Sometrics Engage Expo

Sometrics, Inc. ‐ Conﬁden7al    2009  1 

Understanding Your Audience and Optimizing Revenue Streams Ian Swanson – Sometrics March 10, 2009 Sometrics, Inc. ‐ Conﬁden7al    3/9/09  2 

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 

Where do you start? Understand Your Audience Sometrics, Inc. ‐ Conﬁden7al    3/9/09  4 

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 

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 

Awesome! I have demographic buckets. Now WHAT??????? Sometrics, Inc. ‐ Conﬁden7al    3/9/09  7 

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 

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 

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 

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 

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 

Most Valuable Audience? Use ALL DATA Sometrics, Inc. ‐ Conﬁden7al    3/9/09  13 

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 

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 

Wait… There’s More! Now we understand your audience - Let’s learn about different revenue opportunities Sometrics, Inc. ‐ Conﬁden7al    3/9/09  16 

Revenue: Many Diﬀerent Payment Methods  Sometrics, Inc. ‐ Conﬁden7al    3/9/09  17 

Revenue: Many Diﬀerent Payment Methods  Sometrics, Inc. ‐ Conﬁden7al    3/9/09  18 

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 

Revenue: Many Diﬀerent Payment Methods  OK… There are many payment options. Compare them across your audience metrics! Sometrics, Inc. ‐ Conﬁden7al    3/9/09  20 

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 

Revenue: Ad Supported Transac7ons  Let’s focus on ASTs for a moment. AST = Advertising Supported Transactions Sometrics, Inc. ‐ Conﬁden7al    3/9/09  22 

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 

Revenue: Ad Supported Transac7ons  Sometrics, Inc. ‐ Conﬁden7al    3/9/09  24 

Sometrics, Inc. ‐ Conﬁden7al    3/9/09  25 

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 

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 

Revenue: Ad Supported Transac7ons  Sometrics, Inc. ‐ Conﬁden7al    3/9/09  28 

Revenue: Tools  Cool revenue tools … • Payment Metric Dashboard – Sometrics • Virtual Item Metrics – Jambool • Curreny Manager - Twofish Sometrics, Inc. ‐ Conﬁden7al    3/9/09  29 

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 

Contact: Ian Swanson ian@sometrics.com White Paper: blog.sometrics.com Sometrics, Inc. ‐ Conﬁden7al    3/9/09  31 

Sometrics, Inc. ‐ Conﬁden7al    2009  32 

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Sometrics Engage Expo

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