It’s far more likely an Amazon Appstore customer will convert at a higher price point than a lower one, says Aaron Rubenson, the director of Amazon Appstore for Android.
During his talk on monetization trends for mobile games at the Casual Connect conference in Seattle, Rubenson revealed some interesting details about how users monetize in the Amazon Appstore, including the fact that in-app purchases priced at $4.99 are more popular than those priced at $2.99.
According to a recent study Amazon conducted of its own app store, there is an uneven distribution of items across price points. To this end, Rubenson recommended developers use bundles and higher-priced apps and in-app purchase options to drive sales of lower price-point items. Amazon also found a correlation between the number of items available for purchase and the average number of purchases a user made, meaning apps that offered more purchase options have tended to see more sales overall.
Rubenson revealed that while on average 16 percent of a customer’s value to an app was realized on the first day they had downloaded it, 52 percent of the revenue the average app generates in the Amazon Appstore comes more than 7 days after the initial download.
He also reports 67 percent of app purchases and in-app purchases in the Amazon Appstore are repeat purchases. Interestingly, 48 percent of purchases within Amazon Appstore apps will happen within one hour of a previous purchase. Rubenson also confirmed whales were just as present in the Amazon Appstore as they are in the iTunes App Store or Google Play, telling today’s audience that two percent of customers are responsible for 30 percent of revenue.
While he did not reveal the average conversion rates developers will see in the Amazon Appstore, he did advise developers to match their pricing schemes to their content. Developers with well known brands behind their apps have been successful using a paid model in the Amazon Appstore, but Rubenson says the freemium model works better for developers whose apps have less brand recognition, or that unfold their content gradually. He also revealed that while the subscription purchase model was still nascent, so far Amazon has seen high trial renewal rates and low churn.
According to Rubenson, the secret to monetizing a mobile game or app in the Amazon Appstore is to give the customer a reason to buy, removing barriers and then fostering that relationship for the long term.
The Amazon Appstore launched in March 2011 currently has 46,000 apps available, and has 152 million active customers, receiving 85 million unique visitors a month and 9.3 million unique visitors a day.