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Understanding Your Audience and Optimizing Revenue Streams …

Understanding Your Audience and Optimizing Revenue Streams

A key to increasing revenue potential is by understanding your audience and figuring out what payment and alternative payment methods fit to each unique experience. This session will help you uncover insights, like defining which goods or incentives to use, knowing where to place the call-to-action, understanding users in order to best direct payment and alternative payment methods, and how to optimize and continually test placements and payment providers against detailed user demographics - to know how and where offers are most effective and productive.

Ian Swanson
Co Founder and CEO, Sometrics
www.sometrics.com

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  • 1. Sometrics,
Inc.
‐
Confiden7al


 2009
 1

  • 2. Understanding Your Audience and Optimizing Revenue Streams Ian Swanson – Sometrics March 10, 2009 Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 2

  • 3. Know
Your
Audience
 Can you answer these? (really?) Who are your avid gamers? Which gamers perform the most revenue transactions? Where are your valuable gamers located? What items generate the most revenue growth? How do your players most effectively earn virtual currency? Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 3

  • 4. Where do you start? Understand Your Audience Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 4

  • 5. Know
Your
Audience:
Get
Started
 Start with the basics: It is critical that publishers establish base metrics with audience demographics. These are your consumers!!! We use these demographic metrics across the business: • Traffic • Marketing Spend • Revenue • Operation Costs Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 5

  • 6. Know
Your
Audience:
Demographics
 Start with the basics: • Age • Gender • Location • Language • Interests - Social • Networks – Social Create Buckets (media kit): • 60% Male • 75% 18-24 • 70% Turkey Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 6

  • 7. Awesome! I have demographic buckets. Now WHAT??????? Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 7

  • 8. Know
Your
Audience:
Comparing
Metrics
 Compare Metrics: Use the audience demographic metrics and compare across TRAFFIC, REVENUE, MARKETING, etc. Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 8

  • 9. Know
Your
Audience:
Revenue
 Must Have Metrics ~ Revenue: • eCPM • per user • per game • per transaction • per game level/exp/virtual item • per day (time of day) • per transaction type (credit, card, ASTs) • per each demographic Create Revenue Buckets (using demographics): • 10% gamers in Turkey pay $15 monthly •  7% gamers in Germany pay $18 monthly •  5% gamers in the United States pay $25 monthly Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 9

  • 10. Know
Your
Audience:
Most
Valuable
Audience?
 Create Revenue Buckets: • 10% gamers in Turkey pay $15 monthly •  7% gamers in Germany pay $18 monthly •  5% gamers in the United States pay $25 monthly $30

 $25

 $25

 $20

 $18

 $15

 $15

 Monthly
Revenue
(user)
 Paid
User
%
 10
 $10

 7
 5
 $5

 $0

 Turkey
 Germany
 United
States
 Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 10

  • 11. Know
Your
Audience:
Most
Valuable
Audience?
 What audience is more valuable? • Turkey ? • Germany ? • United States ? Turkey
 Germany
 United
States
 Total
Users
 1000
 1000
 1000
 %
Paying
 10%
 7%
 5%
 Paid
Users
 100
 70
 50
 Revenue
(user)
 $15
 $18
 $25
 Revenue
(total)
 $1500
 $1260
 $1250
 Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 11

  • 12. Know
Your
Audience:
Most
Valuable
Audience?
 What audience is more valuable? Not enough data!  Turkey  Germany  United States Turkey
 Germany
 United
States
 Total
Users
 1000
 1000
 1000
 %
Paying
 10%
 7%
 5%
 Paid
Users
 100
 70
 50
 Revenue
(user)
 $15
 $18
 $25
 Revenue
(total)
 $1500
 $1260
 $1250
 Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 12

  • 13. Most Valuable Audience? Use ALL DATA Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 13

  • 14. Know
Your
Audience:
The
Full
Picture
 Compare All Data to Paint a Full Picture (monthly numbers): • Turkey, Male, 18-24 • Revenue Per Active User - $15 • Cost Per Acquisition* - $.50 • Active Paid Users – 10% • Dev/Customer Service - $.20 Turkey (audience) Gamer Value: + $80 per 100 active Turkish users (100 x 10% x $15) – (100 x $.70) * assuming cpa is for an active user Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 14

  • 15. Know
Your
Audience:
Tools
 Compile a ton of stats… • Use many solutions • Compile and Compare • Server Log Data!!! • IP Data Sources (Digital Envoy) • Become a spreadsheet wizard Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 15

  • 16. Wait… There’s More! Now we understand your audience - Let’s learn about different revenue opportunities Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 16

  • 17. Revenue:
Many
Different
Payment
Methods
 Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 17

  • 18. Revenue:
Many
Different
Payment
Methods
 Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 18

  • 19. Revenue:
Many
Different
Payment
Methods
 Different Payment Methods: Credit – payment charged to a debit/credit card (Visa, Amex, Discover) Mobile – payment charged to mobile device/account (Zong, MobileCash, Paymo) Pre-Paid – gamer cards purchased in store used online (Ultimate Game Card) Payment Gateways – user purchases virtual item on 3rd party site (Paypal, Amazon, Google Checkout) ASTs – Advertising Supported Transactions (Sometrics, Offerpal, TrialPay) Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 19

  • 20. Revenue:
Many
Different
Payment
Methods
 OK… There are many payment options. Compare them across your audience metrics! Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 20

  • 21. Revenue:
A/B
Test
Payment
Methods
 A/B Test Payment Methods: • Placement • Audience Completion % • Avg. Revenue Per User • Free Users to Paid Users • Loyalty - keep coming for more  Fine tune each payment method for your audience! Each payment method has DIFFERENT results. Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 21

  • 22. Revenue:
Ad
Supported
Transac7ons
 Let’s focus on ASTs for a moment. AST = Advertising Supported Transactions Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 22

  • 23. Revenue:
Ad
Supported
Transac7ons
 What is an ad supported transaction? Gamer is presented with offers/ads (Netflix). If they complete the offer, then they are rewarded with a virtual item (gift or currency). Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 23

  • 24. Revenue:
Ad
Supported
Transac7ons
 Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 24

  • 25. Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 25

  • 26. Revenue:
Ad
Supported
Transac7ons
 Ad Supported Transactions: Real Numbers • 10% of daily players to offer page • 40% click through rate • 10% conversion • $1.00 - $2.50 / conversion for US traffic • $0.75 - $1.00 / conversion for UK traffic • Multiplied by users completing more than 1 offer Sometrics has seen eCPM rates higher than $200 Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 26

  • 27. Revenue:
Ad
Supported
Transac7ons
 What would we learn if we did a data analysis on ad supported transactions? • ASTs convert your non-paying users • High conversion rates • High customer service costs • Many AST ads will work for users under 18 (surveys) Fine tune each payment method for your audience! Each payment method has DIFFERENT results. Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 27

  • 28. Revenue:
Ad
Supported
Transac7ons
 Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 28

  • 29. Revenue:
Tools
 Cool revenue tools … • Payment Metric Dashboard – Sometrics • Virtual Item Metrics – Jambool • Curreny Manager - Twofish Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 29

  • 30. In Conclusion... Thoroughly analyze your audience and A/B test against multiple payment methods. Proper Data Analysis = Increase Revenue Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 30

  • 31. Contact: Ian Swanson ian@sometrics.com White Paper: blog.sometrics.com Sometrics,
Inc.
‐
Confiden7al


 3/9/09
 31

  • 32. Sometrics,
Inc.
‐
Confiden7al


 2009
 32