growing your iphone/ipad app business
DESCRIPTION
W3i's Robert Weber's presentation at the 2011 iPhone/iPad DevCon in Boston, Mass. Learn strategies and gain valuable insider insight on how to grow your iPhone/iPad Business.TRANSCRIPT
Best Practices for Growing Your iPhone and iPad App Business
Rob Weber, Co-founder, W3i
@robertjweber on Twitter
App Aficionado
• Founded W3i in 2000• More than 500 million
cumulative installs– 120 Million in 2010
• 70+ employees• Venture backed
– Boston-based Alta Communications
• Active in Minnesota Tech
Community• Blogger & ClickZ Writer
Investor in Mobile App Startups
Jenkat Games
Riptide Games™ SkyVu Pictures
TrioDesign Studio
InEarth
Hive Media
Purple Talk Veiled Games
Bight Games
Build a Profitable App Business
• Planning, Development, Launch
• Driving Distribution• Increasing
Engagement• Generating Revenue• Optimizing Mass
User Base
Planning, Development, Launch
What Type of App to Build
• Pick a category– App Store 20 total categories– Games
• Games 19 sub-categories - 15% of App Store
• Highly competitive
– Social– Niche
App Store Categories
Books
Business
Education
Entertainment
Finance
Games
Health/Fitness
Lifestyle/Medical
Music
Navigation
News
Photo
Production
Reference
Social Networking
Sports
Travel
Utilities
Weather
Creating the Blockbuster
• It is harder to create a hit without a cowboy mentality surrounding you.
• Fail upwards. • Don’t create a bigger footprint and get trapped in your
own wealth.• It helps to be a little crazy, a little delusional.• Don’t be afraid to pivot.• Start with a lot of concepts, then start cutting.• Understand the human side of business.• Relentless focus on quality and creating apps that don’t
suck• Stop doing things that piss users’ off
– Hurry up and wait- Eliminate splash screens– Surprise and delight- Add those little things that impress
people. – Implementation detail- Never let them see how you made it– Design for everyone- Bejeweled versus Grand Theft Auto– Don’t be a jerk- spam
Build in engagement
Licensed IP vs New IP
• Licensed IP – Game– Books
• New IP– Game– Books
More Decisions
• What device?– iPhone– iPad– iPod touch
• Universal vs by device
Development Choices
• In house• Work-for-hire
developers• Key requirements
– File size under 20 MB– Managing submissions
Be Transparent
• Make it easy for users to find the answer– Added “Need to request a
refund?” and “How to disable in-app purchasing”
– Direct link in app via a “?”
– Additional disclosures in App Store Description
Plan the Launch
• ASO requires research and planning (more later)– Icon– Name– Screenshots– Description
• Advertising – burst campaigns• Dropping the price/discounting• PR• Reviews• Cross-promotion• Trade shows• Luck
Tap that App Launch Party, Chicago
App Store Optimization-ASO
• Icon: – Easy to recognize and tie to app– Consistent use (small and large icon)– Avoid trademark violations– Vector based
• Name– Describe utility of the game– Avoid special characters– Don’t use the device in name
App Store Optimization-ASO
• Screenshots: – Take the time to make quality images– Capture images that best depict app– Don’t use device imagery (automatic
rejection)
• Description– First two lines most important– Simple, concise words– Match tone to game– Use copy to enhance credibility– Don’t include price– Maximize copy above the fold– Be aware of how word wrap works
Drive Distribution
Predictable Distribution
Estimated download volume needed for Top 100 ranking:
App Store Position Est. # Downloads Needed
Top 10 ~50k-150k
Top 25 ~30k-50k
Top 25-50 ~17k-30k
Top 50-100 ~10k-17k
Sub 100 Free 100s-depending on category popularity
Once in the Top 50, Volume of organic downloads will increase significantly. -Source: AdMob, Inc.
Dolphin Play Ranking
How to Influence Rating
• Apply viral hooks in your app to encourage sharing
• Use in-app messaging• Don’t blindly submit • Develop a plan
Driving Installs
• Public Relations– Apperang– Twitter– Networking
• Results:– 10 Media Mentions– 80+ In-coming Leads
Elusive Apple Feature
• Mystery• Credibility &
Awareness• Demo at mobile
shows• Nag, ask questions• Luck
Advertising
PPI Display Search
Pricing CPICost per install
CPMCost per impression
CPCCost per click
Cost per click ~.05-.15 ~.05-.30 CPC
Cost per install ~.40-.75 CPI ~.75-1.25 ~.75-3.00 CPI
Targeting In device Mass audience Key words
Saturation Yes No No
Predictable Yes No No
Game App Advertising US
*Seasonal price sensitivity
Discounting
• Discounting can get you noticed
• App price trackers will promote
• Make sure price drop is ridiculous enough to get PR
Never say never. Mark Rein, VP of Epic Games-creator of Infinity Blade, "Folks we are NOT going to screw the folks who bought Infinity Blade at $5.99 by dropping the [price] only a few weeks after we ship!"
Just discounted price by 50%.
AppAllStar – iOS App Calendar
iOS App Calendar
Promotional SiteCalendar Widget Single-day Widget
Viral
• Getting more social– Ngmoco – launching
worldwide social gaming network
• Samsung’s Android phones
– Facebook’s single sign-in
PopCap Games crack the Code
• Bejeweled 2 +Blitz– #4 Top Grossing
iPhone App in 2010– 3.7 million DAU– 11.1 million MAU– Retaining top ranking
Capitalize on Holiday Demand
• Christmas is a head spinner— over 3X the traffic
• Watch out for the big guys like EA
• Don’t over analyze• Promote 4 days prior• App Store holiday lockdown• Demand for holiday themes
Do you Need a Publisher?
• Be careful with the contract
• Can provide credibility for an unknown developer/app
• Can provide experience and expertise
Rovio cuts out Chillingo when they debuted Angry
Birds Halloween
Increasing Engagement
Increase App Usage
• Plan. Who’s the audience? What is sticky for them?
• Plan for strong entertainment value• Give tips about use• Create a community• Collecting• Exchanging• Allow customization• Scoring-points• Create competition among friends
using visible metrics• Add fresh content• Give incentives for returning
Reward Users for Coming Back
• Strategic reward schedules– Fixed interval reward
scheduling– Fixed action reward
scheduling
• Elements of Good Reward Schedules– Contingency– Response– Reinforcement
ReenforcementTrade Nations
Fixed action rewardDolphin Play
Fixed interval rewardTrade Nations
Alerts Are a Must.
Push Notifications• Maximum 3 times a day• Uses
– Tied to events or actions• Decay thresholds• Time thresholds• Maximum thresholds
– Social• Visitors
– Drive action and game progression• New Content/features• Discounting
Compulsion Loops
• Tangle of social obligations
Eliminate ProGets users hooked and then asks them to pay
Bejeweled BlitzChallenge friends Farmville
Buy tractor, plow faster
Dolphin PlayDolphins need feeding
Constant Updates
• Push notification keeps game top of mind
• Examples– Improve game play– Add fresh content– Add social elements– Fix bugs Pocket God
37 updates were released for the iOS version of the game as of February 23, 2011,
Revenue Generation
Game Balancing
• Having multiple options or routes to victory
• User can buy a quicker route
Smurf’s Village“…blatant attempt to push user into buying massive amounts of in-app currency.”
10 out of 25 top grossing iPhone game apps are using the free-to-play model
iTunes Top Grossing 03/15/2011
16 out of 25 top grossing iPhone game apps are using in-app purchases
iTunes Top Grossing 03/31/2011
Free vs Paid
October2009
June2010
December2010
June2010
December2010
0%
25%
50%
75%
100%
100%
64%
51%
88%
71%
22%
15%
5%
14%
14%
34%
7%15%
Revenue Share Free Applications With In-App PurchasesRevenue Share Paid Applications With In-App PurchasesRevenue Share Paid Applications
Revenue Share By Monetization Type (United States)
With W3i’s Ad-funded Payment Platform
• Recommend apps for virtual currency
• Easy for user to participate—no cash outlay required
• Higher conversion rates• Increased life-time value• Fully brand for your app
– Your virtual goods– Customized interface– User install history
• Easy to integrate
Fully Branded
3rd Party Developer Simulation Game
Ad Funded
Payment PlatformIn-App
Purchases
Before
After
+54%
RAIX FISH FARM
Sold Millions, Now What?
Transmedia
Licensing
Questions
Robert WeberVP & [email protected](320) 257-7551 direct
Twitter:robertjweber W3i
Blogs: W3iSmartAppMarketing AppMarketingTips
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