mike hines, amazon

WHAT THE TOP 50 APPS DO WITH IAP THAT THE REST OF US DON’T

Reach � Engage � Earn

MIKE HINESDEVELOPER EVANGELIST, AMAZON

@MikeFHines mikehines45

[email protected]

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

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Group B: Rest of Freemiumiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

100100installed

DAY 1: ACTIVE USERS


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Group B: Rest of FreemiumiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiIiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

4142In

active

5958active

DAY 1: UNINSTALLS



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Group B: Rest of FreemiumiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiIiiiiiiiiiiiiiiiiiiiiiii

iiiiiiiiiiii1318uninstalled

5958active

DAY 1: PAYING USERSGroup A: Top-50 Grossing

iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii


iiiiiiiiiiiiiiiii


Group B: Rest of Freemiumiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii1318

uninstalled

5958active

33paying

2.62.9


DAY 1: ENGAGEMENTGroup A: Top-50 Grossing



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



iiiiiiiiiiiiiiiii


Group B: Rest of Freemiumiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

=×# of items / paying

100%11

2%

avg. selling price

100%

136%

100%

154%

ARPPU

1318uninstalled

5958active

33paying



× =


1822


1 DAY LATER…Group A: Top-50 Grossing

iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

iiiiiiiiiiiiiiiiiiiiiiii

Group B: Rest of FreemiumiiIiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

iiiiiiiiiiiiiiiii



×


1725uninstalled

3437active

11paying


100%10

6%

avg. selling price

100%10

7%

100%

114%

ARPPU

6.77.7

3.23.5

2127=


3 DAYS LATER…Group A: Top-50 Grossing

iiiiiiiiiiiiiiiiiiiiiii

iiiiiiiiiiiiiiiiiiiiiiiiiiii


Group B: Rest of Freemiumiiiiiiiiiiiiiiiiiii

iiiiiiiiiiiiiiiiii



×


1928uninstalled

1923active


100%

107%

avg. selling price

100%12

2%

100%13

1%

ARPPU

5.9

7.92.6

3.215

25=


1 WEEK LATER…Group A: Top-50 Grossing

iiiiiiiiiiiiiiiiiii

iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii


GroupB:RestofFreemiumiiiiiiiiiiiiii

iiiiiiiiiiiiiiiiiiii



×


2032uninstalled

1418active


100%10

2%

avg. selling price

100%

121%

100%

124%

ARPPU

5.77.4

2.63.2

1524

=


2 WEEKS LATER…Group A: Top-50 Grossing

iiiiiiiiiiiii

iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii


Group B: Rest of Freemiumiiiiiiiiiii

iiiiiiiiiiiiiiiiiiiii



×


2134uninstalled

1014active


100%11

1%

avg. selling price

100%10

8%

100%12

0%

ARPPU

5.77.3

2.53.1

1422=


1 MONTH LATER…Group A: Top-50 Grossing

iiiiiiii

iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii


Group B: Rest of Freemiumiiii

iiiiiiiiiiiiiiiiiiiiiiii



× =


2236uninstalled

48active


100%10

3%

avg. selling price

100%

128%

100%

131%

ARPPU

5.97.3

2.43.1

1423


Hours Since App Download

IN-APP PURCHASING BY HOUR


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


+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.


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.


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.


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


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.


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.


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


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


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.


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

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AMAZON UNDERGROUND

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AMAZON UNDERGROUNDHOW WILL IT WORK FOR YOU?

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For100%ofyourusersEveryminutetheyuseyourapp

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Learn more: http://bit.ly/Top50IAPhttp://developer.amazon.com/underground

How did we do: http://bit.ly/

Follow us:@MikeFHinesdeveloper.amazon.com/blog

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