Building A Virtual Economy

2,651 views
2,558 views

Published on

Presentation by Anu Shukla at the MySpace devJam on February 5th, 2009

Published in: Business
0 Comments
7 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,651
On SlideShare
0
From Embeds
0
Number of Embeds
245
Actions
Shares
0
Downloads
111
Comments
0
Likes
7
Embeds 0
No embeds

No notes for slide

Building A Virtual Economy

  1. 1. Slide title goes here… MySpace devJam Anu Shukla Founder & CEO, Offerpal Media, Inc. Offerpal Media Inc. Confidential
  2. 2. Agenda I. Workshop: Building a Virtual Economy II. Panel Discussion: Best Practices for Virtual Currency  Monetization III. Apps Review: Real World Apps Critiqued  IV. Updates: What’s New with the MySpace Platform? V. Networking: Open Bar 
  3. 3. Offerpal Background  The first social advertising platform: launched October 2007 • 800+ publishers across multiple platforms • 2,000+ advertising offers in 54 countries  • 2.5+ million offers conducted every month • Platforms Applications Games Worlds
  4. 4. Offerpal Payouts Network‐wide eCPM: $150 – 200  • Average publisher payout: $75/day/1,000 users • Conversion rate: >5% (40x better than traditional CPA) • Revenues per completion: >$5.00  • >$150 eCPM $400 Card Games $225 MMORPGs Tamagotchi Games  $200 <$1 eCPM Racing $175 <10¢ eCPM $150 Owning Monetization  Pets for  Virtual  $100 Category Currency and  Digital  Monetization CPM  Green $75 CPC Adsense Products Banners User eCPM Engagement
  5. 5. Building a Virtual Economy: A Step-by-Step Guide
  6. 6. Step 1: Define Your Currency   Give it a name:  “Wishes” • “Baby Bucks” • “WeePoints” • “Favor Points” • “Moola” • “Chips” • “Munny” • “Green Bucks” • “Rewards” • “Coins” • “Vouchers” • “Tokens” • “Boosts” • “Jewels” • “Credits” • “Treats” •
  7. 7. Step 2: Define Your “Sources”  Let users earn  currency by: Logging in • Inviting friends • Completing tasks • Completing offers •
  8. 8. Step 3: Define Your “Sinks”  Let users redeem  currency by  purchasing: • Decorative Goods • Virtual Gifts • Functional  Goods/Services
  9. 9. Step 3: Define Your “Sinks”  Decorative goods: • Geared toward self‐ expression • Virtual clothes,  accessories,  backgrounds, toys, etc. • Prevalent in virtual  worlds and social  communities
  10. 10. Step 3: Define Your “Sinks”  Virtual Gifts: • A form of social expression • Leads to reciprocity and viral  growth • Popular on social networks,  especially “social utility” apps
  11. 11. Step 3: Define Your “Sinks”  Functional Goods:  • Meaningfully alters the  user experience • Virtual weapons,  protection, more turns,  more time, etc. • Found mostly in  MMOGs, RPGs and  other social games
  12. 12. Step 4: Onboard With Offerpal On‐board in  4 Simple Steps: 1. Sign up 2. Add new app 3. Configure & test 4. Go live (Total time: 10 – 15 min.)
  13. 13. Step 4: Onboard With Offerpal On‐board in  4 Simple Steps: 1. Sign up 2. Add new app 3. Configure & test 4. Go live
  14. 14. Step 4: Onboard With Offerpal On‐board in  4 Simple Steps: 1. Sign up 2. Add new app 3. Configure & test 4. Go live
  15. 15. Step 4: Onboard With Offerpal On‐board in  4 Simple Steps: 1. Sign up 2. Add new app 3. Configure & test 4. Go live
  16. 16. Step 5: Integrate Currency Into User Experience • Build currency into the  game mechanics of your app • Place currency where it  makes sense contextually
  17. 17. Step 6: Make it Easy to Find Promotion =  Monetization • Add a tab to “Earn  Currency” • Include balance in  a status bar • Use newsfeeds,  notifications and  other messaging  opportunities
  18. 18. Step 7: Use Ad Inventory Promotion =  Monetization • Use banners, prestitials,  reg‐path offers or other  forms of display ads • Currency‐driven  banners generate 10x  click‐through rates of  non‐incentivized  banners
  19. 19. Step 8: Introduce New Goods/Services Keep your economy  fresh:  • Add new virtual  goods/services regularly – monthly if not weekly • Come up with innovative  new goods/services • Think like a traditional  merchant and  “merchandise” your  products for easy  browsing
  20. 20. Step 9: Maintain a Balanced Economy Tips for a healthy economy:  • Don’t issue too much currency • Balance sources and sinks • Keep an eye out for “gold farming”  and fraud • Adjust the exchange rate • Manage inflation  • Monitor trades or exchanges, if  allowed
  21. 21. Step 10: Optimize, Optimize, Optimize Publishers should measure, test and analyze:  • What are your most popular “sources” and “sinks”? • Which audience segments are most  active in your virtual economy? • Which promotions are most  effective? • At what levels are users most  engaged in your virtual economy? • When are users most likely to  complete ad offers? • Etc. 
  22. 22. Step 10: Optimize, Optimize, Optimize Offerpal maximizes revenues on your behalf … Measurable success metrics include:  Our platform engine automatically  maximizes performance based on:  • Revenues • eCPM Profile data • • Click-Through Rates • Take Rates Behavioral targeting  • • Exchange Rates Proprietary algorithms • • Conversions • Revenue/Click • Revenue/Completion Our integrated testing framework allows  Revenue Per UI us to conduct: 400 • A/B split testing R 300 e • Exchange rate testing v 200 e • User interface testing n 100 • Offer rotation testing  u e 0 Old UI New UI: Most  New UI: All  Popular Offers Offers
  23. 23. What’s Next: Mobile Applications  iPhone Integration:  Social websites MMOGs Digital merchants… • First advertising platform  on the iPhone • Reaches 10+ million iPhone  users  • More than 15,000  applications already on the  iPhone platform  • Free‐to‐play, ad‐supported  apps are most popular
  24. 24. Questions?

×