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5TIPS OF MONETIZATION
1
Cheng Luo
Developer 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 FireTV
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’STHEVALUE CUSTOMERS PAYING
FOR?
7
Premium Model
8
FreeVersion PremiumVersion
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 ARETHE OTHER REVENUE MODELS
YOU CANTRY?
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
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
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
ABTesting/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
HOWTO MARKETYOUR APPS
Photo/ragingwire /CC BY
36
Choose a Good Name
Angry Bird
WhatsApp
From Cheese
Flappy Bird
Cut the Rope
Candy Crush
Temple Run
37
PromoteYour App in the store
38
Case study: Dr. Panda
GrossRevenue
AmazonAppstore
Promotion Period
UK
DE
FR
IT
ES
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
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
Your Revenue
Analytics
User Experience
Features
Uniqueness
42
Thank you
more details about Amazon Appstore from
http://developer.amazon.com/appstore
@chengluo chengluo@amazon.lu
43

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5 tips of monetization

  • 2. Cheng Luo Developer Evangelist,Amazon EU @chengluo Cheng Luo chengluo@amazon.lu 2
  • 3. Amazon Appstore 75% Android apps just work1-Click Purchase 244M Amazon accounts 200+ countries Kindle Fire Android FireTV 3
  • 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. 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. Gartner is forecasting that, by 2017, 95% of downloads will be for free apps 6
  • 10. Free Users In-app Purchase 10
  • 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. 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. WHY SOME DEVELOPERS ARE MORE SUCCESSFUL? Photo//challiyan/CC BY 13
  • 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. 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. 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. WHAT ARETHE OTHER REVENUE MODELS YOU CANTRY? Photo/maclauren70/CC BY 17
  • 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. 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. 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. 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. 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
  • 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. Case study: Spotify vs.AstrologyZone 26
  • 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. WHY CUSTOMER ENGAGEMENT IS IMPORTANT Photo/Toca Boca /CC BY 28
  • 29. Each user session is an opportunity to make money 29
  • 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. 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. 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. 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. ABTesting/Analytics API • Free for any kinds of usage • Supports iOS,Android, and Fire OS • Deployed instantly • Supports multiple goals 34
  • 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
  • 37. Choose a Good Name Angry Bird WhatsApp From Cheese Flappy Bird Cut the Rope Candy Crush Temple Run 37
  • 38. PromoteYour App in the store 38
  • 39. Case study: Dr. Panda GrossRevenue AmazonAppstore Promotion Period UK DE FR IT ES Banners + discounts 39
  • 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. 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
  • 43. Thank you more details about Amazon Appstore from http://developer.amazon.com/appstore @chengluo chengluo@amazon.lu 43