Global domination for your social and mobile games - Stephen Lee - 6waves Presentation Transcript
Global Domination for YourSocial and Mobile GamesSociality Rocks! Kyiv 2012Stephen Lee, Executive Director, Business Development Confidential
• About 6waves• Global Social Opportunities• Asia – Japan and China• Insights for Developers• Summary Confidential All Rights Reserved. 2
ABOUT 6WAVES Confidential All Rights Reserved. 3
“The Largest IndependentPublisher of Social Games on Facebook” Confidential All Rights Reserved. 4
“To Bring the “To BringBest Games to Global GamersUsers All Over to our Partners the World” Games” Confidential All Rights Reserved. 5
Company Snapshot 2008 Company founded in Hong Kong #1 Independent publisher on Facebook15mm Monthly Active Users on Facebook2.5mm Daily Active Users on Facebook 130+ Games launched since 2009 5 Global teams (Hong Kong | San Francisco | Tokyo | Beijing | Moscow) 6 Platforms All Rights Reserved. 6
Bringing Users and Developers Together Through Games Social Platform Growth & Cross Real-Time Engagement LocalizationDistribution Promotion Analytics 7 All Rights Reserved.
Well Diversified User Base 30% 30% 25% 3% 9% 3% Confidential All Rights Reserved. 8
6waves Global Partners Confidential All Rights Reserved. 9
Top Games that 6waves Published6w has helped scale many games across arange of genresPeak 1M+ MAU Titles on Facebook:Township Kingdoms of CamelotAstro Garden Animal ParadiseRavenskye City Resort WorldAirport City Simply HospitalZombie Island Big BusinessBaby & Me BirdlandMystery Manor Legacy of RomeRavenwood Fair Spartacus: The GameMall World My Fishbowl Confidential All Rights Reserved. 10
User Acquisition Strategy • Soft-launch with minimal • Once stable, turn on paid new users to secure the acquisition and cross game stability and basic promotion are the base for metrics review for organic growth optimizationSource: 6waves Internal Data, Confidential All Rights Reserved. 11
Case Studies Confidential All Rights Reserved. 12
GLOBAL SOCIAL OPPORTUNITIES Confidential 13
Industry Reports • Growth in social games to come from: – games in newer genres on Facebook; – improving monetization of games on Facebook • conversion rates (from free-users to paying users) • alternative monetization such as ads; • Social games off Facebook including other social networks, and platforms – such as mobile, online, and console. • Overall, we expect the worldwide social game market to grow at 30%Source: Lazard Capital Markets, Oct 2011 Confidential All Rights Reserved. 14
Social/Mobile Represents the Highest Growth Game Social- $ 8.4Industry 2012 $ 50 Bn Mobile Bn Confidential All Rights Reserved. 15
Reaching the Social Gamers Confidential. All Rights Reserved. 16
Best Platform for Global Audience Over 900mm users…and counting Confidential All Rights Reserved. 17
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What About Asia? • 3,879,740,877 Asia Population • 1,016,799,076 Internet UsersSOURCES: INTERNET WORLD STATS ACCESSED Dec 2011; www.socialbakers.com Confidential. All Rights Reserved. 21
Selected Countries with Low Penetration • Japan penetration still low • China continues to be blockedSource: www.socialbakers.com Confidential All Rights Reserved. 22
JAPAN Confidential All Rights Reserved. 23
JapanThe Opportunity• Game-friendly society• Fast, reliable internet infrastructure• Mobile Country• 100+ MM SNS/social game users• ARPU could be 5X – 10X other countries• Retention could be 2X – 5X other countries• 11 games launched by 6waves All Rights Reserved.
JapanThe Challenge- Localization- Developer Support- Regulatory Issues- User Consumption- Customer Service- The platform All Rights Reserved.
Localization – Not Just Translation Confidential. All Rights Reserved. 26
Developer Support IssueIntegration: Submission:User Authentication Apply for launch and ifPayment API rejected, fix errors/bugsFriend API according to the platformText Data API review (repeat asEtc. necessary)
Regulatory Issues Airport City Coin Purchase Page• Japan platform’s regulations and policies are very strict• By law, virtual currencies (i.e. in-game currencies) must expire in 180 days from the date of purchase• Gacha mechanism being banned
Japanese Users Consume Rapidly JP Users consumed virtual items quickly just• JP users go through the after 2 days of launch of Ravenwood Fair game quickly. – Unique features for the JP version will extend gameplay and retain users.• Higher consumption of virtual goods – JP users consume more New assets and features made uniquely virtual items = high for the Ravenwood Fair JP version ARPU. More assets mean higher monetization.
JP Customer Support Airport City Community Page on Yahoo! MobageJP users are highlysensitive to CS and CMissues.Unattended bug reportsand suggestions canlead to flaming and poorgame performance.More care is requiredfor JP customermaintenance.
The PlatformsPromotional channelsare limitedBanner ads must be bidfor, and some are notfor saleDevelopers must stay insync with platforms
CHINA Confidential 35
Facebook vsQzone251 m 550 m Confidential. All Rights Reserved. 36
Huge Market Confidential. All Rights Reserved. 37
But It’s Also Complicated Confidential. All Rights Reserved. 38
ChinaSocial GamesThe Opportunity- 800+ MM social network users- Chinese internet users spend 41% of their online time on social networks- Lower APRU but explosive growth potential- High ARPU games have PvP elements All Rights Reserved.
Top China Social Networks Users in Millions600 550500400 310300 250200 137 116100 0 Tencent Qzone Tencent Weibo Sina Weibo Renren KaixinSource: Reported by respective websites Confidential. All Rights Reserved. 40
Tencent • 3/2011 – 1 billion installs • 9/2011 – Top developers with monthly revenue over $1.5m • 3/2012 – 200 million MAUs for 3rd party developers • 45,000 applications • 30,000 developers • Total rev share $90mConfidential. All Rights Reserved. 41
China Social GamesThe Challenge- Localization- Developer Support Issue- Regulatory Issues- User Behavior- Customer Service/Community- The platform itself All Rights Reserved.
Localization - Platform VIP system Attractive VIP benefit VIP members get discount on purchase Confidential 43
Localization - WeiboInteract with your friends thru Weibo Get update news from Weibo Share your decoration to Weibo Confidential 44
Localization - SharingQzone will integrated your QQ IM friendslist, you can easily invite your best friends Incentive reward via sharing Confidential 45
Localization – virtual items Confidential 46
Developer Support Issues• Open platform APIs available but limited English support• Complicated submission process• Differences across different platforms A good local partner can ensure smooth integration, launch, and developer/customer support.
Regulatory Issues• Strict policies/regulations on online gaming• Need to apply for several licenses to operate online games in China• Gamers need to register their account with ID and real name• Restriction on the playing time of those under 18.
Chinese ConsumersPVP element is key to high ARPU Gift Works The Chinese way of showing your girlfriend the love ”Loyal “ CustomersGenerally high retention and lower pay rate
Customer Support/Community Ravenwood Fair’s QQ Discussion Group• Email support requests are rare, users prefer to use instant messaging tools to get answers;• Weibo(Chinese Twitter) + QQ Pages + old-style discussion boards are also popular;
The PlatformHuge channel cutAll games must beapprovedThe power to make orbreak your game
Industry Insightsfor Developers Confidential
THE COMPETITIVE LANDSCAPEHOW ARE MY PROSPECTS?
The Playing Field is Not LevelThe Challenges- Discovery- Fierce Competition- Marketing Budget- Marketing Expertise- Short Life Cycle All Rights Reserved.
BIGGER DOES NOT NECESSARILYMEAN BETTERWHY DAU AND MAU ARE LESS IMPORTANT
Profitability Matters MostThe Challenges- Market saturation- Increasing acquisition costs- Most users won’t pay All Rights Reserved.
GLOBAL DOMINATIONWHAT’S THE NEXT STEP?
Find the Right PartnerThe Challenges- Experience- Advice and expertise- Trustworthiness- Relationships- Synergies All Rights Reserved.
Payment Page Optimization BEFORE All Rights Reserved.
How to increase pay rate and ARPU? - Label and highlight the ‘Best Deal’ option - Make sure the ‘Best Deal’ option is above the fold (visible without scrolling down) - Give away special items when players buy the ‘Best Deal’ packageConfidential All Rights Reserved. 60
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Library of Best Practices from 6waves Retention Viral Features Monetization Tutorial Optimization Achievements Frictionless Requests Crafting System Flow OptimizationDaily Login Bonus Help from Friends Point of Sales Magic Arrows Gifting System Power of Neighbors Consumable Items Educate Players to Spend … and more! Confidential All Rights Reserved. 63
SUMMARY Confidential 64
Going GlobalLeverage the Global Reach of Social Networks Facebook - 900 million users Huge opportunities in AsiaMaximize Revenue Potential of the Game Bigger is not always better Know your audience, and how to reach themWork with the Right Local Partners Expert in optimizing the game for the local audience Local Marketing channels + Customer Service Strong Relationships with Dominant Platforms All Rights Reserved.