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3 Keys to App Success: User Acquisition, Monetization & Payments (Google I/O ’17)

3 Keys to App Success: User Acquisition, Monetization & Payments (Google I/O ’17)


SRIDHAR RAMASWAMY: Good
afternoon, everybody. My name is Sridhar. Thank you for joining
me here today. It’s really great to have
I/O right in our backyard at Shoreline again. It’s a real highlight for me. I get to meet other engineers,
developers, and product leaders from around the world, and
check out all the amazing things that you’re building. I’ve had a chance to
talk to some of you, and I’m in awe of all the
creativity that I’ve seen. You represent the best
developers that are out there. I’m sure that the creators of
the next Pokemon Go, Flipkart, or Airbnb are right
here in this audience. But creating a
successful business takes more than just
an awesome product. All of you know that. I know of many great products
that aren’t really around because they’re not
able to get enough users or make enough money. So for my team here at Google,
our mission is crystal clear. What can we do to help you
turn your amazing products into profitable businesses? Today, we’re going to
discuss three things you need to focus on to get there. Number one is developing
seamless payment experiences. Number two– earning more from
your apps, and number three– growing by finding more
of your best customers. We’ll share new
product innovations in each of these areas to help
you delight your customers and make your businesses
more successful. You’ve all heard the saying,
the customer is always right. They are. Consumer expectations are
higher than ever before. Consumers are looking
for more useful and more delightful experiences
every single day. And with billions
of mobile users globally, the opportunity in
front of us is pretty amazing. But the same is true for all
of your competition, too. And people have way more
choices now than ever before. Over five million apps,
many, many more sites than that, hundreds of TV
channels, social media– it goes on and on. So how are you
going to stand out in the sea of amazing choices? Jim Lyski, the CMO of CarMax
recently put it this way. Consumers used to evaluate
their experiences in silos. I’ll compare CarMax against
all other used car dealers, and I’ll compare Nordstrom
against all other clothing retailers. Let’s go back one slide, please. One slide forward. But now, people are clearly
taking those best experiences from one industry and
demanding that they receive the same or better everywhere. If they can order at a
very specific cup of coffee and get it every
morning, why can’t they have an experience that’s
bespoke and customized for them when they buy a car? That makes sense. With so much competition
and increasing customer expectations, you can’t
win customers with a one-size-fits-all approach. This really calls
for new strategies that puts the focus on
each individual customer. It means understanding your
customers and how they differ, it means creating growth and
monetization strategies that reflect those
insights, and it means using tools that are
powerful and flexible enough to act on that information. And this is where we
think we can help. Only Google can provide you with
the tools and technology that help you put your customers at
the center of how you develop, earn, and grow
from your product. To start with, we’re helping
you develop easier ways to pay for your
products and services. How many of you have abandoned
a shopping cart online? I did, just yesterday. Sometimes, it takes
really long to check out, or you don’t have your
credit card handy. Either way, it’s a pretty
frustrating experience, both for you– you didn’t
get what you wanted done– and for the business
that lost your money. Paying online should be easy. And that’s one of the
reasons why we’ve made this a top priority for Google. Our open-platform
approach maximizes the way in which people can pay
and the ways you can get paid. You want to provide a
seamless, consistent experience across devices and
across platforms. Hundreds of millions
of people have already saved their preferred
payment method, like a credit card or debit
card, to their Google account. And today, we’re going to
announce a developer solution that will allow people to use
these safeguards when checking out in your apps,
sites, and more, with just one single button. Payments are a critical part
of the conversion process, and we want to help you
make it as quick and as easy as possible. And when you make it
easier for people to pay for what they want, you win. It’s really that simple. Next up– earning
more from your apps. While some of the users
might make in-app purchases, let’s face it– the
majority never really do. And that’s why earning
money with in-app ads is the most common revenue
model for mobile businesses. AdMob helps you do that. Today, over a million apps
use AdMob to make money on iOS and on Android. In fact, to date, we’ve paid out
over 3 and 1/2 billion dollars in ads revenue to AdMob
developers like you– more than any other ad network. And a truly customer-centric
monetization strategy means you monetize different
user groups in different ways. For that, you need a solution
that’s powered by insights– one that offers great ad
formats and easy-to-use tools, and helps you scale to meet
increasing global demand. And today, we’re
going to show you a completely reimagined AdMob,
rebuilt from the ground up, based on your feedback,
to give you all of that and more for your apps. And last but not least– growing your user base. Finding valuable
users isn’t easy. Let me explain. I still love playing
“Words with Friends.” I know. And part of what I
love about the app is that my wife and I play
against each other, practically every day. We usually have multiple games
going on any given moment. And after playing
a turn in one game, you have to view an ad
before being able to play a turn in another game. My wife is blessed
with a lot of patience and will wait between each game. On the other hand, I paid
for the premium version of the game that lets me
switch between unlimited games. My wife and I are two users
who interact with apps in very different ways– both valuable but
quite different. And as a developer, you need
to value us differently. To that end, you
need a marketing tool that knows and can help you
pay the right amount when acquiring new customers who
are like me or like my wife. That’s why we introduced
Universal App Campaigns. We call it UAC for short. UAC makes it easy to find users
that not only install your app but actually take
actions within the app. UAC reaches users
across iOS and Android on each of Google’s
billion-user properties like Google Play, Google Search,
YouTube, Gmail, as well as the millions of
sites and apps that are on our Display Network. And rather than having to
manage multiple campaigns and manually optimize each
one across these channels and contexts, UAC does
this automatically with one single campaign. It uses machine learning
and AI to improve and make your campaign smarter
with every single app, and it learns from
countless signals like where people are
engaging most with your app and which [INAUDIBLE] works
best, all in real time. And with half a dozen
billion-user properties, we have the power to find your
users with both simplicity and massive scale. And it’s working. At I/O last year, we announced
that our app ads had delivered over two million app installs. This year, I’m pretty
excited to share that this has grown by a
factor of 2.5, to over five plus billion app installs. Better yet, we are now
helping advertisers drive over three billion in-app
actions per quarter. These are real people taking
real actions inside your app. Universal App Campaigns are
transforming the way developers and marketers reach and
acquire the right users, and we truly think this is
the future of app growth. And to deliver more value
to developers and marketers, we are bundling all future
app growth innovations right into UAC, making
it a one-stop shop to get stuff done. I’m an engineer. I’m really proud of
these new innovations, and I’m excited about how
they can help you understand and better serve your customers
in order to stand out in what’s a really competitive ecosystem. So with that, I’d like
to bring up my team to dive deeper into
these innovations, and we’re going to kick
it off with Pali Bhat. Thank you. [APPLAUSE] PALI BHAT: Thanks, Sridhar. Hello, everyone. I’m Pali, and I’m the product
lead for payments at Google. And today, I want
to share how you can make it easy
for your customers to pay for your
products and services while giving them a
delightful experience. Now, your customers expect
to engage with you wherever they are, whether it’s on your
mobile website, on your app, or, in the future,
through the Assistant. Across all these services,
they expect checkout to be fast and easy. Unfortunately, the
checkout screen is the single biggest source
of friction in the purchase experience today. In fact, the problem is
even more acute on mobile, where conversions are a full
1/3 lower relative to desktop. And a large reason for that
is because the existing desktop checkout
experience, which has been optimized for
a period of 20 years, simply doesn’t work
well on mobile. Now, last year, we announced
our first set of solutions to this complex issue
with Android Pay serving as your passport for
giving your customers a streamlined
checkout experience. We’ve seen tremendous progress
over the last 10 months, with Android Pay
now being available in 10 markets around the world. I’m excited to
announce that we are going to be bringing
Android Pay to even more markets over
the next few months, including Brazil, Canada,
Russia, Spain, and Taiwan. [APPLAUSE] We’ve also seen tremendous
momentum on the app side, with thousands of top
developers having adopted Android Pay to deliver
a seamless checkout experience for their users. But we have the opportunity
to bring this experience to even more users, and we
can do that in partnership with all of you in the
payments ecosystem. So I’m excited to share one of
the first collaborations that is going to deliver a very,
very meaningful number of users a much, much better
checkout experience. And we’ve done this in
collaboration with our friends at PayPal, where
PayPal users are going to get the streamlined
Android Pay experience, simply by linking the PayPal
account to Android Pay. So very excited about this. Let me show you
how this is going to work on the mobile web. Thinking through what
I’m going to show you, all in terms of
buying something, using Paypal and
Android Pay in action, I thought of my 8-year-old. Earlier this week, he had a
Dress Your Color Day at school. And dress your color
basically means you have to pick
your favorite color and wear your entire
outfit in that color. His favorite color is blue. So he had on blue jeans,
he had a blue top, he had a blue hoodie,
and, of course, because that wasn’t
blue enough, he even had a homemade blue cape. The only thing that was
missing was blue shoes. So I figured I’d surprise him
and buy him some blue shoes today on Nike.com. Let me show you how this works. Can we switch to the
phone, please, for PayPal. Wonderful. So I’m going to bring up
Nike.com on the Chrome browser. And I’ve already
picked out the shoes. I got some sweet blue shoes. And when I’m ready
to check out, I’m going to check out
with PayPal as usual. And you’ll notice that that
gets Android Pay going, and instead of having to
enter my username or password, all I need to do is use
my fingerprint, authorize, and I’m done. Right? No more entering
usernames or passwords, or even having to
create an account. You simply have to
use your fingerprint. Now, this experience
is going to be coming to many of the
PayPal’s millions of sites over the coming few
months, and eventually roll out to all of their sites
that have implemented PayPal. Now let’s switch
back to the screen. Slides, please. Can you switch back
to the slides, please? Awesome. We want to bring the same
experience to Visa checkout and Masterpass users. So very excited about that. And as excited as
we are with all of the progress we’ve
seen in Android Pay, we know that over 1
billion plus Google users don’t all have Android
Pay, or for that matter, any digital wallet. However, these
Google users frequent popular Google products like
Google Play and YouTube, and as Sridhar
mentioned, have saved hundreds of millions of
credit and debit cards to their Google accounts. So today, we want to
announce a simple API for all of you developers
out there to be able to accept all of these
payment methods through Google. And developers who adopt
this API can enable an easy-to-use checkout
experience for their customers, and of course, as we
discussed earlier, reduce the amount
of friction, which can lead to higher
conversions and more revenues. Best of all, this
new developer API, which we call the
Google Payment API, is going to be free
for developers. [APPLAUSE] Now, users don’t need to
do any additional set-up. If they’ve already saved their
payment method to Google, they simply sign in and get
the streamlined checkout experience. We’ve built this
Google payment API on top of the Payment
Request standard, which is now a W3C spec. Now, developers can simply add
this Pay with Google button to their favorite
website or apps by integrating with
the Google Payment API. I want to share with
you a little story about this Pay with Google
button that you see here. This button is very similar to
the Sign In with Google button that users are already used to. And our team was brainstorming
all of the different variations that we could possibly
have on this button. And one of my absolute
favorite variants was Treat Yourself with Google. Now, we didn’t
land on that, but I think we’ve got a really
good alternative with Pay with Google. Speaking of treating
myself, I wanted to buy some cool new
headphones, and Wish is exactly the place to get it. So we’ve been doing some work
with our friends over at Wish to enable this cool Pay
with Google experience. Let me show you how it
works within the app. Can we switch to the
Wish phone, please? Thank you. Let me bring up the Wish app. I’ve already added the
cool black headphones that I wanted to my cart. And whenever I’m
ready to pay, I simply need to pick my form of payment. And here’s the
special part, right? I’ve got all of my payment
methods already attached to my Google account. You see that Paypal
account that I just used to buy those cool blue shoes? I have that. I have the MasterCard that
I’ve added to Android Pay. And of course, I have
my American Express that I’ve saved to
my Google account. So I’m going to
continue, and that’s it. I slide to pay. Right? I don’t need to
enter any usernames, remember passwords,
or have to create a new account on the Wish site. Pay with Google
makes it that simple. Now, the Wish team is
going to be rolling out this Pay with Google
experience to all of their users in
the coming weeks. But we’ve also been working
with a lot of the top developers to enable this Pay with Google
experience to more users. So let’s switch to
the slides, please. I’m excited to announce
that we’re soon going to have Airbnb, Deliveroo
DoorDash, and E24 integrated with the Pay with
Google experience. And many more developers
are going to be coming soon. As you saw, this
experience is something that’s going to be available
not just in the United States but also internationally, so
we’re very excited about that. And if you’re
interested in this API, you can sign up
for early access. That was Pay with
Google in action, across both the mobile
web and within apps. But we also talked
about how the Assistant is going to be a huge new
platform for commerce. One of the things we’ve done is
work closely with the Assistant team to bring the same great
Pay with Google experience to the Google Assistant. Now, if you were
the keynote, I think you might have
seen a demo already of how this ordering experience
would look on Panera. Now, let’s see that
demo in action again. So let’s switch to the demo
that we have for the Assistant. And now, I’m going to be
trying this on the Assistant. It’s a little bit noisy in
here, so if you can bear with me and keep real quiet, we’re
going to do this live. I’m going to bring
up the assistant, and then try to order a sandwich
and some smoothies from Panera. Aha! GOOGLE ASSISTANT
(AUTOMATED VOICE): came back from a search. PALI BHAT: Talk to Panera. GOOGLE ASSISTANT
(AUTOMATED VOICE): I found a couple of places. PALI BHAT: Ah! I think it’s a bit noisy,
so I’m going to try again. Talk to Panera. GOOGLE ASSISTANT
(AUTOMATED VOICE): I found a couple of places. PALI BHAT: Mmm. Feels like we have a
lot of noise in here. Maybe we can all do it together. Let me try once more, because
this demo is really cool. Talk to Panera. GOOGLE ASSISTANT
(AUTOMATED VOICE): I found a couple of places. PALI BHAT: Argh! [LAUGHTER] The demo gods are
not smiling on us. So you know, we’re going
to give it one more shot, because all of you, I think,
would be interested in this. And then, we’ll switch
to a cool video we have, in case this exactly happens. Talk to Panera. Ah! [LAUGHTER] GOOGLE ASSISTANT
(AUTOMATED VOICE): I found a couple of places. PALI BHAT: So you know what? Why don’t we actually
switch to the video, and I’ll show you a little bit
of how this works on the video. The cool thing about this
is, if you’re actually in a less noisy environment
than the Shoreline amphitheater, which hopefully
not many of you are trying to use the
Assistant in, then you can actually
get this experience where you can interact with
the Assistant across both voice and by interacting
with your touchscreen. And the cool thing
about it is, you can switch seamlessly
between both the voice and using the prompts that
the Assistant gives you. So in this particular example,
I could actually start ordering, let’s say, the strawberry
poppyseed salad without chicken, and then
switch to picking out my favorite smoothie,
and then checking out. And what we’ve
done is integrated the Pay with Google
experience into the assistant so developers like you can have
a seamless experience for all of your customers. And of course, just like you saw
with both the PayPal purchase I showed you and the Wish
purchase I showed you, you simply confirm with the
fingerprint, and you’re done. So we’re very excited about
all of these new experiences that we are bringing
to developers like you. We look forward to seeing
all of you integrating Pay with Google into
your website’s apps or experiencing it
through the Assistant. With that, I’d like to
welcome Sissie Hsiao, who’s going to tell you
a little bit more about how you can monetize
and grow your apps. Thank you. [APPLAUSE] SISSIE HSIAO: Hi, everyone. My name is Sissie,
and I am super excited to be here
today to share with you how Google will help you build
a more successful mobile apps business. As Sridhar talked
about earlier, there are over five million apps
across Android and iOS. And if I tell you that the
vast majority are free, I’m sure most of you
won’t be surprised. So what does it
mean for you, trying to build a great
business, that users want both free and amazing apps? It means you need to think
very creatively about how to monetize your
apps and make sure that you’re using
everything in your arsenal, including in-app purchases,
subscriptions, and now, increasingly, advertising. Those of you who are using AdMob
know that putting in-app ads is a primary and effective
way to monetize your apps. And we at Google
have been focused on connecting you to millions
of Google advertisers and over 40 ad networks. But just putting ads into
your apps isn’t enough. How do you build a
product that delights your users with ads experiences
that are just as good? In order to be
successful, you need to be as thoughtful about
putting ads into your app as the core user
experience itself. Let’s take a major game
developer, ZeptoLab. I think they made
“Cut the Rope,” which I’m sure most of you
have played at one time. And they have a new
awesome game called “Cats.” They have been using the AdMob
platform for over five years to monetize their apps, and they
use our full suite of formats, including interstitials,
rewarded video ads, and now, Native Advanced. And when they’re doing
that advertising, they’re very, very
careful to make sure that the ads are
native to the game and that they’re
blending seamlessly, so that users who are playing
are still having a delightful and fun experience. And it’s working for them. Since they’ve added
rewarded ad units to “Cats,” they have more than
tripled their AdMob revenue in the past few months. ZeptoLabs is just one example. There are now over
1 million apps using AdMob across Android and
iOS to monetize their apps, and we have paid out more
than $3.5 billion to date to app developers– more
than any ad network. But we know you need more. We’ve been listening to
your feedback very closely, and we’ve heard that you
need more from this product. You need three things. Number one, you want
a holistic picture of your revenue, not just ads. How does ads relate
to the other revenue streams like in-app
purchases and subscriptions? Number two, you want
integrated app analytics. You want to see how
ads works and how they affect the core user
experience of your app itself. And finally, number three, you
want better and more powerful tools to manage and
maximize your revenue. Because of these needs, that’s
what spurred my engineering team to embark on a
mission and rebuild AdMob from the ground up. And that’s why,
today, I am incredibly excited to share with you
the launch of a completely rebuilt, re-imagined AdMob. [APPLAUSE] Thank you. We wanted to give
you the tools you need to build a successful
mobile apps business, and we’re focused on building
an end-to-end monetization platform that works for you. Our goals here are
primarily twofold. Number one, we want to
give you deeper insights into how your ads behave,
and how they affect the rest of your core app. And I’ll show you
that in a second. And number two, we built
advanced control end reporting, so that you
can maximize and optimize your ads revenue. And finally, we built
all of these features on a clean, modern, and
re-done user interface. However, instead of
just talking about it, let me show you a few screens
from the really new AdMob. Let me story-tell for a second. Suppose that I am a developer
at a mid-sized company, building health and fitness apps. And when I first log
into the new AdMob, I see a completely
different user experience, and what I see here
is a home dashboard. This home dashboard
is a quick snapshot of all the apps in
my AdMob account, and it’s telling me
important information about how much I’m making
in each of these apps across my entire business. If you see at the top, I’m
showing a new scorecard, which is telling me how
much I’ve made yesterday, this week, and this month. So it seems to be
a really useful way for me to check how
my business is doing. If I scroll down, I’m
going to see a new card on the left called the
App Performance Card. And here, we’re
breaking out each of the apps in this account
and telling me how much money I’m making across my business. If I look carefully,
though, it looks like FitMobber, which is my
best app, has been tanking. It’s dropped over $200
yesterday, which is a disaster, because this is the one
that’s growing the best. I need to figure out
exactly what’s going on. I dig in, I drill in,
and click on that. And let me jump
out of story mode for a sec to explain to
you what you’re seeing now. You’re now seeing a completely
new app overview dashboard. And this app overview
dashboard is a dashboard designed to show you
exactly what’s going on within a particular app– in this case, in our demo. This is the FitMobber
app, and you can see on both the
left hand and the top that it’s showing you that
all the numbers you’re seeing are related to FitMobber. And furthermore, in the
middle, I see two new reports– on the left, with the colored
bars, a total revenue report. And this is showing me not
just adds revenue from AdMob. It’s also layering in in-app
purchases, subscriptions, or other in-app
monetization models right into that bar chart,
so you can see at a glance how my overall
revenue is trending across all of these
different revenue streams. On the right, I see also a
completely new user metrics card, and this
card is showing me important health
metrics of my core app, including sessions
and retention. What we’ve done to enable
this is weave together Google Analytics for
Firebase directly into the core of AdMob. We know that ads are a critical
part of your user’s experience. You cannot build an amazing app
without understanding how ads behave in the app, and you
can’t monetize well without understanding how users
behave in your app. So for the first time
ever, AdMob and Firebase can share data across
these two platforms to help you gain deeper insights
and build a more successful mobile apps business. Cool. Let me get back to
my story and tell you how I can use this to
fix my FitMobber issue. So if I look at these
numbers on the left, it looks like the blue
bars have been shrinking, and the blue bars are
actually my ads revenue. So that makes sense. That’s why I saw the
two-hundred-dollar drop yesterday. And if I look on the
right, user metrics have also taken a
turn for the worse. In fact, sessions per user and
session duration are both down. That means that users
are using the app less and walking away more. I go to talk to my team and
ask them what is going on, and I learn that they put a
new ad unit right at the screen in the app that is right
before users work out, which means that they
were just deterred enough to stop working out and
stop subscribing to my app. That was a really bad placement
for that ad, for sure. I move it, and I wait a week. I hop back into the same
screen in the new AdMob, and wow, everything is
back and up into the right. Business is now
booming at FitMobber, and I am a global company. I’m also using an advanced
feature called mediation. Mediation is very simple. It’s basically a
set of rules that allow me to send my ad units
to different ad networks. And if you’re a bigger
app publisher business, this is really
important for you to use and to maximize your revenue. Managing mediation
in the new AdMob is easier than
ever with a feature called mediation groups. And what mediation
groups lets you do is, it lets you set up a single
set of mediation rules, and then apply it across apps,
ad units, or geographies. I’ll give you an example. Let’s say that FitMobber is
doing really well, especially in Japan. And in Japan,
especially, you want to send your ads to different
regional ad networks, because there are a
few ad networks there that want to buy ads
just for users there. Using mediation groups, it’s
now very easy to do this. I set up one mediation group
for Japan with my rules. And after that, it’s quite
trivial to add ad units. I can add and units
to this group, and it will start automatically
obeying the rules. I can also, if I change my
mind and want to reorder or add different ad networks,
add that in one place or change it in one place
and have it automatically apply to all of my
ads in my Japan app. Very simple and very powerful. At this point,
I’ve talked to you a lot about how
Google is helping you build a great in-app
advertising business. I want to pivot
completely and talk about another extremely
crucial part of building a successful business,
maybe the most crucial part. And that is growth. You cannot have a successful
mobile apps business without having a successful
growth strategy. And in order to do that, you
have to answer two questions. Number one is, who
are my best users? And number two is,
where can I find them? Where are the most
effective channels that I can show them my app and
get them to download and try it? I’m excited to share that Google
is working on these problems, and we have quite a few features
to share to solve these growth challenges. Let me start with Google Play. Android is now active
with over two billion monthly active
users every month, and Google Play is in over 190
countries around the world. People turn to
Google Play every day to discover great apps
and games to enjoy. And we find increasingly that
besides searching in the Play Store, which they
definitely still do– they search for the
apps that they want– they are also responding
and downloading apps that we’re recommending
to them as they’re browsing the Play Store. Because of that and to help
you find those users who are browsing and discovering
their next favorite app in the Play Store, we are
announcing new ad placements in the home and app listings
pages of the Google Play Store. These ad units will
only be available exclusively to
Universal App Campaigns, and they’ll help you reach
users right there in that mode of discovery in the Play Store. Obviously, besides
the Play Store, there are many other channels
where people are discovering their next favorite app. And that’s why we built
Universal App Campaigns or UAC as we like to call it. UAC helps you reach people
across multiple billion-user properties, including Google
Play, Google Search, YouTube, Gmail, and millions of apps
and websites across the Google Display Network. In order to use UAC–
it’s very easy– you tell us what app you want to
promote, you tell us the price that you want to
pay per install, and you give us a little
bit of information to help us create ads
like text, images, videos. We then take all of
that information in UAC, and we use machine
learning to deliver the maximum number of
installs to you at the price that you’ve specified. And we do this by
automating and optimizing every single bit of
the advertising itself, including what the ads look
like, where to put the ads, and also more importantly,
what to bid for each impression and click, so that we hit that
target price that you want while delivering the maximum
number of installs for you. So wherever your
users are and whatever they’re doing, whether
they’re searching on Google or watching videos on
YouTube, only Google has the breath of
channels to help you find your most
valuable users, right when they want
to download your app. Universal App Campaigns
has been helping companies like Headspace, which is a
very popular meditation app, improve health and
happiness around the world. And according to
Robert from Headspace, Universal App Campaigns
has saved their team time and driven results. Translation– more
users that use and love the app in less time. However, like Headspace,
we all know that growth isn’t just about installs. Many users will install
your app and not go along and spend or engage or
potentially even open it. You need to spend your
acquisition dollars wisely to find your most valuable
users, the ones that will engage, spend, activate,
and enjoy your apps. Because of that,
I’m also extremely happy that we’re announcing
two new bidding options in Universal App Campaigns– target CPA or Cost Per
Acquisition, and target ROAS, or Return On Ad Spend. And these bidding strategies
will help you profitably acquire high-value users. Or put more simply,
they help you pay more for users
who will pay you more, and pay less for users who
we think will pay you less. I’ll give you a very
concrete example. My husband and I are
both mobile gamers, and we both love this
new game by Nintendo called “Fire Emblem Heroes.” I don’t know if you’ve
played it or not. It’s a tactical RPG, and
basically, in this game, you collect heroes. And the way you like heroes
is through exchanging a virtual currency called orbs. Now, I’m sure most
of you who played games know that the way to
get orbs is usually two ways. One is, you buy them
with real money, and number two is, you can, sort
of, grind it out in the game and earn them over
the course of playing. Now, I am really very impatient
and also very competitive, so I have no issues spending
over $100 buying orbs to collect my favorite heroes. My husband, on the other
hand, is more principled. He wants to grind it out,
and he’s just a little cheap. So he’s willing to spend
maybe, at most, $5. For an app developer
like Nintendo, they should be thinking about
acquiring players like me at a higher price
point than players like my husband who spend
at a lower price point. And with these new
bidding strategies, they can do exactly that. And finally, at the core of
any smart growth strategy is measuring whether you’re
spending your acquisition dollars wisely. And we know that many of you are
using third-party measurement providers to measure the
attribution of your installs. And that’s why today,
I’m happy to announce that Google is launching a
completely new app attribution program. And what this
program does is, it’s designed to integrate data
from the seven global companies that you see on the
slide, right into AdWords. And our goal is to create
consistency and reliability of the data integration and
the results that you’ll get. We have also
streamlined the flow so it’s incredibly easy now
to get these app measurement companies up and running
if you’re using AdWords. With that, I want to thank
you all for the opportunity to be here and share all
of these great features that my team has
been working on. Please try them out, and please
share your feedback with us. And with that, I’d like
to turn it back to Sridhar to close with his
final thoughts. Thank you. [APPLAUSE] SRIDHAR RAMASWAMY:
Thank you, Sissie. You know what’s really exciting
about presenting to all of you? We know that we have the most
innovative thinkers in the app world right here. We know that many
of the products that redefine how we communicate,
shop, and stay entertained are going to be done by you. That’s why we find
it so exciting. And we also know that in
order to turn these products into successful businesses,
it’s more important than ever before for you to figure out
how to simplify the payments process, how to tailor your
ad experiences to generate the maximum amount of
revenue and to find the right users for your app. And those of you that
do this are really the ones that are
going to be successful. We have a number of
great follow-up sessions, including one on payments,
right after this. They’re up here. Thank you all for
listening to us. Take care. [APPLAUSE]

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8 thoughts on “3 Keys to App Success: User Acquisition, Monetization & Payments (Google I/O ’17)

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