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The Lean Startup Engines of Growth with Google's Platforms

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@mastermark #slush15 #google
Lean Startup meets Android: Growth
Edition
Mark Masterson - @mastermark

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@mastermark

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The Lean Startup Engines of Growth with Google's Platforms

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In this talk, we explore how to take the ides expressed by the Lean Startup movement, particularly the three engines of growth (sticky, viral and paid) and implement them using Google's technologies and platforms.

In this talk, we explore how to take the ides expressed by the Lean Startup movement, particularly the three engines of growth (sticky, viral and paid) and implement them using Google's technologies and platforms.

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The Lean Startup Engines of Growth with Google's Platforms

  1. 1. @mastermark #slush15 #google Lean Startup meets Android: Growth Edition Mark Masterson - @mastermark
  2. 2. @mastermark
  3. 3. @mastermark
  4. 4. what will we cover? @mastermark ● Product / Business Fit ● What is your product? ● Driving the business via the (core) features of your product ● Using architectural features of Android in examples
  5. 5. @mastermark Karl Marx “Sell a man a fish, he eats for a day, teach a man how to fish, you ruin a wonderful business opportunity.”
  6. 6. what we won’t cover @mastermark ● Working code ● Working code ● Working code ● and lastly: working code...
  7. 7. @mastermark Why Android?
  8. 8. @mastermark 62% of the world’s tablets run Android 78% of the world’s smartphones run Android Android iOS Other 78.5% 4.1% 17.4% 38% 62% Android Other
  9. 9. @mastermark 1B 1 Billion active devices
  10. 10. @mastermark
  11. 11. @mastermark $5,000,000,000
  12. 12. @mastermark What are the engines of growth?
  13. 13. @mastermark photo by Betsy Weber, CC BY 2.0
  14. 14. @mastermark http://www.slideshare.net/annelispeaks/the-lean-startup-14638989
  15. 15. @mastermark Sticky Business model that relies on retention Churn rate is the critical metric If rate of CA > rate of churn then Yay! Sales and marketing may be waste Recurring event is the core of the business architecture ● Re-engagement
  16. 16. @mastermark Viral Business model relies on P2P transmission for CA Viral coefficient is the key metric If user acquires > 1 other user then Yay! Often a freemium model, might earn via advertising or other passive revenue stream Should be an inevitable side-effect of using product; viruses are not optional ● Viral vector
  17. 17. @mastermark Paid Business model relies on paying for customers Customer Acquisition Cost (CAC), & Customer Lifetime Value (CLTV) = key metrics If CAC < CLTV then Yay! Marginal profit is the difference The product should seek to lower the CAC and / or increase the CLTV
  18. 18. @mastermark So what is product / business fit?
  19. 19. @mastermark Product / Market Fit Marc Andreesen: “Product/market fit means being in a good market with a product that can satisfy that market.” Product MarketFIT! https://en.wikipedia.org/wiki/Product/market_fit
  20. 20. @mastermark Product / Business Fit Mark Masterson: “Product/business fit means having a product that is designed to drive the business model.”
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  34. 34. @mastermark Let’s see some examples!
  35. 35. @mastermark An imaginary app, which does the following: ● Provides a shopping concierge service ● Earns revenue via affiliate fees with partners like Tesco, Sainsburys, Waitrose, John Lewis, etc. ● The recurring event is being in physical proximity of a previous purchase Sticky App
  36. 36. @mastermark An imaginary app, which does the following: ● Uses technologies like Google Play Services (Geolocation, Geofencing), and Beacons to sense location ● Uses Notifications, Activities, and Intents to signal the customer when they’re in the vicinity of something they’ve previously purchased ● Also relies on imaginary tech, such as smart tills and something like RFID! Sticky App
  37. 37. @mastermark ● Location awareness: https://developer.android. com/training/location/ ● Notifications: http://developer.android. com/guide/topics/ui/notifiers/notifications.html ● Activities: http://developer.android. com/guide/components/activities.html ● Intents: http://developer.android. com/guide/components/intents-filters.html ● Beacons (Eddystone): https://developers.google. com/beacons/ Sticky App
  38. 38. @mastermark An imaginary app, which does the following: ● Provides a Bitcoin funds transfer service ● Earns revenue by charging interest on the balance held in an account ● The viral coefficient manifests as: receivers of funds need the app to access them. ● Transfers are free, to encourage them Viral App
  39. 39. @mastermark Player engagement through Google Play Games Saved Games Quests Achievements Multiplayer Leaderboards Game Gifts
  40. 40. @mastermark An imaginary app, which does the following: ● Uses Google Play Services (Gifts) to transfer funds ● “If the recipient does not have your game installed on the device, the recipient is directed to the Google Play store to download the game.” ● This app might not be acceptable under current Play Store T’s&Cs. That’s why it’s imaginary! Viral App
  41. 41. @mastermark Users are 47% more likely to trust and download Sign in with Google & user over-the-air installs Developers have seen a 40% app install acceptance rate Use the Google Play badge
  42. 42. @mastermark ● Play Games Services: https://developers.google. com/games/services/android/quickstart ● Play Games Gifts: https://developers.google. com/games/services/android/giftRequests ● Google Play Badge: http://developer.android. com/distribute/tools/promote/brand.html ● Google Identity Over-The-Air Installs: https: //developers.google.com/+/features/play-installs Viral App
  43. 43. @mastermark An imaginary app, which does the following: ● Provides exclusive content (videos, music) from MasterMark, an imaginary rap titan ● Earns revenue via IAP, per piece of content ● Content drops irregularly; each piece of content requires a marketing campaign Paid App
  44. 44. @mastermark An imaginary app, which does the following: ● Uses technologies like app indexing and deep linking ● Uses AdWords, AdMob, YouTube and Display Ads to market content drops and drive app installs ● Uses features like the Conversion Optimizer to target high-value prospects Paid App
  45. 45. @mastermark Source: VentureBeat Mobile User Acquisition Study, 2014 However 1 in 6 users never spend in apps of installed apps are used once 80% App Economics Today < avg LTVavg CPI Not all installs (or users) have the same value
  46. 46. @mastermark Paid promotions to discover users while they… Watch on YouTube Search Surf the web Play in apps
  47. 47. @mastermark Paid promotions to re-engage your users ` On Search In App
  48. 48. @mastermark Indexing your app content makes it possible to surface in-app results in organic Google search results. It also improves your organic ranking. Benefits of app indexing: ● More user choice: Links can be opened in app, or on your mobile website ● Auto-completions: The app indexing API captures pageviews in app to later redirect users back to the page. Links appear as auto-completions next time a user looks for content
  49. 49. @mastermark Paid search ads help users remember your app when searching for relevant content. Top placement ensures users notice you. Tailor messaging in paid search ads to: ● Monetize your existing user base ● Prompt users to use new app features or try new promotions ● Remind users of existing app features ● Direct all search traffic to your app for relevant keywords There are two formats to choose from: ● Mobile App Engagement Ads or ● Text Ads with App Engagement Engage existing app users by giving them the option to open links in-app or via your mobile website: Text ad with App Engagement hotels cambridge Mobile App Engagement ad Headline links into app deep link mSite link option Headline links into app deep link no mSite link option +1 2 1 2
  50. 50. @mastermark On the AdMob network, you can engage existing app users when they are in other apps with an easy to use, customizable template. AdMob re-engagement supports custom lists, which makes it possible to design creative around different user activities: ● Upsell and cross sell to customers who have made a purchase ● Drive engagement with infrequent visitors ● Foster loyalty with high value users ● Close the sale when shopping carts are abandoned ● Cross promote other app titles to existing app users
  51. 51. @mastermark discount or coupon towards next purchase Offer incentives tailored to each remarketing list to drive installers to action Source: Google/Ipsos, Mobile App Marketing Insights: How Consumers Really Find and Use Your Apps (U.S.), May 2015, Base: Average among those in each vertical who have stopped using apps on their smartphone (n=6650), Google/Ipsos Survey Q37. Now thinking about [...] apps that you've stopped using or uninstalled from your smartphone, which of the following would make you more likely to start using the app again? Display App Remarketing All app users (auto-created) Version of app or Lapsed users Shopping cart abandoners Target audience list Clear call to action Top prompts that renew app usage exclusive or bonus content notifications of new features 24% Check out app-only content Explore new features of the app Discount today only... 16% 30%
  52. 52. @mastermark Drive installs from users who are likely to make a purchase within your app Campaigns using this feature are 24x more likely to generate a buyer than other campaigns. Delivers extremely high user quality by optimizing bids for each user, depending on their varying levels of in-app purchase probability within your specific app. Simple to activate -- select the ‘paid users’ checkbox in an Android campaign, and use Conversion Optimizer to tell CO to optimize for installs from In-App Buyers. Important to set target cost-per-installs based on the higher value of these users. The best way to get more of these high- value users is to bid aggressively. Leverages Google Play and AdMob data combined with Google’s proprietary bidding algorithms. Conversion Optimizer for Android In-App Buyers
  53. 53. @mastermark ● App Indexing: https://developers.google.com/app- indexing/introduction ● AdWords App Promotion: https://developers. google.com/adwords/apps/ ● App Install Campaigns: https://support.google. com/adwords/answer/6032059 ● App Reengagement Campaigns: https://support. google.com/adwords/answer/6046233 ● Conversion Optimizer: https://support.google. com/adwords/answer/2471188?hl=en-GB Paid App
  54. 54. @mastermark Launchpad
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  57. 57. @mastermark g.co/launchpadApply
  58. 58. thank you @mastermark

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