Kindle Fire and the Amazon Appstore for Android

Aaron Rubenson, Director Amazon Appstore for Android

Agenda

• Amazon and Mobile App Distribution• Developer Services • Making a Great Kindle Fire App

Agenda

• Amazon and Mobile App Distribution• Developer Services • Making a Great Kindle Fire App

Household Income of Amazon Unique Visitors2

% of Amazon Shoppers Who have Made an Online Purchase2

Age Composition of Amazon Unique Visitors2

<$50 $50-$200 $200+

33%28%

39%

Amazon’s Large and Active Audience

Monthly Unique Visitors (US):

85MM 5.2

Active Global Customer Accounts:

180MM

Avg. Daily Unique Visitors (US):

10.6MM

Note: Active Customer Accounts are unique email addresses that have placed an order in the last 12 monthsSources: 1. Amazon Investor Relations; 2. ComScore PlanMetrix June, 2012.

1 2 2 2

9%

36%

21%

34%

0-18 18-34 35-44 45+ <$25K $25K-$75K $75K +

16%

48%

36%

Amount Spent

Avg. Visits per Visitor per

Month (US):

Amazon and Mobile

Meet the all-new Kindle Family

Introducing Kindle Fire• Kindle Fire quickly became the most successful product launch in

the history of Amazon.com• Earned over 10,000 5-star customer reviews• Remained the #1 best-selling product on Amazon• Captured 22% of U.S. tablet sales in just nine months

• Breakthrough Technology• Stunning HD displays• World class audio with Dolby Digital Plus• Fastest Wifi of any tablet• 20 million songs, over 120K video titles, over 100K audio titles• Free month of Amazon Prime• Whispersync for books, movies, voice, and games• X-Ray for books/movies• Revolutionary 4G (250MB/month for 12 months - for $49) on 8.9” 4G

Curated Mobile Merchandising

Amazon Appstore for Android

Our Reach is Growing

• Kindle Fire is currently available in US, the UK, Germany, France, Italy, and Spain – and soon Japan

• The Amazon Appstore for Android is available in the US, Europe, and Japan – and preloaded on select devices from Verizon Wireless, US Cellular, and other carriers

Sources: Amazon.com; Flurry : Amazon Lights the Android World on Fire, 27 January 2012

The Amazon Appstore Home Page

Test Drive (Try Before You Buy)

Online Customer Experience

Agenda

• Amazon and Mobile App Distribution• Developer Services • Making a Great Kindle Fire App

Amazon Web Services (AWS)

In-App Purchasing

Case Study: TinyCoTinyCo found that Kindle Fire average revenue per user (ARPU) outperforms iPad ARPU by 43% based on the performance of their game Tiny Village.

“Amazon is a gold mine,” wrote Jennifer Lu, Director of Business Development in an April 2012 Blog post.

In 2012, TinyCo began focusing development on both Android and iOS by using a proprietary game engine that enables them to write code once, then deploy and make updates on iOS and Android simultaneously. They launched Tiny Village in three App Stores (Amazon, iTunes, and Google Play), and it's currently a top grossing/top free game in all three stores.

TinyCo Blog, Treat Android as a first-class citizen... it'll pay off!, April 19, 2012

GameCircle

Games are now a primary content category

Access stats without launching the game

Social Discovery

A/B Testing Capability• Free service for Amazon Appstore developers• Extends controlled experimentation capability to mobile

app developers• Allows developers to implement and monitor the

performance of multiple treatments in their apps simultaneously• Change treatments without pushing a new update• Adjust treatment group sizes in real time• Send 100% of future customers to winning treatment without app

update• Developer Portal provides data on treatment outcome

versus control, enabling app optimization

Lucky’s Escape – An A/B Testing Example• Where should the sale occur in this freemium app?• Wanted everybody to play at least 13 levels for free• Decided to test 2 pay wall treatments – at levels 13 and 25• Used A/B testing service – 85% of customers experienced pay wall

at level 13, and 15% at level 25• Initial results showed that level 25 converted significantly better

than 13…• …but fewer people (in absolute) were reaching the pay wall so total

revenue was lower• Ran another test to see if level 18 would be better than 13• Ultimately, a pay wall at level 13 generated the highest conversion

and total monetization

Pay Wall Treatment Results (Example)

Kindle FreeTime

Kindle FreeTime Feature overview

• A simple, fun and safe environment designed specifically for kids, available only on Kindle Fire.

• Allows parents to • Create a personalized experience for each child using content the parents have

purchased• Limit screen time spent on the Kindle Fire, by content category

• Key features• Blocks access to the web browser• Blocks access to browsing and purchasing in the Amazon content stores• Disables location-based services• Disables social sharing (Facebook and Twitter)• Disables GameCircle• Requires entry of a password to turn Wi-Fi or WAN connectivity on or off• Requires entry of a password to make In-App Purchases

Agenda

• Amazon and Mobile App Distribution• Developer Services • Making a Great Kindle Fire App

Making great content… a store’s perspective• Know why customers will choose you

• Provide strong utility• Accomplish a task better than anybody else

• Provide great value• Deliver more to the customer for less

• Be distinctive• Offer unique creative, content, or characters• Create a new genre

• Match the business model to the app• Paid vs. freemium• Subscriptions

• Build a relationship quickly

Building for a Tablet

• Utilize a tablet layout• UI layout• Application controls• Font and button sizing

• Take advantage of extra

screen space• 7” and 8.9” screen size

considerations

• Use a density

independent UI design

Before After

Optimizing for Kindle Fire

• Use appropriate hardware and software capabilities

• 4G LTE, location based services (LBS), camera / video, etc.

• Remove or disable phone-based features

• Include high-definition assets

• Incorporate sensor-based orientation controls

• Avoid touch target conflicts with the Kindle Fire soft keys

• Focus on fluidity and performance

• Incorporate CPU / GPU optimization as appropriate

• Optimize start-up time and customer experience

• Localize content for international distribution

Leveraging Amazon Services

IAP

Offer digital content and subscriptions using Amazon’s 1-Click

GameCircle

Leaderboard

Achievements

Whispersync

Maps

Interactive maps with custom overlays

Easy transition from Google Maps

AWS

SDK for Android allows developers to easily and quickly build connected mobile applications using AWS

EA’s Need for Speed Most Wanted

Start at the Mobile App Distribution Portal

• Get started with apps on Amazon developer.amazon.com/welcome.html

• Learn more: amazonappstoredev.com

• Follow us: twitter.com/amznappstoredev

• GameCircle feedback and requests: gamecircle-developers@amazon.com

Appendices

Aaron Rubenson, Director Amazon Appstore for Android

Multiple Customer Segments

Mobile Personalization

• New apps are featured in the store, providing customers relevant and personalized app recommendations.

• Recommendations are also personalized and shown on the carousel of the Kindle Fire HD and all-new Kindle Fire.

The Amazon.com Homepage

The Product Detail Page

Rich Product Descriptions

Helpful Customer Reviews

Targeted Email Examples

Marketing: Kindle Fire and Amazon Appstore Social Media

In-App Purchasing

Fire Drives Strong Monetization

• Amazon Appstore revenue per active user is 89% of iTunes App Store revenue per user based on a study of top-ranked apps with similar merchandising exposure and pricing across platforms. All apps studied monetized through in-app purchases.

What developers are saying…

"Amazon's well-designed [In-App Purchasing] API and rapid support allowed us to help our enterprise publishing customers be first on the Fire."

“The [GameCircle API] is a great way to keep our fans engaged by offering them more opportunities to play the game, and an intuitive platform to connect with new players.”

"Implementing the Amazon Appstore for Android In-App Purchasing solution was a piece of cake. We were able to turn it around and get it into internal testing within a few days' time."

“Since we have had such success with Amazon, when GameCircle was introduced, it was a no-brainer, we added it to our apps right away.”

Zeke Koch, Adobe Systems Keith Shepherd, Co-Founder of Imangi Studios

Sean Thompson, Mobile Deluxe Suli Ali, TinyCo

Pricing Matters with IAP

IAP Assortment by Price Point

$0.99 $1.99 $2.99 $3.99 $4.99 $5.99 $6.99 $7.99 $8.99 $9.990%

5%

10%

15%

20%

25%

30%

35%

% of Total Assortment % of Item Units Ordered

In-App Assortment to Order Correlation

0 5 10 15 20 25 30 35 -

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

Number of IAP Items for Sale

Avg

. O

rders

-per-

Cu

sto

mer

Note: Orders per customer was calculated using only those customers who have made an IAP purchase

IAP Purchase Cyclicality

IAP Purchases by Hour

Hours Since App Download

0 24 48 72 96 120 144 168 192 216 240 264 288 312

Maintaining a relationship is key

• Engage users early• 16% of a customer's value is realized on the first day

• Keep them in the game• 48% of repeat purchases happen within one hour of the

previous purchase• Give users a reason to come back

• 67% of purchases are repeat purchases• 52% of revenue occurs after the first 7 days• 44% of revenue occurs after the first 30 days

• Provide enough content for your most active users• 2% of customers generate 30% of revenue

GameCircle• The Games library on the Kindle Fire is the home base for players and their game collections.• Players see GameCircle friends, leaderboards, and

achievements activity before opening the game.• Whispersync for Games

• Automatically saves players’ in-game progress to the cloud• Allows them to pick up exactly where they left off when restoring a deleted

game or switching between their devices.

• Free plug-in for Unity 3D developers• Developed by Prime 31• Supports Achievements, Leaderboards, Whispersync for Games,

and In-App Purchasing

Jumptap: Kindle Fire Grabs 1/3 Tablet Traffic

Jumptap: Android and iPhone now Hog 91% of Mobile OS Market Share, March 6, 2012

Removing purchase barriers…

• Use a secure and trusted payment provider• Mobile payments are still a black box• Trust requires a strong brand, a professional user experience, and world-

class customer service• Avoid entry of payment information

• Obsess over the purchase user experience• It should be self-evident to shop and buy• Be transparent, but eliminate all unnecessary steps

• Price strategically• Leverage higher priced apps or IAP items as anchors to drive lower price

point items• Bundles are effective at introducing new products

Building a brand…• Build a portfolio of apps that will resonate with your target

customer segments• Be consistent with your value proposition• Can customers identify your brand?

• Manage customer lifecycles across your portfolio• Segment your customers based on usage and behavior• Target your marketing based on behavior• Reward your best customers

• Drive engagement with features that cross your portfolio• Shared leaderboards and achievements• Non-consumable items that are accessible across apps and devices

Creating the first reason to buy…

• Match the content to the business model• Paid apps are still effective for apps and

developers with strong brand recognition• Freemium works well for apps that have a story

line, are progressive, or segment easily into service tiers

• Subscriptions are still nascent but show strong potential (trial renewal rates are high and churn is low)

• Build a relationship first before you sell• Free trials, limited versions, and step-ups work • Consumers react harshly to in-app vending

machines

Crytek’s Fibble

GameCircle IAP

Crytek’s Fibble

GameCircle IAP

Amazon Mobile App Distribution Portal

Amazon Mobile App Distribution SDK

What you’ll find in the SDK…

• Detailed documentation on Amazon’s platform and APIs• Device specifications for all Kindle Fire tablets• Best practices for API implementation• Emulators for all Kindle Fire devices• Sample and starter code• Quick start guides

Kindle Fire HD 8.9” Emulator

Detailed FAQs

Active Developer Forums