Making money on Google Play

Making money on Google Play


Hi there. My name is Tamzin Taylor. I work in the Google Play Apps
and Games Partnerships team. I’ve been working to monetize
mobile content with partners since 2001. And I can tell you that Play is
a global marketplace platform for distributing software. Transactions are vital
to any marketplace, so we take our platforms
incredibly seriously. Our whole job is to
enable developers like you to build and
run global businesses. And we’re extremely proud
of what we’ve achieved. But we’re still
working incredibly hard to continue delivering
business and spend to you. Now, monetization is driven
by a number of best practices, including quality,
design, and investment in using the great features that
the Android platform offers, such as alpha beta testing,
staged rollouts, and Cloud Test Lab. You should also
consider strategies to drive engagement,
increase retention, and grow user lifetime value. And of course, consider
using analytics to really know
who your users are and be able to create
optimal experiences for them. But in the next 20
minutes, I’m going to talk to you about how you
can increase monetization using pricing best practices
and some of the tools that we have at your
disposal so you can succeed. There’s big money to
be made on Google Play. In fact, we paid out $7 billion
to our developers last year. When you operate on
Play, you have access to over a billion users and
hundreds of millions of buyers. We’ve had huge teams spend
years building gigantic reach into our commerce platform
in more countries with more ways for users to pay. And in fact, we see a
lift in incremental sales and new customers
whenever we introduce a new form of payment. So the faster we unlock new
forms of payment, the larger the pool of users who
can purchase your app. We now support over 100 forms
of payment across 152 countries, and we’re constantly working
on new payment partnerships, building more ways for
your users to pay you, and offering locally
relevant payment methods to convert more users. For example, we recently
unlocked direct carrier billing in India. We’re committed to make
it easier and easier for your users to pay you. And we’re seeing it pay off. So in Germany, for
example, we saw a 70% increase on
year-on-year buy growth, and more and more developers
selling outside their home market. We saw a 38% annual
growth in developers with primarily
international sales. So given its increasingly
global market, how should you price your
top-quality application? There are five key points
to setting and managing your process effectively–
matching the model to market, considering purchasing power,
considering price format preferences, taking into
account audience segmentation, and regularly
checking your prices. Top developers consider
the pricing model for key markets and
cultural expectations. For example, some
prepaid markets have low credit card penetration
and are less predictable, in which cases, models like
free, premium, or in-app purchase might be more
relevant for them. And if considering a
subscription model, your value proposition
should give users a regular, fresh, ongoing
contental functionality. Consider what people can afford. Last year in November, we
lowered the minimum price in India from 50 to 10 rupees. Now, consider a can of Coke cost
10 rupees in India, roughly, whereas in the US, it’s $1. And the exchange rate today
is 66 rupees to the $1. So you can see there’s a
big difference in how much people are charged and their
purchasing power parity. So it’s important to give the
right consumer the right price. Now, four weeks after
we launched this change in the pricing, we saw
take-up from 560 totals across 220 developers. After this four-week period,
we saw an 800% increase in revenue. And interestingly 3/4
of the developers from were from outside India. This really highlights the
growth and internationalization of our ecosystem. One of our partners,
Nova, dropped their prices from 325 rupees to 15
rupees, and saw a big impact. They saw 136% increase in orders
and 27% increase in revenue. Now, the best way to find
out what purchasing parity differences there
are across countries is to look at the Big
Mac index, which you can find on the economist website. Many top partners are testing
prices in overseas markets. Learning language app
Busuu tested ABCD prices across Russia and the US
to find the optimal price for those different consumers. In the USA, it ended up
being a 23% reduction, which resulted in 95% increase
conversion and 50% increase in ARPU. In Russia, it was different. The optimal process
was 12% lower, which resulted in 15% increase
in conversion and 17% increase in ARPU. So the caveat here is,
don’t take our word for it. Test yourselves. Test your different prices
to find the optimal point for increased conversion
and incremental revenue in your different markets. Consider local price preferences
and optimize your price format for different markets. For example, in
Korea and Japan, they prefer prices which ends
in whole, rounded numbers, such as 1,000 2,000, et cetera,
whereas in Australia, we prefer 199, 299. Now, you can do this in
the developer console. In fact, you can customize a
price for every single market, and we’ll take care
of billing the users in their local currency. We think if users see an
optimized price and a value offering that works
for them, they’re more likely to agree to purchase
or subscribe to your offer. Now, users are not homogeneous. And it’s best practice to know
who they are, their appetite to pay, and carve out different
strategies to help them on their purchase journey. And we provide the
tools to help you. There’s great reporting
in the developer console. And Google Analytics
gives you the ability to identify and target
entirely different offers to different segments, all to
help you increase conversion and ARPU. You really should use
analytics to better understand your audience engagement, using
KPIs like last visit, loyalty, and average tenure. To really help you
improve purchase flows, develop user segments based
on predictive lifetime value, and start targeting different
segments with optimal offers. WYSH did this, and
saw a 10% uplift from presenting different
offers to highly-engaged versus less-engaged
user segments. Finally, developers
should regularly review and adjust prices,
primarily for two reasons. Number one, to
ensure you’re still competitive with similar
apps, and secondly, in response to changes
in foreign exchange. For example, a developer who
set their price in February 2014 and didn’t change it for a year
would have seen in February ’15 that their gross revenue from
Russia had dropped nearly 50%, severely impacting margin, just
from an exchange rate movement. So to recap the
five best practices I’ve mentioned so far,
they were matching the model to the market,
considering purchasing power, consider user price
format preferences, use audience segmentation, and
regularly check your prices. Now, a running theme here
is that not all users are the same. They have different
price sensitivities. So how can you do with this
and increase monetization? I’ll now touch on
how you can use AdMob to monetize across
different types of users. And then, I’ll talk to
the power of subscriptions before wrapping up. AdMob is our industry-leading
ads and mediation platform that’s earned over 650,000
developers over $1 billion in the last two years. The growth statistics
are impressive. This tells us that not
only does AdMob work well, but it tells us something
about the ecosystem. Advertising is a significant
part of app monetization, and is growing every year. In fact, Gartner predicts
that by 2017, there’ll be nearly 270 billion apps
downloaded, the majority being free of freemium. Now, with this growth in
free and freemium apps comes growth in
mobile advertising. Now, I mentioned
earlier that consumers differ between markets
because of income or cultural preferences. And a monetization strategy
might work in one market, but not in another. We believe that a
developer shouldn’t be forced to choose between
advertising or in-app purchase only. In fact, the best apps
focus on users first. And you should be able to build
monetization around the user. AdMob can help you find the
right monetization opportunity because it has a smart
monetization engine. And this is a feature
called In-App Purchase Ads. It helps promote in-app
purchase items to users so you can grow
your in-app purchase revenue by automatically
knowing which users are buyers and which are less
likely to spend. It looks at spend
behavior in your app, and only shows ads to
those less likely to buy, freeing up valuable
impressions for you. Plus, it’s integrated
with Google Analytics. In-app purchase and ads are
two great ways to make money. And with AdMob, you can automate
the presentation of the offers to match the users
likely spend behavior. Another model which works
well for generating recurring revenue is subscriptions. Users and developers
love subscriptions. They have become widely
accepted and adopted across the music, movie,
and TV industries. And this adoption is
being seen in apps. For users, subscriptions mean
no unforeseen chargeable events. They remove the fear
and increase trust. The app is always there
for you when you need it. For developers subscriptions
mean recurring revenue, which is great for cash flow. And did you know
that subscriptions are the fastest growing
business model on Play? Last year, they showed 2 and
1/2 times growth year-on-year. But why is this? First of all, users
are getting used to paying for digital content. And secondly, the
overall standard of quality in Android
apps is increasingly leaps and bounds, led by
industry-leading developers like yourselves. And many developers
are seeing success. Busuu recently redesign
their onboarding flows and app designed to
better communicate their new subscription
value propositions. After optimizing their
subscription offers, they found their
Android retention beat all other platforms, and
their subscription revenue increased 125% and the
ARPU increased 86%. The New York Times implemented
Google Play Billing, replacing the traditional
news publisher paywall. This resulted in
user’ sign-up flow shortening from two
minutes to three seconds, and a 125% increase in
subscription conversion after the first month and
254% increase year-on-year. Pandora also saw a
397% revenue increase through optimizing
their conversions by offering a trial period. It’s really important
with subscription model to allow users to
try before they buy. You can decide the
length yourself, but show them the
value to increase their likelihood of converting. Google offers heaps
of functionality to build a successful
subscriptions business. There are upgrades
and downgrades to help ease the
barrier for entry by offering multiple
plans to users. There are grace periods
for helping people when their payment’s declined. And there are goodwill
credits, which can be used for
promotion or complaints. And of course,
it’s all supported by deep financial metrics
available in the developer console. And last year, we even added
additional time periods, which now allow you to really
create interesting, compelling offers based on weekly,
monthly, quarterly, six-monthly, and annual recurring
billing periods. Google Play is a
huge, growing market. And pricing is one lever
for better monetization. But it must be
executed in combination with improvements in quality
and by having a deep knowledge about your users. You can achieve
success by following the five processing best
practices I mentioned today. Be flexible about your
monetization model, consider using AdMob to
reach nonpaying users, and utilize the new range
of subscription models to grow your revenue annuity. Thanks for watching.

Author:

53 thoughts on “Making money on Google Play”

  • Felix von Bonsdorff says:

    Please stop reading ….. if you're going to read , doing it discreat please . But it was a good video !

  • Tomatenbrei schmeckt gut says:

    Do something against all those false app suspensions. I cannot recommend android development as long as this is such a huge problem..

    Edit: great video!

  • Vincent Van Zyl says:

    This would be great if google rolled out to other countries faster. Here in South Africa we have no way of selling apps and nobody at google can offer any timeline or roadmap to when it would likely be available. This slow roll out is a major issue holding developers back

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    For Example Clash of clan Make 5 million Dollar per Day. My Question Is Ho w the In Game Purchase Work. In COC when some one purchase gems , How the company receives the money from the buyer , the amount of money which is deducted from his credit/debit card. Is the money Directly add to company ac of first Store in google play store then when you want to with draw your money first you have to request to google play store for with drawing money ? can you plz make a video.

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  • alisalman hussein says:

    hi guys, am a newbie and i know nothing about google play accounts,if am located in a country that supports developer account but not merchant registration,so can i get paid for an app that i make???best wishes for all

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