Papaya Winning Business Models

grgetherhWinning Business Models Oscar Clark Evangelist PapayaMobile Inc

Back to basics?• General decline in Video Game Sales• Average iOS developers generating only $2k in sales?• Social Games revenues keep growing• Facebook is not the only game in town• Mobile offers unique mode of use

Lets assume you have a good gameWhat is it and why will people pay?• Known brand or license?• One-time play or repeatable?• Game of skill?• Narrative or creative journey?• Social/viral elements?

Who are your players?Different Players buy for different reasons Collector Competitor• Collector: – "Got to catch them all"• Explorer: – "Where can I go today?"• Socialiser: – "I want to be popular"• Competitor: Explorer – "Im going to Pwn ya!" Socialiser

Only worth what people will payHow are players going to pay?• Premium Pricing• Try Before Buy• Hybrid (Rent/Buy/Subscribe)• Free or Ad-Funded• Virtual in-game goods• Virtual creative goods• Extra Levels• Consumables• Gifting• Advertising• Offer wall

Pricing is everythingMaximise the opportunity• Purchases will be a barrier• Reduce the risk to the user• Understand Price Elasticity• Retrofitting is very difficult

PremiumAnticipation is everything• Players have to crave your game• Guarantees that players will pay to play• You cant measure the players you turn away• Only a select few can sustain this model

AdvertisingBrand sponsored experiences• Can be a vital revenue stream• Media buying is getting much better• Most effective when relevant to the game• Needs to be increasingly smart

Freemium1:10:100 Rule*• Free-players are your data and marketing• Make it easy to spend the first $1• Offer goods to shoe off creativity and skill• Consumable in-game items are key• Make it possible to spend $100 or more * Apologies to Nick Lovell

Social interaction is vitalOther people give me reasons to spend• Let me show off my achievements• Gifting and Reciprocation• Items gained must be desirable to others

Understand the True FansTrue Fans are happy to spend money• Ensure that they get value for paying• Dont break the Free Player experience• Engage with your most valuable players• Avoid the hangover

Who are Papaya? 13,611,930 1,050,000,000 $16.45/ 37 • Founded in 2008 with $22M raised through DCM and Keytone. • 90 staff with offices in San Francisco, London and Beijing • More than 80% of users come from US and Europe • Popular games earn more than $1 million per year • Winner of Best Games Service Provider ME Awards 2011

...in the end its all about the game

Any Questions? Thank you :) oscarclark@papayamobile.com Twitter: @Athanateus

Papaya Winning Business Models

by Oscar Clark

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