Stop Ignoring 98 Percent Of Your Audience! Best Practices for Monetizing Non-paying Users, Damon Marshall
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Stop Ignoring 98 Percent Of Your Audience! Best Practices for Monetizing Non-paying Users, Damon Marshall

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  • 1. STOP IGNORING 98% OF YOUR AUDIENCE! Damon MarshallVP of Business Development
  • 2. Remember when…..….we used to talk about ARPU?But then a sea of animals started gettingin the way of our total audience.
  • 3. So, we added a “P” to get ARPPU 3 3
  • 4. Monetization Strategy Direct Payments Ads 4
  • 5. Here Are Some FactsWeb“Only 1% - 5% of a social game’s audience purchasevirtual items.” - Casual Games Association; Social Network Games Report; 2012Mobile“The number of people that spend money on in-gameitems in free-to-play games ranges from 0.5% to 6%,depending on a games quality and mechanics.” - Flurry July 7, 2011 5
  • 6. Here Are Some’s advertising revenue from social games hasincreased tenfold over 2012 and currently accounts for15% of total annual revenue.- Inside Social Games, Nov. 12, 2012Angry Birds reported between $1M-$6M per month ofad based revenue .- Casual Games Sector Report: Mobile Games; 2012 6
  • 7. Here Are Some FactsCasual Games Association; SocialNetwork Games Report; 2012 ; Inside Network; Inside Social Gold 2010 7
  • 8. Popular Myths Advertising is going to f*ck up my game! Ads take users out of the “experience” I don’t want to cannibalize my paying users The revenue is not meaningful enough 8
  • 9. Advertising is going to f*ck up my game! Chose the right ad product Display Ads Interstitials “Achievement” Ads Offerwall Rewards-based Video 9
  • 10. Advertising is going to f*ck up my game!Avoid these pitfalls: Interruption Distraction, Annoyance Wrong ad, not relevant Clicking on ads by mistake while playing Gamer feels exploited 10
  • 11. Advertising is going to f*ck up my game!Interruption- No, it is opt-inDistraction/Annoyance – subtle ad unit, not intrusive to gameplayWrong ad, not relevant: Mighty Pirates => The Pirates movieClicking on ads by mistake: Good DesignGamer not feeling exploitedRewarded for their actions 11
  • 12. Ads take gamers out of the experience Ads act as “enablers” in the game Users engage on their terms! Ads can be a utility, a service in the game; similar to other utilities you create Ads are “friends” of non-paying users 12
  • 13. Be thoughtful…. 13
  • 14. Be thoughtful…. 14
  • 15. I Don’t Want To Cannibalize Paying Users Treat different users differently!Example Datapoint: 95% of users who do not buyanything after playing for 30 days, never buy anythingthroughout their lifetime. Time to treat them to a delicious ad! 15
  • 16. I Don’t Want To Cannibalize Paying UsersIntegrating ads results in: Increased engagement Increased retention Reduces churn Increased traffic (word of mouth, friends start playing) Increased ARPU (one “P”) Increased conversion from non-paying to paying users Remember, free players are essential to your game’s success, so keep them happy! 16
  • 17. The revenue is not meaningful enoughAdvertisers love the social gaming audience! 80% Re-booking rate Increased spend after first buy Audience engagement rates 3x as high as TV (IAB 2011) Positive Brand Association Post video view click rates are typically 15 - 30% CPV is preferable to CPM 17
  • 18. The revenue is not meaningful enoughA well thought out ad strategy is yeilding $10,000+ a day forpublishersBranded video is yielding $.04 to $.06 CPV (Cost per view) which isequivalent to $40 to $60 CPMClick through rates on this engagement are as high as 20%Completion rates are 80%Be strategic in selecting your ad network partners to achieve 100%fill rate. 18
  • 19. Facebook Examples Toyota American Pie Pepsi Ice Age Adidas Disney
  • 20. Mobile Examples Gamer is presented BrandConnect player Once the video is User must watch with ‘Free’ icon opens, presents 100% of the video complete, CTAUser initiated Content brand and video message appears 20
  • 21. Concluding SlideGames have become a new mass medium that isscalable and targeted for advertisersDon’t “P” on your audienceDirect payments and ad monetization can live in harmony(not an “either/or”)Be thoughtful about how you roll out your ad products –one size does NOT fit allIt’s happening!!! Brands and agencies are on board, andmore are coming! 21
  • 22. Thank you!