Monetizing Android Apps
How I Achieved $15,000 Daily Sales
on Google Play
Katsuaki Sato (佐藤 航陽) CEO of Metaps Inc. http://www.metaps.com/ facebook:www.facebook.com/katsuaki.sato Twitter:@metaps_sato
Introduction
Katsuaki Sato (佐藤 航陽) CEO of Metaps Inc. http://www.metaps.com/ Katsuaki Sato started his first business when only 15 years old. After entering university, he successfully launched a search engine/social media marketing business in 2007. In 2011, he launched a smartphone developer platform business with operations in Tokyo, Singapore, Hong Kong, and Silicon Valley, and strives to help support the monetization needs of developers around the world.
facebook:www.facebook.com/katsuaki.sato Twitter:@metaps_sato
“The 3 Need-to-Knows For Success in the Global Smartphone Market” (pub. Nikkei Publishing Inc.)
http://amzn.to/PhUgLD
Author of the Smartphone Book: ITmedia Blogger Android×Global (Japanese only)
http://blogs.itmedia.co.jp/android/
No.1 “Hit Books” Category Amazon JP
Ranked No.1 in Amazon Japan
“Hit Books”
What Do I Do?
© 2012 Metaps.inc
App Monetization Platform “Metaps” Operates a Reward Ad Network
Advertising
Low-Risk User Acquisition
Monetization
Earn Money Quickly
CPI-AD (Cost per Installation Ads)
Reward Ads (Ads = Payments)
Reward Ad
Network
* Reward ads are used within
applications for monetization.
They provide similar value to the
end-user as an in-app purchase,
and is provided in exchange for
interaction with the ad offer.
The Metaps publisher network for Android apps grew 3,357% in half a year.
媒体の消化件数
3,357% Growth
over 6 Months
Ad Consumption
by Publishers
Jan Feb Mar Apr May Jun
Publisher Network Grew 3,000%+ during 2012/01-06
Reason: Our publisher clients’ sales have increased
Since reward ads are treated as an alternative method for purchasing in-app content, our publisher network cannot grow unless our publishers sales (in-app purchases) increase.
CPC Ads Reward Ads
Proportional to in-app impressions Proportional to in-app sales
Cost per Click Model Cost per Install Model
Comparison
The reward ads business model grows in tandem with the app publisher’s in-app sales
Revenue Growth Revenue Growth
Publisher Revenue Publisher Revenue
Reason for Our Rapid Growth in Publisher Client Base
Can Apps Actually be Profitable?
Only the top 1% of publishers generate sufficient profit
There are around 40 apps from AppStore + Google Play which generate monthly sales over $125K. Since there are many apps that support both OS and multiple top ranking apps owned by the same company, there are actually only about 25 domestic companies that are generating monthly sales of over $125K. (*excl. sales from in-app advertisements)
Google Play AppStore
Top Grossing
1~5th $500K - $1,250K $750K - $2,500K
Top Grossing
6~10th $250K - $500K $375K- $750K
Top Grossing
11~15th $125K - $250K $188K - $375K
Top Grossing below 15th
Below $125K Below $188K
USD 1 = JPY 80
Actual Attempts to Monetize as a Publisher
One cannot figure out what the mechanics are just by looking at Google Play rankings or App Annie data, or even
through operating an ad network.
It was necessary to put oneself in the shoes of an Android app developer to best figure out the rules for monetization.
With the help from our clients, we decided to completely take care of their monetization needs, burdening the costs
and risks ourselves.
Through trial and error, we accumulated successful (and unsuccessful) case study data by working directly with
developers on their app content
Monetization
Black Box
Finding the Formula for Success on Google Play
There is yet no formula for global success in the Android app market, and therefore profitability is
low despite the large market share. By finding what the formula is (like what is known to work for
AppStore), there is the potential for profitability exceeding that of AppStore.
Review Site Promotion
Organic Traffic from Increase
In Ranking
Burst Campaign
App Release
20,000 DL in 24-hour Period
App Release
AppStore
Detailed Process and Numbers are Unknown
With the help of our clients, we looked for any patterns to succeed in the market
Apps that Have Generated Daily Sales in Excess of $15k
Details Notes
Genre Game Main target: Male Users
Free/Paid Free
No account registration required. Minimal interaction
needed to start using the app.
Monetization Model Freemium Model +
Reward Ads Sell virtual items and/or
virtual currency inside app
SNS or Other Platforms None Manage end-users and/or
community without reliance on social gaming platforms
Development Hybrid
(Native + WebView)
Mostly based on WebView but partially native app.
By undertaking all marketing activities ourselves, we compared the cost effectiveness of each
advertising method, and analyzed its effects on ranking. Summarized below are the type of apps
that produced the best results.
***App names withheld (confidential)
What Was Done to Achieve Daily Sales Over $15k
Although there were many different trials, there were really only 2 types of promotions that were
tried at the initial release of an app.
1. Reward Ads
2. Review Site Tie-ups
Leveraged the Metaps reward ad network. After initial release, around 17,000 users were acquired in a week by launching campaigns targeting app publishers only.
After selecting several review sites to publish on, we initiated promotions in sync with the reward ad campaigns. During the initial month, articles were placed at a pace of 1 a week.
Ad Campaigns Targeted to Tap in to Organic Traffic
Google Play Categories
Apps
Games
Top (Paid)
Top (Free)
Top New (Paid)
Top New (Free)
Latest
Top Page
Category
Top Grossing
Top (Paid)
Top (Free)
Top New (Paid)
Top New (Free)
Category
Top Grossing
Top (Paid)
Top (Free)
Top New (Paid)
Top New (Free)
Top Grossing
Top (Paid)
Top (Free)
Top New (Paid)
Top New (Free)
Top Grossing
Organic traffic was acquired by increasing exposure
in yellow categories in the first month, which enabled tapping into more
sustained traffic by reaching higher rankings in orange categories.
If we were to simply advertise based on cost effectiveness, most media options would not pass the
bar – therefore ads were placed on the understanding that they were investments to maintain an
inflow of organic traffic. We especially focused on the display order in each Google Play category.
The First 30 Days in Google Play are Critical
Apps are listed in any Top New categories for 30 days after the initial release.
The success hinges on how many new users can be acquired while it is listed in this category.
“Top Grossing”
“Top Free” “Top New Free”
After publishing the app to Google Play, apps are
listed in this category for only 30 days.
By leveraging the momentum generated with organic traffic in the “Top New” category, it possible to rank higher in the “Top Free” and
“Top Grossing” categories.
30th Day
Data from Actual Ranking Changes and Organic Traffic vs Ad Campaign
In the initial week, 17K users were acquired along with a rise to the No. 15 rank in the Top New (Free)
category. From there, we were able to maintain a higher position in ranking by acquiring 2-3K users daily
through organic traffic. Each week thereafter, we placed tie-up promotions on select review sites, in
order to drive core users to the app.
Appearance on Review Sites
Blu
e =
No
. o
f D
aily
In
sta
lls
Red =
Rankin
g
No. of Installs from Organic Traffic
No. of Acquisition from Reward Ads
“Top New (Free)” Ranking
Day 7 Day 14 Day 21 Day 28
Aiming for Top 10 in Sub-Categories Can Produce Results
If the app rises to around Top 10 in “Top New Free”, the same app will also make Top 10 in its smallest sub-
category (i.e. “Puzzle” inside “Game”). Users from this category are not only highly motivated, the ranking
can remain consistent even after 30 days, allowing anywhere from 500 to 1,000 daily acquisitions.
Ranking tends not to drop
after attaining a higher rank
in the smaller sub-categories
Google Play ranking
increases gradually
compared to iOS
30th Day 60th Day
Notes on Launching Ad Campaigns : Period
If 17k users are acquired in a week, or even if the same numbers are acquired in a day, the ranking will
continue to increase for ~7 days after launch and will attain a rank around Top 15 in “Top New Free”.
After the 8th day, increase in ranking tends to slow down or hover in the same position. At this point, it is
likely that the average number of acquisitions, user ratings, and user activity numbers come in to play to
determine ranking. The overall lack of fluctuation in Google Play ranking can be explained if data averages
are used in its algorithms.
Common Phenomena Observed
• Ranking tends not to rise or fall sharply over time. • Initial climb in ranking will change pace around the 8th
day from release.
Possible Theories Based on Observation
• Data is likely processed over a 1 week period. (not 24hrs) • The averaged number of acquisitions for the past week are
likely used. • The reliability of the numbers (which is a reflection on the
reliability of the content) is made using averages.
Unlike AppStore, it is evident from the way Google Play ranking fluctuates that not only the “quantity” but
also the “quality” of users are taken into account. With this knowledge, we placed ads in publisher
apps that have users who are familiar with and use native Android apps on a daily basis. Since
users from the web are generally not app users, there was a significant difference in retention rate.
Native App WEB
[Main Publishing Media] Game / Entertainment related apps
[Main Publishing Media]
Point sites / Major SNS
Lead users from web to DL
Difference in “quality” of user
Most users do not end up using the app
Ads were
placed here
• Ranking fluctuates based on
short term DL numbers.
• Quality is not as important.
User retention rate
is extremely low
Notes on Launching Ad Campaigns : Media Placement
Android
iOS
Comparison of AppStore and Google Play
Short Term (24 hr period)
Rating Period Medium to Long Term (7 - 10 day period)
Total Downloads Reference Score Average User Acquisition score
Apps that are trending are displayed in real time.
Display ranking Apps that are trending AND being used are displayed.
Scrutinized by Apple users opinions
Quality of App Calculated through algorithms based on user appraisal
Frequently Fluctuates Ranking Fluctuation
Fluctuates Less Frequent
Number of Acquisitions and Ranking Fluctuation
Through trial and error, we found that app ranking will increase to a certain point based on the number of
user acquisitions and ad placement. Also, depending on app presentation (icon, title naming, etc.) the
amount of organic traffic generated was found to differ by up to 1,000 downloads.
Ranking / Category Apps Games Game Sub-Categories
“Top Free” 155th 45th 4th
“Top New Free” 15th 12th 1st
Rankings when 15K – 20K users are acquired in the initial week from launch
Average Daily Organic Traffic: 2,000-3,000 DLs
Notes: • Of all game sub-categories, “Casual” is the most difficult to get high rankings on.
• Ranking can vary greatly depending on competitor app releases.
• Daily organic traffic numbers can differ by over 1,000 DLs, and depends on
presentation of the app icon, screenshots and title naming.
Pros & Cons of Review Sites
• User incentive/motivation is high
• High possibility of acquiring core users
• Cost efficiency is hard to measure
• Results vary greatly depending on
how apps are introduced
Pros Cons
Important points when working with review sites
• Brand awareness of the site vs cost efficiency often does not correlate.
• There are many famous sites that do not generate sufficient ROI.
• In contrast, there are many small/medium sites that generate good results.
• Carefully check app category compared with the review site’s user base.
• Depending on how the app is reviewed, the results can vary by over 5 times.
• Best results can be had when synced in time with events or campaigns.
Aim to Tap More Organic
Traffic from Increase in
Ranking
Aim to Enliven App Community
Through Increase in Fan Base
Acquisition of Active Users
from Similar Target Segment Acquisition of Fewer
Core Users
Launch App by Mixing Reward Ads + Review Sites
Reward ads are good at acquiring a large number of users in a short time, but if the media it is
displayed in is not selected carefully for its user base characteristics, incentive towards the reward ad
will be low. On the other hand, review site users are highly motivated but the potential number of
acquisitions is comparatively low. So in the first month, campaigns were launched in a way so that
either method would reinforce the weakness of the other.
Reward Ads Review Site Promo
Increase user activity through acquisition of
organic traffic and increased fan base
Actual Results from Mixing Reward Ads + Review Sites
In the end, we were able to acquire around 19K users by using both reward ads and review sites, but also
40K users from monthly organic traffic; and an daily active user ratio of ~25% of the total user base.
At this point, we were able to achieve daily sales of $15K on Google Play.
DL : 60,000 DLs
30th day of Campaign
Result
Acquisitions from Campaigns
DAU:15,000 users
Organic Traffic: 40,000 / month
Daily Sales:$15K
Reward Ads: 17,000 users
Review Sites : ~2,000 users
Total Acquisition: ~19,000 users
Reached Top 15 in “Top Grossing” and Top 10 in “Games” categories.
Monthly organic traffic of 30,000 - 40,000
Tapping in to the Organic Traffic Cycle Makes the Next Month Easier
If the app is able to maintain a position within the Top 20 of “Top Grossing”, even after the app disappears
from the “Top New” category (after 30 days) and even without additional advertising, there is a constant
inflow of around 1,500 daily users from organic traffic, which effectively generates a positive feedback cycle.
Ranked in Top 10 of “Top New Free”
Ranked in Top 20 of “Top Grossing”
Daily organic traffic of 2,500 - 3,000
Monthly organic traffic of 40,000
Daily organic traffic of 1,000 – 1,500
30 days from Launch
After 30 days from Launch
What Was Done After the First 30 Days
Although new users can be acquired through sustained organic traffic, once user churn starts to overtake,
overall sales numbers cannot be maintained. Therefore, we started to tackle the issue of maximizing LTV
through active user engagement and retention strategies.
1. Minimizing Existing User Churn
2. Advertising on CPC Networks
A number of measures were implemented such as improving user app launch frequency through push notifications, integrating reward ads to mitigate churn of free-to-play users, updates for events and new app functionality, and improving SNS posting functions.
Rather than just aiming for large acquisition numbers, ARPPU and expected LTV from several ad networks were calculated focusing on efficiency vs cost in order to acquire users over the long term.
Overall Sales Did Not Decrease as Much
Even though user acquisition through organic traffic + CPC remained, the ARPPU did not change much
and overall sales did not to decrease as much as was originally expected. This is likely due to a lack of
competition and the number of apps that are strong enough to launch themselves high into the Top
Grossing categories.
Once the app reaches the Top 20 in
“Top Grossing”, sales remain level
30th Day 60th Day
Google Play
“Top Grossing” Ranking
• Competition is not as fierce as AppStore
• User acquisition strategies have not yet
become common knowledge
Reasons why sale do not fall:
Android Campaigns Need Coordination with Content
Before launching your promotion, there is one important point that needs to be addressed; There must be a
user content engagement strategy, and a promotion campaign coordinated to run in sync. Unless the
content leaves a favorable impression with the users, it will lead to a high amount of churn, and ultimately
reduce the money available to invest in your next round of advertisements.
Further
Increase
In Sales
User Base
Shrinks: EoL
Re-Invest
With More Ads
Reduce Ad
Expenditure
Due to Low
ROI
Users Increase
and
Sales Increase
Sales Fall
Due to
User Churn
Start
Promotion
Campaign
Start
Promotion
Without
Preparation
Content
Strategy
In Place
No Content
Strategy
Content Engagement and Promotions
Positive
Cycle
Negative
Cycle
Example of Failed Projects and Campaigns
There were just as many failed cases as successful ones.
The following cases did not achieve decent results.
Requiring users to login / register account at start of app
Since most users expect to be able to use an app straight away after downloading, many users simply uninstalled the app and did not return when registration was required. Due to this, the calculated cost of acquisition increased to the point where none of the advertising options remained cost effective.
App file size was too large (50MB+) and only downloadable by Wi-Fi
Many users just gave up, if were forced to download apps with file size of over 50MB or took longer than 30 seconds to launch. As with the case of account registration above, the cost of acquisition increased due to this hurdle.
Not enough testing before app release There are quite a few developers who do not perform adequate testing before publishing to Google Play, and start their debugging + verification on actual handsets after release. The critical period while listed in “Top New” categories during the first 30 days will be wasted by fixing bugs. Additionally, if a bug is found by users they will tend to give a low “1” star for its rating. Even if marketing activities are launched after bugs are fixed, it becomes even more difficult to reach organic traffic at higher rankings, due to the low ratings.
80% of Companies Fail to Choose the Right Partner
Proposals only contained “number of user acquisitions” & “acquisition cost” of CPA/CPI →No advice or suggestions about app content were given.
Past results are described ambiguously like “Best Seller” or “No.1 Overall Ranking”
→The process of how they increased sales is not explained.
Proposals focus on maximizing their own revenue, instead of optimizing results for client.
→Be weary of recommendations to target channels that offer maximum consumption
rates or best volume for your advertising budget
The important point is that your partner should not only be able to provide simple media-planning and acquisition numbers, but also be able to give direct advice and strategies related to the content. Depending on the type of freemium app content, the LTV, DAU and ARPPU can vary greatly, and strategies will differ appropriately.
You should always be critical of actual sales and revenue results. There are in fact numerous high brand value apps out there in the market that have failed to monetize. If the partner is not able to explain in detail the process required to increase sales, you have the right to be suspicious. Don’t forget to ask which apps they are basing their results on as well.
Caution is advised if a company is not thinking on your behalf for the long-term, and starts proposing campaigns to maximize their insertion order volume in the short term. There is a high possibility that the company is not trustworthy when it recommends a plan that focuses on using up the budget, rather than focusing on its cost performance.
We found monetization was difficult to achieve when we partnered with companies (such as ad agencies and
consultants) that behaved in the ways listed below. The important thing is to look for trustworthy
companies regardless of size or brand.
Companies that are Successfully Monetizing Android Apps
After working with numerous developers, the companies who successfully generate sales in the Android
market have the following things in common.
The point of contact is a heavy app user and well versed in Android apps
We often see successful companies who have representatives that are frequently using not only their own apps but their competitor’s ones – often they will even be carrying both iPhone and Android handsets. On the other hand, if they are not touching Android apps and rely solely upon industry news on the internet, they tend to be from unsuccessful cases.
Company specializes in their strengths and makes good use of external partnerships
A company that focuses on their strengths while leveraging other vendors will often produce good results. In contrast, when companies try to do everything internally they tend to spread resources too thin and projects often fall apart.
The point of contact is proactive about getting their own data in real-time
Not only do they rely on news from the internet or from publications, they will personally attend events and make appointments to get real-time information on the ground. As the smartphone industry trends tend to change quickly, the information you acquire while sitting in front of your PC is likely to already be old.
-Offices-
Metaps Inc. (Japan)
FORECAST SHINJUKU AVENUE 5F, 2-5-12,
Shinjuku, Shinjuku-ku, Tokyo 160-0022
Metaps Pte. Ltd. (Singapore)
100 Cecil Street, The Globe #05-01,Singapore 069532
Metaps Hong Kong (Hong Kong)
Suite 1008 Prosperity Millennia Plaza,
663 King's Road, Quarry Bay, Hong Kong
Metaps International (U.S)
10 South 3rd Street, Suite 209, San Jose, CA, USA
95113
Metaps Inc.
URL: http://www.metaps.com/
Founded: Sept. 2007
Capital: 447.52 million Yen
CEO: Katsuaki Sato
Audit Cooperation:
KPMG AZUSA LLC
Metaps International Metaps Inc.
Metaps Pte, Ltd.
Metaps Hong Kong
China Europe
Africa
South Africa
Challenging the global market, and aspiring to
be a leader and role model for the next
generation of Japanese industries
An Overview of Metaps
For any inquiries related to
Android App Monetization,
please contact us at: