How Japanese Hit App got a huge market share in the JP market? Metaps' market research and its findings.

1. Strategic Guidelines
to Create a Mega-‐‑‒Hit App
with Monthly Sales of $10 Million
-‐‑‒ Data x TVCM x App -‐‑‒

2. ©2015 Metaps Inc. All Rights Reserved.
1. App Market Based on Data
※The findings are based on Metapsʼ’ own statistical analysis that identifies and predicts general market trends.

3. ©2015 Metaps Inc. All Rights Reserved.
Revenue Rankings 2012 2013 2014 2015
Top 1 ~∼ 5 $500K ~∼ $1M $2M ~∼ $10M $10M ~∼ $20M ~∼
Top 6 ~∼ 10 $300K ~∼ $400K $1M ~∼ $3M $3M ~∼ $5M $6M ~∼ $10M
Top 11 ~∼ 20 $100K ~∼ $200K $800K ~∼ $1M $1M ~∼ $3M $4M ~∼ $6M
Top 21 ~∼ 30 Less than $100K $600K ~∼ $800K $800K ~∼ $1M $3M ~∼ $4M
Shift of Top Revenue Sales -‐‑‒ Japan
Trend of Increasing Revenue
$100,000 Revenue will only get you in the Top 100.
Data:

4. ©2015 Metaps Inc. All Rights Reserved.
Revenue Rankings Japan Korea Taiwan
Top 1 ~∼ 5 $20M~∼ $2.8M ~∼ $10M+ $2M ~∼ $10M+
Top 6 ~∼ 10
$6M ~∼ $10M $1.8M ~∼ $2.8M $500K ~∼ $2M
Top 11 ~∼ 20 $4M ~∼ $6M $800K ~∼ $1.8M $250K ~∼ $500K
App Revenue in Japan
Takes the Leads in Asia
Becoming almost impossible to reach top grossing charts by
relying only on organic installs.
Data:

5. ©2015 Metaps Inc. All Rights Reserved.
Games Take the Lead in Sales in
Japanʼ’s App Market
Of the top grossing apps, games consist of 90%.
Data:
JP App Store
Aprilʼ’s Top 100 Grossing Chart
JP Google Play
Aprilʼ’s Top 100 Grossing Chart
Game – 89%
Non-‐‑‒game –
11%
Game – 94%
Non-‐‑‒game –
6%

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Apps With Higher Grossing Rankings
On Google Play
Some apps tend to do better in certain stores.
World Soccer Collection S does better on Google Play.
Data:

7. ©2015 Metaps Inc. All Rights Reserved.
Apps With Higher Grossing Rankings
in the App Store
Some apps tend to do better in certain stores.
School Girls Striker does better in the App Store.
Data:

8. ©2015 Metaps Inc. All Rights Reserved.
Game Category: Sales Breakdown
Share of Games in Grossing Chart
Google Play 94% > App Store 89%
JP Google Play
Share of Grossing Chart by Category
April 2015
GAMES
94.0%
Social
2.0%
Tools
1.0%
Entertainment
1.0%
Communication
1.0%
Comics
1.0%
GAMES
89.0%
Social
Networking
7.0%
Food
&
Drink
1.0%
Weather
1.0%
Books
1.0%
Utilities
1.0%
JP App Store
Share of Grossing Chart by Category
April 2015
Data:

9. ©2015 Metaps Inc. All Rights Reserved.
Game Category: DL Shares
Share of Games on Top Free Charts
App Store 56% > Google Play 54.5%
GAMES
56.0%
Social
Networking
8.0%
Music
7.0%
Entertainment
5.0%
Books
4.0%
Photo
&
Video
4.0%
Utilities
3.0%
Education
2.0%
Food
&
Drink
2.0%
Productivity
2.0%
Lifestyle
2.0%
Navigation
2.0%
Health
&
Fitness
1.0%
Finance
1.0%
News
1.0%
JP Google Play
Share of Categories on Top Free Charts
April 2015
JP App Store
Share of Categories on Top Free Charts
April 2015
GAMES
54.5%
Lifestyle
5.1%
Tools
4.0%
Media
&
Video
4.0%
Communication
4.0%
Photography
4.0%
Social
4.0%
Shopping
3.0%
Music
&
Audio
3.0%
News
&
Magazines
2.0%
Travel
&
Local
2.0%
Transportation
2.0%
Entertainment
2.0%
Weather
1.0%
Comics
1.0% Education
1.0%
Personalization
1.0%
Productivity
1.0%
Business
1.0%
Data:

10. ©2015 Metaps Inc. All Rights Reserved.
Overview of Top Grossing Apps
Platform
IP
Global Hit Titles
Original Titles
Non-‐‑‒Gaming
There are general trends as to why certain apps become
hits.

11. ©2015 Metaps Inc. All Rights Reserved.
Relationship between Sales Rankings and
Average DAU
1
11
21
31
41
51
61
71
81
91
101
1000 10000 100000 1000000 10000000 100000000
ランキング
平均DAU
売上 ~∼ ARPDAU×DAU
DAU ~∼ New User(DL)+Returning User
Is there a co-‐‑‒relation between revenue and DL? à Co-‐‑‒relation between gross rankings and average DAU.
Relationship between sales, DL and DAU is visible.
However, evident that there is inconsistency due to ARPDAUʼ’s fluctuations.
Data:

12. ©2015 Metaps Inc. All Rights Reserved.
DAU Changes of Top Ranked Apps
Period After Release
EstimatedDAU(Differencebetweenthegreatestvalue)
Graph of DAU 90 days after release.
Confirm the average relative value and standard deviation when the highest DAU of the
period is calculated as “1”.
After increasing the DAU 10 days after release, will investigate each category in the next
few slides based on scenarios.
Data:

13. ©2015 Metaps Inc. All Rights Reserved.
Hit App Category
Platform Development（General）
The app acquires approximately 500K installs in the first 10 days and increases DAU at
a high pace.
Rankings shoot up immediately. After this initial burst the app slowly increases DL/
DAU. Steadily improves gross rankings and maintains high rankings.
DL and DAU are steadily increasing for 3 – 6 months.
Data:
Estimated DAU

14. ©2015 Metaps Inc. All Rights Reserved.
Hit App Category
Platform Development (App A)
After the release, the appʼ’s DAU increases as predicted. However,
after the third month, the developer airs a TVCM when the DAU becomes stagnant.
After the offline campaign, rankings immediately improves.
1
21
41
61
81
101
121
141
161
181
0
200000
400000
600000
800000
1000000
1200000
1400000
Ranking
Data:
Third
Month
Estimated DAU

15. ©2015 Metaps Inc. All Rights Reserved.
Hit App Category
IP(General）
The app acquires approximately 20K to 40K installs in the first 10 days, achieves
high DAU and shoots to the top of the top grossing charts. The DL steadily
increase, but DAU becomes stagnant. Gross rankings fluctuate within the top
ranks. DL and DAU do not increase.
Data:
Estimated DAU

16. ©2015 Metaps Inc. All Rights Reserved.
Hit App Category
IP (App B）
After release, the appʼ’s DAU increases as predicted. However,
after the third month, the developer releases a TVCM campaign when the DAU
starts to decrease. DAU becomes stagnant.
1
21
41
61
81
101
121
141
161
181
0
50000
100000
150000
200000
250000
300000
2015/2/1 2015/3/1 2015/4/1 2015/5/1
Ranking
DAU
After Third
Month
Data:
Estimated DAU

17. ©2015 Metaps Inc. All Rights Reserved.
Hit App Category
Overseas（General）
The app acquires approximately 500K DLs in the first 10 days and achieves
high DAUs, but not able to immediately obtain high rankings. Subsequently,
DL and DAU slowly increase and achieves high rankings. After the fourth
month, the rankings become stagnant or decrease.
Data:
Estimated DAU

18. ©2015 Metaps Inc. All Rights Reserved.
Hit App Category
Original（General）
The app acquires 100K DLs in the first 10 days and although DAU is at similar
levels, it gets into the top grossing charts. DL and DAU increase and the app
sustains rankings on top grossing charts.
Data:
Estimated DAU

19. ©2015 Metaps Inc. All Rights Reserved.
Hit App Category
Original（App C, App D）
After release, the appʼ’s DAU increases as expected. However,
between the second through fourth month, DAU becomes stagnant. During
this period, the developer runs a TVCM campaign and they dramatically
increase DAU and revenue.
1
21
41
61
81
101
121
141
161
181
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
Ranking
DAU
1
21
41
61
81
101
121
141
161
181
0
20000
40000
60000
80000
100000
120000
140000
Ranking
DAU
Data:
Estimated DAU
Estimated DAU

20. ©2015 Metaps Inc. All Rights Reserved.
2. Necessary Pointers for Market
Changes and App Strategy

21. ©2015 Metaps Inc. All Rights Reserved.
1.アプリインストールの実態
Global Install Ave Frequency
2,500,000+
Apps
40~∼50
Apps
10~∼20
Apps
“Frequently Used Apps” make up
less than 0.0008% of all apps.
Reality of the App Market 1

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3.スマホアプリ利用業種(2014年)
Reality of the App Market 2
Due to the transition towards lifestyle/shopping apps,
apps have evolved to be “tools necessary for day-‐‑‒to-‐‑‒day“.

23. ©2015 Metaps Inc. All Rights Reserved.
4.スマホユーザーの滞在時間
6%
Increase
Source：Flurry Analytics 2014
Reality of App Market 3
App usage makes up for 90% of time spent on smartphones.
App
Browser

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5.年年代別アプリ利利⽤用時間
18~∼24
25~∼34
35~∼44
45~∼54
Over 55
37 hours 6 minutes
35 hours 40 minutes
33 hours 57 minutes
25 hours 26 minutes
21 hours 21 minutes
Source：Nielsen 2014
Reality of App Market 4
There is a trend of younger generations
spending more time on apps.

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Reality of App Market 5
6.1% 12.8%
7.8%
9.4%
2.5%
2.1%
11.2%
Smart Phone
Games
25.2%
Games Played in Home
30.8%
Portable Games
32.1%
5.1% 6.2% 2.9%
9.6%4.6% 3.0%
Smart phone
games have the
most users.
23.8%
Games Played in Home
25.5%
Portable Games
21.7%
Smart Phone
Games
41.1%
2012.9 2014.9
Smart phone market and users who support it are always
changing.
-‐‑‒ Necessary for data analysis and suggesting the most suitable
strategy. -‐‑‒
Source：Smartphone Users Kaitai Shinsho 2014

26. ©2015 Metaps Inc. All Rights Reserved.
8.広告配信対象
Reality of App Market 6
Minimalization
of CPI
Selection of
Traffic Channel
and Ad Slots
Reliance on
Intuition and
Know-‐‑‒How
Effectiveness of
Advertising
Audience
Data
Market
Data
Input-‐‑‒based classification
and management=
Category
Understanding
competitors
= Positioning
Artificial
Intelligence (AI)
Learning/pattern
recognition
= Prediction model
Individual “Intuition” → Decision making based on ”Data”
Automatically learn “Data”/Future prediction learning based on pattern recognition =
Emergence of Artificial Intelligence (AI)

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アプリ事業のあるべき形
Transition from app-‐‑‒based to company-‐‑‒
based capitalization
= Shift to business model with lower volatility
App-‐‑‒
based
Company
-‐‑‒based
As Is To Be
Marketing strategy on
an app basis.
Manage users as a
company basis and
effectively market app.
The Future of the App Business

28. ©2015 Metaps Inc. All Rights Reserved.
メタップスの戦略略
Visualization of all necessary factors for to manage the app.
Heighten accuracy and speed of decision making based on
data.
1) Product
KPI
4) Online
Marketing
2) Competitor
Analysis
3) Market
Analysis
5) Offline
Marketing
Accuracy of Decision
Making
Things to Know for the Future App Business
Speed of Decision
Making
0) Pre-‐‑‒release
Prep

29. ©2015 Metaps Inc. All Rights Reserved.
Things to Know for the
Future App Business
1) Concept: What is your positioning?(Competitive advantages?)
2) Target: Who will play the game?
3) UI/UX: Intuitive UI/UX?
4) Dev Structure: Structure in place that enables swift
adjustments?
5) Monetization: What is the monetization model?
6) KPI: ARPU? ARPPU? LTV?
7) PL Management: Management of actual versus forecast
(in particular, cost management)
8) Exit plan: At what point is it necessary to exit?
0) Pre-‐‑‒release Prep
Before beginning an app business, it is
necessary to decide on decide on the
following:

30. ©2015 Metaps Inc. All Rights Reserved.
Things to Know for the
Future App Business
After app release, KPIs that show fixed point findings (example)
DAU APPU/ARPPU
Retention
FQ
Transition of
revenue clusters
Revenue
1) Product KPI
※表⽰示データはサンプルです

31. ©2015 Metaps Inc. All Rights Reserved.
Things to Know for the
Future App Business
Audience Management is crucial
RECENCY: When did the user last
visit the app?
FREQUENCY:How often?
MONETARY: What was the spend?
Spending Users Active Users Initial Users
Acquisition Volume: Low
Cost/Acquisition: High
Acquisition Volume: Average
Cost/Acquisition: Somewhat
high
Acquisition Volume: High
Cost/Acquisition: Low
1) Product KPI
M
R
F
Active
Purchase
Recent
Churn
Organic
Recent
purchase
Churn

32. ©2015 Metaps Inc. All Rights Reserved.
Things to Know for the Future App Business
Understand own position as well as
competitorʼ’s position on the app stores.
Shift of own app rankings Shift of own app review numbers
Text mining of own appʼ’s reviews
Comparison of
competitor apps
Comparison of competitor app
rankings
2) Competitor Analysis 3) Market Analysis
※All shown data is sample

33. ©2015 Metaps Inc. All Rights Reserved.
Things to Know for the Future App Business
Growth Monetize
Spread
13.5% 34% 16%
Users
Type
MISSION
Online
Acquire “core fans” by
maximizing organic
downloads.
Online（×Offline）
Increase target, maximize revenue, measure fix
point KPIs, maximize promotions
Online × Offline
Maximize media and solidify
IP
HOW?
Innovator Early Adapter Early Majority Late Majority Laggard
2.5% 34%
Measure fix point KPIs. Formulate most
effective strategies and tactics for every
marketing phase.
4) Online Marketing 5) Offline Marketing
Chasm
Spread
Online × Offline
Crossing Chasms

34. ©2015 Metaps Inc. All Rights Reserved.
Growth
Acquire “core fan” base by maximizing organic
downloads.
STEP1 STEP2 STEP3
Teaser Phase
Understand the core
fan base at pre-‐‑‒launch
phase and keep the
group interested.
Create anticipation
and establish a fan
base.
Pre-‐‑‒registration Phase Release Phase
Maximize organic
downloads through
rankings.
Paying users from the release period will continue to be
paying users in the mid to long-‐‑‒term period. They have a
possibility to contribute to the majority of sales.
User Only 2~∼5%
Paid
Rate

35. ©2015 Metaps Inc. All Rights Reserved.
Monetize
Maximize revenue by
maximizing user acquisition.
STEP1 STEP2 STEP3
Broad?
Categorize users based on
RFM analysis.
By maximizing user
acquisition, secure training
data and understand
patterns.
Personalize Retention
Retention marketing based
on user categories.
Acquiring FQ5 users is the key to revenue.
For many games, paid users are:
FQ5 users make up 80% of the revenue
※FQ number entails the number of consecutive days the user logged into the app after install. FQ5 is a general term for users who
have logged into the app 5 consecutive days after install.
FQ5
OVER
80%
Revenue

36. ©2015 Metaps Inc. All Rights Reserved.
Spread
Maximize user acquisition
by utilizing offline ads (TVCM).
STEP1 STEP2 STEP3
Verify the plan
Understand correlation of
TVCM×DAU by integrating
operations.
Plan the PDCA cycle for TVCM
ads.
Integrate Dashboard OperationsPromote Through Other Channels
Mix other promotional channels
(not just TVCM) to maximize the
results.
ü Deciding to run a CM ad requires motivation, resolution and long-‐‑‒term
investments.
ü Increase rankings through incentivized ads via CM investments,
maintain top rankings and aim to acquire new organic users. Leave
intervals of 2 weeks to 4 weeks. Investing heavily in a short time is most
effective.
ü Ideal timing for CM investment is at 1-‐‑‒3M DL (Possible to cross chasms)
ü Ideal period: Year end/beginning, Golden Week (late April/early May),
summer holidays (around 3rd week of August)
ü CM motivates dormant users to become active users.

37. ©2015 Metaps Inc. All Rights Reserved.
Spread
Integrate management of TVCM investment GRP
and product KPIs.
Understand the co-‐‑‒relation increases the decision-‐‑‒making speed.
Input GRP data during your TVCM promotional period and calculate the difference between
product KPI before and during the period. Visualize whether the app acquired new or attracted
dormant users.
Verify User Trends
(DAU, DL, Monetization
amount)Verify Creatives
DAU (New/Existing/
Returning), Monetization
Verify Media Publishing
(GRP, Publishing Budget,
Target Geos)
STEP1 STEP2
Verification Cycle Integration
Management of
Dashboard
※All shown data is sample

38. ©2015 Metaps Inc. All Rights Reserved.
Innovator Early Adapter Early Majority Late Majority Laggard
Spread
Chasm
Search on App Store.
Search and DL.
Become interested after seeing
the TVCM. Search and DL.
Friends are playing.
Search and DL.
Everyone is playing. Search and
DL.
Male
Likes games
Male/Female
Likes the content
Business People
Housewives
General Users (Male and Female)
Heavy RPG Light RPG
Emphasis on content
Light RPG
Emphasis on content
Action RPG/Casual
Spread
Online × Offline
Maximize mass recognition,
Solidify IP
Spread
Online × Offline
Cross the chasm
At every phase, user type and motives will
change. As more and more DLs increase,
female non-‐‑‒gamers base will expand.
# of DLs
Users
Type
1M -‐‑‒
2m DLs
5M -‐‑‒
6M DLs
10M
DLs
Online Online x Offline (TVCM)
STEP3
Mix Promotional Channels

39. ©2015 Metaps Inc. All Rights Reserved.
Spread STEP3
プロモーションミックス
DLs will gradually decrease with continuous GRP investment.
More effective to follow the pulse method
by investing in 2 – 4 week intervals.
-‐‑‒ Continuous Type -‐‑‒ -‐‑‒ Pulse Type -‐‑‒0"
10"
20"
30"
40"
50"
60"
1" 3" 5" 7" 9" 11"13"15"17"19"21"23"25"27"29"31"33"35"37"39"41"43"45"47"49"51"53"55"57"59"
GRP" DL"GRP DL
0"
10"
20"
30"
40"
50"
60"
1" 3" 5" 7" 9" 11"13"15"17"19"21"23"25"27"29"31"33"35"37"39"41"43"45"47"
GRP" DL"GRP DL
Positioning
Statement
Describe the
game using
only one word.
Structure
Attract interest with
memorable characters and
sustain in userʼ’s memory.
Use characters as hooks to
encourage users to
understand the game
instigate action.
TVCM Ads
Differentiate own
TVCM from competitor
ads by having a
distinct overview of
the game.
Request
Details
Name of App
Exceeded ○○DLs！
××Ranking #1！
The feeling that
everyone is playing.

40. ©2015 Metaps Inc. All Rights Reserved.4
0
© 2014 Metaps Inc. All Rights Reserved. CONFIDENTIAL
About

41. ©2015 Metaps Inc. All Rights Reserved.
会社概要
Company Name: Metaps, Inc.
Established: 9/3/2007
Capital: 5063.68 million yen (includes capital reserves)
CEO: Katsuaki Sato
Tokyo HQ: Nishi-‐‑‒Shinjuku 6-‐‑‒8-‐‑‒1 Sumitomo Fudosan Shinjuku Oak Tower 30F Shinjuku, Tokyo
URL: http://www.metaps.com/
TEL: +81 03-‐‑‒5325-‐‑‒5617
FAX: +81 03-‐‑‒5325-‐‑‒6281
Subsidiary Companies: Metaps Pte, Ltd. and Metaps China
Offices: Singapore, San Francisco, London, Korea Hong Kong, Taiwan, Shanghai
Number of employees: 100 people (group companies included)
Auditor: KPMG
Company Profile

42. ©2015 Metaps Inc. All Rights Reserved.
経営陣紹介
CEO Katsuaki Sato CFO Yuichiro Yamazaki COO Noriaki Hisano
Born in 1986, Fukushima Prefecture
Waseda University, Faculty of Law,
Incomplete
Established company during university
in 2007 and assumed position of CEO.
In 2011, started an app monetization
platform “metaps” in Singapore and
established offices in 8 countries. In
2013, started a new business line,
“Spike”.
Born in 1981, Tokyo Prefecture
Graduate of University of California
Berkeley
In 2002, worked as a government
secretary. Formulated policies for the
former Japanese cabinet and handled
campaign strategies. In 2006,
entered Deutsche Investment Bank
and handled M&A and fund raising.
After resigning, founded a IT
company in Kyoto and assumed
position of CEO. Joined Metaps in
2011 as a CFO.
Born in 1977, San Francisco
Graduate of Tokyo Metropolitan
University
Entered Live Door, Inc. (now LINE)
in 2004 and handled a wide scope
of development projects for mobile
services. Assumed role of head of
mobile business and contributed to
the profitability of the business.
Joined Metaps in 2012.
Management
Born in Aichi Prefecture
Graduate of Tokyo University, Faculty
of Law
Entered Nomura Securities in 1984. In
2000, entered K.K. Square. In 2001,
assumed role of President and CEO at
Square. In 2003, became CEO of
Square Enix Co., Ltd. From 2008 –
2013, assumed role of CEO of Square
Enix Holdings. Currently the President
of numerous organizations, including
Computer Entertainment Supplierʼ’s
Association and Department of
Copyright of Economic Organization.
Became a board member in 2015.
Board Member
Yoichi Wada

43. ©2015 Metaps Inc. All Rights Reserved.
経営陣紹介
Advisor Yoshiaki Sakito
Born in Aichi Prefecture
Graduate of Keio University Graduate Studies,
Faculty of Industrial Engineering
In 2004, entered Apple Computer, Inc. (now Apple
Inc.) and assumed role of Vice-‐‑‒President and then
Apple Japanʼ’s CEO. Responsible for popularizing the
iPod mini in Japan. Prior to Apple, worked at Sony,
Walt Disney and AOL. In 1999, founded Live Door,
Inc. that developed free ISP. In 2002, transferred
business to On The Edge.
Became an advisor in 2013.
Advisor Norio Murakami
Born in Oita Prefecture
Graduate of Kyoto University, Faculty of Engineering
Science
In April 2003, entered Google Japan as a Vice-‐‑‒President
and Representative Director. Was responsible for all
aspects of Google Japan. In January 2009, stepped
down from role of President and became Honorary
President. Stepped down from the role of Honorary
President in December 2010. Currently is the President
of Murakami Norio Office. Acts as a visiting lecturer at
Kyoto University Graduate School, GLOCOM Senior Chief
Researcher/professor at International University and
visiting professor at Keio University Graduate School.
Became an advisor in 2014.
Advisor Heizo Takenaka
Born in Wakayama Prefecture
Graduate of Hitotsubashi University, Faculty of
Economics
In 2001, after presiding as a visiting assistant professor
at Harvard University, became Prime Minister Junichiro
Koizumi cabinetʻ‘s Minister of State for Economic and
Fiscal Policy. Following his tenure, he became the
Minister of State for Financial Services, Minister of State
for Privatization of the Postal Services and Minister of
Internal Affairs and Communications that led structural
reforms. Currently a professor at Keio University, head
of Global Security Research Center, Chairman of Pasona,
Chairman of Academy Hills and advisor to Japan
Economic Research Center.
Advisors

44. ©2015 Metaps Inc. All Rights Reserved.
経営陣紹介
44
海外事業展開ü Hires regionally for office in order to take advantage of local expertise.
ü With offices in 8 regions, able to assist developers globally with their monetization.
ü Solid track record of 1 billion downloads for game apps and others. Currently expanding
Metaps Analytics globally.
Introduction of Global Offices

45. ©2015 Metaps Inc. All Rights Reserved.
Assisting App Developers Monetize
メタップスの実績
*Only a portion of partners. Listed at random.
Major Partners

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6
© 2014 Metaps Inc. All Rights Reserved. CONFIDENTIAL
Thank You!
For more information,
please contact Metaps at:
inquiry@metaps.com