One Tough Playground | PANEL
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This document discusses challenges and opportunities in the kids app market. It notes that while most developers want to help kids, some see business opportunities. Key challenges are user discovery and monetization, as kids don't search well and lifetime user value is low at around $1. Marketing focuses include direct revenue models like premium apps, in-app purchases, and subscriptions, but user bases remain small. The document suggests using rewarded videos from brands through networks like KIDOZ that respect kids with relevant, non-intrusive promotions. Mobile advertising spend for kids is growing while TV budgets decline. Most users are open to respectful, appropriate ads in apps.
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One Tough Playground | PANEL
- 1. Kids Apps: One Tough Playground
- 2. Inside 1000’s of Kids Apps KIDOZ: Content Discovery Network for Kids On Leading Devices TinyLab TuToTOONS Bubadu AppQuiz Casual Connect 2017
- 3. KIDOZ: Content Discovery Network for Kids Casual Connect 2017
- 4. Developing Apps for Kids 76% Want to help kids 24% See a business opportunity Casual Connect 2016
- 5. Top Challenges: Discovery Casual Connect 2017 Kids do not search Parents do not (really) care
- 6. Top Challenges: Monetization ~25 C No Economy ~$1.00 Lifetime Value Casual Connect 2017 Cost Vs. Revenue
- 7. Marketing Focus Casual Connect 2017
- 8. Direct Revenue Models Premium But user base remains small In-App Purchases But raise complaints Subscription But requires heavy maintenance Casual Connect 2017
- 9. But What About The Rest? Paying Non Casual Connect 2017 Paying
- 10. Kids are Shifting from TV to Mobile And Ad Spend Budgets for Kids is Following $4B Mobile Display & Video$17B TV Ads Casual Connect 2017
- 11. Attitudes Towards Ads No ads OK with ads 37% 41% Casual Connect 2017
- 12. Stay Appropriate Generic ad networks may hurt your compliance and reputation Casual Connect 2017
- 13. Offer Rewarded Videos from Brands Kids Free Stuff Advertisers Completion Rate Developers Experience Best ECPM Casual Connect 2017
- 14. Respect Kids Relevant promotions Non-Intrusive experience Casual Connect 2017
- 17. PANEL Michael Fuller, VP Global Digital Business Development, Hasbro Jonas Abromaitis, CEO, Tiny Lab Productions Daniel Sonnenfeld, Co-Founder, My Town Games Martin Schejbal, Executive Director, Lipa Learning MODERATOR: Eldad Ben Tora, CRO & Co-Founder, KIDOZ eldad@kidoz.net
Editor's Notes
- Good afternoon, my name is Eldad and I’m the CRO and Co-founder of KIDOZ In the next 15 minutes I’ll briefly go over our view of the kids’ space today and will invite 4 industry expert for a panel around the app economy.
- Few words about us to understand our prospective of the kids’ market: We are a content discovery platform for kids - We help kids find good & relevant content We have a kid mode solution we give to device makers and carriers, and an SDK we provide to app developers
- And it worked. Our SDK is used by 1000 apps reaching 25 million kids every month, and we are adding millions each month now. We have 20 people based in Israel. This presentation will share the insight we got from working, talking and questioner we did for this lecture.
- And our first question to developers was “why”? What led them to develop apps for kids? Most wanted to make the world better for kids and help them (inspired by their own kids) Only a few developers started as a purely business decision. And, if they did, I’m pretty sure they think differently today.
- The kids’ space has a few main challenges, the first being discovery: Kids are not actively seeking apps on apps stores, they don’t have the patience and skill – Their parents are too busy as well to help, so discovery is super hard unless: You already have big portfolio of 20-30 apps that can boost you new app launch. You have fans in the Google & Apple stores
- And if we thought discovery is hard, monetization is even harder. The cost of acquiring users is way higher than the revenue you make from each one. The gap between the money you need to bring users and the money you make is preventing the space from becoming a sustainable economy This is the biggest problem of our space today And this is exactly what we (and some others are trying to solve )
- The challenges are reflected when developers are marketing their apps Only 21% invest in UA, and their budgets are a few thousands dollars a month – so as a general rule, UA is not a common practice in the space. Most developers focus on store optimization and other free tactics
- So how do apps make money in our space? There are 2 main methods Ads - which will focus on, and asking your users to pay Direct monetization is extremely hard: #1 Premium: up front payment for apps is a popular revenue model, especially on iOS, but NOT having the “try before you buy” concept is keeping most apps with a very small user base, with only well-known brands succeeding in the premium category. #2: In app purchases: kids buy within apps, the default solution mainly for Android. This raises concerns, for example how many parents send their kids to the mall with their credit cards? So without a handy payment method, a kid needs to beg for purchase, which he will do for an app he is extremely engaged with. Not a simple puzzle, he will play with for 10 minutes. #3: Subscriptions: probably the best way to monetize today in terms of ARPU but relevant only if you can maintain the ongoing effort of developing new content for the service. http://www.slideshare.net/dubit/zynga-online-gaming-usa-report-f-inal-slideshare https://www.developereconomics.com/how-much-is-an-active-user-worth
- So while asking for money may work, it leaves behind a huge potential of the NON paying users And definitely does not optimize potential revenues.
- And what is the potential? As kids keep shifting from TV to mobile, the ad spend budget is following and the 17 Billion dollars spend on TV campaigns is slowly moving away from the traditional TV space
- So how do developers feels about ads? Most of them are OK with ads, or are at least looking to run safe ads. I believe that the more we see appropriate ads for kids, the higher the trust level from developers. Developers want to see the process working for them and for kids. rest of the developers will feel better about them.
- And lastly, respect kids with an elegant and non intrusive experience. We created a unit that kids open which allows them to explore more, and only then to see the promotion We found that the ECPM is way higher and kids are coming back to the unit, instead of looking to close it the minute they see it.