Post on 23-Aug-2014
description
5 TIPS OF MONETIZATION
1
Cheng LuoDeveloper Evangelist, Amazon EU
@chengluo Cheng Luo chengluo@amazon.lu
2
Amazon Appstore
75% Android apps just work1-Click Purchase
244M Amazon accounts 200+ countries
Kindle Fire Android Fire TV
3
My 5 tips
• Tip 1: Offer true value to customers
• Tip 2: Balance IAP selection and prices
• Tip 3: Try different revenue models
• Tip 4: Engage with customers
• Tip 5: Increase awareness and user base
4
My 5 tips
• Tip 1: Offer true value to customers
• Tip 2: Balance IAP selection and prices
• Tip 3: Try different revenue models
• Tip 4: Engage with customers
• Tip 5: Increase awareness and user base
5
Gartner is forecasting that, by 2017,
95% of downloads will be for free apps
6
Photo/Andy Welsher/CC BY
WHAT’S THE VALUE CUSTOMERS PAYING FOR?
7
Premium Model
8
Free Version Premium Version
9
Free Users In-app Purchase
10
My 5 tips
• Tip 1: Offer true value to customers
• Tip 2: Balance IAP selection and prices
• Tip 3: Try different revenue models
• Tip 4: Engage with customers
• Tip 5: Increase awareness and user base
11
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/
12
WHY SOME DEVELOPERS ARE MORE SUCCESSFUL?
Photo//challiyan/CC BY
13
The Rest of developers
Source: Amazon, January 2013
22%
17%
7%
20%
8% 6%
3% 2%
6%
9%
4%
15% 15%
20%
4% 5%
0%
5%
10%
15%
20%
25%
$0.99 $1.99 $2.99 $4.99 $9.99 $19.99 $49.99 $99.99
% of Assortment % of Sales
14
Top 50 grossing developers
4%
9%
5%
14% 14% 12%
10% 9%
1%
5% 2%
11%
16%
24%
6% 9%
0%
5%
10%
15%
20%
25%
30%
$0.99 $1.99 $2.99 $4.99 $9.99 $19.99 $49.99 $99.99
% of Assortment % of Sales
Source: Amazon, January 2013
15
My 5 tips
• Tip 1: Offer true value to customers
• Tip 2: Balance IAP selection and prices
• Tip 3: Try different revenue models
• Tip 4: Engage with customers
• Tip 5: Increase awareness and user base
16
WHAT ARE THE OTHER REVENUE MODELS YOU CAN TRY?
Photo/maclauren70/CC BY
17
Mobile Ads
cost per click (CPC) and cost per thousands impressions (CPM)
The two common pricing models support by mobile ads networks are
18
CTR by Ad Format⊗
12.60%
7.14%5.7%
0.37%0.23%
Banner Custom Interstitial App Lists Panel
Source: AppFlood 2013 http://appflood.com/a/download-ebook-3-easy-steps-to-monetizing-apps
Banner Custom Interstitial App Lists Panel
19
Impression by Ad Format⊗
x1x2
x28
x15x10
Banner Custom Interstitial App Lists Panel
Banner Custom Interstitial App Lists Panel
Source: AppFlood 2013 http://appflood.com/a/download-ebook-3-easy-steps-to-monetizing-apps
20
Amazon Ads Network “In-app-purchasing [performance] is similar to other platforms, but Amazon Mobile Ads have the highest eCPM, normally 1.5 times higher than iAd.”
“With Amazon Mobile Ads in the first slot, our eCPM went up 216%!”
- Paul Yan, CEO Pinssible Lab
- Jason Stock, CEO Firecracker Software
21
Amazon Mobile Associate API
• Sell physical & digital goods from mobile apps
• Earn up to 6% of advertising fees on purchases made
• Leverage Amazon 1-Click purchase experience
• Seamlessly integration and UX
22
Merchandizing
Free app
+
New Revenue Stream
23
Subscription Model
24
Subscription Model
+ Guarantee of repeat transactions
- Requires the backend servers of subscription purchases, tokens and billing activities, such as refunds.
- High entry barrier
25
Case study: Spotify vs. AstrologyZone
26
My 5 tips
• Tip 1: Offer true value to customers
• Tip 2: Balance IAP selection and prices
• Tip 3: Try different revenue models
• Tip 4: Engage with customers
• Tip 5: Increase awareness and user base
27
WHY CUSTOMER ENGAGEMENT IS IMPORTANT
Photo/Toca Boca /CC BY
28
Each user session is an
opportunity to make money
29
More time = More revenue
Source: Amazon, June 2013
56% of purchases are repeat purchases
62% of revenue occurs after the first 7 days
35% of revenue occurs after the first 30 days
30
Session time is the multiplier
6.1$5.6$
7.3$
18.9$
1.2$
2.8$
#$of$sessions$/$ac5ve$ session$total$$/$ac5ve$(minutes)$
× = avg.$session$length$
(minutes)$
Top 50
The Rest
Source: Amazon, June 2013
Day 30
31
Players are paying more
Top 50
The Rest
Source: Amazon, June 2013
Day 30
116%$
189%$
219%$
100%$ 100%$ 100%$
#$of$items$/$paying$ avg.$selling$price$ ARPPU$
= ×
32
Case study: Game difficulty test
10% hardernormal10% easier
3 day Retention 19.94% -1.07% +0.83%7 day Retention 8.06% +6.74% -10.11%Units Purchased 2.05% +8.34% -12.07%
Ads Clicked 0% +5.09% +4.07%
33
AB Testing/Analytics API
• Free for any kinds of usage
• Supports iOS, Android, and Fire OS
• Deployed instantly
• Supports multiple goals
34
My 5 tips
• Tip 1: Offer true value to customers
• Tip 2: Balance IAP selection and prices
• Tip 3: Try different revenue models
• Tip 4: Engage with customers
• Tip 5: Increase awareness and user base
35
HOW TO MARKET YOUR APPS
Photo/ragingwire /CC BY
36
Choose a Good Name
Angry Bird
From Cheese
Flappy Bird
Cut the Rope
Candy Crush
Temple Run
37
Promote Your App in the store
38
Case study: Dr. PandaG
ross
Rev
enue
Amaz
on A
ppsto
re
Promotion Period
UKDEFRITES
Banners + discounts
39
Appstore Developer Select
Enhanced on-device Merchandising for FireTV compatible apps
25% off Amazon Web Services
500K FREE mobile ad impressions
customers will receive 30% price back in Coins
500K Coins offer per qualified FireTV compatible
app
More detail: https://developer.amazon.com/appsandservices/resources/promotional-tools/featured-developer-program
40
5 Tips of monetization
• Tip 1: Offer true value to customers
• Tip 2: Balance IAP selection and prices
• Tip 3: Try different revenue models
• Tip 4: Engage with customers
• Tip 5: Increase awareness and user base
41
Your Revenue
Analytics
User Experience
Features
Uniqueness
42
Thank youmore details about Amazon Appstore fromhttp://developer.amazon.com/appstore
@chengluo chengluo@amazon.lu
43