how the top 50 succeed with iaptwvideo01.ubm-us.net/.../828976_mike_hines_03.pdf · mike hines...

How the Top 50 Succeed With IAP

What the top apps do that the rest of us don’t

MIKE HINES DEVELOPER EVANGELIST, AMAZON

@MikeFHines mikehines45

[email protected]

CREDIBLY INNOVATE PHOTO HERE

IAP: Way beyond the item list

TODAY’S AGENDA

How the top 50 did vs. the rest of us What the top 50 did differently What you can do

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

BB 10

How the Top 50 apps did

vs. the rest of us

Cohort Analysis

Group A: Top-50 Grossing

Source: Amazon Appstore, March 2014

Group B: Rest of Freemium

Day 0: Installs


iiiiiiiiiiiiiiiiiiiiiiiii









iiiiiiiiiiiiiiiiiiiiiiiii 100 100

installe

d

Day 0: Active Users


iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

iiiiiiiiiiiiiiiiiiiiiiiiii

iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

iiiiiiiiiiiii




Iiiiiiiiiiiiiiiiiiiiiiii

iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

iiiiiiiiiiiii

41 42

In

active

59 58

active

Day 0: Uninstalls




iiiiiiiiiiiiiiiiii




Iiiiiiiiiiiiiiiiiiiiiiii

iiiiiiiiiiii

13 18

uninstalled

59 58

active

Day 0: Paying Users


iii



iiiiiiiiiiiiiiiii



iii

iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii


iiiiiiiiiiii 13 18

uninstalled

59 58

active

3 3

paying

Day 0: Engagement


iii



iiiiiiiiiiiiiiiii



iii



iiiiiiiiiiii 13 18

uninstalled

59 58

active

3 3

paying

# of sessions / active

session length / active (minutes)

× =

avg. session length (minutes)

6.9

7.4

2.6

2.9

18

21.6

Day 0: Revenue


iii



iiiiiiiiiiiiiiiii



iii



iiiiiiiiiiii

= ×

# of items / paying

100%

112%

avg. selling price

10

0%

13

6%

10

0%

15

4%

ARPPU

13 18

uninstalled

59 58

active

3 3

paying



× =


6.9

7.4

2.6

2.9 18

21.6

1 Day Later…


ii

iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

iiiiiiiiiiiiiiiiiiiiiiii



ii

Iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

iiiiiiiiiiiiiiiii



×


17 25

uninstalled

34 37

active

1 1

paying

= ×

# of items / paying

100%

106%

avg. selling price

10

0%

10

7%

10

0%

11

4%

ARPPU

6.7

7.7

3.2

3.5

21.2

27.5 =

3 Days Later…


iiiiiiiiiiiiiiiiiiiiiii

iiiiiiiiiiiiiiiiiiiiiiiiiiii



iiiiiiiiiiiiiiiiiii

iiiiiiiiiiiiiiiiii



×


19 28

uninstalled

19 23

active

= ×

# of items / paying

100%

107%

avg. selling price

10

0%

12

2%

10

0%

13

1%

ARPPU

5.9

7.9

2.6

3.2

15

23

=

1 Week Later…


iiiiiiiiiiiiiiiiiii

iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii



iiiiiiiiiiiiii

iiiiiiiiiiiiiiiiiiii



×


20 32

uninstalled

14 18

active

= ×

# of items / paying

100%

102%

avg. selling price

10

0%

12

1%

10

0%

12

4%

ARPPU

5.7

7.4

2.6

3.2

15

23 =

2 Weeks Later…


iiiiiiiiiiiii

iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii



iiiiiiiiiii

iiiiiiiiiiiiiiiiiiiii



×


21 34

uninstalled

10 14

active

= ×

# of items / paying

100%

111%

avg. selling price

10

0%

10

8%

10

0%

12

0%

ARPPU

5.7

7.3

2.5

3.1

14.2

22.6 =

1 Month Later…


iiiiiiii

iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii



iiii

iiiiiiiiiiiiiiiiiiiiiiii



× =


22 36

uninstalled

4 8

active

= ×

# of items / paying

10

0%

103%

avg. selling price

10

0%

12

8%

10

0%

13

1%

ARPPU

5.9

7.3

2.4

3.1 14.1

22.1

Hours Since App Download

IN-APP PURCHASING BY HOUR


0 24 48 72 96 120 144 168 192 216 240 264 288

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.

What the top 50 do differently

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

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


+60%

average

selling price

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.


69%

100%

145%

1-5 Items 6-10Items

11-15Items

ARPPU by # of IAP items for sale

Conversion Rate

INDEX: Average = 100%

Don’t confuse your customer

OFFER VARIETY,

BUT NOT TOO MUCH


147%

101%

52%

0%

50%

100%

150%

200%

1-5PricePoints

6-10PricePoints

11-15PricePoints

Apps with tutorials that introduce IAP

items

HAVE A 2.5x HIGHER

CONVERSION RATE Source: Amazon Appstore, July 2013

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.


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.

Apps that made it easy to shop

INCREASED REVENUE 75% (ARPPU) Source: Amazon Appstore, March 2014

Most of us have too much

CONCENTRATION ON LOW

PRICES Total Marketplace: Assortment by Price Point


31% 29%

7%

12% 11%

5% 3%

1%

14% 11%

6% 3%

16% 16%

11% 9%

0%

10%

20%

30%

40%

0.99 1.99 2.99 4.99 9.99 19.99 49.99 99.99

% of Assortment % of Sales

We find that the

TOP GAMES ARE MORE

BALANCED


Top 50 Apps: Assortment by Price Point

28%

15%

10% 13%

11% 9% 9% 5%

32%

19%

7% 4%

10% 12%

5% 4%

0%

10%

20%

30%

40%

0.99 1.99 2.99 4.99 9.99 19.99 49.99 99.99

% of Assortment % of Sales

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

+60%

Increase average

selling price over 30 days

How you can increase session

count and minutes per session

REDUCE BARRIERS TO FREQUENT

USE

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!

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.

Leaderboards and

Achievements are

THE MINIMUM BAR

FOR SOCIAL

ENGAGEMENT

Hosting Special Events

WILL ENCOURAGE

MORE ENGAGEMENT Offering special levels and unique item rewards

during a specific time window will generate

excitement and participation.

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.

To be in control,

HAVE A

LOT OF

LEVERS Use A|B Testing to

fine-tune everything

from game difficulty to

IAP menu choices.

Market your app to all customers

BE IN ALL THE STORES If you’ve invested in building an Android app, sell it everywhere.

https://developer.amazon.com/public/resources/marketing-tools

WHAT WE LEARNED

Add social and tweak app design and behavior to

INCREASE TIME AND COUNT OF

SESSIONS

Cater to your best customers with clear value

DIFFERENTIATE YOUR IAP CATALOG

See behind the scenes and give yourself levers

IMPLEMENT ANALYTICS AND A|B TESTING

Learn more: developer.amazon.com/welcome

Contact us: forums.developer.amazon.com

developer.amazon.com/help/contactus.html

Follow us:

/AmazonAppstoreForAndroid

@AmazonAppDev @MikeFHines

developer.amazon.com/blog

how the top 50 succeed with iaptwvideo01.ubm-us.net/.../828976_mike_hines_03.pdf · mike hines...

Documents