According to a new report from Newzoo, global app revenues are expected to reach $80.6Bn by 2020. While consumer spending in games is expected to achieve a 17.7% Compound Annual Growth Rate (CAGR), the increasing popularity of entertainment, music, and social categories, as well as consumer willingness to pay for these types of apps, will see consumer spending in apps achieve a 30.2% CAGR.
The report breaks down regional differences in revenue growth between apps and games as well as pinpointing the biggest opportunities for developers in these regions. According to the report, mature markets such as North America and Europe will see the slowest growth over the next 5 years. For game developers, China offers a promising opportunity as the online population here continues to grow, and localized content becomes available.
Download the report to learn more about the global app market and areas of opportunity for developers.
You work hard to convert your non-spenders (or at least I do in my apps and games). But have you ever thought about turning non-converting users into agents of positive change? Or did you realize that you could earn more money as a result of doing good. I didn't!
But then I learned about Seeds, and a discovery they made: giving non-payers the opportunity to make in-app purchases for good could be the most powerful conversion tool there is. Seeds found that non-paying users are 58% more likely to spend when their purchase is for good. And these newly converted payers go on to spend an average of $25.
The kicker: Seeds focuses on for-profit, sustainable forms of social good such as microloans. These microloans are a form of sustainable social good because they’re interest-bearing, and the capital can be lent out again and again as loans are repaid. In most regions, default rates are lower than 2%.
This sounded interesting, but when I discussed Seeds with my colleagues, we assumed it would be a pretty hard sell to convince developers who are already struggling with low IAP conversion rates to give up some of those earnings to support a for-profit organization, regardless of how noble the cause may be.[Read More]
There are a lot of considerations you want to consider when developing a game, from IAP design, to level difficulty and more. While some of the basic considerations, such as “fun and engaging” go without saying, there’s an additional requirement that successful developers are increasingly taking into consideration when designing a mobile game: longevity.
In a study of the top-grossing freemium games in the Amazon Appstore, we found that 56% of a game’s revenue occurs after the first 30 days. And the players that stick around past the 30-day mark are willing to spend 60% more for in-app purchase items.
The depressing news is that about 80% of the users in our study didn’t launch the games again after the 7-day mark.
So how do you encourage more of those 80% to stick around? One solution is to design your game with a strategic approach of perpetual content. In other words, carefully create a plan to deliver ongoing, changing content. This is the approach that Wooga takes with their hidden object games, and they have been successful in their design goal to “make games fun for a year”! As a result, their customers have rewarded them with significantly higher revenues.
What does perpetual content really mean? Consider adding new game modes, outfits, weapons, maps or whatever else your users want every week or month.
Here are some other things for developers to consider in the longevity arena:[Read More]
One of the biggest challenges I have in my apps is keeping users interested. If you share this challenge, you might be interested in some things that we’ve learned in the Amazon Appstore, and some simple things we found that work well to keep customers engaged.
First and foremost: customer expectations are really high. No wonder, there are so many apps available—it’s easy for them to simply delete my app and download another.
Consider this: According to Google, the average user downloads about 26 apps on their mobile device. And because average users only spend about two hours a day using apps, there isn’t much time to convince customers that your mobile game is where they should be spending their time.
How can we keep the interest of users that are swamped with a million things to do and so many other apps to distract them?[Read More]
With more and more developers worldwide launching freemium titles, we embarked on a study to see who is doing this effectively, and what they are doing that the rest of us aren’t.
Over the past year, we have been sharing the in-app purchasing (IAP) lessons we observed in our study of the top 50 game developers. Our top five lessons are now available as an eBook: In-App Purchasing Lessons from the Top 50 Developers.
The eBook takes a look at data gathered in a 30-day study. It breaks down retention rates, daily time spent playing games, and average daily revenue. It then looks at the top 50 games in the study to uncover the similarities that lead to their success. Its purpose is to provide a knowledge template for developers that are looking to monetize their games using IAP.[Read More]
A free chocolate. Extra storage. A rare gem. A badge of loyalty. A new character or theme.
We can all agree: everyone loves an unexpected gift. And it doesn’t matter how big or small the gift is, it makes you feel good.
Whether it’s a bonus storefront item or a character upgrade, offering a free gift is a smart, surprise-and-delight monetization tactic that we see developers use to create “happiness in the moment,” as well as to strengthen a game’s loyal fan-base and bottom line over time.
You want your users to feel good, right?
Of course you do. But you also need to meet your game’s revenue goals by having players visit and buy your in-app-purchase (IAP) items.
Here are three ideas on how to engage users with nice gifts and transform that gift into meaningful revenue down the road:
Developers who use the freemium model must first focus on building an innovative, engaging game, and then also create high-value IAP content that will delight players. Offering special, unique gifts to introduce players to the value you’ve added in your IAP content is one smart way to showcase that value to potential customers. It could even encourage players to make future purchases and engage for longer, generating meaningful revenue for your game.
The Amazon Appstore is designed to make it easy to manage your IAP catalog, and we have enhanced our In-App Purchasing API to make it easier (and faster) than ever for you to integrate Amazon IAP into your game.
To learn about why IAP should not be an after-thought in game development, but rather a key factor in your design requirements, check out our recent eBook: “In-App Purchasing Lessons from the Top 50 Game Developers”. The eBook highlights the top five actionable insights we uncovered in our recent study focused on the top 50 freemium games in the Amazon Appstore.
We’ve all heard stories of mobile games that explode in popularity, only to become irrelevant and obscure months later. The key to ensuring your mobile game doesn’t become just another a “flash in the pan”, you have to think about longevity. How can you build a game that keeps people coming back for more?
Let’s face it: if your game gets stale and boring, users will leave—and fast.
It’s not enough to release a product, then sit back and watch what happens. Instead, you need frequent content updates to keep players engaged and coming back.
Smart developers today understand that the mobile games that ultimately succeed are those that continue to grow and evolve in meaningful ways—over time—with fresh content, new features, and exciting game play experiences. This can be delivered to users in the form of downloadable content, such as new game levels, or user-created content (think Minecraft worlds and Trivia Crack tidbits).[Read More]
According to Newzoo’s Mobile Games Market Landscape report, there are approximately 49.3 million mobile gamers who can be classified as Big Spenders, spending more than $25 per month on or in mobile games.
As a developer, you no doubt aim to attract these Big Spenders to your game, as well as keep them engaged—and spending. In our new eBook, “In-App Purchasing Lessons from the Top 50 Game Developers”, we share engagement and retention strategies we have learned from the top 50 revenue-grossing freemium games in the Amazon Appstore. We found that when compared to a sample set of other freemium games, the top 50 generated on average 24 percent more average revenue per paying user (ARPPU) per day. Part of their success came from catering to those potential Big Spenders.[Read More]
The Amazon Mobile Ad Network (AMAN) is offering a limited time opportunity to double your worldwide August iOS ad earnings. Simply send the first ad request from qualifying new iOS apps* starting June 13th, 2016. Earnings on qualifying banner and interstitial impressions* served on iOS devices in all supported markets (US, UK, Germany, France, Spain, Italy, and Japan) will be doubled up to $10,000 per developer. If your qualifying iOS apps generate $10,000 in global ad earnings in August, AMAN will match your earning with an additional $10,000 in promotional earnings so you receive $20,000.
AMAN serves unique high-quality ads from Amazon and brand advertisers on iOS, Android, and Fire OS phones and tablets. See how these developers increased their ad earnings with AMAN.
* Existing apps already sending ad requests do not qualify. Apps that integrate the Amazon Mobile Ad Network SDK for the first time are eligible for the offer. Developers working with an Amazon Mobile Ad Network Account Manager do not qualify.
Click here to learn more. Share this post using hashtag #AMAN.
Cloud-based subscription software is on the rise and you can now utilize Amazon.com to sell your subscriptions to B2C and B2B customers. Amazon built the platform to extend the convenience in purchasing that is already found on Amazon to these types of products. This service improves your ability to monetize these types of apps, has features to lower cost of acquisition and is now easier to implement. We’ve built out the feature set necessary to handle subscription applications and just released a new update designed to significantly reduce the time and effort required to integrate with your PC, Mac, and web-based applications.
Amazon Instant Access isn’t the same as In-App Purchasing. Instead, it allows you to list and sell your digital subscritpion software on Amazon.com, just like physical items, so customers will be able to find your digital virtual goods through the same technology that drives discoverability and customer satisfaction for everything else on Amazon.com. Product searches and recommendations work exactly the same way for your digital products as they do for any other item on the Amazon website, as do direct product links.
In addition, Amazon Instant Access links your customer’s Amazon.com account with their account in your application, allowing direct delivery of the digital items they purchase. (If they don’t have an account with your application yet, we will prompt them to create one.) From the user’s perspective, delivery is seamless: they shop on Amazon.com, buy your subscription, and then access your software by logging-in. Subscriptions auto-renew and free trials auto-upgrade so there’s no interruption to the service.
The Amazon Instant Access service communicates with your application’s back-end server responsible for managing user accounts, inventory, and entitlements. You provide endpoints for account linking and item purchase/revocation that we will call when customers purchase from your digital catalog.[Read More]