Katsuaki Sato describes his studies of app monetization and promotion on Google Play. Learn from the master of Anrdoid app marketing in Tokyo Japan. Katsuaki's company Metaps is a leader in Android app promotion, monetization and retention.

1. Monetizing Android Apps
How I Achieved
$15,000 Daily Sales
on Google Play
Katsuaki Sato (佐藤 航陽)
CEO of Metaps Inc.
http://www.metaps.com/
facebook：www.facebook.com/katsuaki.sato
Twitter：@metaps_sato

2. Introduction
Katsuaki Sato (佐藤 航陽)
CEO of Metaps Inc.
http://www.metaps.com/
Katsuaki Sato started his first business when only 15 years old.
After entering university, he successfully launched a search
engine/social media marketing business in 2007. In 2011, he
launched a smartphone developer platform business with operations
in Tokyo, Singapore, Hong Kong, and Silicon Valley, and strives to
help support the monetization needs of developers around the
world.
facebook：www.facebook.com/katsuaki.sato
Twitter：@metaps_sato Ranked No.1 in
Amazon Japan
“Hit Books”
Author of the Smartphone Book:
ITmedia Blogger “The 3 Need-to-Knows For
Android×Global (Japanese only) Success in the Global
Smartphone Market”
http://blogs.itmedia.co.jp/android/ (pub. Nikkei Publishing Inc.)
No.1 “Hit Books” Category Amazon JP
http://amzn.to/PhUgLD

3. What Do I Do?
App Monetization Platform
“Metaps” Operates a Reward Ad Network
Advertising Monetization
Low-Risk User Acquisition Earn Money Quickly
Reward Ad
CPI-AD Network Reward Ads
（Cost per Installation Ads） (Ads = Payments)
* Reward ads are used within
applications for monetization.
They provide similar value to the
end-user as an in-app purchase,
and is provided in exchange for
interaction with the ad offer.
© 2012 Metaps.inc

4. Publisher Network Grew 3,000％+ during 2012/01-06
The Metaps publisher network for Android apps grew 3,357％ in half a year.
Ad Consumption
媒体の消化件数
by Publishers
3,357% Growth
over 6 Months
Jan Feb Mar Apr May Jun

5. Reason for Our Rapid Growth in Publisher Client Base
Reason: Our publisher clients’ sales have increased
Since reward ads are treated as an alternative method for purchasing in-app content,
our publisher network cannot grow unless our publishers sales (in-app purchases) increase.
CPC Ads Reward Ads
Publisher Revenue Publisher Revenue
Cost per Click Model Cost per Install Model
Comparison
Revenue Growth Revenue Growth
Proportional to in-app impressions Proportional to in-app sales
The reward ads business model grows in tandem
with the app publisher’s in-app sales

6. Can Apps Actually be Profitable?
Only the top 1% of publishers generate sufficient profit
There are around 40 apps from AppStore + Google Play which generate
monthly sales over $125K. Since there are many apps that support both
OS and multiple top ranking apps owned by the same company, there are
actually only about 25 domestic companies that are generating
monthly sales of over $125K. (*excl. sales from in-app advertisements)
Google Play AppStore
Top Grossing
$500K - $1,250K $750K - $2,500K
1～5 th
Top Grossing
$250K - $500K $375K- $750K
6～10 th
Top Grossing
$125K - $250K $188K - $375K
11～15 th
Top Grossing
Below $125K Below $188K
below 15th
USD 1 = JPY 80

7. Actual Attempts to Monetize as a Publisher
One cannot figure out what the mechanics are just by
looking at Google Play rankings or App Annie data, or even
through operating an ad network.
It was necessary to put oneself in the shoes of an Android
app developer to best figure out the rules for monetization.
With the help from our clients, we decided to completely
take care of their monetization needs, burdening the costs
and risks ourselves.
Through trial and error, we accumulated successful (and
unsuccessful) case study data by working directly with
developers on their app content

8. Finding the Formula for Success on Google Play
There is yet no formula for global success in the Android app market, and therefore profitability is
low despite the large market share. By finding what the formula is (like what is known to work for
AppStore), there is the potential for profitability exceeding that of AppStore.
20,000 DL in 24-hour Period
Organic Traffic
Burst Review Site
App Release from Increase
Campaign Promotion
In Ranking
AppStore
Monetization
Detailed Process and Numbers are Unknown
App Release Black Box
With the help of our clients, we looked for any patterns to succeed in the market

9. Apps that Have Generated Daily Sales in Excess of $15k
By undertaking all marketing activities ourselves, we compared the cost effectiveness of each
advertising method, and analyzed its effects on ranking. Summarized below are the type of apps
that produced the best results.
***App names withheld (confidential)
Details Notes
Genre Game Main target: Male Users
No account registration
required. Minimal interaction
Free/Paid Free needed to start using the
app.
Freemium Model + Sell virtual items and/or
Monetization Model virtual currency inside app
Reward Ads
Manage end-users and/or
SNS or Other Platforms None community without reliance on
social gaming platforms
Hybrid Mostly based on WebView but
Development partially native app.
(Native + WebView)

10. What Was Done to Achieve Daily Sales Over $15k
Although there were many different trials, there were really only 2 types of promotions that were
tried at the initial release of an app.
1. Reward Ads
Leveraged the Metaps reward ad network. After initial
release, around 17,000 users were acquired in a week by
launching campaigns targeting app publishers only.
2. Review Site Tie-ups
After selecting several review sites to publish on, we initiated
promotions in sync with the reward ad campaigns. During
the initial month, articles were placed at a pace of 1 a week.

11. Ad Campaigns Targeted to Tap in to Organic Traffic
Organic traffic was acquired by increasing exposure
in yellow categories in the first month, which enabled tapping into more
sustained traffic by reaching higher rankings in orange categories.
Category Top (Paid)
Google Play Categories
Top (Paid) Top (Free)
Top (Free) Top Grossing
Top Page
Top Grossing Top New (Paid)
Apps
Top New (Paid) Top New (Free)
Top New (Free)
Latest
Category Top (Paid)
Top (Paid) Top (Free)
Games
Top (Free) Top Grossing
Top Grossing Top New (Paid)
Top New (Paid) Top New (Free)
Top New (Free)
If we were to simply advertise based on cost effectiveness, most media options would not pass the
bar – therefore ads were placed on the understanding that they were investments to maintain an
inflow of organic traffic. We especially focused on the display order in each Google Play category.

12. The First 30 Days in Google Play are Critical
Apps are listed in any Top New categories for 30 days after the initial release.
The success hinges on how many new users can be acquired while it is listed in this category.
30th Day By leveraging the momentum
After publishing the app
generated with organic traffic in the
to Google Play, apps are
“Top New” category, it possible to
listed in this category
rank higher in the “Top Free” and
for only 30 days.
“Top Grossing” categories.
“Top New Free” “Top Free”
“Top Grossing”

13. Data from Actual Ranking Changes and Organic Traffic vs Ad Campaign
In the initial week, 17K users were acquired along with a rise to the No. 15 rank in the Top New (Free)
category. From there, we were able to maintain a higher position in ranking by acquiring 2-3K users daily
through organic traffic. Each week thereafter, we placed tie-up promotions on select review sites, in
order to drive core users to the app.
Appearance on Review Sites
Red = Ranking
Blue = No. of Daily Installs
No. of Installs from Organic Traffic
No. of Acquisition from Reward Ads
“Top New (Free)” Ranking
Day 7 Day 14 Day 21 Day 28

14. Aiming for Top 10 in Sub-Categories Can Produce Results
If the app rises to around Top 10 in “Top New Free”, the same app will also make Top 10 in its smallest sub-
category (i.e. “Puzzle” inside “Game”). Users from this category are not only highly motivated, the ranking
can remain consistent even after 30 days, allowing anywhere from 500 to 1,000 daily acquisitions.
Google Play ranking Ranking tends not to drop
increases gradually after attaining a higher rank
compared to iOS in the smaller sub-categories
30th Day 60th Day

15. Notes on Launching Ad Campaigns : Period
If 17k users are acquired in a week, or even if the same numbers are acquired in a day, the ranking will
continue to increase for ~7 days after launch and will attain a rank around Top 15 in “Top New Free”.
After the 8th day, increase in ranking tends to slow down or hover in the same position. At this point, it is
likely that the average number of acquisitions, user ratings, and user activity numbers come in to play to
determine ranking. The overall lack of fluctuation in Google Play ranking can be explained if data averages
are used in its algorithms.
Common Phenomena Observed
• Ranking tends not to rise or fall sharply over time.
• Initial climb in ranking will change pace around the 8th
day from release.
Possible Theories Based on Observation
• Data is likely processed over a 1 week period. (not 24hrs)
• The averaged number of acquisitions for the past week are
likely used.
• The reliability of the numbers (which is a reflection on the
reliability of the content) is made using averages.

16. Notes on Launching Ad Campaigns : Media Placement
Unlike AppStore, it is evident from the way Google Play ranking fluctuates that not only the “quantity” but
also the “quality” of users are taken into account. With this knowledge, we placed ads in publisher
apps that have users who are familiar with and use native Android apps on a daily basis. Since
users from the web are generally not app users, there was a significant difference in retention rate.
Native App WEB
[Main Publishing Media] [Main Publishing Media]
Game / Entertainment related apps Point sites / Major SNS
iOS • Ranking fluctuates based on
short term DL numbers. Lead users
• Quality is not as important. from web to DL
Difference in “quality” of user
User retention rate
is extremely low
Android
Most users
Ads were do not end up
placed here using the app

17. Comparison of AppStore and Google Play
Short Term Medium to Long Term
Rating Period
(24 hr period) (7 - 10 day period)
Total Downloads Average User Acquisition
Reference Score
score
Apps that are trending
Apps that are trending
Display ranking AND being used are
are displayed in real time.
displayed.
Scrutinized by Apple users Calculated through
Quality of App algorithms based on user
opinions
appraisal
Ranking Frequently Fluctuates Fluctuates Less Frequent
Fluctuation

18. Number of Acquisitions and Ranking Fluctuation
Through trial and error, we found that app ranking will increase to a certain point based on the number of
user acquisitions and ad placement. Also, depending on app presentation (icon, title naming, etc.) the
amount of organic traffic generated was found to differ by up to 1,000 downloads.
Rankings when 15K – 20K users are acquired in the initial week from launch
Ranking / Category Apps Games Game Sub-Categories
“Top Free” 155 th 45 th 4 th
“Top New Free” 15 th 12 th 1st
Average Daily Organic Traffic： 2,000-3,000 DLs
Notes:
• Of all game sub-categories, “Casual” is the most difficult to get high rankings on.
• Ranking can vary greatly depending on competitor app releases.
• Daily organic traffic numbers can differ by over 1,000 DLs, and depends on
presentation of the app icon, screenshots and title naming.

19. Pros & Cons of Review Sites
Pros Cons
• Cost efficiency is hard to measure
• User incentive/motivation is high
• Results vary greatly depending on
• High possibility of acquiring core users
how apps are introduced
Important points when working with review sites
• Brand awareness of the site vs cost efficiency often does not correlate.
• There are many famous sites that do not generate sufficient ROI.
• In contrast, there are many small/medium sites that generate good results.
• Carefully check app category compared with the review site’s user base.
• Depending on how the app is reviewed, the results can vary by over 5 times.
• Best results can be had when synced in time with events or campaigns.

20. Launch App by Mixing Reward Ads + Review Sites
Reward ads are good at acquiring a large number of users in a short time, but if the media it is
displayed in is not selected carefully for its user base characteristics, incentive towards the reward ad
will be low. On the other hand, review site users are highly motivated but the potential number of
acquisitions is comparatively low. So in the first month, campaigns were launched in a way so that
either method would reinforce the weakness of the other.
Reward Ads Review Site Promo
Acquisition of Active Users Acquisition of Fewer
from Similar Target Segment Core Users
Aim to Tap More Organic Aim to Enliven App Community
Traffic from Increase in Through Increase in Fan Base
Ranking
Increase user activity through acquisition of
organic traffic and increased fan base

21. Actual Results from Mixing Reward Ads + Review Sites
In the end, we were able to acquire around 19K users by using both reward ads and review sites, but also
40K users from monthly organic traffic; and an daily active user ratio of ~25% of the total user base.
At this point, we were able to achieve daily sales of $15K on Google Play.
Acquisitions from Campaigns 30th day of Campaign
Reward Ads: 17,000 users DL : 60,000 DLs
Result DAU：15,000 users
Review Sites : ~2,000 users
Organic Traffic: 40,000 / month
Total Acquisition: ~19,000 users
Daily Sales：$15K
Reached Top 15 in “Top Grossing” and Top 10 in “Games” categories.

22. Tapping in to the Organic Traffic Cycle Makes the Next Month Easier
If the app is able to maintain a position within the Top 20 of “Top Grossing”, even after the app disappears
from the “Top New” category (after 30 days) and even without additional advertising, there is a constant
inflow of around 1,500 daily users from organic traffic, which effectively generates a positive feedback cycle.
30 days from Launch
Ranked in Top 10 Daily organic traffic Monthly organic
of “Top New Free” of 2,500 - 3,000 traffic of 40,000
After 30 days from Launch
Ranked in Top 20 Daily organic traffic Monthly organic traffic
of “Top Grossing” of 1,000 – 1,500 of 30,000 - 40,000

23. What Was Done After the First 30 Days
Although new users can be acquired through sustained organic traffic, once user churn starts to overtake,
overall sales numbers cannot be maintained. Therefore, we started to tackle the issue of maximizing LTV
through active user engagement and retention strategies.
1. Minimizing Existing User Churn
A number of measures were implemented such as
improving user app launch frequency through push
notifications, integrating reward ads to mitigate churn of
free-to-play users, updates for events and new app
functionality, and improving SNS posting functions.
2. Advertising on CPC Networks
Rather than just aiming for large acquisition numbers,
ARPPU and expected LTV from several ad networks were
calculated focusing on efficiency vs cost in order to
acquire users over the long term.

24. Overall Sales Did Not Decrease as Much
Even though user acquisition through organic traffic + CPC remained, the ARPPU did not change much
and overall sales did not to decrease as much as was originally expected. This is likely due to a lack of
competition and the number of apps that are strong enough to launch themselves high into the Top
Grossing categories.
Google Play Once the app reaches the Top 20 in
“Top Grossing” Ranking “Top Grossing”, sales remain level
Reasons why sale do not fall:
• Competition is not as fierce as AppStore
• User acquisition strategies have not yet
become common knowledge
30th Day 60th Day

25. Android Campaigns Need Coordination with Content
Before launching your promotion, there is one important point that needs to be addressed; There must be a
user content engagement strategy, and a promotion campaign coordinated to run in sync. Unless the
content leaves a favorable impression with the users, it will lead to a high amount of churn, and ultimately
reduce the money available to invest in your next round of advertisements.
Content Engagement and Promotions
Content Start Users Increase Further
Positive Re-Invest
Strategy Promotion and Increase
Cycle With More Ads
In Place Campaign Sales Increase In Sales
Start Reduce Ad
Sales Fall
Negative No Content Promotion Expenditure User Base
Due to
Cycle Strategy Without
User Churn
Due to Low Shrinks: EoL
Preparation ROI

26. Example of Failed Projects and Campaigns
There were just as many failed cases as successful ones.
The following cases did not achieve decent results.
Requiring users to login / register account at start of app
Since most users expect to be able to use an app straight away after downloading, many users
simply uninstalled the app and did not return when registration was required. Due to this, the
calculated cost of acquisition increased to the point where none of the advertising options
remained cost effective.
App file size was too large (50MB+) and only downloadable by Wi-Fi
Many users just gave up, if were forced to download apps with file size of over 50MB or took
longer than 30 seconds to launch. As with the case of account registration above, the cost of
acquisition increased due to this hurdle.
Not enough testing before app release
There are quite a few developers who do not perform adequate testing before publishing to Google
Play, and start their debugging + verification on actual handsets after release. The critical period
while listed in “Top New” categories during the first 30 days will be wasted by fixing bugs.
Additionally, if a bug is found by users they will tend to give a low “1” star for its rating. Even
if marketing activities are launched after bugs are fixed, it becomes even more difficult to reach
organic traffic at higher rankings, due to the low ratings.

27. 80% of Companies Fail to Choose the Right Partner
We found monetization was difficult to achieve when we partnered with companies (such as ad agencies and
consultants) that behaved in the ways listed below. The important thing is to look for trustworthy
companies regardless of size or brand.
Proposals only contained “number of user acquisitions” & “acquisition cost” of CPA/CPI
→No advice or suggestions about app content were given.
The important point is that your partner should not only be able to provide simple media-planning and
acquisition numbers, but also be able to give direct advice and strategies related to the content.
Depending on the type of freemium app content, the LTV, DAU and ARPPU can vary greatly, and
strategies will differ appropriately.
Past results are described ambiguously like “Best Seller” or “No.1 Overall Ranking”
→The process of how they increased sales is not explained.
You should always be critical of actual sales and revenue results. There are in fact numerous high
brand value apps out there in the market that have failed to monetize. If the partner is not able to
explain in detail the process required to increase sales, you have the right to be suspicious. Don’t
forget to ask which apps they are basing their results on as well.
Proposals focus on maximizing their own revenue, instead of optimizing results for client.
→Be weary of recommendations to target channels that offer maximum consumption
rates or best volume for your advertising budget
Caution is advised if a company is not thinking on your behalf for the long-term, and starts proposing
campaigns to maximize their insertion order volume in the short term. There is a high possibility that
the company is not trustworthy when it recommends a plan that focuses on using up the budget,
rather than focusing on its cost performance.

28. Companies that are Successfully Monetizing Android Apps
After working with numerous developers, the companies who successfully generate sales in the Android
market have the following things in common.
The point of contact is a heavy app user and well versed in Android apps
We often see successful companies who have representatives that are frequently using not only
their own apps but their competitor’s ones – often they will even be carrying both iPhone and
Android handsets. On the other hand, if they are not touching Android apps and rely solely upon
industry news on the internet, they tend to be from unsuccessful cases.
Company specializes in their strengths and makes good use of external partnerships
A company that focuses on their strengths while leveraging other vendors will often produce good
results. In contrast, when companies try to do everything internally they tend to spread
resources too thin and projects often fall apart.
The point of contact is proactive about getting their own data in real-time
Not only do they rely on news from the internet or from publications, they will personally attend
events and make appointments to get real-time information on the ground. As the smartphone
industry trends tend to change quickly, the information you acquire while sitting in front of
your PC is likely to already be old.

29. An Overview of Metaps
Metaps Inc.
For any inquiries related to URL: http://www.metaps.com/
Android App Monetization, Founded: Sept. 2007
please contact us at: Capital: 447.52 million Yen
sales@metaps.com CEO: Katsuaki Sato
Audit Cooperation:
KPMG AZUSA LLC
-Offices-
Challenging the global market, and aspiring to
be a leader and role model for the next Metaps Inc. （Japan）
generation of Japanese industries FORECAST SHINJUKU AVENUE 5F, 2-5-12,
Shinjuku, Shinjuku-ku, Tokyo 160-0022
Metaps Pte. Ltd. （Singapore）
Metaps China
International Europe 100 Cecil Street, The Globe #05-01,Singapore 069532
Metaps Inc.
Metaps Hong Kong （Hong Kong）
Metaps Hong
Suite 1008 Prosperity Millennia Plaza,
Kong
Africa 663 King's Road, Quarry Bay, Hong Kong
Metaps Pte, Metaps International （U.S）
South Africa Ltd.
10 South 3rd Street, Suite 209, San Jose, CA, USA
95113