In this session we'll share data and tips that Amazon has gathered from the top 50 revenue-generating apps that use IAP. Then we'll look at some innovative mobile ad ideas and explore the re-discovered future of in-app monetization...e-commerce.

1. Mike Hines – Amazon Appstore
Game Developers Conference - 2014
@MikeFHines

2. Top 50 Grossing
vs.
the Rest of Freemium

3. IAP Conversion Rate
INDEX: Average = 100%
IAP Adoption is Rising
Note: Conversion Rate is measured by the Number of IAP Customers / Total App Customers
Source: Amazon Appstore, July 2013

4. Cohort Analysis
Group A: Top-50 Grossing
Source: Amazon Appstore, June 2013
Group B: Rest of Freemium

5. Day 0: Installs
Group A: Top-50 Grossing
iiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiii
Source: Amazon Appstore, June 2013
Group B: Rest of Freemium
iiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiii100100
installed

6. Day 0: Active Users
Group A: Top-50 Grossing
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiii
iiiiiiiiiiiii
Source: Amazon Appstore, June 2013
Group B: Rest of Freemium
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiii
iiiiiiiiiiii1213
installed
8887
active

7. Day 0: Uninstalls
Group A: Top-50 Grossing
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiii
iiiiiiiiiiiiii
Source: Amazon Appstore, June 2013
Group B: Rest of Freemium
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiii
iiiiiiiiiiiiiiii1614
uninstalled
8486
active

8. Day 0: Paying Users
Group A: Top-50 Grossing
ii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiii
Source: Amazon Appstore, June 2013
Group B: Rest of Freemium
ii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiii1614
uninstalled
8284
active
22
paying

9. Day 0: Engagement
Group A: Top-50 Grossing
ii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiii
Source: Amazon Appstore, June 2013
Group B: Rest of Freemium
ii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiii1614
uninstalled
8284
active
22
paying
# of sessions / active
session length / active
(minutes)
× =
avg. session length
(minutes)
7.4
7
2.3
2.9
14.4
20

10. Day 0: Revenue
Group A: Top-50 Grossing
ii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiii
Source: Amazon Appstore, June 2013
Group B: Rest of Freemium
ii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiii
=×
# of items / paying
100%
109%
avg. selling price
100%
141%
100%
154%
ARPPU
1614
uninstalled
8284
active
22
paying
# of sessions / active
session length / active
(minutes)
× =
avg. session length
(minutes)

11. 1 Day Later…
Group A: Top-50 Grossing
i
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiii
Source: Amazon Appstore, June 2013
Group B: Rest of Freemium
i
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiii
# of sessions / active
session length / active
(minutes)
× =
avg. session length
(minutes)
1816
uninstalled
4543
active
11
paying
3640
installed
=×
# of items / paying
100%
112%
avg. selling price
100%
152%
100%
170%
ARPPU

12. 3 Days Later…
Group A: Top-50 Grossing
iiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiii
iiiiiiiiiiiiiiiii
Source: Amazon Appstore, June 2013
Group B: Rest of Freemium
iiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iii
iiiiiiiiiiiiiiiiiiii
# of sessions / active
session length / active
(minutes)
× =
avg. session length
(minutes)
2018
uninstalled
2726
active
5356
installed
=×
# of items / paying
100%
107%
avg. selling price
100%
180%
100%
193%
ARPPU

13. 1 Week Later…
Group A: Top-50 Grossing
iiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiii
iiiiiiiiiiiiiiiiiiiiii
Source: Amazon Appstore, June 2013
Group B: Rest of Freemium
iiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiii
iiiiiiiiiiiiiiiiiiiiiiii
# of sessions / active
session length / active
(minutes)
× =
avg. session length
(minutes)
2422
uninstalled
2020
active
5658
installed
=×
# of items / paying
100%
112%
avg. selling price
100%
233%
100%
262%
ARPPU

14. 2 Weeks Later…
Group A: Top-50 Grossing
iiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiii
Source: Amazon Appstore, June 2013
Group B: Rest of Freemium
iiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiii
# of sessions / active
session length / active
(minutes)
× =
avg. session length
(minutes)
2825
uninstalled
1414
active
5861
installed
=×
# of items / paying
100%
114%
avg. selling price
100%
198%
100%
226%
ARPPU

15. 1 Month Later…
Group A: Top-50 Grossing
iiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiii
Source: Amazon Appstore, June 2013
Group B: Rest of Freemium
iiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
# of sessions / active
session length / active
(minutes)
× =
avg. session length
(minutes)
3229
uninstalled
99
active
5962
installed
=×
# of items / paying
100%
116%
avg. selling price
100%
189%
100%
219%
ARPPU

16. 100%
154%
ARPPU
session length / active
(minutes)
=×
# of items / paying
100%
109%
Group B: Rest of Freemium
ii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiii
Day 0
Group A: Top-50 Grossing
ii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiii
Source: Amazon Appstore, June 2013
1614
uninstalled
8284
active
22
paying
× =
avg. session length
(minutes)
# of sessions / active
avg. selling price
100%
141%

17. session length / active
(minutes)
100%
170%
ARPPU
=×
# of items / paying
100%
112%
Group B: Rest of Freemium
i
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiii
1 Day Later…
Group A: Top-50 Grossing
i
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiii
Source: Amazon Appstore, June 2013
× =
avg. session length
(minutes)
1816
uninstalled
4543
active
11
paying
3640
installed
# of sessions / active
avg. selling price
100%
152%

18. session length / active
(minutes)
100%
193%
ARPPU
=×
# of items / paying
100%
107%
Group B: Rest of Freemium
iiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iii
iiiiiiiiiiiiiiiiiiii
3 Days Later…
Group A: Top-50 Grossing
iiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiii
iiiiiiiiiiiiiiiii
Source: Amazon Appstore, June 2013
× =
avg. session length
(minutes)
2018
uninstalled
2726
active
5356
installed
# of sessions / active
avg. selling price
100%
180%

19. Group B: Rest of Freemium
iiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiii
iiiiiiiiiiiiiiiiiiiiiiii
session length / active
(minutes)
100%
262%
ARPPU
=×
# of items / paying
100%
112%
1 Week Later…
Group A: Top-50 Grossing
iiiiiiiiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiii
iiiiiiiiiiiiiiiiiiiiii
Source: Amazon Appstore, June 2013
× =
avg. session length
(minutes)
2422
uninstalled
2020
active
5658
installed
# of sessions / active
avg. selling price
100%
233%

20. =×
# of items / paying
100%
114%
Group B: Rest of Freemium
iiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiii
2 Weeks Later…
Group A: Top-50 Grossing
iiiiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiii
Source: Amazon Appstore, June 2013
× =
avg. session length
(minutes)
2825
uninstalled
1414
active
session length / active
(minutes)
5861
installed
100%
226%
ARPPU
# of sessions / active
avg. selling price
100%
198%

21. =×
# of items / PU
100%
116%
Group B: Rest of Freemium
iiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
1 Month Later…
Group A: Top-50 Grossing
iiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
iiiiiiiiiiii
iiiiiiiiiiiiiiiiiiiiiiiiiiiii
Source: Amazon Appstore, June 2013
× =
avg. session length
(minutes)
3229
uninstalled
99
active
session length / active
(minutes)
5962
installed
100%
219%
ARPPU
# of sessions / active
avg. selling price
100%
189%

23. 1
Hours Since App Download
0 24 48 72 96 120 144 168 192 216 240 264 288 312
In-app Purchasing by Hour
Source: Amazon Appstore, July 2013

24. Timing = More Money
Engage customers early 18% of a customer’s value is
realized on the first day
Keep them in the game 44%
of repeat purchases happen
within one hour of a previous
purchase
Give them a reason to come back 56%
of purchases are
repeat purchases
62%
of revenue occurs
after the first 7 days
35%
of revenue occurs
after the first 30 days
Source: Amazon Appstore, July 2013

25. # of In-App Items for Sale
ARPPU
46%
100%
169%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
1-5 Items 6-10 Items 11-15 Items
INDEX: Average = 100%
Selection Drives Repeat Orders
Source: Amazon Appstore, January 2013
2%
of customers generate
30% of sales

26. Image from Pet Shop Story by Team Lava
Source: Amazon Appstore, January 2013
Awareness Increases Conversion
2.5x
conversion

27. Make it Easy to Shop
Image from Diner Dash by PlayFirst
Source: Amazon Appstore, January 2013
+75%
ARPPU

28. Show Users How to “Consume”
Image from Cut the Rope by ZeptoLab
Source: Amazon Appstore, January 2013
+65%
repeat orders

29. Conversion Rate
INDEX: Average = 100%
83%
188%
63%
0%
50%
100%
150%
200%
1-5 Price
Points
6-10 Price
Points
11-15 Price
Points
Offer Variety, but not Too Much
Source: Amazon Appstore, January 2013

30. Concentration on Low Prices
Total Marketplace: Assortment by Price Point
22%
17%
7%
20%
8%
6%
3% 2%
6%
9%
4%
15% 15%
20%
4%
5%
0%
5%
10%
15%
20%
25%
$0.99 $1.99 $2.99 $4.99 $9.99 $19.99 $49.99 $99.99
% of Assortment % of Sales
Source: Amazon Appstore, January 2013

31. Top Games are more Balanced
4%
9%
5%
14% 14%
12%
10% 9%
1%
5%
2%
11%
16%
24%
6%
9%
0%
5%
10%
15%
20%
25%
30%
$0.99 $1.99 $2.99 $4.99 $9.99 $19.99 $49.99 $99.99
% of Assortment % of Sales
Source: Amazon Appstore, January 2013
Top 50 Apps: Assortment by Price Point

32. 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
Source: Amazon Appstore, July 2013
+60%
average
selling price

33. Sensitivity Across Prices
-30%
-20%
-10%
0%
10%
20%
30% + 28%
- 28%
+ 1%
- 1%
Low-Priced Items High-Priced Items
% Change in Unit Sales Volume
20% Price
Changes
Source: Amazon Appstore, January 2013

34. What is the Take-Away?
Session-Length and Session-Frequency
Optimize your IAP

35. What Can I Do
to Improve Session Time?
• Reduce Barriers to frequent use
• Tune Game Difficulty
• Adopt Social
• Special Events

36. Reduce Barriers to frequent use

37. Tune Game Difficulty

38. Adopt Social

39. Special Events
• Special levels
• Time-Bound
• Unique item rewards

40. What Can I Do
to Optimize IAP?
• Design purchase opportunities into the fabric of your game
• Be clear about the benefit
• Be clear about the value offered
• Start selling physical goods
• A|B Test your offers

41. Design purchase opportunities into the fabric of your
game

42. Be clear about the benefit

43. Be clear about the value offered

44. Start selling physical goods
VentureBeat, Feb 2014

45. A|B Test your offers

46. In-App Advertising
Trends and Tuning

47. Banner Ads for Which Products Get the Most Engagement?
Harvard Business Review, 12/2013
These get more clicks… …than these do.

48. Buying and Selling Trends
Ad revenue outside the US will grow faster than inside the US. Asia will be
particularly hot.
More companies are buying mobile ads…
…paying for quality of clicks, not quantity.
•Cost per Engagement (CPE) is trending.
•So….
Samaato, Gartner, The Guardian – 2013 & 2014

49. … Reward users for engaging with ads!
Offer soft currency rewards
• For taping into an ad
• For watching a video ad

50. Buying and Selling Trends
Inmobi, 2013 - Bloomberg Businessweek, 2014

51. Not All Ads are Banner Ads
You finished Level 5!
Pick your reward!

52. What Can You Do?
Integrate ads into your game where
possible
Offer incentives to engage with ads
A|B Test revenue vs. engagement
• Video ads
• Presence of interstitial ads
• Placement of ads

53. Learn more:
developer.amazon.com/welcome
Contact us:
forums.developer.amazon.com
developer.amazon.com/help/contactus.html
Follow us:
/AmazonAppstoreForAndroid
@AmazonAppDev
developer.amazon.com/blog