What you didn't learn about the App Store

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  • Over one million downloads.\nApproximately $20,000/day\n2-day retention of over 40%. Meaning that 40% of people that install the app on day one come back on day two. That’s a large number. Think about all the apps/games you’ve installed and then immediately deleted. This includes crappy installs from people never intending to launch the game more than once. More on that later.\nApproximately 730,000 game sessions a day.\n
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  • Chartboost allow cross-promos between other applications. Both yours and others.\nTapJoy allows you to monetize your app by having the user gain something in return for signing up to a magazine, downloading another app, etc. You can also be the “other app” that’s being download and get a large amount of installs by users of other apps.\nGoogle admob, and iAds are examples of targeted advertisement platforms. Say you want your app to be advertised to users of other apps in your demographic.\nThere are many free app a day sites that in return for your money will feature your application and send all of their users to download it. In return for their download they accumulate points to trade in for other goods later.\n
  • The name of the game is the ECPI: Effective cost per install.\nYou want to acquire a large quantity of downloads to push you up the app store ranks and hope for some virality. Lower ECPI.\nBut you only make money from quality users.\nPeople who are in for the long haul and will spend money. These have a higher ECPI.\n\n
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  • You buy installs in bulk from affiliate marketing and incentive programs, but these users are not installing because they want your product. They want their kickback. They will not be a long-time quality user, and they certainly won’t pay via IAP anytime. They are only there to push you up the App store charts.\nTargeted ads put your product in front of people who may actually be interested in it. These people will be happy to pay if they enjoy it.\n
  • Once the paid installs stopped, the amount of installs per day dropped significantly. As expected.\n
  • But once the big push for installs stopped, the existing quality users still stuck around and kept paying. That’s where the difference between a crappy product and a good one will show.\n
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  • Recent example of a game, Temple Run, being completely copied by a game called Pyramid Run. They bought themselves to the #1 spot and then made money off of in-app purchases. Then was removed from the store by Apple once it came to light they were using “bots”, or automated download methods, to catapult them up to #1.\n
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  • It’s free, and they want to do it. They want to tell their friends. Nobody knows exactly why they chose to hit that “Send” button, but they do.\n
  • It’s free, and they want to do it. They want to tell their friends. Nobody knows exactly why they chose to hit that “Send” button, but they do.\n
  • It’s free, and they want to do it. They want to tell their friends. Nobody knows exactly why they chose to hit that “Send” button, but they do.\n
  • It’s free, and they want to do it. They want to tell their friends. Nobody knows exactly why they chose to hit that “Send” button, but they do.\n
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  • I added a “fish farts” leaderboard for the fish game. It’s so stupid and so silly, but it’s fun to look at.\n
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  • What you didn't learn about the App Store

    1. 1. What you didn’t learn aboutthe Apple App Store in school. OrWhy you won’t make money with your app. Or Free Beer. Take one. gabekangas.com
    2. 2. I took part inmaking a game And learned a lot.
    3. 3. Simple, right?• Make an awesome product• Put it on the app store• ???• Profit
    4. 4. Reality?• Make an awesome product• Put it on the app store• Nobody ever sees it• Or nobody pays for it• Cry
    5. 5. “Consider the sad story of Gasketball, an iOS gamethat released for free with a $2.99 in-app purchase to unlock the rest of the content. It managed200,000 downloads, and at one point was close the top of the iTunes games chart -- but only 0.67% ofcustomers paid for the IAP. After two years of work, the two developers behind the game ended up homeless, staying with friends while trying to address the reasons the app didnt sell well and recoup their investment of time.” -TUAW Sept 2012
    6. 6. So what’s thedifference betweenthe Top 25 and you?
    7. 7. Money and Partnerships
    8. 8. Facebook App App Store Center Features Free app a day Questionable sitesCross-promo programs Targeted Ads Affiliate Marketing
    9. 9. Buying installs What are you paying for?• $ spent / Total installs = Effective Cost Per Install.• You pay for quantity to get on the app store charts in hopes of getting a lower ECPI via organic installs.• But you pay for quality to get a higher future Average Revenue Per User.• ARPU is what matters.
    10. 10. Buying installs• Goal == keep the ECPI number low and target an audience to get a high ARPU.• You time your launch around when you estimate a lower ECPI. Not around holidays, etc.• Like any other advertising, you’re bidding against others.
    11. 11. Buying installs• Cross Promos, Affiliate Programs are generally very low quality installs. ECPI is lower (because you’re trading people’s installs for something else. They don’t actually want your product), but the ARPU is almost nothing.• Targeted ads and organic installs are high quality. Meaning in the long term they will account for the ARPU numbers.
    12. 12. Installs Stop campaigns App store top 10 :( Balls to the wall campaignIn the store hanging out
    13. 13. IAP Revenue per day Stop campaigns $ :) App store top 10 Balls to the wall campaign In the store hanging out
    14. 14. So with enough moneyyou can get anything to the top of the App Store?
    15. 15. ...yesssssPyramid Run Temple Run Number one? Wtf! (Ripoff) (Original)
    16. 16. This example used “illegal” bots to mass download the app to force it to the top ofthe rankings and oncenoticed was removed.
    17. 17. “Free” organic install techniques• Build light versions.• Other apps that serve the same demographic.• Cross promote your big budget title within your free viral ones.• The more organic installs, the lower your ECPI.• “Social” and “viral” shit.
    18. 18. Get those organic installs!Cross the line a little. Utilize the social channels available to the fullest capacity.
    19. 19. blah blah blah I’m Zuck. Let’s talk about appz. Douche
    20. 20. blah blah blah I’m • BiblioRdr Zuck. Let’s talk “Gabe just read a book.” about appz. Douche
    21. 21. blah blah blah I’m • BiblioRdr Zuck. Let’s talk “Gabe just read a book.” about appz. • Karaoke Plus “Gabe just sang a song.” Douche
    22. 22. blah blah blah I’m • BiblioRdr Zuck. Let’s talk “Gabe just read a book.” about appz. • Karaoke Plus “Gabe just sang a song.” Douche • MommySpammR “Gabe just took a step.”
    23. 23. blah blah blah I’m • BiblioRdr Zuck. Let’s talk “Gabe just read a book.” about appz. • Karaoke Plus “Gabe just sang a song.” Douche • MommySpammR “Gabe just took a step.” • Ultimate Vision v4.2 “Gabe just blinked his eyes.”
    24. 24. blah blah blah I’m • BiblioRdr Zuck. Let’s talk “Gabe just read a book.” about appz. • Karaoke Plus “Gabe just sang a song.” Douche • MommySpammR “Gabe just took a step.” • Ultimate Vision v4.2 “Gabe just blinked his eyes.” • Barcamp Omaha App “Gabe just gave a talk.”
    25. 25. •Dick move? Some say “yes”.• But it works.• People can turn it off.• And you owe it to yourself to let your users spread the word on your behalf.
    26. 26. Similarly give them an easyway to talk about howproud they are to be usingyour product.
    27. 27. Similarly give them an easyway to talk about howproud they are to be usingyour product.
    28. 28. Similarly give them an easyway to talk about howproud they are to be usingyour product.
    29. 29. Similarly give them an easyway to talk about how Why did they press thatproud they are to be using button? Because they wanted to.your product.
    30. 30. Similarly give them an easyway to talk about how Why did they press thatproud they are to be using button? Because they wanted to.your product.
    31. 31. Things people pay for• Time. Do things faster.• Space. Do/have more things.• Perceived rarity. Do/have things others can’t.• Ranking. To be the best.
    32. 32. Regardless of your app, a littlegamification goes a long way.• iOS GameCenter. Built right in. Have leader boards for arbitrary things. Words typed, games played, photos taken, etc.• Facebook. Automatically know a user’s friends and put them up against each other with these arbitrary metrics. Friends love to compare each other.
    33. 33. Example of an in-game contest.• 33% increase in ARPU on over the duration of the event.• Last day of the event... spike.• People like competition.• People like “rare” things.• “ONLY 10 VIRTUAL, DIGITAL Number of people paying WIDGETS! OMG!” moneyz.
    34. 34. This is where I’d addany last minute slides.Otherwise I’m done. Thx. gabekangas.com

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