Android TV: How to Engage More Users and Earn More Revenue (Google I/O ’17)
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Android TV: How to Engage More Users and Earn More Revenue (Google I/O ’17)

we’re going to look at is how to engage more
users on Android TV and earn more revenue
on Android TV, and look at all the new features
around Android TV and all the things that
we’re doing with it. So a quick overview of the
topics for today’s discussion. First, we’re going
to look at when we’re doing as Android
and Google Play in the living room and our
overall strategy around that. Then we’re going to look
at the importance of having a really, really good TV
strategy and why that’s important for your business. And then finally, we’re going
to look at specific ways where you can drive
engagement and grow revenue. So that third bullet, that’s
the most important, juicy part. So stay until then. So to begin, we’re going to show
you all the different things that we’re doing with
Android and Google Play and walk you through a little
update of our business. And walk you through all
the new announcements that we’ve made recently here
at I/O, and in previous months from there. So taking a step back, we look
at how Android has evolved. We started off with phones. We expanded to tablets. We moved to watches,
cars, and TVs. And we went into virtual
reality headsets. And the concept behind it
is one unified platform for our developers to build
on and to easily interact with their audiences on. So when we think
about this platform how do we distribute content? Well, Google Play’s the
consistent place where you can distribute your content. One interface, it’s
consistent for your audiences, and one developer console
where you can push out all of your updates and
all the different things that you need to do within it. So how do we think about
our living room strategy? Well, to be honest, there
are many form factors. And the reason that
we do this is we want to make sure that
different people have exactly what they need. So when we think about
how we discuss this with our developers,
we tell developers you can create one app
for both experiences that will vary for our
users, who have different needs
and different ways that they can get content
in the living room. So when you think
about Android TV, we have a deeper experience. We think of use of remote
control, native elements to navigate. And content is
searchable in a TV UI. Similarly, when we
think about Comcast, you take your existing app,
you take a simpler interface, and you easily push that
content onto the big screen. It’s available both
on iOS and Android. So when we think about
that living room strategy, you have an Android app. You can turn that Android
app into a TV app. You can supplement that Android
app into a cast-enabled app. This is something for everyone,
and something for everyone’s different viewing habits. So the focus of this
talk is Android TV. So we want to take
a quick step back to tell you how we’ve extended
Android TV into the living room. So Android TV initially launched
[INAUDIBLE] Nexus player back at the end of November 2014. It helped extend Android
into the living room. With that, we use that
exact same reference across all of our different
OEMs to deliver a successful UX. Different hardware for
OEMs for different people, depending on their choice. Just like we initially
had for phone and tablet. And again, the Play
Store was there, and all of our great Play
apps and our Google apps were all within there. So all of the
elements for Android were hitting the big screen. So as we’ve gone
through this journey, there have been
partnerships with some of the top global
brands in the world, across different countries and
across multiple form factors. Our ecosystem is really focused
on three different areas. First, we have smart TVs. Then we have streaming players. And then we have operators. So we have some of
the partnerships with some of the top OEMs in
each vertical, as you see here. Sony is a big partner
on our smart TV side. Arus is another one in our
streaming player set-top box that we initially announced. And Sling TV and DISH
Network is another one that we announced last at CES. And there’s many
others that are coming. 20 of our top operators will
be launching later in 2017. So one of the things that you
heard about in the keynote was the growth of Android TV. So Android TV activations,
over the last 12 months, have more than doubled on a
year-over-year monthly average. And we have 1 million activated
Android TVs for every 60 days. So a lot of this
growth is attributed to the great OEMs that
have come on our platform, and they’ve distributed
a platform for us. And with that, we have
a number of great apps for every type of user. Personally, I love sports. So we recently had ESPN and NFL
joining our ecosystem of apps. But we have others, from
European apps like Canal to news apps like CNBC,
and 3,000 plus apps across the ecosystem
that we’re very, very proud of for our developer
partners to bring. ALBERT REYNAUD:
Thank you, Serge. So, thank you, as
you can see, it’s been a great year
for Android TV. And moving forward,
Google will continue to invest in these different
living room solutions. Since we launched Android
TV three years ago, we’ve also seen
that the users are becoming more and
more demanding when it comes to their TV experience. They expect TV everywhere,
with seamless access to their accounts on
all their devices. They also expect high quality
content with 4K resolution. They expect the ability to
get that content anytime with on-demand services. But this tells us
also that TV still continues playing an essential
role when it comes to how people consume media content. Among others, here are
a number of reasons why we believe that TV should be
at the center of your strategy. So first of all,
while mobile viewing are growing
exponentially, we also see that TV still
dominates when it comes to Leanback experiences. Studies from
[INAUDIBLE] in 2016 show that average user interaction
time is three times higher on TV than it is on smartphone. In other words, TV
has a unique ability to engage deeply
with your users, with longer session length. And these statistics
are confirmed with the performance of Google
Play Movies on Android TV. If you look at Google
Play Movies in 2016, the average session lengths were
2.5 times higher on Android TV than they were on smartphone. More interestingly, if you
look at the average revenue per user, it was
five times higher on Google Play Movies on Android
TV than it is on smartphone. So we’ve seen that TV
gives longer interactions, higher revenue per user. But it also influenced,
positively, retention. These data, shared by Netflix,
compare the importance of different form factors at
sign-up and after six months. And what it tells us is
really interesting to me. While 80% of the acquisition
takes place outside of TV, TV becomes the primary
device for 2/3 of the users after six months. According to Netflix the
usage of a living room device directly translates into
an increase in retention and, obviously, lifetime value. This means that for you, early
on, very early in the user journey, you need to
encourage and promote the activation of a
living room device in order to increase
your lifetime value. SERGE KASSARDJIAN: Great! Now that we’ve gone through the
various reasons why you should have an important
living room strategy, we’re going to look at ways that
you can specifically improve engagement on Android TV. And one of the big announcements
that we’ve made recently is Google Assistant is
coming to Android TV. As you heard from I/O this
week, Google Assistant’s very, very important to Google. Every single one of
our products is being touched with Google Assistant. We believe, specifically on TV,
this brings a new opportunity to increase engagement and
bring your best content right in front of your users. We are going to show you
all the capabilities that come with Assistant
on TV, and what makes it a unique opportunity
to improve discoverability. And as a result, the
engagement with your content. So beyond connecting
people to information, the Assistant will also help
a wide range of our developers complete many kind
of actions for users. That will occur across
contexts and devices. Any Assistant should be able
to help you in two [INAUDIBLE] ways. Just do what you need
with Direct Actions, or connect you to an expert
with Conversation Actions. So what we’ve done
with Google Assistant is we’ve built on 17 years of
history of helping our users. The Assistant is
made for our user. Their own Google. It has four elements. Conversational,
personal, fast, and fun. The Google Assistant
allows you to talk or text with Google in a natural way. Think of it as you’re having
a conversation with Google in order to help you get
things done in your own world. So before we dive in on the
details of Assistant with TV, we want to discuss that the
core of this product integration is your content
feed, which works not just on Assistant, but
across all of your surfaces. We hope that our
development partners will maximize their content
reach across all services and products that enable
our consumers to engage with this content. By taking one feed of catalog
metadata and merchandising, we will see the experience that
provides the following four things. Consistency of search across all
Google products and services, visibility as an option
for content titles available across all these
multiple services that you see here, customizability of
the metadata for content available on a specific
service, and merchandising across all these multiple
platforms and products. You’ll see here that the
reach goes across Assistant, Android TV, the Google Home
app, and search results as well. That one feed populates all of
these different surfaces, which your users touch Google on. So how does this relate
specifically to Android TV? Well, Assistant allows you
to do three things on TV. First, you have discoverability. Assistant on TV is all
about content and control. By searching using
Assistant on TV, users can find their favorite
shows and some services with a simple, “OK, Google. Show me Sci-Fi shows.” And suddenly, you’ll see all
the different Sci-Fi shows that are available across
all of your different apps. Secondly, you have engagement. So once you have an app
that is already installed, Assistant is a great way
to re-engage the audience by invoking very
specific shows to play, and content that lives
within your apps. Pick your favorite show,
ask Assistant to play it, and get ready to watch. “OK, Google. Continue watching” put your
favorite shows name in there. Finally, Assistant
gives you control on TV. You want to give users the most
that they can do and control. So by using a Media Session
API to make easier playback control, you can say
things like, “OK, Google. Pause playback.” Or, “OK, Google. Go back five minutes.” Or even more informational
things, such as, “OK, Google. When does this air?” So in order to do
this integration, we have two specific parts. Part one is transport controls
for voice control of playback. And then part two is
metadata for Assistant’s intelligent responses. ALBERT REYNAUD: Thank you. So as we saw, thanks to a more
natural voice integration, Google Assistant will
allow you to improve how your user will discover
and engage with your content. But there’s another
update on Android TV. And for those who were at
the keynote on Wednesday, we were really
excited to announce the launch of the new
Android TV home experience. This new Android
TV interface will be available on all Android
TV devices that will upgrade to O starting this summer. So let’s take a look at it Before I jump into the
site, how many of you here have an Android TV app? OK, so you’re not just here
because it’s too hot outside. That’s good. And how many of you are just
thinking about building one? OK, so it’s already
convinced people. OK, good. So you’re probably familiar
with this interface, which, like a lot of
other devices, like streaming devices in the market
is what we call app-centric, which means that really
the app as the center of the experience. But since we launched
Android TV three years ago, we realized that
things were changing, and user were consuming
entertainment differently in their living room. Well, of course, we
realized that the user gets more and more content. They have more and
more content available. And it’s increasingly
difficult for them to make a decision
on what to watch. They have to compare
content sources from live TV to [? SVO ?] to TiVo to UGC. And also compare
content providers. Go into the app, browse
the content, going out and change providers, it’s
increasingly difficult. This is why, with Android’s
O, we have completely redefined the experience on
the home screen of Android TV. We made it channel-based. But more importantly, we
made it content-centric. This means that we’re giving
more and more prominence to your content in the
discovery experience. We basically want the user
to spend more time watching your content, as opposed
to simply looking for it’s. Not only do we think that
this will significantly improve discovery. We also think that this
will impact positively the way you’re going to
reengage with your users. To get them to come back to
your app and watch your content. So let’s take a
closer look at it. So at the top, you
have quick access to the search
functionality, which now becomes Google Assistant,
as Serge was explaining. Just below, you have
the favorite app row, which basically allows users to
launch into their favorite app really quickly. On the right, a red button,
which is basically the app view page, which includes
all the apps that are installed into the device. But here is where it
becomes interesting. Continuing down, we had several
rows that we call channels. These channels are
made of cards that we call programs, that basically
give maximum prominence to your content. These channels are the core of
the new home screen experience. Each developer will be able
to create his own channel and benefit from a
greater real estate to promote their content. When a user selects one
program, well, obviously , it launches the app
and immediately starts the playback. But interestingly,
if the user decides to press the Back button,
instead of coming back to the homepage of
Android TV it will be taken to a higher-level
screen of your app and continue browsing
within your own app. As a developer, of course,
you have full control of what you put in your channel. You can decide
what content you’re going to put, what programs
you’re going to put, what order you
want to show them, all the content metadata,
as well as the channel names and the branding. One of the features
I’m more excited about is video previews that are
played, as you can see here, whenever one particular
program is on focus. As a developer,
you can decide what to include in this video
preview, like live TV. Either trailers
or video previews. By default, only
one primary channel will be displayed into
the Android TV interface. But as a developer,
you can decide to add additional channels
that the user will be able to add into
their interface according to their preferences. So let’s say you are, for
example, a pay TV provider, and you create a primary channel
that aggregates all the best content you have. You can also think
about creating additional secondary channels
based on specific topics, like sports, kids’ content,
or series that the user will be able to add
into his interface, according to his preferences. So as mentioned
earlier, Android TV is, of course, about discovery. The new Android TV home
is about discovery, but it’s also a lot
about re-engagement. We really want to make
sure that your user can come back to your app and
consume that content again and again. This is why we created what
we call the watch next row. All the content that the user
has been previously engaged with will be consolidated,
aggregated into this watch next channel that will always
appear in second position below the favorite app row. Studies show that a large
majority of watched sessions are links to
previously-engaged content. And this is the whole
thinking around it. As a developer, this will
help you drive re-engagement and improve your retention,
as your content will be seen in this channel
whenever, for example, a user plays a video
and doesn’t finish it, or a new episode of a
series is newly available, or just simply because the
user can add your content into the watch list. So in the previous
two sections, we gave you an overview of the most
recent evolution of Android TV. If you think about it,
both Google Assistant and the new Android
TV home screen aim at improving
discoverability of the content, but more importantly,
re-engagement longer-term with your existing customers. But beyond these two
platform evolutions, there are a lot of things that
you can do inside your app in order to improve
the experience. But remember, as
a form factor, TV is unique in the way
we interact with it. The use of a remote control
makes it often quite tedious and difficult to navigate. This means that you should
pay even more attention to making sure that
the experience is as frictionless as possible
at each critical point of your user journey. So typically, identification,
discovery, and payment. So let’s start with
authentication. While identification
is obviously a precondition for
the personalization of your experience
inside of your app, it’s also a critical moment
where developers, like you, lose a lot of users. That’s why we introduced,
a couple of years ago, Smart Lock for passwords in
order to remove this friction. So by integrating with
Smart Lock for passwords, you can automatically
sign up users into your app using the
credential that they have already saved on other
Android devices, or on Chrome. So in this example with
myCanal, it has automatically recognized and logged in
the user that was accessing the app for the first time. This is especially
relevant knowing that, as we said, during the
identification process on TV with a remote control
is particularly painful. So now, let’s talk
about discovery. As we all know, discovery
is a very complex process that involves internal, external
factors that will determine what the user wants to watch. But also, how precise is the
idea of what you want to watch. So if you’re
commuting, it won’t be similar to if you are
nicely, comfortably sitting on your sofa. How much time do you have? How many people are part
of the watching group? Your mood and your mindset
at a particular time will determine
directly the discovery, and position you
differently in what we call the certainty spectrum. So across the industry,
research tells us that when deciding
what to watch, the user operates in four
different modalities. Find, select, browse, and surf. Often, people can jump from
one modality to the other. Like as soon as, for example,
some content finishes, or a new person comes into
the watching group, etc. But the goal for
you is to make sure that your app addresses
each of these modalities with a minimum effort. So let’s start with search. We estimate that’s
around 20% of the viewing comes from a search
functionality. So that means that
you should really, there’s real value for you
to make sure that this works. Beyond content and titles,
you should make sure that the search
functionality also takes into account all your
metadata, such as actors, categories, genres, etc., etc. Are you able to address
and solve queries? We realize that a
lot of users are making queries that actually
don’t lead to any results. There’s something to
be done around this. Also, could you improve the
search experience using what we call natural
language processing, in order to make the
experience even more natural. Similarly, make sure that
the user has the ability to access his favorite content
with functionality such as DVR, watch list, or add to favorites. And moving down to the
certainty spectrum, there are different ways
to inspire your users so they can find their content. The usage of most popular
collection, content, category, genre, etc., etc. And even more
editorial collections that can really inspire
the user in what to watch. So think about all these
different modalities, and think within your app
what you can do in order to address each of them. So once the user
shows some interest in a particular
content, you want to make sure that
he also has access to all the relevant
information that would help me take the decision
to actually watch this content. So, of course, title. Also, a short and
long description. Don’t undermine the importance
of beautiful images and video trailers. Finally, third-party
ratings, review are also critical when it
comes to taking a decision. Another aspect that
I find interesting is this idea of making
your experience even more linear inside your app. So the benefits of on-demand
consumption is undeniable. People are no longer forced
to come back to their house, rush into their living room to
watch their favorite program. They can just take their
replay and on-demand service, and watch it. However, we believe
that users still love what linear TV has to offer. If you turn on your
TV, you can be passive. You get some moving images. You enjoy the
serendipity of discovery. And you also enjoy the
fluidity of the experience. As a result, as an
on-demand content provider, you should think
about all the ways you can recreate certain aspects
of this linear experience by adding functionality,
such as watch next, that are famously at the
origin of binge watching, related content. But also picture-in-picture and
background playing and animated carousel. All this functionality
really makes the experience within your app linear again. Last but not least,
obviously, payments. With the rise of millennials
and cord cutters, many media partners
have launched their own what are called
direct-to-consumer experiences and service. Which means that now,
all these partners need to handle the
payments directly. As mentioned earlier, more
than in any other form factor, friction on TV can
be prohibitive. Being such a critical step
of your user’s journey, you really want to
make sure that payments is handled correctly and
is as simple as possible. By integrating with
Google Play billing, users can complete that
payment in only three clicks. They can benefit from having
already their details saved into the accounts, and
benefit from having the different options in
terms of form of payments, including credit
cards, PayPal, and DCD. Subscription is a huge
opportunity for subscribers. And over the last
year, in Google Play, we’ve doubled our revenue
associated to subscription. As a consequence, we’ve
multiplied the number of useful tools
and functionality inside the console
in order to manage for you the subscription. Subscription Dashboard, that
was presented yesterday. Flexible payment periods. And of course,
promotional tools. That includes intro
pricing and free trial. All these [INAUDIBLE]
should, again, remove the friction
within the TV experience to execute the payments. SERGE KASSARDJIAN: All right. Well, thank you for taking the
time to attend our talk today. Hopefully, you’ve learned
a couple of things. And we showed you a little
bit of how to achieve success on Android TV. But before we jump
into the questions, we wanted to leave you
with a few key takeaways around our talk. So first, we explored how
Android and Play can empower our living room strategy through
an overview of the platform, and how we are
positioned to succeed with the growth of the
ecosystem of both Android and our OEMs and Play
and our app developers. We showed you how having the
right living room strategy is important for app success. We showed you how
this strategy shapes deeper interactions, higher
retention, and improved lifetime value. Finally, we showed you
some of the best practices that we recommend to drive
engagement and grow revenue. Some examples of
these integrations were for Google Assistant,
Android O for content discovery, frictionless
sign-up, and other various user experiences in your app. So thank you for coming, and I
will take some questions now. [APPLAUSE] [MUSIC PLAYING]

3 thoughts on “Android TV: How to Engage More Users and Earn More Revenue (Google I/O ’17)

  1. If you really wanna increase android TV penetration, make an official android tv build for raspberry pi 3. And heavily market it.

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