What's Working in In-App Monetization - GDC 2014
 

What's Working in In-App Monetization - GDC 2014

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In this session we'll share data and tips that Amazon has gathered from the top 50 revenue-generating apps that use IAP. Then we'll look at some innovative mobile ad ideas and explore the ...

In this session we'll share data and tips that Amazon has gathered from the top 50 revenue-generating apps that use IAP. Then we'll look at some innovative mobile ad ideas and explore the re-discovered future of in-app monetization...e-commerce.

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    What's Working in In-App Monetization - GDC 2014 What's Working in In-App Monetization - GDC 2014 Presentation Transcript

    • 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 iiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiii Source: Amazon Appstore, June 2013 Group B: Rest of Freemium iiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiii100100 installed
    • Day 0: Active Users Group A: Top-50 Grossing iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiii iiiiiiiiiiiii Source: Amazon Appstore, June 2013 Group B: Rest of Freemium iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiii iiiiiiiiiiii1213 installed 8887 active
    • Day 0: Uninstalls Group A: Top-50 Grossing iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiii iiiiiiiiiiiiii Source: Amazon Appstore, June 2013 Group B: Rest of Freemium iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiii iiiiiiiiiiiiiiii1614 uninstalled 8486 active
    • Day 0: Paying Users Group A: Top-50 Grossing ii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiii Source: Amazon Appstore, June 2013 Group B: Rest of Freemium ii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiii1614 uninstalled 8284 active 22 paying
    • Day 0: Engagement Group A: Top-50 Grossing ii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiii Source: Amazon Appstore, June 2013 Group B: Rest of Freemium ii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiii1614 uninstalled 8284 active 22 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 ii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiii 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 1614 uninstalled 8284 active 22 paying # of sessions / active session length / active (minutes) × = avg. session length (minutes)
    • 1 Day Later… Group A: Top-50 Grossing i iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiii Source: Amazon Appstore, June 2013 Group B: Rest of Freemium i iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiii # of sessions / active session length / active (minutes) × = avg. session length (minutes) 1816 uninstalled 4543 active 11 paying 3640 installed =× # of items / paying 100% 112% avg. selling price 100% 152% 100% 170% ARPPU
    • 3 Days Later… Group A: Top-50 Grossing iiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiii iiiiiiiiiiiiiiiii Source: Amazon Appstore, June 2013 Group B: Rest of Freemium iiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iii iiiiiiiiiiiiiiiiiiii # of sessions / active session length / active (minutes) × = avg. session length (minutes) 2018 uninstalled 2726 active 5356 installed =× # of items / paying 100% 107% avg. selling price 100% 180% 100% 193% ARPPU
    • 1 Week Later… Group A: Top-50 Grossing iiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiii iiiiiiiiiiiiiiiiiiiiii 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) 2422 uninstalled 2020 active 5658 installed =× # of items / paying 100% 112% avg. selling price 100% 233% 100% 262% ARPPU
    • 2 Weeks Later… Group A: Top-50 Grossing iiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiii Source: Amazon Appstore, June 2013 Group B: Rest of Freemium iiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiii # of sessions / active session length / active (minutes) × = avg. session length (minutes) 2825 uninstalled 1414 active 5861 installed =× # of items / paying 100% 114% avg. selling price 100% 198% 100% 226% ARPPU
    • 1 Month Later… Group A: Top-50 Grossing iiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiii Source: Amazon Appstore, June 2013 Group B: Rest of Freemium iiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii # of sessions / active session length / active (minutes) × = avg. session length (minutes) 3229 uninstalled 99 active 5962 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 ii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiii Day 0 Group A: Top-50 Grossing ii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiii Source: Amazon Appstore, June 2013 1614 uninstalled 8284 active 22 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 i iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiii Source: Amazon Appstore, June 2013 × = avg. session length (minutes) 1816 uninstalled 4543 active 11 paying 3640 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 iiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiii iiiiiiiiiiiiiiiii Source: Amazon Appstore, June 2013 × = avg. session length (minutes) 2018 uninstalled 2726 active 5356 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) 2422 uninstalled 2020 active 5658 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) 2825 uninstalled 1414 active session length / active (minutes) 5861 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 iiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiii Source: Amazon Appstore, June 2013 × = avg. session length (minutes) 3229 uninstalled 99 active session length / active (minutes) 5962 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 Price Points 6-10 Price Points 11-15 Price Points 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
    • 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