mike hines, amazon
Post on 12-Feb-2017
894 Views
Preview:
TRANSCRIPT
WHAT THE TOP 50 APPS DO WITH IAP THAT THE REST OF US DON’T
Reach � Engage � Earn
MIKE HINESDEVELOPER EVANGELIST, AMAZON
@MikeFHines mikehines45
mihines@amazon.com
CREDIBLYINNOVATEPHOTOHERE
WHITE NIGHTS ST. PETERSBURG 2016
TODAY’S AGENDA
How the Top 50 Did With IAP
What They Do Differently
When to Put IAP on Sale
SELL IN 236 COUNTRIES AND TERRITORIES
AndroidDevs
iOSdevs AmazonFireOS
41%48%
60%
%Develop
ersa
bovePovertyLine
Source: Developer Economics Q3 2014 © VisionMobile, All Rights Reserved
How do we get moreDevelopers earning more revenue?
Anappmustmakemorethan$500permonthifitistofundfutureappdevelopmentandmarketing.$500permonthistheapppovertyline.
Appstore Programs and Promotions Overview
5
How the Top 50 apps did vs. the rest of us
COHORT ANALYSIS
Group A: Top-50 Grossing
Source: Amazon Appstore, March 2014
Group B: Rest of Freemium
DAY 1: INSTALLS
Group A: Top-50 Grossingiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiii
Source: Amazon Appstore, March 2014
Group B: Rest of Freemiumiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
100100installed
DAY 1: ACTIVE USERS
Group A: Top-50 Grossingiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiii
Source: Amazon Appstore, March 2014
Group B: Rest of FreemiumiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiIiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
4142In
active
5958active
DAY 1: UNINSTALLS
Group A: Top-50 Grossingiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiii
Source: Amazon Appstore, March 2014
Group B: Rest of FreemiumiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiIiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiii1318uninstalled
5958active
DAY 1: PAYING USERSGroup A: Top-50 Grossing
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiii
Source: Amazon Appstore, March 2014
Group B: Rest of Freemiumiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii1318
uninstalled
5958active
33paying
2.62.9
Source: Amazon Appstore, March 2014
DAY 1: ENGAGEMENTGroup A: Top-50 Grossing
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiii
Group B: Rest of Freemiumiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii1318
uninstalled
5958active
33paying
# of sessions / active
session length / active(minutes)
× =
avg. session length(minutes)
6.97.4 1822
6.97.4
2.62.9
DAY 1: REVENUEGroup A: Top-50 Grossing
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiii
Source: Amazon Appstore, March 2014
Group B: Rest of Freemiumiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
=×# of items / paying
100%11
2%
avg. selling price
100%
136%
100%
154%
ARPPU
1318uninstalled
5958active
33paying
# of sessions / active
session length / active(minutes)
× =
avg. session length(minutes)
1822
Source: Amazon Appstore, March 2014
1 DAY LATER…Group A: Top-50 Grossing
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiii
Group B: Rest of FreemiumiiIiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiii
# of sessions / active
session length / active(minutes)
×
avg. session length(minutes)
1725uninstalled
3437active
11paying
=×# of items / paying
100%10
6%
avg. selling price
100%10
7%
100%
114%
ARPPU
6.77.7
3.23.5
2127=
# of sessions / active
3 DAYS LATER…Group A: Top-50 Grossing
iiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiii
Source: Amazon Appstore, March 2014
Group B: Rest of Freemiumiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiii
# of sessions / active
session length / active(minutes)
×
avg. session length(minutes)
1928uninstalled
1923active
=×# of items / paying
100%
107%
avg. selling price
100%12
2%
100%13
1%
ARPPU
5.9
7.92.6
3.215
25=
# of sessions / active
1 WEEK LATER…Group A: Top-50 Grossing
iiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
Source: Amazon Appstore, March 2014
GroupB:RestofFreemiumiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiii
# of sessions / active
session length / active(minutes)
×
avg. session length(minutes)
2032uninstalled
1418active
=×# of items / paying
100%10
2%
avg. selling price
100%
121%
100%
124%
ARPPU
5.77.4
2.63.2
1524
=
# of sessions / active
2 WEEKS LATER…Group A: Top-50 Grossing
iiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
Source: Amazon Appstore, March 2014
Group B: Rest of Freemiumiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiii
# of sessions / active
session length / active(minutes)
×
avg. session length(minutes)
2134uninstalled
1014active
=×# of items / paying
100%11
1%
avg. selling price
100%10
8%
100%12
0%
ARPPU
5.77.3
2.53.1
1422=
# of sessions / active
1 MONTH LATER…Group A: Top-50 Grossing
iiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
Source: Amazon Appstore, March 2014
Group B: Rest of Freemiumiiii
iiiiiiiiiiiiiiiiiiiiiiii
# of sessions / active
session length / active(minutes)
× =
avg. session length(minutes)
2236uninstalled
48active
=×# of items / paying
100%10
3%
avg. selling price
100%
128%
100%
131%
ARPPU
5.97.3
2.43.1
1423
# of sessions / active
Hours Since App Download
IN-APP PURCHASING BY HOUR
Source: Amazon Appstore, March 2014
0 24 48 72 96 120 144 168 192 216 240 264 288
PRICE INCREASES OVER TIME
Days User Owned App
80%90%
100%110%120%130%140%150%160%170%
1 4 7 10 13 16 19 22 25 28
Source: Amazon Appstore, March 2014
+60%
averageselling price
WHAT WE LEARNED
The top have higher average price pointsYou can charge more in the right place and time.
Session length and count are importantRetention is not the only important metric.
Appstore Programs and Promotions Overview
21
What the top 50 do differently-- Selling
THE TOP DEVELOPERS KNOW THE NUMBERS
?
ENGAGE CUSTOMER EARLY
MAKE IT EASY TO COME BACK
GIVE THEM A REASON TO COME BACK
37% of users who will purchase, purchase on the first day
48% of repeat purchases happen within one hour of a previous purchase
64% of revenue comes from 3rd order +74% of revenue occurs after first 7 days56% of revenue occurs after first 30 days
2016 Swrve data shows
17% OF PAYING USERS BUY 3+ ITEMSIn any given month.
©Swrve 2016MobileMonetizationReport– usedwithpermission
THE TOP DEVELOPERS KNOW THE NUMBERS
?
ENGAGE CUSTOMER EARLY
MAKE IT EASY TO COME BACK
GIVE THEM A REASON TO COME BACK
37% of users who will purchase, purchase on the first day
48% of repeat purchases happen within one hour of a previous purchase
64% of revenue comes from 3rd order +74% of revenue occurs after first 7 days56% of revenue occurs after first 30 days
Apps with tutorials that introduce IAP items
HAVE A 2.5x HIGHER CONVERSION RATESource: Amazon Appstore, July 2013
Apps showing users how to “consume”
GET MORE REPEAT ORDERSGames that providing a post-purchasing tutorial generated 65% more repeat orders than the market average.
Source: Amazon Appstore, March 2014
Games with bigger selection
RECEIVE MORE ORDERS PER CUSTOMERDevelopers that add new items regularly are able to re-engage their paying customers. 1.14% of the customers generate 30% of sales.
Source: Amazon Appstore, March 2014
69%
100%
145%
1-5 Items 6-10 Items
11-15 Items
ARPPU by # of IAP items for sale
Conversion Rate
INDEX: Average = 100%
DON’T CONFUSE YOUR CUSTOMEROFFER VARIETY, BUT NOT TOO MUCH
Source: Amazon Appstore, March 2014
147%
101%
52%
0%
50%
100%
150%
200%
1-5 Price Points
6-10 Price Points
11-15 Price Points
Where do apps
GENERATE THE MOST REVENUEA 2016 study by Swrveshows that disproportional revenue is generated from higher end price points.
©Swrve 2016MobileMonetizationReport– usedwithpermission
To sell more IAP items,
BE CLEAR ABOUT VALUEMake it obvious what the benefit is for buying different price items. Confused customers don’t buy anything.
More than ever it pays to,
TAKE CARE OF YOUR BEST CUSTOMERSThe top apps communicate directly with their top customers to keep them happy and engaged.
©Swrve 2016MobileMonetizationReport– usedwithpermission
WHAT WE LEARNED
Games with bigger selection RECEIVE MORE ORDERS Tutorials that introduce in-app items HAVE HIGHER CONVERSION Showing users how to “consume”
GETS REPEAT ORDERSTreating in-app items like a catalogue MAKES IT EASY TO SHOP
1.14%
of paying customers generate30% of sales
Appstore Programs and Promotions Overview
33
What the top 50 do differently-- Engagement
REDUCE BARRIERS TO FREQUENT USE
Tuning Game Difficulty
WILL ENCOURAGE LONGER SESSIONSToo hard, and users will abandon. Too easy, and they can get bored. Just right, and it becomes addictive!
When you communicate with them…
ADVOCATES DRIVE RETENTION
Appstore Programs and Promotions Overview
37
Adopting Social
CAN CREATE BUZZ AND KEEP USERS ENGAGEDThis will result in more friend-to-friend marketing as players share their achievements and ranks. Players will also compete with friends and leaders and stay engaged.
Appstore Programs and Promotions Overview
38
Leaderboards and Achievements areTHE MINIMUM BAR FOR SOCIAL ENGAGEMENT
UserAcquisition
AlternateRevenue
ContentCreation
Influencers
MonetizationLoop
GameLoop
TURN PLAYERS INTO FANS
The Top 50 apps
Design IAP into the fabric of your game
MAKE IT EASY TO BUYOffering ways to buy your IAP items when they are needed will increase conversion.
Apps that made it easy to shop
INCREASED REVENUE 75% (ARPPU)Source: Amazon Appstore, March 2014
WHAT WE LEARNED
Add social and tweak game difficulty to
INCREASE TIME AND COUNT OF SESSIONSCater to your best and longest customers with clear value
DIFFERENTIATE YOUR IAP CATALOGMake IAP items
EASY TO BUY WHEN THEY ARE NEEDED
IF YOU ONLY DO ONE THING…
Cater to your best and longest customers
DIFFERENTIATE YOUR IAP CATALOG
IF YOU ONLY DO TWO THINGS…
Cater to your best and longest customers
DIFFERENTIATE YOUR IAP CATALOG
Make sure your IAP catalogs are
CLEAR ABOUT VALUE
WHEN TO RUN A SALE
When NOT to run a saleSALES CAN HURT IF THEY…
…train users to wait for sales…postpone future revenue…don’t increase revenue…don’t retain users
How developers make sales work
SUCCESSFUL SALES HAVE…
…irregular cadence…timing when user inventory is low…ways to absorb new purchases
Case Study
WHAT GOES ON SALE?
Soft currency in terms of real $ or IAP items in terms of soft currency?
Case Study
WHAT GOES ON SALE?
AnIAPitemanditscost
Case Study
WHAT GOES ON SALE?
MyInventoryofsoftcurrency
How developers make sales work
SUCCESSFUL SALES HAVE…
…irregular cadence…timing when user inventory is low…ways to absorb new purchases
Case Study
WHAT GOES ON SALE?
PutIAPitemsonsaletoabsorbsoftcurrencyinventory
WHAT WE LEARNED
For Sales without the remorse
INVENTORY MANAGEMENT IS CRITICAL TO SUCCESSFUL SALESTo absorb in game currency
INTRODUCE NEW CONTENTTo avoid training users to wait for sales
TIME SALES USING OBJECTIVE TRIGGERS
Learn more: http://bit.ly/Top50IAPhttp://developer.amazon.com/underground
How did we do: http://bit.ly/topiapsurvey
Follow us:@MikeFHinesdeveloper.amazon.com/blog
AN ALTERNATIVE TO IAP-- AMAZON UNDERGROUND
A NEW SHOPPING APP DISTRIBUTING #ACTUALLYFREEAPPS
Turn 100% of your Android users into revenue-generating customers
Developers waive fees on apps and In App Purchase items.
Customers get #ActuallyFreeapps!
Amazon pays developers for cumulative minutes customers spend in an Amazon Underground app.
AMAZON UNDERGROUND
HOW IT WORKS
• Customers go to Amazon and download the Amazon Underground shopping app
• Customers download your app from Amazon Underground
• Total user minutes are multiplied by our payout ratio
• Developer is paid
AMAZON UNDERGROUNDHOW WILL IT WORK FOR YOU?
• Back-of-the-napkin• Back it out of ARPU
$0.002foreveryuser-minute
$0.12perhourperuser
AMAZON UNDERGROUNDHOW WILL IT WORK FOR YOU?
• Back-of-the-napkin• Back it out of ARPU
10KUsers150KMinutes
150Kx$0.002=$300
REVENUE = SESSIONS X MINUTES X RATE
For100%ofyourusersEveryminutetheyuseyourapp
http://bit.ly/undergroundcalculator
developer.amazon.com/underground
AMAZON UNDERGROUND
WHO IS ELIGIBLE• Premium apps that will be free• Freemium apps that make IAP free
Marketplaces with Amazon UndergroundUS UKGermanyFrance
Premium AppsIAP Apps
AMAZON UNDERGROUNDWHO IS ONBOARD
Zynga• Looney Tunes Dash!
MobiSystems• Office Suite 8 Pro
Halfbrick Studios• Fruit Ninja
Rovio• Angry Birds Slingshot Stella
Learn more: http://bit.ly/Top50IAPhttp://developer.amazon.com/underground
How did we do: http://bit.ly/
Follow us:@MikeFHinesdeveloper.amazon.com/blog
top related