Post on 16-Apr-2017
transcript
Lightricks - History• Bootstrapped in 2013• Jerusalem-based• Five founders• Raised $10M in August 2015
Facetune• Launched in March 2013 for iPhone
• iPad - September 2013• Android - July 2014
• Over 8 million units sold• #1 top Paid App in 128 countries (App Store)• Google Best of 2014
Enlight• Launched in March 2015• Apple’s Editors’ Choice• Apple’s Best of 2015 Worldwide• Universal (both iPhone & iPad)• Over 2 million units sold
Paid Model Doesn’t Work Well on Android• Lots of lower-end devices• Lower rates of users who entered their credit
cards• Higher piracy rate - much easier to download
pirated versions• Users are used to free software
Paid Model - Pros• Small market - easy to get to the top• Money from Day 1 • Easy to optimize• Relatively easy to measure
Paid Model - Cons• Competitors are likely to release a free version• Limit on how much you can earn• Harder to achieve brand recognition• Ongoing cost can be problematic (support,
backend, etc.)• Amount of money you can extract per user is
(usually) limited
What Does Work With The Paid Model?• Great products• Ads - mostly Facebook• PR• Influencers• Social Media
What Doesn’t Work With The Paid Model?• ASO• Most ad networks• Limited effect of word of mouth• Android
Exploration Vs. Exploitation• There will always be a trade-off between trying
new things vs. doing what has worked before• Leave some budget for exploration!• Document what you’ve tried• Try things you don’t expect to work
Bursts• Maximizing profits by getting to the top of the
charts, which will bring organic installs• Measurement of success is not by CPI but by
blended CPI, which takes into account the organic installs as well as the paid installs
• Easier on paid apps since less installs are needed to get to the top, and no need to extract value from users later.
• Can start with a very low budget - we started with a $500 marketing budget
More Insights• Videos vs Photos (and other formats)• Facebook & Instagram work best for paid apps• Overall volume in paid category is declining• Seasonality has a strong effect• New devices are a strong signal for potential
paying users
Advertising Tips• Easy to measure and distinguish between
channels - CPI (no need to calculate LTV)• Test as much as possible• Explore every possibility and exploit what works• Basic statistics knowledge can help