Social Gaming
Kirill Popov   11 Years of Internet Marketing   Supported Mom&Pops to Fortune 500s   Numerous published industry articl...
Traditional Marketing High Volume, Low Relevance Poor tracking Low attribution Long delays for metrics Long optimizat...
Conversion Funnel  Acquire                            10,000  Activate                            5,000  Retain        ...
Acquisition
Ads MarketingGoogle   Highly Relevant to Search   Targeted DisplayFacebook   Targeted by Demographics    and Interests ...
Ads MarketingKey Strengths   Direct tracking through the channel   Instant tests and optimization against funnel
Activation
Lead NurturingFocus on Activation Dropoff Automated Targeted Efficient                              Eloqua.com, 2011
Landing Page Optimization Personalized to Visitor Leverages Known Data Intelligently drives  conversion
Retention
Engagement Campaigns Highly Relevant Leverage Customer Behavior (or lack  thereof)                                      ...
Social Channels Notifications – App Generated Notifications – Friend Generated
Early Player Growth of Zynga Farmville – 28 Million in 6 months Café World – 10 Million in 3 months Fishville – 7.5 Mil...
Revenue
“Virtual” Goods                       Global Virtual Goods Market             = $3.00                    US, $2 bnUltimate...
Fantastic Results Unparalleled expansion of testing methodology Automation leads to scale Conversion lift of 500% to 10...
Why Jump In?
Problem                          Zynga et al                              Going after the Casual                         ...
SolutionTarget “Core” Social gamers   Engaging, Competitive Gameplay   Social Functions to facilitate growthDeliver Game...
Target Market - Facebook Over 300m monthly game players on Facebook (Zynga  MAU, appdata.com) 45% of FB’s 750+ mm are ma...
Key Customer Lifecycle Players: Average players of the game Evangelists: Share content with social graphOptimize on:    ...
Marketing StrategyOur marketing strategies will rely on multiple vectors for advertising: Viral – Make social growth part...
Projections      Short Term        Profitable within 5 months from         Launch        Break even at approx         $3...
Projections - Methodology Target Average Revenue Per             Conservative Estimates                      User $     0....
Who We AreKirill Popov             Anton Popov                 Alex MarkhovskiyFounder & CEO            Co-Founder & COO  ...
Milestones Two Quarters from launch:    Reach 25,000 daily active users    Reach $0.05 Average Revenue per User One an...
Exits Sustained profitability   Continue to release high quality profitable games   Expand into mobile, global markets...
InvestmentPersonal Co-Founder Investment: $120,000   100% Team Hired   Multiple Prototypes deployed   Product Launch: O...
Q&A
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Marketing social startup

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  • What is a conversion funnel – how internet ads are now measured
  • Marketing social startup

    1. 1. Social Gaming
    2. 2. Kirill Popov  11 Years of Internet Marketing  Supported Mom&Pops to Fortune 500s  Numerous published industry articles  Talks on Email Marketing and Privacy  Founder, Izelis.com, social gaming studio
    3. 3. Traditional Marketing High Volume, Low Relevance Poor tracking Low attribution Long delays for metrics Long optimization times
    4. 4. Conversion Funnel  Acquire 10,000  Activate 5,000  Retain 2,000 200  Revenue Ad Optimization : iterating through ad tests & measuring through the funnel
    5. 5. Acquisition
    6. 6. Ads MarketingGoogle  Highly Relevant to Search  Targeted DisplayFacebook  Targeted by Demographics and Interests  Social Context
    7. 7. Ads MarketingKey Strengths  Direct tracking through the channel  Instant tests and optimization against funnel
    8. 8. Activation
    9. 9. Lead NurturingFocus on Activation Dropoff Automated Targeted Efficient Eloqua.com, 2011
    10. 10. Landing Page Optimization Personalized to Visitor Leverages Known Data Intelligently drives conversion
    11. 11. Retention
    12. 12. Engagement Campaigns Highly Relevant Leverage Customer Behavior (or lack thereof) Responsys Email Design Lookbook 2011
    13. 13. Social Channels Notifications – App Generated Notifications – Friend Generated
    14. 14. Early Player Growth of Zynga Farmville – 28 Million in 6 months Café World – 10 Million in 3 months Fishville – 7.5 Million in 1 month PetVille – 4.8 million in 1 monthCompare to :  Industry Record breaking launch  18 million copies sold globally after 9 months InsideSocialGames.com March5th, 2010
    15. 15. Revenue
    16. 16. “Virtual” Goods Global Virtual Goods Market = $3.00 US, $2 bnUltimate Control Asia, $8 bn Rarity Scarcity Exclusivity Durability
    17. 17. Fantastic Results Unparalleled expansion of testing methodology Automation leads to scale Conversion lift of 500% to 1000% Response rates of 60% to 80%  Compare to Traditional Media of %1-%2 to untargeted internet marketing of %12
    18. 18. Why Jump In?
    19. 19. Problem Zynga et al  Going after the Casual market  Not much innovation from competitors  2/3 of the market Global Gaming Market unaddressed $65 bn The rest of the market – “core” gamers not targeted  Spend ~14 hours a week playing  Purchase retail consoles, games  40% household income of >$75k
    20. 20. SolutionTarget “Core” Social gamers  Engaging, Competitive Gameplay  Social Functions to facilitate growthDeliver Games as a Service  Free-2-Play : Minimize cost of acquisition  Enhance product with user growth  Optimized engagement  Optimized revenue
    21. 21. Target Market - Facebook Over 300m monthly game players on Facebook (Zynga MAU, appdata.com) 45% of FB’s 750+ mm are males age 14 to 25 50% of the monthly players are active daily (Venture Beat, July 2011) 31% of online gamers have purchased virtual content with real money (Visa’s PlaySpan, VG Market study, Aug 2011)
    22. 22. Key Customer Lifecycle Players: Average players of the game Evangelists: Share content with social graphOptimize on: Players Evangelists Activation Visitor installs game Post to wall Retention Active 4 days out of 7 Play with friends 4 days out of 7 Revenue Purchase K-Factor > 1
    23. 23. Marketing StrategyOur marketing strategies will rely on multiple vectors for advertising: Viral – Make social growth part of gameplay Social Marketing – FB ads/pages/likes, traffic sharing across apps Internet Marketing – Ad space on FB/Google and other ad networks optimization Search Engine Optimization – Web presence with user feedback forums Email Marketing – Automated lifecycle marketing to drive retentionOptimize through the Marketing Funnel
    24. 24. Projections Short Term  Profitable within 5 months from Launch  Break even at approx $35,000/month  25k daily active users  2 Years from launch:  No profitability due to expansion  5 Years from launch:  Revenue $140m, Profits of $80m  6 Titles released
    25. 25. Projections - Methodology Target Average Revenue Per Conservative Estimates User $ 0.05 • $0.05 Average Revenue Per User vs $2.57 User per Game Growth YoY: 20% seen by Zynga (S1) ARPU Growth YoY: 20% • Slow growth compared to analog games Employee Cost Premium: 50% • 50% higher employee, hosting costs Hosting Cost Premium: 50% • 30% marketing allocation Marketing Allocation: 30%
    26. 26. Who We AreKirill Popov Anton Popov Alex MarkhovskiyFounder & CEO Co-Founder & COO Co-Founder & Producer 11 years of internet  15 years of large  5 years of production in marketing infrastructure traditional, social Part of successful management @ Siebel gaming industry marketing automation and Oracle  Managed QA and startup; acquired.  Lead Security, Business Production teams @ Senior management Continuity, Disaster LucasArts, Zynga roles at SaaS Recovery teams @ Oracle  BS in Computer Science companies, Facebook  MBA from USF from SFSU
    27. 27. Milestones Two Quarters from launch:  Reach 25,000 daily active users  Reach $0.05 Average Revenue per User One and a Half Years from launch:  Reach 200,000 daily active users per game  Reach $300,000 in monthly revenue Two Years from launch:  Launch second title  Reach $945,000 in monthly revenue Three Years from launch:  Launch two additional titles  Reach $2.6 million in monthly revenue
    28. 28. Exits Sustained profitability  Continue to release high quality profitable games  Expand into mobile, global markets Acquisition of company  Izelis acquired for market penetration, high value games, optimized monetization strategy IPO  Raising capital for major expansion of business  Acquire smaller successful game development studios with complimentary visions  Leverage established distribution network and expand into publishing
    29. 29. InvestmentPersonal Co-Founder Investment: $120,000  100% Team Hired  Multiple Prototypes deployed  Product Launch: OctoberSeeking $500,000 angel seed round
    30. 30. Q&A

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