STOP IGNORING 98% OF YOUR AUDIENCE!      Damon MarshallVP of Business Development
Remember when…..….we used to talk about ARPU?But then a sea of animals started gettingin the way of our total audience.
So, we added a “P” to get ARPPU                                  3   3
Monetization Strategy            Direct          Payments                        Ads                              4
Here Are Some FactsWeb“Only 1% - 5% of a social game’s audience purchasevirtual items.”   - Casual Games Association; Soci...
Here Are Some FactsKing.com’s advertising revenue from social games hasincreased tenfold over 2012 and currently accounts ...
Here Are Some FactsCasual Games Association; SocialNetwork Games Report; 2012                                         ;   ...
Popular Myths Advertising is going to f*ck up my game! Ads take users out of the “experience” I don’t want to cannibalize ...
Advertising is going to f*ck up my game!      Chose the right ad product             Display Ads             Interstitials...
Advertising is going to f*ck up my game!Avoid these pitfalls:       Interruption       Distraction, Annoyance       Wrong ...
Advertising is going to f*ck up my game!Interruption- No, it is opt-inDistraction/Annoyance – subtle ad unit, not intrusiv...
Ads take gamers out of the experience Ads act as “enablers” in the game Users engage on their terms! Ads can be a utility,...
Be thoughtful….                  13
Be thoughtful….                  14
I Don’t Want To Cannibalize Paying Users  Treat different users differently!Example Datapoint: 95% of users who do not buy...
I Don’t Want To Cannibalize Paying UsersIntegrating ads results in:  Increased engagement  Increased retention  Reduces ch...
The revenue is not meaningful enoughAdvertisers love the social gaming audience! 80% Re-booking rate Increased spend after...
The revenue is not meaningful enoughA well thought out ad strategy is yeilding $10,000+ a day forpublishersBranded video i...
Facebook Examples  Toyota     American Pie   Pepsi   Ice Age      Adidas      Disney
Mobile Examples Gamer is presented      BrandConnect player                       Once the video is                       ...
Concluding SlideGames have become a new mass medium that isscalable and targeted for advertisersDon’t “P” on your audience...
Thank you!
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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

  1. 1. STOP IGNORING 98% OF YOUR AUDIENCE! Damon MarshallVP of Business Development
  2. 2. Remember when…..….we used to talk about ARPU?But then a sea of animals started gettingin the way of our total audience.
  3. 3. So, we added a “P” to get ARPPU 3 3
  4. 4. Monetization Strategy Direct Payments Ads 4
  5. 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. 6. Here Are Some FactsKing.com’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. 7. Here Are Some FactsCasual Games Association; SocialNetwork Games Report; 2012 ; Inside Network; Inside Social Gold 2010 7
  8. 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. 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. 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. 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. 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. 13. Be thoughtful…. 13
  14. 14. Be thoughtful…. 14
  15. 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. 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. 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. 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. 19. Facebook Examples Toyota American Pie Pepsi Ice Age Adidas Disney
  20. 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. 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. 22. Thank you!
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