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App Monetization & Distribution Trends Charles Rim, Managing Director Korea/ SE Asia March 2013

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App Monetization & Distribution Trends

Charles Rim, Managing DirectorKorea/ SE Asia

March 2013

Changing the way people discover, share and engage with mobile

content.

Apps are the Dominant Media

Source: Zokem, inMobi

Usage is Persistent Throughout the Day

• 85% of consumers “can’t live without their smartphone”• 88% of consumers “use their smartphone every day”

lying in bed waiting forsomething

watching TV commuting

spending timewith family

in the bathroom while shopping at socialgatherings

Source: Flurry Analytics, Dec 2011; Nielsen, 2011

Mobile Gaming is the #1 App

U.S. Mobile App Consumption, Time Spent Per

Category

Consumers average 47 minutes per day playing games

Users Don’t Like to Pay to Try New Apps

Users Don’t Like Display Advertising

Especially in games where they could click on an ad by mistake

1Most Top-Grossing Apps in App Store are Free

Freemium vs Premium

Freemium vs Premium

Google Play Revenue Growth US 2012

Tapjoy Big Idea:Mobile Value Exchange

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ConsumersAdvertisers

Developers

The Tapjoy Platform

1Tapjoy Mobile Value Exchange

I can earn coins by engaging with ads in Tapjoy’s Marketplace.

How it WorksI need more coins to build on my land in Triple Town.

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I can buy coins with real money.

1Tapjoy’s Mobile Value Exchange (continued)

I can then engage in any of the actions — like watch a Ford video — to earn Coins.

After which, I can perform secondary actions (determined by the advertiser) and have more Coins to use in my game.

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Consumers Choose

• Brand defines the desired activity based on goals:

– Video Distribution (CPV)

– Customer Acquisition (CPA)

– App Engagement (CPE)

– Retargeting (CPV, CPA & CPE)

– App Installations (CPI)

• Brand only pays for completed engagements

• No media waste

Tapjoy Market Presence

free-to-use apps included in the Tapjoy network

75K

Tapjoy by the Numbers

339 MMMobile Users

5,300+Active Apps

1.2 MMDaily AdEngagements

About Tapjoy

Founded 2007

Headquarters San Francisco

Offices in the US, Europe and Asia

Reach 900+ million mobile consumers on Android, iOS, Windows Phone 7 and HTML5

Funding $70.5 million from• J.P. Morgan Asset Management

• Rho Ventures

• North Bridge Venture Partners

• InterWest Partners

• D.E. Shaw Ventures

Launching your App: Key Distribution

Strategies

Self-Publish or Get Published?

Get Published?• Make sure you get adequate, hard

commitments on marketing budget and promotional efforts, including agreed upon KPIs/metrics.

• Know what you’re giving up and getting in return.

• Get references – Who have they worked with before? How did it work out? Ask other developers.

Self-Publish?• You should have at least $100K-$200K to

promote your app or be pretty sure Apple/Google are going to feature your app

• Ideally you already have a built-in user base playing your previously launched titles that you can use for cross promotion

How are developers promoting apps?Mobile Acquisition Channels

• Rewarded installs• Non-rewarded installs• Video ads• Dev-to-dev cross promotion• Social discovery (FB, Twitter,

etc.)

• Organic discovery (top charts, search, word of mouth, etc.)

• Featured placements

Getting Featured

Getting Featured

Featured!

Getting Featured

• Well Known IP • Prior Hits• Territories Available• Languages Supported• Supported Devices / OS versions

• Technology Supported• Retina Display, Multitasking, Gyroscope,

Accelerometer, Location Services, Game Center, etc.

• App Store Landing Page• One-liner that captures what makes your

app special• User Reviews/Ratings • Video trailer on Google Play

What they’re looking for:

And of course…a great game!

Increase User Retention: Engagement Campaigns

• Build deeper engagement by encouraging users to complete specific actions within your app.

• For example, • Play to Level-2• Complete The

Tutorial• Share on Facebook

• Re-target users who have already installed your app, and have them return.

Motivate new users to install Tap Defense and advance to level-3.

Objective:Case Study: Tap Defense

70%New Users

Advanced to Level 10

21%Returned to

Game the Next Day

6%New Users

Monetize on First Day

Results:

• 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

Increase User Retention: Daily Rewards

Reward Friend Invites & Social Sharing

Reward usersfor inviting their

friends

Key Monetization Strategies

• Choose a smaller region to test in– Everybody uses Canada, so go with another English-

speaking country (ex. AU, NZ, SG)– Get 5K+ DAUs flowing through your app

• Focus on retention (next-day, 7-day, 14-day)– Aggressive targets: 40%+ next-day, 25%+ 7-day,

15%+ 14-day– Tutorial completion rate goal at 70%

• Monetization measurement– High end: $1 ARPDAU– Realistic ARPDAU range: $0.04-$0.15– % DAUs monetized: 1%-5%

• Take care of any bugs• Proceed with a full launch only when you’re happy with the

performance of your bucket test

Testing the waters

Monetization: Direct Pay + TapjoyCombining Tapjoy & Direct Pay allows Apps to monetize significantly more users

Direct PayUsers can buy Coins, with real moneyFewer than 5% of users monetize via direct pay

Tapjoy MonetizationUsers can earn Coins, for FreeApps can monetize the other 95% of users, who never pay, but still want to play

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Tapjoy Increases DEAD TRIGGER Revenue: 66% (Android) & 48% (iOS)

Case: DEAD TRIGGER

• Tapjoy increased revenue by 66% on Android & 48% on iOS

• Tapjoy accounts for 60% of Android & 32% of iOS total revenue

• Tapjoy ARPDAU is $0.03

DEAD TRIGGER

“It has been an absolute delight working with Tapjoy. Integrating them into our DEAD TRIGGER game was a great decision and our revenue has increased significantly thanks to them.”

-Marek Rabas (CEO, MADFINGER GAMES)

Asian Developers & International

Markets

Why Go Global?

• The obvious reasons:

• Market size & revenue opportunities!• Publishing on the App Store: Just press “All Regions”

Asian Developers Know How to Monetize…!

Japan and Korea are now SUPERPOWERS rivaling USA

USA21%

Korea11%

Japan6%

Other62%

DownloadShare

USA26%

Korea18%Japan

29%

Other27%

RevenueShare

Understand your Target Region: Korea

Korean Carriers

~30MM Smartphone

Users

78%Own an Android

(19% on iOS)

The Key Players to Consider Before Launching your App

KakaoTalk70MM+ Users Worldwide95%+ of KR smartphonesMessaging, VOIP, now Games!

T-Store19M Registered Users 2.6MM DAU, 10.8B DownloadsKRW 235B in Turnover ($222M)

Developer Contact Information

• Knowledge Center– https://knowledge.tapjoy.com/en

• Includes developer for advertiser and developer for publisher’s SDK integration guides.

– SDK Download: https://dashboard.tapjoy.com/sdk

• Integration Help Desk– [email protected]– Cf., Account, Billing, Reporting question: [email protected]

• Technical Account Managers in Asia– Korea: John Kim [email protected]– China: Song Peng [email protected]– Japan: (coming in March)

© 2012 Tapjoy, Inc. All Rights Reserved. Tapjoy and the Tapjoy logo are trademarks or registered trademarks of Tapjoy, Inc. All third party logos and trademarks mentioned are the property of their respective owners.

Questions?

[email protected](distribution/monetization)

[email protected](technical)