what the top 50 apps do with iap that the rest of us don’t
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What the Top 50 Apps Do With IAP That the Rest of Us Don’t
MIKE HINESDEVELOPER EVANGELIST, AMAZON
@MikeFHines mikehines45
mihines@amazon.com
CREDIBLY INNOVATE PHOTO HERE
IAP: Way beyond the item list
TODAY’S AGENDA
The top 50 vs. the rest of us
How they did it
What we can do
Free apps are very ‘now’.And probably tomorrow too.
In-app purchases generated only 53% of revenue in the
Apple App Store for iPhone in January 2012 in the U.S.,
But generated a record 76% in February
2013 clearly demonstrating the success
of this monetization method
Distimo http://www.distimo.com/blog/2013_03_publication-how-the-most-successful -apps-monetize-their-user-base/
Garter is forecasting that, by 2017,
94.5 PERCENT OF DOWNLOADS WILL BE FOR FREE APPS
Garter – http://www.gartner.com/newsroom/id/2648515
IN APP PURCHASING - TYPES
ConsumablesThings that get used up.
EntitlementsThings that the user gets to keep.
SubscriptionsThings that the user gets as long as they keep paying..
IN APP PURCHASING - CURRENCY
Soft-CurrencyEasy to earn, easy to purchase, inflation compatible.
Hard-CurrencyInflation resistant, hard to earn, easy to purchase.
Top 50 vs. the rest of us
Cohort Analysis
Group A: Top-50 Grossing
Source: Amazon Appstore, March 2014
Group B: Rest of Freemium
Day 0: Installs
Group A: Top-50 Grossing
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Source: Amazon Appstore, March 2014
Group B: Rest of Freemium
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iiiiiiiiiiiiiiiiiiiiiiiii
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installe
d
Day 0: Active Users
Group A: Top-50 Grossing
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Source: Amazon Appstore, March 2014
Group B: Rest of Freemium
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
Iiiiiiiiiiiiiiiiiiiiiiii
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In
active
5958
active
Day 0: Uninstalls
Group A: Top-50 Grossing
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iiiiiiiiiiiiiiiiiiiiiiiiii
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Source: Amazon Appstore, March 2014
Group B: Rest of Freemium
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
Iiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiii1318
uninstalled
5958
active
Day 0: Paying Users
Group A: Top-50 Grossing
iii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiii
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Source: Amazon Appstore, March 2014
Group B: Rest of Freemium
iii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiii1318
uninstalled
5958
active
33
paying
Day 0: Engagement
Group A: Top-50 Grossing
iii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiii
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Source: Amazon Appstore, March 2014
Group B: Rest of Freemium
iii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiii1318
uninstalled
5958
active
33
paying
# of sessions / active
session length / active(minutes)
× =
avg. session length(minutes)
6.9
7.4
2.6
2.9
18
21.6
Day 0: Revenue
Group A: Top-50 Grossing
iii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiii
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Source: Amazon Appstore, March 2014
Group B: Rest of Freemium
iii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiii
=×
# of items / paying
10
0%
11
2%
avg. selling price
10
0%1
36%
10
0%
15
4%
ARPPU
1318
uninstalled
5958
active
33
paying
# of sessions / active
session length / active(minutes)
× =
avg. session length(minutes)
6.9
7.4
2.6
2.9 18
21.6
1 Day Later…
Group A: Top-50 Grossing
ii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiii
Source: Amazon Appstore, March 2014
Group B: Rest of Freemium
ii
Iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiii
# of sessions / active
session length / active(minutes)
×
avg. session length(minutes)
1725
uninstalled
3437
active
11
paying
=×
# of items / paying
100%
106%
avg. selling price
10
0%10
7%
10
0%1
14%
ARPPU
6.7
7.7
3.2
3.5
21.2
27.5=
3 Days Later…
Group A: Top-50 Grossing
iiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiii
Source: Amazon Appstore, March 2014
Group B: Rest of Freemium
iiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiii
# of sessions / active
session length / active(minutes)
×
avg. session length(minutes)
1928
uninstalled
1923
active
=×
# of items / paying
100%
107%
avg. selling price
10
0%12
2%
10
0%13
1%
ARPPU
5.9
7.9
2.6
3.2
15
23
=
1 Week Later…
Group A: Top-50 Grossing
iiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
Source: Amazon Appstore, March 2014
Group B: Rest of Freemium
iiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiii
# of sessions / active
session length / active(minutes)
×
avg. session length(minutes)
2032
uninstalled
1418
active
=×
# of items / paying
100%
102%
avg. selling price
10
0%1
21%
10
0%1
24%
ARPPU
5.7
7.4
2.6
3.2
15
23=
2 Weeks Later…
Group A: Top-50 Grossing
iiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
Source: Amazon Appstore, March 2014
Group B: Rest of Freemium
iiiiiiiiiii
iiiiiiiiiiiiiiiiiiiii
# of sessions / active
session length / active(minutes)
×
avg. session length(minutes)
2134
uninstalled
1014
active
=×
# of items / paying
100%
111%
avg. selling price
10
0%
10
8%
10
0%12
0%
ARPPU
5.7
7.3
2.5
3.1
14.2
22.6=
1 Month Later…
Group A: Top-50 Grossing
iiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
Source: Amazon Appstore, March 2014
Group B: Rest of Freemium
iiii
iiiiiiiiiiiiiiiiiiiiiiii
# of sessions / active
session length / active(minutes)
× =
avg. session length(minutes)
2236
uninstalled
48
active
=×
# of items / paying
10
0%
103
%
avg. selling price
10
0%
12
8%
10
0%
13
1%
ARPPU
5.9
7.3
2.4
3.114.1
22.1
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
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.
What the top 50 do differently
THE TOP DEVELOPERS KNOW THE NUMBERS
?
ENGAGE
CUSTOMER
EARLY
KEEP THEM
IN THE
GAME
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 days
56% of revenue occurs after first 30 days
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
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
Conversion Rate
INDEX: Average = 100%
Don’t confuse your customer
OFFER 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
Apps that made it easy to shop
INCREASED REVENUE 75% (ARPPU)Source: Amazon Appstore, March 2014
Most of us have too much
CONCENTRATION ON LOW
PRICESTotal Marketplace: Assortment by Price Point
Source: Amazon Appstore, March 2014
31%29%
7%
12% 11%
5%3%
1%
14%11%
6%3%
16% 16%
11%9%
0%
10%
20%
30%
40%
0.99 1.99 2.99 4.99 9.99 19.99 49.99 99.99
% of Assortment % of Sales
We find that the
TOP GAMES ARE MORE
BALANCED
Source: Amazon Appstore, March 2014
Top 50 Apps: Assortment by Price Point
28%
15%
10%13%
11% 9% 9%5%
32%
19%
7%4%
10%12%
5% 4%
0%
10%
20%
30%
40%
0.99 1.99 2.99 4.99 9.99 19.99 49.99 99.99
% of Assortment % of Sales
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 ORDERS
Treating in-app items like a catalogue
MAKES IT EASY TO SHOP
1.14%
of paying customers generate
30% of sales
+60%
Increase average
selling price over 30 days
How you can increase session count and minutes per session
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!
Image courtesy of FreeDigitalPhotos.net
Adopt Social: Leaderboards and awards
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.
Adopt Social
SOCIAL ENGAGEMENT
DRIVES ADDITIONAL
SESSIONS
Hosting Special Events
WILL ENCOURAGE
MORE ENGAGEMENTOffering special levels and unique item rewards
during a specific time window will generate
excitement and participation.
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.
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.
WHAT WE LEARNED
Make it quick to start playing
REDUCE BARRIERS TO FREQUENT USE
Nobody likes a pushover (or a bully)
TUNE GAME DIFFICULTY
Obligations to friends (even online friends) matter
DESIGN FOR SOCIAL ENGAGEMENT
Treating in-app items like a catalogue
MAKE BUYING EASY WITH OBVIOUS
VALUE
How Did We Do? http://bit.ly/Top50Survey
Contact us: forums.developer.amazon.com
developer.amazon.com/help/contactus.html
Follow us:
/AmazonAppstoreForAndroid
@AmazonAppDev @MikeFHines
developer.amazon.com/blog
Unattributed images sourced from Creative Commons
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