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What the Top 50 Apps Do with IAP that the Rest of Us Don't

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Published on June 18, 2015

Amazon has collected data about how users engage with IAP in games, and we have reviewed how the most profitable apps are using IAP to monetize successfully. We found data on two levels: HOW the top 50 did differently (Retention data, session length data, units sold and price data) and we found WHAT they did differently to get those results. It turns out there are a handful of things that most of the top 50 do that other games don't do. We’ll share that actionable data with you in this session.

In this session we'll share these best practices and the analytics data that we've aggregated from the top 50 IAP grossing games in the Amazon App Store. We’ll study several purchasing UI layouts to learn how to manage and present IAP item selection, and we’ll also cover how to manage IAP price points and how to tailor price variety for customers. We’ll look at examples from Ninja Kiwi, and how they used this data to improve their IAP sales. As a special addition, we’ll look at how Playtika uses many of these same metrics to determine how and when to put IAP items on sale without hurting future revenue. Now with four years of updated content and actionable data, you will learn what you can do today to start building more profitable apps.

Published in: Technology

What the Top 50 Apps Do with IAP that the Rest of Us Don't

  1. 1. WHAT THE TOP 50 APPS DO WITH IAP THAT THE REST OF US DON’T Reach  Engage  Earn MIKE HINES DEVELOPER EVANGELIST, AMAZON @MikeFHines mikehines45 mihines@amazon.com
  2. 2. CREDIBLY INNOVATE PHOTO HERE Amazon Appstore TODAY’S AGENDA How the Top 50 Did What They Do Differently – Selling What They Do Differently – Engagement When to have a Sale
  3. 3. Amazon’s Large and Active Audience 3 Android devices Fire phone Kindle Fire The Appstore supports a large ecosystem Customers are 1-Click purchase ready Available on Android tablets and phones The only store for Amazon devices Amazon Appstore reaches FireOS, Android, and Blackberry 10 customers Fire TV & Fire TV Stick BB 10
  4. 4. How the Top 50 apps did vs. the rest of us
  5. 5. Cohort Analysis Group A: Top-50 Grossing Source: Amazon Appstore, March 2014 Group B: Rest of Freemium
  6. 6. Day 1: Installs Group A: Top-50 Grossing iiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiii Source: Amazon Appstore, March 2014 Group B: Rest of Freemium iiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiii 100100 installed
  7. 7. Day 1: Active Users Group A: Top-50 Grossing iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiii Source: Amazon Appstore, March 2014 Group B: Rest of Freemium iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Iiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiii 4142 In active 5958 active
  8. 8. Day 1: Uninstalls Group A: Top-50 Grossing iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiii Source: Amazon Appstore, March 2014 Group B: Rest of Freemium iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Iiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiii1318 uninstalled 5958 active
  9. 9. Day 1: Paying Users Group A: Top-50 Grossing iii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiii Source: Amazon Appstore, March 2014 Group B: Rest of Freemium iii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiii1318 uninstalled 5958 active 33 paying
  10. 10. 2.6 2.9 Source: Amazon Appstore, March 2014 Day 1: Engagement Group A: Top-50 Grossing iii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiii Group B: Rest of Freemium iii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiii1318 uninstalled 5958 active 33 paying # of sessions / active session length / active (minutes) × = avg. session length (minutes) 6.9 7.4 1822
  11. 11. 6.9 7.4 2.6 2.9 Day 1: Revenue Group A: Top-50 Grossing iii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiii Source: Amazon Appstore, March 2014 Group B: Rest of Freemium iii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiii =× # of items / paying 100% 112% avg. selling price 100% 136% 100% 154% ARPPU 1318 uninstalled 5958 active 33 paying # of sessions / active session length / active (minutes) × = avg. session length (minutes) 18 22
  12. 12. Source: Amazon Appstore, March 2014 1 Day Later… Group A: Top-50 Grossing ii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiii Group B: Rest of Freemium ii Iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiii # of sessions / active session length / active (minutes) × avg. session length (minutes) 1725 uninstalled 3437 active 11 paying =× # of items / paying 100% 106% avg. selling price 100% 107% 100% 114% ARPPU 6.7 7.7 3.2 3.5 21 27= # of sessions / active
  13. 13. 3 Days Later… Group A: Top-50 Grossing iiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiii Source: Amazon Appstore, March 2014 Group B: Rest of Freemium iiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiii # of sessions / active session length / active (minutes) × avg. session length (minutes) 1928 uninstalled 1923 active =× # of items / paying 100% 107% avg. selling price 100% 122% 100% 131% ARPPU 5.9 7.9 2.6 3.2 15 25 = # of sessions / active
  14. 14. 1 Week Later… Group A: Top-50 Grossing iiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Source: Amazon Appstore, March 2014 Group B: Rest of Freemium iiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiii # of sessions / active session length / active (minutes) × avg. session length (minutes) 2032 uninstalled 1418 active =× # of items / paying 100% 102% avg. selling price 100% 121% 100% 124% ARPPU 5.7 7.4 2.6 3.2 15 24 = # of sessions / active
  15. 15. 2 Weeks Later… Group A: Top-50 Grossing iiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Source: Amazon Appstore, March 2014 Group B: Rest of Freemium iiiiiiiiiii iiiiiiiiiiiiiiiiiiiii # of sessions / active session length / active (minutes) × avg. session length (minutes) 2134 uninstalled 1014 active =× # of items / paying 100% 111% avg. selling price 100% 108% 100% 120% ARPPU 5.7 7.3 2.5 3.1 14 22= # of sessions / active
  16. 16. 1 Month Later… Group A: Top-50 Grossing iiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Source: Amazon Appstore, March 2014 Group B: Rest of Freemium iiii iiiiiiiiiiiiiiiiiiiiiiii # of sessions / active session length / active (minutes) × = avg. session length (minutes) 2236 uninstalled 48 active =× # of items / paying 100% 103% avg. selling price 100% 128% 100% 131% ARPPU 5.9 7.3 2.4 3.1 14 23 # of sessions / active
  17. 17. Hours Since App Download IN-APP PURCHASING BY HOUR Source: Amazon Appstore, March 2014 0 24 48 72 96 120 144 168 192 216 240 264 288
  18. 18. 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, March 2014 +60% average selling price
  19. 19. WHAT WE LEARNED The top have higher average price points You can charge more in the right place and time. Session length and count are important Retention is not the only important metric.
  20. 20. What the top 50 do differently -- Selling
  21. 21. THE TOP DEVELOPERS KNOW THE NUMBERS ? ENGAGE CUSTOMER EARLY MAKE IT EASY TO COME BACK GIVE THEM A REASON TO COME BACK 37% of users who will purchase, purchase on the first day 48% of repeat purchases happen within one hour of a previous purchase 64% of revenue comes from 3rd order + 74% of revenue occurs after first 7 days 56% of revenue occurs after first 30 days
  22. 22. Apps with tutorials that introduce IAP items HAVE A 2.5x HIGHER CONVERSION RATESource: Amazon Appstore, July 2013
  23. 23. Apps showing users how to “consume” GET MORE REPEAT ORDERS Games that providing a post-purchasing tutorial generated 65% more repeat orders than the market average. Source: Amazon Appstore, March 2014
  24. 24. Games with bigger selection RECEIVE MORE ORDERS PER CUSTOMER Developers that add new items regularly are able to re-engage their paying customers. 1.14% of the customers generate 30% of sales. Source: Amazon Appstore, March 2014 69% 100% 145% 1-5 Items 6-10 Items 11-15 Items ARPPU by # of IAP items for sale
  25. 25. Conversion Rate INDEX: Average = 100% Don’t confuse your customer OFFER VARIETY, BUT NOT TOO MUCH Source: Amazon Appstore, March 2014 147% 101% 52% 0% 50% 100% 150% 200% 1-5 Price Points 6-10 Price Points 11-15 Price Points
  26. 26. To sell more IAP items, BE CLEAR ABOUT VALUE Make it obvious what the benefit is for buying different price items. Confused customers don’t buy anything.
  27. 27. WHAT WE LEARNED Games with bigger selection RECEIVE MORE ORDERS Tutorials that introduce in-app items HAVE HIGHER CONVERSION Showing users how to “consume” GETS REPEAT ORDERS Treating in-app items like a catalogue MAKES IT EASY TO SHOP 1.14% of paying customers generate 30% of sales
  28. 28. What the top 50 do differently -- Engagement
  29. 29. REDUCE BARRIERS TO FREQUENT USE
  30. 30. Tuning Game Difficulty WILL ENCOURAGE LONGER SESSIONS Too hard, and users will abandon. Too easy, and they can get bored. Just right, and it becomes addictive!
  31. 31. Adopting Social CAN CREATE BUZZ AND KEEP USERS ENGAGED This will result in more friend-to-friend marketing as players share their achievements and ranks. Players will also compete with friends and leaders and stay engaged.
  32. 32. Leaderboards and Achievements are THE MINIMUM BAR FOR SOCIAL ENGAGEMENT
  33. 33. Design IAP into the fabric of your game MAKE IT EASY TO BUY Offering ways to buy your IAP items when they are needed will increase conversion. Apps that made it easy to shop INCREASED REVENUE 75% (ARPPU) Source: Amazon Appstore, March 2014
  34. 34. To be in control, HAVE A LOT OF LEVERS Use A|B Testing to fine-tune everything from game difficulty to IAP menu choices.
  35. 35. WHAT WE LEARNED Add social and tweak game difficulty to INCREASE TIME AND COUNT OF SESSIONS Cater to your best and longest customers with clear value DIFFERENTIATE YOUR IAP CATALOG Give yourself control of your game in the wild IMPLEMENT A|B TESTING
  36. 36. IF YOU ONLY DO ONE THING… Cater to your best and longest customers DIFFERENTIATE YOUR IAP CATALOG
  37. 37. IF YOU ONLY DO TWO THINGS… Cater to your best and longest customers DIFFERENTIATE YOUR IAP CATALOG Make sure your IAP catalogs are CLEAR ABOUT VALUE
  38. 38. Learn more: http://developer.amazon.com/welcome Contact us: forums.developer.amazon.com Tweet: @MikeFHines Follow us: /AmazonAppstoreForAndroid @AmazonAppDev @MikeFHines developer.amazon.com/blog

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