The Lean Startup Engines of Growth with Google's Platforms

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

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

@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.”

what we
won’t
cover
@mastermark
● Working code
● Working code
● Working code
● and lastly: working code...

@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

@mastermark
1B
1 Billion active devices

@mastermark
What are the engines of growth?

@mastermark
photo by Betsy Weber, CC BY 2.0

@mastermark
http://www.slideshare.net/annelispeaks/the-lean-startup-14638989

@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

@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

@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

@mastermark
So what is product / business fit?

@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

@mastermark
Product / Business Fit
Mark Masterson:
“Product/business fit means having a
product that is designed to drive the
business model.”

@mastermark
Let’s see some examples!

@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

@mastermark
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

@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

@mastermark
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

@mastermark
Player engagement through Google Play Games
Saved Games
Quests
Achievements
Multiplayer
Leaderboards
Game Gifts

@mastermark
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

@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

@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

@mastermark
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

@mastermark
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

@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

@mastermark
Paid promotions to discover users while they…
Watch
on YouTube
Search Surf
the web
Play
in apps

@mastermark
Paid promotions to re-engage your users
`
On Search In App

@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

@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

@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

@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%

@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

@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

@mastermark
g.co/launchpadApply

The Lean Startup Engines of Growth with Google's Platforms

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