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What you didn’t learn about
the Apple App Store in school.
              Or

Why you won’t make money
      with your app.
              Or

    Free Beer. Take one.
                   gabekangas.com
I took part in
making a game
   And learned a lot.
Simple, right?

• Make an awesome product
• Put it on the app store
• ???
• Profit
Reality?

• Make an awesome product
• Put it on the app store
• Nobody ever sees it
• Or nobody pays for it
• Cry
“Consider the sad story of Gasketball, an iOS game
that released for free with a $2.99 in-app purchase
    to unlock the rest of the content. It managed
200,000 downloads, and at one point was close the
 top of the iTunes games chart -- but only 0.67% of
customers paid for the IAP. After two years of work,
   the two developers behind the game ended up
    homeless, staying with friends while trying to
   address the reasons the app didn't sell well and
          recoup their investment of time.”
                 -TUAW Sept 2012
So what’s the
difference between
the Top 25 and you?
Money and Partnerships
Facebook App
                      App Store       Center
                       Features
     Free app a day                    Questionable


          sites


Cross-promo
 programs                          Targeted Ads
              Affiliate Marketing
Buying installs
 What are you paying
        for?
• $ spent / Total installs = Effective Cost Per
  Install.
• You pay for quantity to get on the app
  store charts in hopes of getting a lower
  ECPI via organic installs.
• But you pay for quality to get a higher
  future Average Revenue Per User.
• ARPU is what matters.
Buying installs



• Goal == keep the ECPI number low and
  target an audience to get a high ARPU.
• You time your launch around when you
  estimate a lower ECPI. Not around
  holidays, etc.
• Like any other advertising, you’re bidding
  against others.
Buying installs
• Cross Promos, Affiliate Programs are
  generally very low quality installs. ECPI is
  lower (because you’re trading people’s
  installs for something else. They don’t
  actually want your product), but the ARPU
  is almost nothing.
• Targeted ads and organic installs are high
  quality. Meaning in the long term they will
  account for the ARPU numbers.
Installs
       Stop campaigns




    App store top 10
                                      :(


                  Balls to the wall
                      campaign


In the store hanging out
IAP Revenue per day
                Stop campaigns


                                      $ :)

            App store top 10


                  Balls to the wall
                      campaign



  In the store hanging out
So with enough money
you can get anything to
  the top of the App
        Store?
...yesssss




Pyramid Run Temple Run    Number one? Wtf!
  (Ripoff)   (Original)
This example used
 “illegal” bots to mass
 download the app to
 force it to the top of
the rankings and once
noticed was removed.
“Free” organic install
      techniques
• Build light versions.
• Other apps that serve the same
  demographic.
• Cross promote your big budget title within
  your free viral ones.
• The more organic installs, the lower your
  ECPI.
• “Social” and “viral” shit.
Get those organic installs!


Cross the line a little. Utilize the
 social channels available to the
         fullest capacity.
blah blah blah I’m
 Zuck. Let’s talk
   about appz.



                     Douche
blah blah blah I’m            •   BiblioRdr
 Zuck. Let’s talk                 “Gabe just read a book.”
   about appz.



                     Douche
blah blah blah I’m            •   BiblioRdr
 Zuck. Let’s talk                 “Gabe just read a book.”
   about appz.
                              •   Karaoke Plus
                                  “Gabe just sang a song.”

                     Douche
blah blah blah I’m            •   BiblioRdr
 Zuck. Let’s talk                 “Gabe just read a book.”
   about appz.
                              •   Karaoke Plus
                                  “Gabe just sang a song.”

                     Douche   •   MommySpammR
                                  “Gabe just took a step.”
blah blah blah I’m            •   BiblioRdr
 Zuck. Let’s talk                 “Gabe just read a book.”
   about appz.
                              •   Karaoke Plus
                                  “Gabe just sang a song.”

                     Douche   •   MommySpammR
                                  “Gabe just took a step.”

                              •   Ultimate Vision v4.2
                                  “Gabe just blinked his eyes.”
blah blah blah I’m            •   BiblioRdr
 Zuck. Let’s talk                 “Gabe just read a book.”
   about appz.
                              •   Karaoke Plus
                                  “Gabe just sang a song.”

                     Douche   •   MommySpammR
                                  “Gabe just took a step.”

                              •   Ultimate Vision v4.2
                                  “Gabe just blinked his eyes.”

                              •   Barcamp Omaha App
                                  “Gabe just gave a talk.”
•Dick move? Some say “yes”.
• But it works.
• People can turn it off.
• And you owe it to yourself
 to let your users spread the
 word on your behalf.
Similarly give them an easy
way to talk about how
proud they are to be using
your product.
Similarly give them an easy
way to talk about how
proud they are to be using
your product.
Similarly give them an easy
way to talk about how
proud they are to be using
your product.
Similarly give them an easy
way to talk about how         Why did they press that

proud they are to be using    button? Because they
                                   wanted to.

your product.
Similarly give them an easy
way to talk about how         Why did they press that

proud they are to be using    button? Because they
                                   wanted to.

your product.
Things people pay for

• Time. Do things faster.
• Space. Do/have more things.
• Perceived rarity. Do/have things others
  can’t.
• Ranking. To be the best.
Regardless of your app, a little
gamification goes a long way.

• iOS GameCenter. Built right in. Have
  leader boards for arbitrary things. Words
  typed, games played, photos taken, etc.
• Facebook. Automatically know a user’s
  friends and put them up against each other
  with these arbitrary metrics. Friends love
  to compare each other.
Example of an in-game
        contest.
• 33% increase in ARPU on over the duration
  of the event.
• Last day of the event... spike.
• People like competition.
• People like “rare” things.
• “ONLY 10 VIRTUAL, DIGITAL         Number of people paying
   WIDGETS! OMG!”                         moneyz.
This is where I’d add
any last minute slides.
Otherwise I’m done.
         Thx.


            gabekangas.com

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What you didn't learn about the App Store

  • 1. What you didn’t learn about the Apple App Store in school. Or Why you won’t make money with your app. Or Free Beer. Take one. gabekangas.com
  • 2. I took part in making a game And learned a lot.
  • 3. Simple, right? • Make an awesome product • Put it on the app store • ??? • Profit
  • 4. Reality? • Make an awesome product • Put it on the app store • Nobody ever sees it • Or nobody pays for it • Cry
  • 5. “Consider the sad story of Gasketball, an iOS game that released for free with a $2.99 in-app purchase to unlock the rest of the content. It managed 200,000 downloads, and at one point was close the top of the iTunes games chart -- but only 0.67% of customers paid for the IAP. After two years of work, the two developers behind the game ended up homeless, staying with friends while trying to address the reasons the app didn't sell well and recoup their investment of time.” -TUAW Sept 2012
  • 6. So what’s the difference between the Top 25 and you?
  • 8. Facebook App App Store Center Features Free app a day Questionable sites Cross-promo programs Targeted Ads Affiliate Marketing
  • 9. Buying installs What are you paying for? • $ spent / Total installs = Effective Cost Per Install. • You pay for quantity to get on the app store charts in hopes of getting a lower ECPI via organic installs. • But you pay for quality to get a higher future Average Revenue Per User. • ARPU is what matters.
  • 10. Buying installs • Goal == keep the ECPI number low and target an audience to get a high ARPU. • You time your launch around when you estimate a lower ECPI. Not around holidays, etc. • Like any other advertising, you’re bidding against others.
  • 11. Buying installs • Cross Promos, Affiliate Programs are generally very low quality installs. ECPI is lower (because you’re trading people’s installs for something else. They don’t actually want your product), but the ARPU is almost nothing. • Targeted ads and organic installs are high quality. Meaning in the long term they will account for the ARPU numbers.
  • 12. Installs Stop campaigns App store top 10 :( Balls to the wall campaign In the store hanging out
  • 13. IAP Revenue per day Stop campaigns $ :) App store top 10 Balls to the wall campaign In the store hanging out
  • 14. So with enough money you can get anything to the top of the App Store?
  • 15. ...yesssss Pyramid Run Temple Run Number one? Wtf! (Ripoff) (Original)
  • 16. This example used “illegal” bots to mass download the app to force it to the top of the rankings and once noticed was removed.
  • 17. “Free” organic install techniques • Build light versions. • Other apps that serve the same demographic. • Cross promote your big budget title within your free viral ones. • The more organic installs, the lower your ECPI. • “Social” and “viral” shit.
  • 18. Get those organic installs! Cross the line a little. Utilize the social channels available to the fullest capacity.
  • 19. blah blah blah I’m Zuck. Let’s talk about appz. Douche
  • 20. blah blah blah I’m • BiblioRdr Zuck. Let’s talk “Gabe just read a book.” about appz. Douche
  • 21. blah blah blah I’m • BiblioRdr Zuck. Let’s talk “Gabe just read a book.” about appz. • Karaoke Plus “Gabe just sang a song.” Douche
  • 22. blah blah blah I’m • BiblioRdr Zuck. Let’s talk “Gabe just read a book.” about appz. • Karaoke Plus “Gabe just sang a song.” Douche • MommySpammR “Gabe just took a step.”
  • 23. blah blah blah I’m • BiblioRdr Zuck. Let’s talk “Gabe just read a book.” about appz. • Karaoke Plus “Gabe just sang a song.” Douche • MommySpammR “Gabe just took a step.” • Ultimate Vision v4.2 “Gabe just blinked his eyes.”
  • 24. blah blah blah I’m • BiblioRdr Zuck. Let’s talk “Gabe just read a book.” about appz. • Karaoke Plus “Gabe just sang a song.” Douche • MommySpammR “Gabe just took a step.” • Ultimate Vision v4.2 “Gabe just blinked his eyes.” • Barcamp Omaha App “Gabe just gave a talk.”
  • 25. •Dick move? Some say “yes”. • But it works. • People can turn it off. • And you owe it to yourself to let your users spread the word on your behalf.
  • 26. Similarly give them an easy way to talk about how proud they are to be using your product.
  • 27. Similarly give them an easy way to talk about how proud they are to be using your product.
  • 28. Similarly give them an easy way to talk about how proud they are to be using your product.
  • 29. Similarly give them an easy way to talk about how Why did they press that proud they are to be using button? Because they wanted to. your product.
  • 30. Similarly give them an easy way to talk about how Why did they press that proud they are to be using button? Because they wanted to. your product.
  • 31. Things people pay for • Time. Do things faster. • Space. Do/have more things. • Perceived rarity. Do/have things others can’t. • Ranking. To be the best.
  • 32. Regardless of your app, a little gamification goes a long way. • iOS GameCenter. Built right in. Have leader boards for arbitrary things. Words typed, games played, photos taken, etc. • Facebook. Automatically know a user’s friends and put them up against each other with these arbitrary metrics. Friends love to compare each other.
  • 33. Example of an in-game contest. • 33% increase in ARPU on over the duration of the event. • Last day of the event... spike. • People like competition. • People like “rare” things. • “ONLY 10 VIRTUAL, DIGITAL Number of people paying WIDGETS! OMG!” moneyz.
  • 34. This is where I’d add any last minute slides. Otherwise I’m done. Thx. gabekangas.com

Notas do Editor

  1. \n
  2. Over one million downloads.\nApproximately $20,000/day\n2-day retention of over 40%. Meaning that 40% of people that install the app on day one come back on day two. That’s a large number. Think about all the apps/games you’ve installed and then immediately deleted. This includes crappy installs from people never intending to launch the game more than once. More on that later.\nApproximately 730,000 game sessions a day.\n
  3. \n
  4. \n
  5. \n
  6. \n
  7. \n
  8. Chartboost allow cross-promos between other applications. Both yours and others.\nTapJoy allows you to monetize your app by having the user gain something in return for signing up to a magazine, downloading another app, etc. You can also be the “other app” that’s being download and get a large amount of installs by users of other apps.\nGoogle admob, and iAds are examples of targeted advertisement platforms. Say you want your app to be advertised to users of other apps in your demographic.\nThere are many free app a day sites that in return for your money will feature your application and send all of their users to download it. In return for their download they accumulate points to trade in for other goods later.\n
  9. The name of the game is the ECPI: Effective cost per install.\nYou want to acquire a large quantity of downloads to push you up the app store ranks and hope for some virality. Lower ECPI.\nBut you only make money from quality users.\nPeople who are in for the long haul and will spend money. These have a higher ECPI.\n\n
  10. \n
  11. You buy installs in bulk from affiliate marketing and incentive programs, but these users are not installing because they want your product. They want their kickback. They will not be a long-time quality user, and they certainly won’t pay via IAP anytime. They are only there to push you up the App store charts.\nTargeted ads put your product in front of people who may actually be interested in it. These people will be happy to pay if they enjoy it.\n
  12. Once the paid installs stopped, the amount of installs per day dropped significantly. As expected.\n
  13. But once the big push for installs stopped, the existing quality users still stuck around and kept paying. That’s where the difference between a crappy product and a good one will show.\n
  14. \n
  15. Recent example of a game, Temple Run, being completely copied by a game called Pyramid Run. They bought themselves to the #1 spot and then made money off of in-app purchases. Then was removed from the store by Apple once it came to light they were using “bots”, or automated download methods, to catapult them up to #1.\n
  16. \n
  17. \n
  18. \n
  19. \n
  20. \n
  21. \n
  22. \n
  23. \n
  24. \n
  25. It’s free, and they want to do it. They want to tell their friends. Nobody knows exactly why they chose to hit that “Send” button, but they do.\n
  26. It’s free, and they want to do it. They want to tell their friends. Nobody knows exactly why they chose to hit that “Send” button, but they do.\n
  27. It’s free, and they want to do it. They want to tell their friends. Nobody knows exactly why they chose to hit that “Send” button, but they do.\n
  28. It’s free, and they want to do it. They want to tell their friends. Nobody knows exactly why they chose to hit that “Send” button, but they do.\n
  29. \n
  30. I added a “fish farts” leaderboard for the fish game. It’s so stupid and so silly, but it’s fun to look at.\n
  31. \n
  32. \n