is this all there is? what's new in monetization

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IS THIS ALL THERE IS? WHAT'S NEW IN MONETIZATION Reach Engage Earn MIKE HINES DEVELOPER EVANGELIST, AMAZON @MikeFHines mikehines45 [email protected]

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IS THIS ALL THERE IS? WHAT'S NEW IN MONETIZATION

Reach Engage Earn

MIKE HINESDEVELOPER EVANGELIST, AMAZON

@MikeFHines mikehines45

[email protected]

AndroidDevs

iOS devs AmazonFire OS

41%48%

60%

% D

evel

op

ers

abo

ve P

ove

rty

Lin

e

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

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 marketing. $500 per month is the app poverty line.

MANY MONETIZATION OPTIONS 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 sticking to the free features.”1

• Cost of $3.15 and $1.80 per download for iOS and Google Play respectively in the US

often eclipses user lifetime value (LTV)3

• Free apps attract more users that premium apps

1 WSJ http://www.wsj.com/articles/mobile-game-makers-try-to-catch-more-whales-who-pay-for-free-games-14313061153 Chartboost: https://www.chartboost.com/insights/2016

Amazon Underground

Coins Merch

For customers, Amazon Coins

263k viewers10MM min watched65.9 min per uniqueHighest single day rev

Configure Coins campaigns to give coins back to customers who purchase items from Amazon! Incent purchase of specific items.

The effect on Power Users

U.S. data from App Annie and internal sales data

What next?

• Create a Coins Rewards Campaign to

target your power users.

• Promote the campaign in social media.

• Promote the campaign on your

YouTube and Twitch channels.

TARGET POWER USERS

Amazon Underground

Coins Merch

Discounts and

incentives for power

users

merch.amazon.com

Use physical goods to

EARN ADDITIONAL REVENUE

“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 MashinterBackflip Studios, creators of DragonVale

Create and upload your artwork using our templates.

Promote your t-shirt. Analyze your sales and iterate for best monetization.

"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

Free self-service tools

MERCH BY AMAZON ROYALTY CALCULATOR

merch.amazon.com

How to sell shirts?

• Platform independent

– Android

– iOS

– Online

• Shirts may appeal to fans who don’t

buy IAP items

• No out-of-pocket cost to you

PROMOTE SHIRTS IN-

GAME

80% of orders come from in-game promotions.

20% of orders happen outside of your app!

What next?

• Pick art identifiable with your game

• Pick 3 (maybe 4) shirt colors

• Strongly consider $19.99 for price

• Ask fans what they want

• Start promoting your shirt outside of your game (email, social media, etc…)

BUILD A GOOD SHIRT

Just because lots of shirt colors are available doesn’t mean you need to use them all!

Amazon Underground

Coins Merch

Discounts and

incentives for power

users

An on-demand

service with no

out-of-pocket cost

A NEW SHOPPING APP WITH

ACTUALLY FREE APPSAvailable for any Android device where Amazon Underground is installed.

Developers waive fees on apps and In App Purchase items.

Android customers get really, truly free apps.

Amazon pays developers for cumulative minutes customers spend in an Amazon Underground app.

Getting Started

• Android

• Premium or IAP in another store

• Release to US, UK, Germany or France

Qualifications

developer.amazon.com/underground

AMAZON UNDERGROUNDHOW WILL IT WORK FOR YOU?

• Back-of-the-napkin

• Back it out of ARPU

$0.002 for every user-minute

$0.12 per hour per user

AMAZON UNDERGROUNDHOW WILL IT WORK FOR YOU?

• Back-of-the-napkin

• Back it out of ARPU

10K Users150K Minutes

150K x $0.002 = $300

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

http://bit.ly/undergroundcalculator

What developers are saying

Is it Working?

DEVS SAY…"If you want to get your apps in the hands of as many users as possible, this really is the way to go.”

“Session lengths went up, and the overall hours that we saw in the Underground version were incredible—hundreds of percent higher. It was really amazing to see. All of that translates into more hours played in total, and ultimately, revenue."

What next?

• Eliminate the limited upside of premium

• Remove purchase resistance of premium

• Increase download count vs. premium

• Premium apps have done very well when

moved to Amazon Underground

TAKE YOUR PREMIUM APP

UNDERGROUND

Amazon Underground

Coins Merch

#ActuallyFree apps

and in-app

purchases

and

developers are paid

per minute

Discounts and

incentives for power

users

An on-demand

service with no

out-of-pocket cost

Special Casual Connect Offer

Go to http://merch.amazon.com

Sign up by Sunday and use…

• email you used for registration

• email you used for survey

• Get Merch account by that Friday

Merch by Amazon accounts are free

APPLY TODAY

How did we do? http://bit.ly/devdaysurvey

Learn more: http://merch.amazon.com

http://developer.amazon.com/underground

http://coins.amazon.com

Follow us:@MikeFHines

developer.amazon.com/blog