Post on 13-Dec-2014
description
Mike Hines – Amazon Appstore
Game Developers Conference - 2014
@MikeFHines
Top 50 Grossing
vs.
the Rest of Freemium
IAP Conversion Rate
INDEX: Average = 100%
IAP Adoption is Rising
Note: Conversion Rate is measured by the Number of IAP Customers / Total App Customers
Source: Amazon Appstore, July 2013
Cohort Analysis
Group A: Top-50 Grossing
Source: Amazon Appstore, June 2013
Group B: Rest of Freemium
Day 0: Installs
Group A: Top-50 Grossing
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Source: Amazon Appstore, June 2013
Group B: Rest of Freemium
iiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiii 100 100
installed
Day 0: Active Users
Group A: Top-50 Grossing
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Source: Amazon Appstore, June 2013
Group B: Rest of Freemium
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiii iiiiiiiiiiii 12 13
installed
88 87
active
Day 0: Uninstalls
Group A: Top-50 Grossing
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Source: Amazon Appstore, June 2013
Group B: Rest of Freemium
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiii iiiiiiiiiiiiiiii 16 14
uninstalled
84 86
active
Day 0: Paying Users
Group A: Top-50 Grossing
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Source: Amazon Appstore, June 2013
Group B: Rest of Freemium
ii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiii 16 14
uninstalled
82 84
active
2 2
paying
Day 0: Engagement
Group A: Top-50 Grossing
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Source: Amazon Appstore, June 2013
Group B: Rest of Freemium
ii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiii 16 14
uninstalled
82 84
active
2 2
paying
# of sessions / active
session length / active (minutes)
× =
avg. session length (minutes)
7.4
7
2.3
2.9
14.4
20
Day 0: Revenue
Group A: Top-50 Grossing
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Source: Amazon Appstore, June 2013
Group B: Rest of Freemium
ii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiii
= × # of items / paying
100%
109%
avg. selling price
100%
141%
100%
154%
ARPPU
16 14
uninstalled
82 84
active
2 2
paying
# of sessions / active
session length / active (minutes)
× =
avg. session length (minutes)
1 Day Later…
Group A: Top-50 Grossing
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Source: Amazon Appstore, June 2013
Group B: Rest of Freemium
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# of sessions / active
session length / active (minutes)
× =
avg. session length (minutes)
18 16
uninstalled
45 43
active
1 1
paying
36 40
installed
= × # of items / paying
100%
112%
avg. selling price
100%
152%
100%
170%
ARPPU
3 Days Later…
Group A: Top-50 Grossing
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Source: Amazon Appstore, June 2013
Group B: Rest of Freemium
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# of sessions / active
session length / active (minutes)
× =
avg. session length (minutes)
20 18
uninstalled
27 26
active
53 56
installed
= × # of items / paying
100%
107%
avg. selling price
100%
180%
100%
193%
ARPPU
1 Week Later…
Group A: Top-50 Grossing
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Source: Amazon Appstore, June 2013
Group B: Rest of Freemium
iiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiii iiiiiiiiiiiiiiiiiiiiiiii
# of sessions / active
session length / active (minutes)
× =
avg. session length (minutes)
24 22
uninstalled
20 20
active
56 58
installed
= × # of items / paying
100%
112%
avg. selling price
100%
233%
100%
262%
ARPPU
2 Weeks Later…
Group A: Top-50 Grossing
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Source: Amazon Appstore, June 2013
Group B: Rest of Freemium
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# of sessions / active
session length / active (minutes)
× =
avg. session length (minutes)
28 25
uninstalled
14 14
active
58 61
installed
= × # of items / paying
100%
114%
avg. selling price
100%
198%
100%
226%
ARPPU
1 Month Later…
Group A: Top-50 Grossing
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Source: Amazon Appstore, June 2013
Group B: Rest of Freemium
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# of sessions / active
session length / active (minutes)
× =
avg. session length (minutes)
32 29
uninstalled
9 9
active
59 62
installed
= × # of items / paying
100%
116%
avg. selling price
100%
189%
100%
219%
ARPPU
100%
154%
ARPPU
session length / active (minutes)
= × # of items / paying
100%
109%
Group B: Rest of Freemium
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Day 0
Group A: Top-50 Grossing
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Source: Amazon Appstore, June 2013
16 14
uninstalled
82 84
active
2 2
paying
× =
avg. session length (minutes)
# of sessions / active
avg. selling price
100%
141%
session length / active (minutes)
100%
170%
ARPPU
= × # of items / paying
100%
112%
Group B: Rest of Freemium
i iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiii
1 Day Later…
Group A: Top-50 Grossing
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Source: Amazon Appstore, June 2013
× =
avg. session length (minutes)
18 16
uninstalled
45 43
active
1 1
paying
36 40
installed
# of sessions / active
avg. selling price
100%
152%
session length / active (minutes)
100%
193%
ARPPU
= × # of items / paying
100%
107%
Group B: Rest of Freemium
iiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iii iiiiiiiiiiiiiiiiiiii
3 Days Later…
Group A: Top-50 Grossing
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iiiiii iiiiiiiiiiiiiiiii
Source: Amazon Appstore, June 2013
× =
avg. session length (minutes)
20 18
uninstalled
27 26
active
53 56
installed
# of sessions / active
avg. selling price
100%
180%
Group B: Rest of Freemium
iiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiii iiiiiiiiiiiiiiiiiiiiiiii
session length / active (minutes)
100%
262%
ARPPU
= × # of items / paying
100%
112%
1 Week Later…
Group A: Top-50 Grossing
iiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiii iiiiiiiiiiiiiiiiiiiiii
Source: Amazon Appstore, June 2013
× =
avg. session length (minutes)
24 22
uninstalled
20 20
active
56 58
installed
# of sessions / active
avg. selling price
100%
233%
= × # of items / paying
100%
114%
Group B: Rest of Freemium
iiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiii
2 Weeks Later…
Group A: Top-50 Grossing
iiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiii
Source: Amazon Appstore, June 2013
× =
avg. session length (minutes)
28 25
uninstalled
14 14
active
session length / active (minutes)
58 61
installed
100%
226%
ARPPU
# of sessions / active
avg. selling price
100%
198%
= × # of items / PU
100%
116%
Group B: Rest of Freemium
iiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
1 Month Later…
Group A: Top-50 Grossing
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Source: Amazon Appstore, June 2013
× =
avg. session length (minutes)
32 29
uninstalled
9 9
active
session length / active (minutes)
59 62
installed
100%
219%
ARPPU
# of sessions / active
avg. selling price
100%
189%
1
Hours Since App Download
0
24 48
72
96
120
144
168
192
216
240
264
288
312
In-app Purchasing by Hour
Source: Amazon Appstore, July 2013
Timing = More Money
Engage customers early 18% of a customer’s value is
realized on the first day
Keep them in the game 44% of repeat purchases happen
within one hour of a previous
purchase
Give them a reason to come back 56%
of purchases are
repeat purchases
62%
of revenue occurs
after the first 7 days
35%
of revenue occurs
after the first 30 days
Source: Amazon Appstore, July 2013
# of In-App Items for Sale
ARPPU
46%
100%
169%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
1-5 Items 6-10 Items 11-15 Items
INDEX: Average = 100%
Selection Drives Repeat Orders
Source: Amazon Appstore, January 2013
2%
of customers generate
30% of sales
Image from Pet Shop Story by Team Lava
Source: Amazon Appstore, January 2013
Awareness Increases Conversion
2.5x
conversion
Make it Easy to Shop
Image from Diner Dash by PlayFirst
Source: Amazon Appstore, January 2013
+75%
ARPPU
Show Users How to “Consume”
Image from Cut the Rope by ZeptoLab
Source: Amazon Appstore, January 2013
+65%
repeat orders
Conversion Rate
INDEX: Average = 100%
83%
188%
63%
0%
50%
100%
150%
200%
1-5 PricePoints
6-10 PricePoints
11-15 PricePoints
Offer Variety, but not Too Much
Source: Amazon Appstore, January 2013
Concentration on Low Prices
Total Marketplace: Assortment by Price Point
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
Source: Amazon Appstore, January 2013
Top Games are more Balanced
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 Appstore, January 2013
Top 50 Apps: Assortment by Price Point
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, July 2013
+60%
average
selling price
Sensitivity Across Prices
-30%
-20%
-10%
0%
10%
20%
30% + 28%
- 28%
+ 1%
- 1%
Low-Priced Items High-Priced Items
% Change in Unit Sales Volume
20% Price
Changes
Source: Amazon Appstore, January 2013
What is the Take-Away?
Session-Length and Session-Frequency Optimize your IAP
What Can I Do to Improve Session Time?
• Reduce Barriers to frequent use • Tune Game Difficulty • Adopt Social • Special Events
Reduce Barriers to frequent use
Tune Game Difficulty
Adopt Social
Special Events
• Special levels • Time-Bound • Unique item rewards
What Can I Do to Optimize IAP?
• Design purchase opportunities into the fabric of your game • Be clear about the benefit • Be clear about the value offered • Start selling physical goods
• A|B Test your offers
Design purchase opportunities into the fabric of your game
Be clear about the benefit
Be clear about the value offered
Start selling physical goods
VentureBeat, Feb 2014
A|B Test your offers
In-App Advertising
Trends and Tuning
Banner Ads for Which Products Get the Most Engagement?
Harvard Business Review, 12/2013
These get more clicks… …than these do.
Buying and Selling Trends
Ad revenue outside the US will grow faster than inside the US. Asia will be particularly hot. More companies are buying mobile ads… …paying for quality of clicks, not quantity. •Cost per Engagement (CPE) is trending.
•So….
Samaato, Gartner, The Guardian – 2013 & 2014
… Reward users for engaging with ads!
Offer soft currency rewards • For taping into an ad • For watching a video ad
Buying and Selling Trends
Inmobi, 2013 - Bloomberg Businessweek, 2014
Not All Ads are Banner Ads
You finished Level 5!
Pick your reward!
What Can You Do?
Integrate ads into your game where
possible
Offer incentives to engage with ads
A|B Test revenue vs. engagement • Video ads
• Presence of interstitial ads
• Placement of ads
• Order of ad networks
Learn more: developer.amazon.com/welcome
Contact us: forums.developer.amazon.com
developer.amazon.com/help/contactus.html
Follow us:
/AmazonAppstoreForAndroid
@AmazonAppDev
developer.amazon.com/blog