How to Reach New Players

How to Reach New Players (and Monetize 100% of Them) MIKE HINES

DEVELOPER EVANGELIST, AMAZON @MikeFHines

mikehines45

[email protected] CASUAL CONNECT TEL AVIV 19 – 21 OCTOBER 2015

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Amazon Appstore

TODAY’S AGENDA Landscape of Monetization Options Getting Paid for Every User How Does That Work, Exactly Still more ways to get paid

%  Developers  above  Poverty  Line  

60% 48% 41%

How do we get more Developers earning more revenue? An  app  must  make  more  than  $500  per  month   if  it  is  to  fund  future  app  development  and   markeKng.     $500  per  month  is  the  app  poverty  line.  

Android   Devs  

iOS  devs  

Amazon   Fire  OS   Source: Developer Economics Q3 2014 © VisionMobile, All Rights Reserved

Many  moneKzaKon  opKons  but,   Premium  

In-­‐App  Purchase  

Ads  

There’s  room  for  improvement   •  “The  biggest  problem  with  freemium  app  models  is  that  97%  of  consumers  don’t  convert,   instead  s=cking  to  the  free  features.”1   •  Cost  of  $2.10  and  $1.51  per  download  for  iOS  and  Google  Play  respecKvely  in  the  US   oXen  eclipses  user  lifeKme  value  (LTV)3   •  Free  apps  a\ract  more  users  that  premium  apps   1 WSJ  h\p://www.wsj.com/arKcles/mobile-­‐game-­‐makers-­‐try-­‐to-­‐catch-­‐more-­‐whales-­‐who-­‐pay-­‐for-­‐free-­‐games-­‐1431306115 3 Chartboost:  h\ps://www.chartboost.com/insights/    2015

 

Amazon offers developers

MORE WAYS TO EARN Service

Mechanism

Note

Ad Supported

Pay per Impression or Click

Get paid for showing ads in your app

Freemium

In App Purchasing

Get paid for selling digital goods consumed in your app

Paid (premium)

Pay to Download

Get paid for selling your app

Mobile Associates

Commission per Sale

Get paid for selling physical and digital goods from Amazon.com

Paid per Minute

Get paid for every minute by every user in your app

Royalty per Sale

Create and sell t-shirts with your branding

Underground (New!) (US, UK, DE, FR)

Merch by Amazon (New!)

REACHING NEW PLAYERS AND NEW PAYERS

Amazon     Underground  

Merch  by  Amazon  

Developers waive fees on apps and In App Purchase items. Customers get really, truly free apps. Amazon pays developers for cumulative minutes customers spend in an Amazon Underground app.

A NEW SHOPPING APP DISTRIBUTING

ACTUALLY FREE APPS Turn 100% of your Android users into revenue-generating customers

AMAZON UNDERGROUND

HOW IT WORKS

•  Customers download your app from the Amazon Underground shopping app •  Total user minutes are multiplied by our payout ratio •  Developer is paid by direct deposit

$0.002     for  every  user-­‐minute     $0.12  per  hour  per   user    

AMAZON UNDERGROUND

HOW WILL IT WORK FOR YOU? •  Back-of-the-napkin •  Back it out of ARPU

10K  Users   150K  Minutes     150K  x  $0.002  =  $300    

AMAZON UNDERGROUND

HOW WILL IT WORK FOR YOU? •  Back-of-the-napkin •  Back it out of ARPU

10K  Users   IAP  Revenue  =  $300    

You  would  need  each  player   to  play:  

$300  /  $0.002  =  150k   minutes  total     150K  min.  /  10K  users  =   15  min  per  user    

AMAZON UNDERGROUND

HOW WILL IT WORK FOR YOU? •  Back-of-the-napkin •  Back it out of ARPU

VISION MOBILE

ARPU

All Freemium apps average $0.0674 ARPU per month.

VISION MOBILE

ARPU

Only apps making < $50K / month $0.0377 ARPU per month. $0.0377 / $0.002/min = 18.85 minutes per month

avg. session length

session length / active

(minutes)

5.7   7.4  

(minutes)

×

2.6   3.2  

=

15   24  

MINUTES PER DAY

sessions/ /active active ##ofofsessions

Top 50 apps = 24 min/day 2014  Amazon  survey  of  top  50  games  vs  the   rest  of  us.     Session  length  in  minutes   Sessions  per  day   Total  minutes  per  user  per  day   Source: Amazon Appstore, March 2014

The rest of us = 15 min/day 2 day break-even with Vision Mobile ARPU numbers.

Revenue  =  Sessions  X  Minutes  X  Rate   For  100%  of  your  users    Every  minute  they  use  your  app  

hMp://bit.ly/undergroundcalculator  

AMAZON UNDERGROUND

WHO IS ONBOARD Zynga

•  Looney Tunes Dash!

MobiSystems

•  Office Suite 8 Pro

Halfbrick Studios •  Fruit Ninja

Rovio

•  Angry Birds Slingshot Stella

#ActuallyFree  

#ActuallyFree   “We’ve  been  thrilled  with  the   performance  of  Jetpack  Joyride  and   Fruit  Ninja  as  part  of  the  Amazon   Underground  program  in  the  month   since  launch.  Thus  far  we  have  

doubled  the  downloads  and   revenue  from  our  apps  in  the  Amazon  

Appstore  and  most  interesKngly,   customers  are  engaging  with  our  in-­‐ app  purchase  content  within  our   games  at  an  extremely  high  rate.  Since   all  in-­‐app  purchases  are  free  in  Amazon   Underground,  they  can  play  the  games   in  new  and  exciKng  ways.”       -­‐  Shainiel  Deo,  CEO  of  Halkrick   Studios.  

Gelng  Started  

QualificaKons   •  Android   •  Premium  or  IAP  in  another  store   •  WW  Developers  who  release  to:   US,  UK,  Germany  or  France  

developer.amazon.com/underground  

So,  the  focus  is   Fun   Useful   ExciKng   Scary   Clever   Unique     …  whatever  got  you     into  this  business  

But  I  sKll  sell  on  other  stores!  

REACHING NEW PLAYERS AND NEW PAYERS

Amazon     Underground   #ActuallyFree apps and in-app purchases and developers are paid per minute

Merch  by  Amazon  

Create a New Revenue Stream with Branded T-Shirts •  •  •  •  • 

Your designs, your price *Within some reasonable limits An Amazon.com Product Page for each shirt Amazon handles transactions, fulfillment, returns, and paying you No out-of-pocket cost to you Earn a royalty for each t-shirt sold Merch.amazon.com

Free  self-­‐service  tools  

Create  and  upload   your  artwork  using   our  templates.  

Promote  your  t-­‐shirt   using  our  tools.  

Analyze  your  sales   and  iterate  for  best   moneKzaKon.  

"We  know  how  to  make  games  really  well,  but  retail  and  merchandising  is  not  our   core  business.    Working  with  Amazon  really  helped  get  us  out  there."   —  Bryan  Davis,  Big  Blue  Bubble  creators  of  My  Singing  Monsters  

merch.amazon.com  

merch.amazon.com  

merch.amazon.com  

How  Your  Royalty  is  Calculated   You  set     the  price  

You can

KEEP THE PROCEEDS “Many  Free  to  Play  devs  classify  their  players  as   willing  to  pay  or  not  willing  to  pay.       What  we've  found  is  some  folks  who  don't  want   to  pay  for  digital  goods  are  fine  paying  for  a   shirt.  ”       Bryan  Mashinter     Backflip  Studios,  creators  of    DragonVale  

Help your players

CELEBRATE SUCCESS Finishing  a  Marathon  is  a  big  deal,  and  runners   buy  shirts  to  commemorate  the  event.     BeaKng  the  Level  20  Boss  in  your  game  may   also  be  a  big  deal.       Offer  your  players  a  shirt  to  commemorate   meaningful  in-­‐game  achievements.  

Help your fans

IDENTIFY WITH YOUR BRAND “We  don’t  have  to  worry  about  selling  the  t-­‐shirts   or  holding  any  inventory.       It’s  a  one  stop  shop  allowing  us  to  grow  the  brand   outside  of  the  game.”     —  Bryan  Davis   Big  Blue  Bubble,  creators  of  My  Singing  Monsters

Help your fans

PROMOTE YOUR GAME Increase  awareness  and  trigger  conversaKons   about  your  game  in  the  real-­‐world.     Start  today.      For  lots  of  good  reasons.      No  risk.      No  reason  to  wait.    

REACHING NEW PLAYERS AND NEW PAYERS

Amazon     Underground   #ActuallyFree apps and in-app purchases and developers are paid per minute

Merch  by  Amazon   An on-demand service with no out-of-pocket cost

Amazon Underground •  #ActuallyFree for customers •  Devs are paid for ever minute of every customer •  http://developer.amazon.com/underground

Merch by Amazon •  •  • 

Start a new revenue stream Turn players into fans http://merch.amazon.com

CASUAL CONNECT TEL AVIV 19 – 21 OCTOBER 2015