mobile phone and tablets completely integrated into your strategy. Otherwise you're going to be kind of looking at a subset of the overall marketplace.