In a recent study of more than 500 games that utilize in-app purchasing on Amazon, we found that mobile games using Amazon GameCircle’s leaderboards and achievements monetized significantly better than other games.
For the three-month period from November 2012 to January 2013, games using GameCircle produced 38 percent higher conversion rates and 33 percent more in-app orders per paying customer than games that didn’t use GameCircle. Conversion was measured by calculating the percentage of app users that made at least one in-app purchase. Combining the impact of both of these variables, GameCircle-enabled games earned 83 percent more average revenue per user (ARPU) than non-GameCircle games.
The free-to-play (or freemium) model, where consumers download and play a game for free, has become one of the most prominent business models in mobile gaming today. However, the biggest challenge for game developers following the freemium model is figuring out how to generate more revenue by converting non-payers into payers and keeping those paying users engaged.
Many of Amazon’s mobile game developers have discovered how GameCircle’s services–Achievements, Leaderboards and Whispersync–have contributed to their success at Amazon. GameCircle lets players connect with other players to compare achievements and compete for higher scores. These social elements get the competitive juices flowing, which may increase a user’s willingness to pay for in-game content, leading to higher conversion rates for developers. “PlayFirst's games on Amazon have performed above and beyond our expectations, and we believe GameCircle has enhanced our ability to connect and engage with Amazon customers, encouraging more play sessions," said Paul Chen, VP of Business Development at PlayFirst.
GameCircle also offers new discovery mechanisms that are an important factor helping drive increased engagement rates. For games that have integrated with GameCircle, players can see their friends, achievements, and leaderboard activity before launching the application, since all of this information is visible right from the user’s game library. Leading games such as Skylanders Cloud Patrol, Diner Dash, and Temple Run 2 have already integrated with GameCircle. The image below showcases how a user’s library is populated with GameCircle meta-data.
This added visibility is a powerful engagement tool. A related study that we conducted in January 2013 found that, on average, games using GameCircle over-indexed on the number of player sessions (defined by the number of times users opened the applications on their device) by 32 percent when compared to the average for the entire games category. For freemium games that monetize by selling in-game content, this enhanced level of engagement is critical to expanding customer lifetime values. "We see superior engagement, retention and monetization from players who download our games from Amazon. The GameCircle integration is helping us achieve 40 percent better per user monetization rates compared to non-Amazon players," said Sean Thompson, Vice President of Mobile Deluxe.
For you, GameCircle represents another opportunity to provide gamers with a more seamless and entertaining in-game experience, which can lead to increased engagement and monetization. Please visit the following links if you would like to learn more about the Amazon GameCircle and In-App Purchasing APIs.