I tunes revenue optimization
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Learn Faster
iTunes App Store Revenue Optimization
Andrew CohenFounder & [email protected]
as featured in:
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App Store Optimization Can Be POWERFUL
Registered Users Revenue
Brainscape Facts (Oct. ‘11)
Products• 3 Languages (basic)
• 2 Exams (basic)
• 4 Gen. Knowledge
User Acquisition• 60% organic iTunes search discovery
• 25% word-of-mouth
•No real viral / social component built yet
Revenue• Tripled in 6 months, with no marketing – only App Store optimization
Brainscape’s User & Revenue Growth
App Store Value-Creation Funnel
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iTunes Search Results Visibility• Optimize TITLE & KEYWORDS
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App Store Page Views• Optimize ICON & pricing• Use external traffic sources carefully
App Downloads• Have a BOLD marketing description• Watch your REVIEWS
Revenue• Refine revenue model via experiments• Tweak PRICING religiously
Referral• Track your VIRAL GROWTH FACTOR
App Store Value-Creation Funnel
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iTunes Search Results Visibility• Optimize TITLE & KEYWORDS
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App Store Page Views• Optimize ICON & pricing• Use external traffic sources carefully
App Downloads• Have a BOLD marketing description• Watch your REVIEWS
Revenue• Refine revenue model via experiments• Tweak PRICING religiously
Referral• Track your VIRAL GROWTH FACTOR
Make sure people can find your app!
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88 chars
iTunes Meta-Data for this sample app
Title: Learn Spanish * (It does what it says)
Keywords: learn, Spanish, vocabulary, grammar, verbs, speak, vocab, study, class, language
Tips to help show up in Search Results
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• Use a descriptive and search-term-intensive Title
e.g. “Find Restaurants”, not “Grubulous”
Exception: If you already have a huge online presence and people are already searching for your name on the App Store.
Exception: Games. Game sales not very search-driven.
• Minimize non-search-term characters in your Title and Keywords
e.g. “Piano Tuner +”, not “Piano Tuner Deluxe”. (The first one will come up far above the second in a search for “Piano Tuner.”)
Although Apple gives you up to 100 characters for keywords, using all of them may dilute the importance of your target ones
• Aggressively target only one or two search-term combos
Test your target users, to see what they type in the Search box. Also check predictive text in App Store search.
App Store Value-Creation Funnel
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iTunes Search Results Visibility• Optimize TITLE & KEYWORDS
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App Store Page Views• Optimize ICON & pricing• Use external traffic sources carefully
App Downloads• Have a BOLD marketing description• Watch your REVIEWS
Revenue• Refine revenue model via experiments• Tweak PRICING religiously
Referral• Track your VIRAL GROWTH FACTOR
Get people to open your App Store page!
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Decision Criteria on Web Search Results:
• Icon
• Title
• Price
Hmmm, should I click on this app?
Decision Criteria on Mobile Srch Results:
• Icon
• Title
• Price
• Company Name
• Ratings
Tips to make your app more “clickable”
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• Use an icon that is both catchy and descriptive
Try using 99Designs to get a bunch of options cheaply
Test with a focus group of target customers to see which they click. “Most clickable” is not necessarily “prettiest” to you
• Make sure company name adds value
Don’t just duplicate your app title; add a new search term!
e.g. App name: “Find Movies”; Company: “Fandango”
• Watch your ratings and reviews
Maybe launch each version for FREE PROMO to get seed ratings. (Nobody wants to be the first sucker to buy an un-reviewed app)
Don’t do any marketing / PR until you have some real ratings
Careful. Apple will shut you down for fake ratings! (They know)
• Set a high price to convey quality, but only if it’s true!
Don’t start marketing too early
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Marketing/PR Low Conversion
Visitors / Free Downloads
Few Repeat Paying Users
Angry Investors
Benefits of Conventional Marketing/PR
•Drive direct page views (useful when people may not be searching for your target keywords yet)
•Quickly reach critical mass (e.g. for social apps w/ network effects)
Dangers of Conventional Marketing/PR done too early
Tips for timing your external marketing/PR
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• Don’t seek huge exposure until your app has
1. Great App Store page conversion
• Hard to measure b/c no publicly available iTunes analytics
• A potential proxy for % conversion is a test PPC campaign, where you know how many people clicked to see your iTunes page
2. Consistently high ratings from real early adopters
• Your friends with free copies don’t count. Sorry.
• It’s extremely hard to recover from tons of 1-star ratings after a big (and un-successful) marketing launch
3. Some degree of virality
• Need to ensure momentum continues well after TechCrunch article
• You may only have one big chance to make a splash (think: Color)
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Know when turn on the marketing
Here’s when you should scale marketing
$/user
Improve conversions
& virality
Increase monetization
CAC
LTV
Timing your marketing
Scale marketing
Now
Lessons
• Keep tweaking everything with beta users & early adopters, until your Cost of Acquiring a Customer (CAC) is much lower than your Lifetime Value of a customer (LTV)
• For many apps, it makes sense to prove your revenue model early, even if it means slower early user growth
App Store Value-Creation Funnel
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iTunes Search Results Visibility• Optimize TITLE & KEYWORDS
$
App Store Page Views• Optimize ICON & pricing• Use external traffic sources carefully
App Downloads• Have a BOLD marketing description• Watch your REVIEWS
Revenue• Refine revenue model via experiments• Tweak PRICING religiously
Referral• Track your VIRAL GROWTH FACTOR
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Secure the Download!
!
Have a Sexy Description Watch Your Reviews!
meh
(not like this) (not like this)
Tips for “sealing the deal” on the Download
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• Have an awesome app with great screenshots (duh!)
• Lead off your app description’s text with a powerful problem/benefit, or a knowledge gap that makes users want to read more
(On desktop App Store, only first 2 lines are shown, + ‘more’ link)
Bad: “As featured in New York times! New release with more badges and bolder exclamation points!!!!!!!”
Good: “Did you know that you may be WASTING most of your Spanish study time on inefficient learning methods? Let me tell you how you can use cognitive science to learn FASTER.”
• Watch your reviews!
Most people just look at the first (most recent) 1-2 reviews. Make sure that they are good ones.
If you have systematic bad reviews (e.g. for a crash bug), pull the app from sale. It’s very hard to recover from poor avg. ratings
Case Study: GRE Vocab Genius
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Brainscape’s Mishaps & Lessons
1. We were right in the middle of a “free promo” when Apple approved our recent update. Our appearance in search results then plummeted.
Lesson: Apparently iTunes’ search algorithm gives higher weight to apps that have a price at update time.
2. We submitted the next app update while the app still had a price. “GRE” Search results appearances rose back to top, and sales thus recovered.
3. We just submitted another update (while priced) and forgot to do a free promo right after. The app didn’t get enough ratings to reset the historic (poor) avg., so users have been seeing a mere 3.5 stars in search results.
Lesson: You need five+ ratings for your avg. rating to reset from its historic avg. to the current version’s avg.
Graph from “App All Stars”(download this app now)
App Store Value-Creation Funnel
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iTunes Search Results Visibility• Optimize TITLE & KEYWORDS
$
App Store Page Views• Optimize ICON & pricing• Use external traffic sources carefully
App Downloads• Have a BOLD marketing description• Watch your REVIEWS
Revenue• Refine revenue model via experiments• Tweak PRICING religiously
Referral• Track your VIRAL GROWTH FACTOR
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Make some money!
Straight-up paid app
Mobile App Monetization strategies
Free app with ads(maybe with a paid ad-free
version)
Free app within-app purchases
•“Pro” features•Virtual Goods / Cheats
•Content sales•Recurring subscriptions
Tips for finding your monetization strategy
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• Start testing monetization techniques as early as possible
As soon as core product is complete and avg. real rating is 4+
If your app can’t prove to earn at least some revenue, then it may not be a viable huge business
• Begin with the simplest and least invasive revenue model
Simplest model to code might be just inserting ads in a free app
Least invasive to users might just be an upgrade to unlock power features for only the top 1% of most active users
You can always expand/pivot to other revenue models later
• Remember that your goal is to maximize Lifetime Value of user
Remember the 80-20 rule: Earn 80%+ of your revenues from 20% of your users. Milk users who are in app for 100s of hours!
Holy grails: Recurring Subscriptions or Multiple Purchases/User
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Experiment Religiously!
Date What we did Avg Daily Sales 2 wks prior
Avg. Daily Sales 2 wks after
Notes
9/12 Free promo for 2 days (got 4,207 free DLs), then re-price
55 69 Promo helped. We should try varying promo lengths
9/26 In iTunes, changed first keyword to “vocab”, rather than “vocabulary”
69 124 Whoa, “vocab” seems much better search term than “vocabulary”. Nice
10/17 Changed price from $10 to $5
124 176 $5 app produces less revenue. Reset price to $10
Sample App Experiments Spreadsheet
No matter how well you’re doing, you should always be running at least one revenue-optimization experiment at a time
• App description & price can be tweaked whenever you want
• Name, keyword, & icons can only be tweaked when you update app
• It’s critical to keep a record of every tweak you make:
App Store Value-Creation Funnel
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iTunes Search Results Visibility• Optimize TITLE & KEYWORDS
$
App Store Page Views• Optimize ICON & pricing• Use external traffic sources carefully
App Downloads• Have a BOLD marketing description• Watch your REVIEWS
Revenue• Refine revenue model via experiments• Tweak PRICING religiously
Referral• Track your VIRAL GROWTH FACTOR
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Know your tipping point!
Relying on expensive marketing and time-sucking PR is an un-sustainable way to grow an app-based business. The app must spread organically.
• You should define a single Viral Growth Factor (VGF) that measures how well your app is spreading. This may be a complex calculation that is particular to the data your company collects
• Communicate your recent VGF to your team every month
Simple Viral Growth Factor
Vf = X*Y*Z
Where:
X = % of users who invite friends
Y = # of invites sent by each inviter
Z = % of “invitees” who accept invites & register
When Vf > 1, you go viral
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Thank You
Company: Brainscape (www.brain-scape.com)
Mission: To create a smarter world by simplifying & accelerating the learning process
Founder: Andrew Cohen
Contact: • [email protected]• (706) 254-6115• Twitter @acohenNY• Twitter @brainscape
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