Building Successful 
Free-to-Play Apps on Android
Agenda	

•  Introduction to Tapjoy	

•  Android Market Stats	

•  Acquisition	

•  Retention 	

•  Monetization
About Tapjoy	

• Founded 2007	

• Headquarters San Francisco	

• Offices in the US, Europe and Asia	

   ®




• Reach 600+ million mobile
  consumers on Android, iOS,
  Windows Phone 7  HTML5	

• Funding $70.5 million from	

   •  J.P. Morgan Asset Management	

   •  Rho Ventures	

   •  North Bridge Venture Partners	

   •  InterWest Partners	

   •  D.E. Shaw Ventures
Recent Recognition	


                  Tapjoy recognized among
                  the world’s Most Innovative
                  Companies by Fast Company	


                             World’s Most
                  #27	

     Innovative Company	


                           Most Innovative in
                   #1	

   Gaming	

                           Most Innovative in
                   #2	

   Mobile
Tapjoy Value Exchange	

How it Works: 	

Vivian needs more Pet Points to hire another employee in Pretty Pet Salon.	





                                     She can buy Pet Points     She can earn Pet Points by engaging
                                     with real money.	

        with ads in Tapjoy’s Marketplace.
Power of Choice 	


               Vivian CHOOSES to watch	

               The Avengers trailer and earns 59 Pet Points.
Tapjoy Ad Units	





                                 Standard Banners	





 Offerwall	

   Full Screen	

                Banners	

                                 In-App Video
Android
Market
Android continues to grow	

    Android DAU’s continue to climb on the Tapjoy Network	


                  Tapjoy Network - 2012 Android Daily Active Users
45,000,000

40,000,000
                                                                                                           App traffic	

35,000,000
                                                                                                            spikes up 	

30,000,000
                                                                                                           on weekends	

25,000,000

20,000,000

15,000,000

10,000,000

 5,000,000

        0
                                                          r   r    r   r   r   r       r       r       r
             n

                  n

                           n

                                    n

                                                    n

                                                   b
                                                  eb

                                                  eb

                                                  eb

                                                   a

                                                   a

                                                   a

                                                   a
                                                 Ap

                                                 Ap

                                                 Ap

                                                 Ap

                                                 Ap
              -       -        -        -        -
             Ja

                  Ja

                           Ja

                                    Ja

                                                 Ja

                                                 Fe




                                                 M
                                                -M

                                                -M

                                                -M
                                                -F

                                                -F

                                                -F




                                                                                   1       2       2
                                              1-

                                              8-

                                              5-

                                              2-

                                              9-
                                              4-
        1

                  8
                          15

                                   22

                                            29

                                              5-
                                             12

                                             19

                                             26



                                             11

                                             18

                                             25




                                                     Android DAU
Free-to-play apps are dominating	

 Revenue from Top Grossing iOS Apps	

                                                         	

    	

     	

              	

   	

	


                                                                                 …and the future is even brighter!	

                   January 2011	

      39%	

                                                                                         Projected In-App Purchase Revenue
                                                                                                                (in Billions)*	

                                          Paid	

              	
  6.00	
  	
  
                        61%	

                                          Freemium	

          	
  5.00	
  	
  
                                                                                                                                                     	
  4.80	
  	
  


                                                               	
  4.00	
  	
  
Freemium revenue and distribution has increased 
significantly over the last year, and continues to grow. 	

    	
  3.00	
  	
  
                                                                                                            	
  2.10	
  	
  

                        June 2011	

                           	
  2.00	
  	
  

                                                               	
  1.00	
  	
  
                                 35%	

                                                                     	
  -­‐	
  	
  	
  	
  
                                          Paid	

                                                           2011	
                            2016	
  (Projected)	
  
               65%	

                                          Freemium	

                                                              *Juniper Research – The Mobile Games Briefing 2011-2016
Top Grossing Apps	

                       There is only
                       ONE paid app
                       in the Top 25
                       Grossing
                       Android apps! 	

                       	

                       96% of the
                       Top 25
                       Grossing
                       Android apps
                       are free-to-
                       play
Free-to-Play: It’s not just for games
Acquisition	

     A   R	

 M
A	

 R	

 M
Mobile Acquisition Channels 	

How are developers promoting free-to-play
apps?	

	

      •    Rewarded installs	

       •  Social discovery (FB, Twitter, etc.)	

      •    Non-rewarded installs	

   •  Organic discovery (top charts, search,
      •    Video ads	

                  word of mouth, etc.)	

      •    Cross promotion
A	

 R	

 M
The Holy Grail – Getting Featured on
Google Play
A	

 R	

 M
    The Holy Grail – Getting Featured on
    Google Play	



                  Sessions       New Users          DAU’s        ARPDAU
200,000                                                                                                                        $.05


160,000                                                                                                                        $.04


120,000                                                                                                                        $.03
                                                                       Featured!	

 80,000                                                                                                                        $.02


 40,000                                                                                                                        $.01
          1


              2


                     3


                             4


                                 5


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                                           7


                                                8


                                                       9


                                                            0


                                                                  1


                                                                        2


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                                                                                                               0


                                                                                                                      1


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      -0


              -0


                    -0


                         -0


                                 -0


                                      -0


                                           -0


                                                -0


                                                      -0


                                                            -1


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          8   8      8       8   8    8    8    8      8    8     8     8   8    8    8    8    8    8    8    8     8    8
A	

 R	

 M
Google Play Featured Process	



 1	
  
         Suggest an app into the wall of suggestions:
         http://goo.gl/mod/DfIv	

         	

 2	
     People vote on the apps that are on the wall of suggestions	

         	

 3	
     The apps with the most positive votes are reviewed every
         Friday by Google’s Android Develop Relations team (2pm
         PT on “Hangouts”):
         http://www.youtube.com/user/androiddevelopers	

         	

 4	
     The apps they like most are passed on to Google Play’s
         editorial team to be considered for featured / staff picks
         placement on Google Play
A	

 R	

 M
New User Flow	

The new user flow is one of the most important parts of
a successful game	

	

	

	



•  Optimize the download	

•  Great tutorial	

            You have 30 seconds to
•  Use clear directions	

      hook your users and 5
                                min to teach them. The
•  Give rewards	

              goal is to shoot for 70%
•  Get the user playing as   tutorial completion rate.
      soon as you can
A	

 R	

 M
Optimize the Download	

Tapjoy Network Android Conversion Rate: 	

(clicks to installs)	

	

                            Total      Conversion
                          Megabytes    Rate (CVR)

                             0-50        50-60%
                           50-100        30-45%
                            100+         14-20%
                            The smaller the file,
                            the better the CVR.
A	

 R	

 M
     Start off Simple	

     Take Users by the Hand and Guide Them
     Into the App	

     During the first 30 seconds put the user on rails, don’t let them get lost	

     •  This is your chance to take an uncertain user and create an engaged user	

     •  You can’t display everything, show off your core loop and build from there 	





Call to action	

   Use arrows	

    Gray out	

    Show off	

      Reward/         Get ‘em playing	

                                    the screen	

   the store	

   congratulate	

                                                                    them early
A	

 R	

 M
Use Clear Directions	

How to do it right	

      Use arrows 	



      Highlight where
        you want the
      users attention	




      Gray out areas
          that don’t
        matter now 	




                           Give simple
                           info
Retention	

    A	

   R	

   M
A	

 R	

 M
Social Channels	

Take advantage of
free social channels	

 	


•  Most social networks offer free
   API’s and SDK’s 	

•  Warning: Forcing a connection
   to a social network can cause a
   large drop-off in new user
   conversion, so it’s best to make
   social connections optional	

       •    Orange’s TV Check app saw a 75%
            drop off when the app forced
            users to connect with FB
A	

 R	

 M
Social Channels	

Sometimes it’s better to create your own social layer 	





                                                            Surface social 	

                                                              activity to	

                                                            users early on
A	

 R	

 M
Incentivize friend invites	


  Reward users
 for inviting their
      friends
A	

 R	

 M
Daily Rewards	

Give your users a
reward for coming back
every day	

 	



•  In the later days of the reward
   cycle give the users bigger or
   exclusive rewards 	

•  Show them what they earned
   and also show them what is
   coming up
A	

 R	

 M
Daily reward combined with
chance mechanic
A	

 R	

 M
App Re-engagement	

Remind them to keep coming back	


                              Notifications	

  Appointment	

   Mechanics
A	

 R	

 M
Use Challenges / Quests to keep
users on track
A	

 R	

 M
Quests really work	


          Sessions       New Users        DAU’s        ARPDAU




                                            Quests/Achievements added.	

6


     7


            8


                 9


                     0


                            1


                                2


                                     3


                                            4


                                                  5


                                                       6


                                                            7


                                                                 8


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                                                                           0


                                                                                2
-1


     -1


           -1


                -1


                     -2


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                                                                                               -3


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                                                                                                          -5


                                                                                                               -6
1    1      1    1   1      1   1    1      1     1    1    1    1    1    1    1    2    2    2    2      2   2
Monetization	

     A	

   R	

   M
A	

 R	

 M
Mobile Revenue Channels	

             Direct Pay                                   Alt Pay
In app purchase through Google Wallet        Allowing users to engage with advertising
                                                 in exchange for virtual currency




            Direct Pay	

               Alt Pay — Offerwalls	

   Alt Pay — Top: Display Ad 	

                                                                  Bottom: Featured Ad
A	

 R	

 M
Glu Earnings – Direct and Alt Pay
monetization
A	

 R	

 M
Featured Item Specials	

Highlight a limited-time featured item when users log in	

 	

•  Items on the home page will have 150% + sales increase 	

•  Rotate content often	

•  Great place for seasonal items 	


	





                    Today Only                                  Seasonal Sale
A	

 R	

 M
  Create Clear Virtual Goods Markets	

Markets and Inventory	

	

•  Do - Make the buttons large and easy to tap.	

•  Do - Whenever possible use art and icons to direct the player, they look good and are universal.	

•  Don’t - use small icons and text.	

•  Don’t - make your users scroll through long item lists.	


                          Do	

                                              Don’t
A	

 R	

 M
          Sales and special offers	

    Make your users feel like they are getting a good deal	

    	
  
	
   •    Your	
  purchase	
  screen	
  should	
  be	
  clean	
  and	
  easy	
  to	
  navigate	
  	
  
     •    Tell	
  the	
  users	
  how	
  much	
  extra	
  cool	
  stuff	
  they	
  get	
  	
  
     •    Use	
  incenIves	
  to	
  encourage	
  them	
  to	
  buy	
  higher	
  priced	
  packages	
  
     •    Use	
  icons	
  to	
  make	
  bigger	
  packages	
  look	
  more	
  impressive	
  	
  
     •    Users	
  scroll	
  through	
  long	
  item	
  lists.	
  
A	

 R	

 M
    Iteration and Metrics	

                                                                                                                                                                                                                               A R	


    One of the advantages to the Android platform
    is the ability to iterate quickly 	

    •           Choose a region you want to use as your test group (ex. Canada)	

    •           Make changes based on metrics	

    •           Review data on the changes, update and repeat 	

    •           Keep updating your app with new content 	

            Key Points
    	

                                                                                                                                                                                                                              Iteration  Metrics
    Small Changes can Make a Huge Difference 	

    	

55,000
                 ARPDAU                     New Users                       DAU’s             Sessions



    	

44,000


33,000

                                                                                                                                                                                                                                        retention rates
22,000


11,000
                                                                                                                                                                                                                                        by cohort
       -01


                -02


                         -03


                                  -04


                                           -05


                                                    -06


                                                             -07


                                                                      -08


                                                                               -09


                                                                                        -10


                                                                                                 -11


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                                                                                                                                                                                           -21


                                                                                                                                                                                                    -22


                                                                                                                                                                                                             -23


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    12


             12


                      12


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Summary
Best Practices For:	

       Acquisition	

A	

   •  Choose the right channels for acquisition	

       •  Hold the user’s hand through the first experiences of the app	

       •  Keep it clear and simple	

       Retention	

R	

   •  Use social channels and incentivize sharing	

       •  Offer daily rewards	

       •  Keep users engaged by implementing quests and achievements	

       Monetization	

M	

   •  Make the most of your monetization by adding alt pay	

       •  Highlight special offers and items to drive purchase behavior	

       •  Frequently test and measure new features within a segment of your
           users, and roll out successful changes to the full audience
Thank you
 chris@tapjoy.com

Building Successful Free-to-Play Apps on Android

  • 1.
  • 2.
    Agenda •  Introduction toTapjoy •  Android Market Stats •  Acquisition •  Retention •  Monetization
  • 3.
    About Tapjoy • Founded 2007 • HeadquartersSan Francisco • Offices in the US, Europe and Asia ® • Reach 600+ million mobile consumers on Android, iOS, Windows Phone 7 HTML5 • Funding $70.5 million from •  J.P. Morgan Asset Management •  Rho Ventures •  North Bridge Venture Partners •  InterWest Partners •  D.E. Shaw Ventures
  • 4.
    Recent Recognition Tapjoy recognized among the world’s Most Innovative Companies by Fast Company World’s Most #27 Innovative Company Most Innovative in #1 Gaming Most Innovative in #2 Mobile
  • 5.
    Tapjoy Value Exchange Howit Works: Vivian needs more Pet Points to hire another employee in Pretty Pet Salon. She can buy Pet Points She can earn Pet Points by engaging with real money. with ads in Tapjoy’s Marketplace.
  • 6.
    Power of Choice Vivian CHOOSES to watch The Avengers trailer and earns 59 Pet Points.
  • 7.
    Tapjoy Ad Units Standard Banners Offerwall Full Screen Banners In-App Video
  • 8.
  • 9.
    Android continues togrow Android DAU’s continue to climb on the Tapjoy Network Tapjoy Network - 2012 Android Daily Active Users 45,000,000 40,000,000 App traffic 35,000,000 spikes up 30,000,000 on weekends 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 r r r r r r r r r n n n n n b eb eb eb a a a a Ap Ap Ap Ap Ap - - - - - Ja Ja Ja Ja Ja Fe M -M -M -M -F -F -F 1 2 2 1- 8- 5- 2- 9- 4- 1 8 15 22 29 5- 12 19 26 11 18 25 Android DAU
  • 10.
    Free-to-play apps aredominating Revenue from Top Grossing iOS Apps …and the future is even brighter! January 2011 39% Projected In-App Purchase Revenue (in Billions)* Paid  6.00     61% Freemium  5.00      4.80      4.00     Freemium revenue and distribution has increased significantly over the last year, and continues to grow.  3.00      2.10     June 2011  2.00      1.00     35%  -­‐         Paid 2011   2016  (Projected)   65% Freemium *Juniper Research – The Mobile Games Briefing 2011-2016
  • 11.
    Top Grossing Apps There is only ONE paid app in the Top 25 Grossing Android apps! 96% of the Top 25 Grossing Android apps are free-to- play
  • 12.
  • 13.
  • 14.
    A R M MobileAcquisition Channels How are developers promoting free-to-play apps? •  Rewarded installs •  Social discovery (FB, Twitter, etc.) •  Non-rewarded installs •  Organic discovery (top charts, search, •  Video ads word of mouth, etc.) •  Cross promotion
  • 15.
    A R M TheHoly Grail – Getting Featured on Google Play
  • 16.
    A R M The Holy Grail – Getting Featured on Google Play Sessions New Users DAU’s ARPDAU 200,000 $.05 160,000 $.04 120,000 $.03 Featured! 80,000 $.02 40,000 $.01 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 -0 -0 -0 -0 -0 -0 -0 -0 -0 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -2 -2 -2 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8
  • 17.
    A R M GooglePlay Featured Process 1   Suggest an app into the wall of suggestions: http://goo.gl/mod/DfIv 2   People vote on the apps that are on the wall of suggestions 3   The apps with the most positive votes are reviewed every Friday by Google’s Android Develop Relations team (2pm PT on “Hangouts”): http://www.youtube.com/user/androiddevelopers 4   The apps they like most are passed on to Google Play’s editorial team to be considered for featured / staff picks placement on Google Play
  • 18.
    A R M NewUser Flow The new user flow is one of the most important parts of a successful game •  Optimize the download •  Great tutorial You have 30 seconds to •  Use clear directions hook your users and 5 min to teach them. The •  Give rewards goal is to shoot for 70% •  Get the user playing as tutorial completion rate. soon as you can
  • 19.
    A R M Optimizethe Download Tapjoy Network Android Conversion Rate: (clicks to installs) Total Conversion Megabytes Rate (CVR) 0-50 50-60% 50-100 30-45% 100+ 14-20% The smaller the file, the better the CVR.
  • 20.
    A R M Start off Simple Take Users by the Hand and Guide Them Into the App During the first 30 seconds put the user on rails, don’t let them get lost •  This is your chance to take an uncertain user and create an engaged user •  You can’t display everything, show off your core loop and build from there Call to action Use arrows Gray out Show off Reward/ Get ‘em playing the screen the store congratulate them early
  • 21.
    A R M UseClear Directions How to do it right Use arrows Highlight where you want the users attention Gray out areas that don’t matter now Give simple info
  • 22.
  • 23.
    A R M SocialChannels Take advantage of free social channels •  Most social networks offer free API’s and SDK’s •  Warning: Forcing a connection to a social network can cause a large drop-off in new user conversion, so it’s best to make social connections optional •  Orange’s TV Check app saw a 75% drop off when the app forced users to connect with FB
  • 24.
    A R M SocialChannels Sometimes it’s better to create your own social layer Surface social activity to users early on
  • 25.
    A R M Incentivizefriend invites Reward users for inviting their friends
  • 26.
    A R M DailyRewards Give your users a reward for coming back every day •  In the later days of the reward cycle give the users bigger or exclusive rewards •  Show them what they earned and also show them what is coming up
  • 27.
    A R M Dailyreward combined with chance mechanic
  • 28.
    A R M AppRe-engagement Remind them to keep coming back Notifications Appointment Mechanics
  • 29.
    A R M UseChallenges / Quests to keep users on track
  • 30.
    A R M Questsreally work Sessions New Users DAU’s ARPDAU Quests/Achievements added. 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 2 -1 -1 -1 -1 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -3 -3 -1 -1 -3 -4 -5 -6 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2
  • 31.
  • 32.
    A R M MobileRevenue Channels Direct Pay Alt Pay In app purchase through Google Wallet Allowing users to engage with advertising in exchange for virtual currency Direct Pay Alt Pay — Offerwalls Alt Pay — Top: Display Ad Bottom: Featured Ad
  • 33.
    A R M GluEarnings – Direct and Alt Pay monetization
  • 34.
    A R M FeaturedItem Specials Highlight a limited-time featured item when users log in •  Items on the home page will have 150% + sales increase •  Rotate content often •  Great place for seasonal items Today Only Seasonal Sale
  • 35.
    A R M Create Clear Virtual Goods Markets Markets and Inventory •  Do - Make the buttons large and easy to tap. •  Do - Whenever possible use art and icons to direct the player, they look good and are universal. •  Don’t - use small icons and text. •  Don’t - make your users scroll through long item lists. Do Don’t
  • 36.
    A R M Sales and special offers Make your users feel like they are getting a good deal     •  Your  purchase  screen  should  be  clean  and  easy  to  navigate     •  Tell  the  users  how  much  extra  cool  stuff  they  get     •  Use  incenIves  to  encourage  them  to  buy  higher  priced  packages   •  Use  icons  to  make  bigger  packages  look  more  impressive     •  Users  scroll  through  long  item  lists.  
  • 37.
    A R M Iteration and Metrics A R One of the advantages to the Android platform is the ability to iterate quickly •  Choose a region you want to use as your test group (ex. Canada) •  Make changes based on metrics •  Review data on the changes, update and repeat •  Keep updating your app with new content Key Points Iteration Metrics Small Changes can Make a Huge Difference 55,000 ARPDAU New Users DAU’s Sessions 44,000 33,000 retention rates 22,000 11,000 by cohort -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 -11 -12 -13 -14 -15 -16 -17 -18 -19 -20 -21 -22 -23 -24 -25 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12
  • 38.
  • 39.
    Best Practices For: Acquisition A •  Choose the right channels for acquisition •  Hold the user’s hand through the first experiences of the app •  Keep it clear and simple Retention R •  Use social channels and incentivize sharing •  Offer daily rewards •  Keep users engaged by implementing quests and achievements Monetization M •  Make the most of your monetization by adding alt pay •  Highlight special offers and items to drive purchase behavior •  Frequently test and measure new features within a segment of your users, and roll out successful changes to the full audience
  • 40.