Transform Your Games into Profitable Business: Best Practices for Maximizing Revenue


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Charles Yim, Chief Operating Officer, Playhaven (The Winter Nights: Mobile Games Conference

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  • Talking Points: 1. Background on experience and role at PlayHaven2. Overview of PlayHavenPlayHaven is a lifetime value maximization platform designed to help game developers transform data into valuable action. PlayHaven helps game developers maximize the lifetime value of their games through its global ad network and robust suite of lifetime value maximization tools. Global ad network - monetize games using in-app advertising and tap into the 4,000 mobile games in PlayHaven’s network, which reaches 100 million monthly unique users and runs over 2 billion monthly games sessions. LTV maximization tools – Identify and define user segments and determine which tools will generate maximum revenue with each audience; tools include internal cross-promotion, in-app purchases, rewards, opt-in data collection and announcements
  • Talking Points: Here is what we’ll be addressing today. Mobile Industry Outlook – key stats on industry predictions and what this looks like at a global levelWhat is Lifetime Value – what does it mean and how to you achieve it?Why it important to understand their players and act on that knowledge –lifecycles differ for each player and its important to understand these behaviorsLTV in Action– we’ll dive into specific example for how to engage players and maximize LTV based on key players characteristics
  • Talking Points: The mobile industry us taking off. Looking at this holistically, revenues from mobile games alone is projected to be higher than most of the world’s GDPs by country. [Animate stat]AT $11B, mobile games as an industry is bigger than The entire GDP of The Bahamas ($10.6B)And all of these countries combined!Monaco ($5.5B)Belize ($2.7B)Greenland ($2.1B)[Animate next stat] In addition, the mobile industry is taking off so fast that by 2015, the global market for all virtual goods will surpass $20 billion which is more than the entire GDP for Armenia ($19B)Stat Resources: Mobile games revenues are set to surpass $11 billion in 2015 as in-game purchases overtake those pay-per-download - Juniper Research 2015, the global market for virtual goods will surpass $20 billion - Super Data Research GDP here:
  • Talking Points: When launching a game, most people are focused on downloads and revenue. We think this misunderstands the problem games face because in reality there are many different types of users and they all generate revenue for you differently. In fact, revenue is a proxy for value and what is is actually important is the overall lifetime value of your user.Optimizing for revenue is extremely expensive unless you know something about your users. Ultimately, what you want to achieve in your game is sustained growth and retention and monetization post acquisition.
  • Lifetime value is a combination of the revenue and retention you see throughout a players lifecycle. Steps to maximizing LTV include acquisition, engagement, monetization and retention.
  • Talking Points: Right now, here is the type of insight you’re getting from your games….downloads and the fact that your game is generating revenue - that’s all you know. You have insight into your traffic sources, how they are performing and the general knowledge that your game is making some form of revenue. [Animate LTV Max MGMT]But in reality, all your users are not the same and should not be treated the same. Each player will have a different impact on the revenue your game generates. For you to be able to maximize your games revenue, you need to be able to understand how your individual users generate revenue.In order to maximize the lifetime value of your players, you need to set a platform in place that will help you understand your users and consistently target them at the most effective point in their lifecycle in your game.
  • Talking Points: Without understanding how your player are behaving, you’re blindly targeting your users with ads, virtual goods, rewards without really understanding the most effective form of monetizationUnderstand: Identify key characteristics and segment users by app purchases level of time in game, level completion, geographyTake action: After segmenting players based on characteristics unique to your game, target them with custom content. Maximize LTV with targeted actions, for example:Increase monetization with virtual good salesCreate a better experience by holding ads for new usersCustomize language and content for users in different geographiesHelp convert highly engaged non-spenders by offering discounts on tools to help them reach the next level or phase in the game
  • Talking Points: Engaging players in your games is very similar to the approach Las Vegas casino owners take with their customers – give free perks to top patrons so they’ll spend big at the card tables. Like players in a casino, each player in your game has a different value based on their inclination to spend, fans are divided into segments – whales (big spenders), dolphins (casual spenders), and minnows (casual players and fans who will never spend). [Animate Whale Reward]Whales – make up the majority of the profits but are a smaller audience. These are the people willing to pay more for an elite experience. Whales get a premium experience since they are inclined to spend substantially more than dolphins or minnows. They get hotels, flights, shopping sprees, ect all to keep them engaged and spending in the casino. [Animate Dolphin Reward]Dolphins – while still in the casual player realm, dolphins are inherently stronger than Minnows. They spend more time in the game, get to higher levels, etc. For this audience you still want to treat them exclusively but not the same as a whale. They’ll get something along the lines of show tickets, and buffets[Animate Minnows Reward]Minnows – minnows are your casual players that likely will not invest heavily throughout their lifetime in your game, but they are none the less important to the game ecosystem. They are fans and attract other players and based on their sheer numbers, they are valuable based on their overall influence. You want to keep them happy, so you give them freebies that are not a major investment for you like free drinks or small rewards.
  • Talking Points: Let’s take a look at your highly engaged, spender users typically known as your whales. This segment has demonstrated the following characteristics: engagement in game, spent money within the first 36 hours of opening the game, reached a higher level of the game faster than other users. So here is a look at how to maximize LTV throughout the entire lifecycle of a whale. Day 1-3: Goal: retain. Upon download of the game, keep them playing your game by offering a reward or a prize that will keep them playing longer[Animate the phones 2x]Day 4-7Goal: get them to spend. Your whale is engaged is reaching higher levels of the game at a faster pace. Offer them a virtual good that can only be unlocked by reaching a certain level in the game. [Animate the phones 2x]Day 8-10Goal: keep them engaged. Your whale is engaged but they need something more to keep the experience in your game worthwhile. Offer them a reward or an update of the game that will help them get to the next level of the game or experience a version that others cannot access. [Animate the phones 2x]Day 11-12Goal: keep them in your portfolio of games. So your whale is bored and they’re not active in your game and they’ve stopped spending, but you don’t want to send them out of your game just yet. Send them to your other games by cross promoting them. [Animate the phones 2x]Day 13-14- Goal: keep monetizing even at the end of a user lifecycle. So your whale has stopped activity all together – but don’t let this stop you from monetizing. Show them an ad for another game. [Animate the phones 2x]
  • PlayHaven provides tools to help developers acquire, understand, engage and retain at every point in a user’s lifecycle. Acquire new users with interstitial ads and cross promotionUnderstand how your users are behaving with PlayHaven user segmentation tools that will allow you to break down and target your player base with the most effective content for monetization. Engage and Retain your users with rewards, virtual goods, announcement, opt-in data collection
  • Transform Your Games into Profitable Business: Best Practices for Maximizing Revenue

    1. 1. About PlayHavenPlayHaven• HQ in San Francisco, CA• Launched November 2011• Lifetime Value Maximization (LTV) Platform • Ad Network for user acquisition, • Tools for engagement and retention• Global Reach • 4,000+ mobile games • 2 billion monthly games sessions, • 100 million monthly users• Partners: 2
    2. 2. AGENDA 3
    3. 3. Mobile Revenue Outlook That’s more than the GDP of the Bahamas $10.6B And all of these countries combined! • Monaco $5.5B • Belize $2.7B • Greenland $2.1B By 2015, the global market for virtual goods will surpass $20 billion which is more than the entire GDP for Armenia $19B*Mobile games revenues are set to surpass $11 billion in 2015 - Juniper Research report / *By 2015, the global market for virtual goods willsurpass $20 billion – Super Data Research report / *Global GDP by Country report 4
    4. 4. Current Developer Challenge15 Mins of fame Traffic & App Store Rank: The Meta ProblemRollercoaster A select few make it work 5
    5. 5. What is Lifetime Value? 6
    6. 6. Process For Lifetime Value Current ProcessTraffic Source LTV Maximization User Lifecycle Output Management Management Organic Viral Ad NetworkInternal Cross Promo 7
    7. 7. Understanding Your Players 8
    8. 8. Segment and Target WhalesDolphins Minnows 9
    9. 9. LTV In Action Use Case Example: Engaging Your Whales Throughout Their Lifecycle Retention Focus On IAP’s Re-engagement Cross-Promotion Monetize Day 1-3 Day 4-7 Day 8-10 Day 11-12 w/ Ads Day 13-14Engagement Value Time 10
    10. 10. What You Can Do With PlayHaven 11
    11. 11. Thank You!For more 12