5 tips of monetization

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5 tips of monetization

  1. 1. 5TIPS OF MONETIZATION 1
  2. 2. Cheng Luo Developer Evangelist,Amazon EU @chengluo Cheng Luo chengluo@amazon.lu 2
  3. 3. Amazon Appstore 75% Android apps just work1-Click Purchase 244M Amazon accounts 200+ countries Kindle Fire Android FireTV 3
  4. 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 4
  5. 5. 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
  6. 6. Gartner is forecasting that, by 2017, 95% of downloads will be for free apps 6
  7. 7. Photo/Andy Welsher/CC BY WHAT’STHEVALUE CUSTOMERS PAYING FOR? 7
  8. 8. Premium Model 8
  9. 9. FreeVersion PremiumVersion 9
  10. 10. Free Users In-app Purchase 10
  11. 11. 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
  12. 12. 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
  13. 13. WHY SOME DEVELOPERS ARE MORE SUCCESSFUL? Photo//challiyan/CC BY 13
  14. 14. 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
  15. 15. 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
  16. 16. 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
  17. 17. WHAT ARETHE OTHER REVENUE MODELS YOU CANTRY? Photo/maclauren70/CC BY 17
  18. 18. Mobile Ads cost per click (CPC) and cost per thousands impressions (CPM) The two common pricing models support by mobile ads networks are 18
  19. 19. 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
  20. 20. Impression by Ad Format ⊗ x1x2 x28 x15 x10 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
  21. 21. 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
  22. 22. 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
  23. 23. Merchandizing Free app + New Revenue Stream 23
  24. 24. Subscription Model 24
  25. 25. Subscription Model + Guarantee of repeat transactions - Requires the backend servers of subscription purchases, tokens and billing activities, such as refunds. - High entry barrier 25
  26. 26. Case study: Spotify vs.AstrologyZone 26
  27. 27. 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
  28. 28. WHY CUSTOMER ENGAGEMENT IS IMPORTANT Photo/Toca Boca /CC BY 28
  29. 29. Each user session is an opportunity to make money 29
  30. 30. 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
  31. 31. 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
  32. 32. 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
  33. 33. 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
  34. 34. ABTesting/Analytics API • Free for any kinds of usage • Supports iOS,Android, and Fire OS • Deployed instantly • Supports multiple goals 34
  35. 35. 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
  36. 36. HOWTO MARKETYOUR APPS Photo/ragingwire /CC BY 36
  37. 37. Choose a Good Name Angry Bird WhatsApp From Cheese Flappy Bird Cut the Rope Candy Crush Temple Run 37
  38. 38. PromoteYour App in the store 38
  39. 39. Case study: Dr. Panda GrossRevenue AmazonAppstore Promotion Period UK DE FR IT ES Banners + discounts 39
  40. 40. 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
  41. 41. 5Tips 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
  42. 42. Your Revenue Analytics User Experience Features Uniqueness 42
  43. 43. Thank you more details about Amazon Appstore from http://developer.amazon.com/appstore @chengluo chengluo@amazon.lu 43

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