The Changing Mobile Games Market Mobile Monday Detroit

Transcription

1 The Changing Mobile Games Market Mobile Monday Detroit

2 Traditional vs. New Age Gaming?

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4 Online/Mobile Growing Scale and Share - Source: Digi-Capital

5 Asia and Europe to Take on 87% of the mobile/online revenues - Source: Digi-Capital

6 Where is the Money?...

7 Freemium Games Dominate App Store Revenues

8 DragonVale $250k a day is IAP? (in-app purchases) at #1 Publisher: Backflip

9 Zynga Poker $60M Franchise On Mobile Publisher: Zynga

10 Funzio was making $5M a Month Gree Global Games Revenue = $1.6B

11 $106.3 Million Revenue for 2011

12 How Do They Do It?

13 The Business of Lifetime Value. Recurring Revenues: - In App Purchases - Ad Revenue - Subscriptions

14 What is Lifetime Value? - Revenue Per Daily Active Users (RPDAU - Retention/Attrition (how many users stay/leave in the game over time) - Average Daily Active Users (ADAU)

15 Total Monetization Per User User Acquisition Cost Profitable Lifetime Value The LTV Business Model

16 In-App Purchases?

17 Fundamental Concepts for Freemium Game Design - Sources and Sinks - The Compulsion Loop - The Virtual Economy

18 Sources and Sinks Definitions Source: Value Creation Sink: Investment Source Examples: Sink: Purchase Wheat Seeds to Grow Wheat Source: Waiting 5 minutes to grow 10 Wheat Sink

19 The Compulsion Loop Source Sink

20 Sample Compulsion Loop Publications (journal, news) Celebrity Players votes, visits, buy MP Competitions (massive) Visits Services (many to many) Lignage (one to one) $ Inscription $ Ingame money Allow Horse customization and training $ Catalog Friends Boost activities Solo Activities $ Catalog Horses + skills Farm services Farm Stum customization $ Catalog

21 The Virtual Economy Is not just the shop..

22 The Virtual Economy It involves every transaction in the game

23 Top 10 Freemium Game Mechanics

24 Retention 1. Tutorials

25 2. Leveling/Experience Points Retention

26 Retention 3. Daily Reward

27 Retention, Monetization 4. Decay

28 Retention 5. Reward Schedules

29 Retention do not abuse! 6. Notifications

30 Retention 7. Disincentives

31 Retention 8. Leaderboards

32 Retention 9. Achievements

33 Monetization 10. Modifiers

34 Back to Business A Few Tips.

35 Beta Launch - Launch in - Test, Measure, Revise - Build Ability to Balance on the Fly - Plan for it!

36 Dynamic Content - Introduce story lines, characters and levels - New features need to be carefully introduced - Carefully calculate level progression - New content = more $ from the whales

37 Dynamic Game Balancing - Small test, be careful to change to many variables - Let the data speak for itself, don t assume - Focus first on rate of play - Be careful of giving away too much

38 Tutorial Optimization - Spend %50 of focus on making tutorial more effective - Tutorial can be long tail - Effective education vs. fluid gameplay

39 The Evolving GDD - Continual updates keep users engaged - Game depth changes over time - Stay focused to strategy and theme - Changes in economy structure need special attention

40 User Acquisition - CPI (Cost Per Install) - CPC, CPM (Banner Placements) - Barter Installs - Pre Launch Awareness - Blogs, Social Media, Review Sites - Apple/Google Feature - Operator Feature

41 User Acquisition PPI Display Search Pricing CPI Cost per install CPM Cost per impression CPC Cost per click Cost per click ~ ~ CPC Cost per install ~ CPI ~ ~ CPI Targeting In device Mass audience Key words Saturation Yes No No Predictable Yes No No

42 User Acquisition Its important to build sustainable and scalable means of user acquisition

43 User Acquisition Bursting can help drive down your cost of user acquisition Estimated download volume needed for Top 100 ranking: Top 10 Top 25 Top Top App Store Position Sub 100 Free Est. # Downloads Needed ~50k-150k ~30k-50k ~17k-30k ~10k-17k 100s-depending on category popularity Once in the Top 50, Volume of organic downloads will increase significantly.

44 Analytics and Measurement Lifetime Value Analysis And Everything Else. - Tracking Engagement - Consumption Patterns - Funnel Tracking - Understanding Pitfalls - Conversion - Tools - Cohort Analysis

45 As we wrap up Its not just the platform that is changing, it s the business model Freemium games and apps are dominating the market Mastery of Lifetime Value = Freemium Game Success Test, Measure, Test, Measure, FAST!

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