Making Money Off Casual Games The Pain Free Way Ada Chen July 23, 2008 July 23-25 2008 CGA Seattle 2008

Indie web game developers Small teams Fast development cycles Dominated by Flash, Shockwave, InstantAction, etc Not downloadable, or installed games Who is this session for?

Indie web game developers

Small teams

Fast development cycles

Dominated by Flash, Shockwave, InstantAction, etc

Not downloadable, or installed games

Then Vs. Now Accessibility Resources Audience Monetization

Accessibility

Resources

Audience

Monetization

Developer Opportunities Monetization Distribution & Marketing

Monetization

Distribution & Marketing

Making Money Around Game Ads Around Game Ads Game Portal Sponsorships Revenue Share Licensing / Advergames In Game Ads Micro-Transactions Ads displayed in conjunction with or alongside a game Providers: MochiAds Google

Around Game Ads

Game Portal Sponsorships

Revenue Share

Licensing / Advergames

In Game Ads

Micro-Transactions

Providers:

MochiAds

Google

Making Money Around Game Ads Around Game Ads Game Portal Sponsorships Revenue Share Licensing / Advergames In Game Ads Micro-Transactions

Around Game Ads

Game Portal Sponsorships

Revenue Share

Licensing / Advergames

In Game Ads

Micro-Transactions

Making Money Estimates Monetization Method Payout Around Game Ads $0.50 CPMs for dynamic “pre-game” $0.25 - $3 CPMs for website ads

Making Money Game Portal Sponsorships Around Game Ads Game Portal Sponsorships Revenue Share Licensing / Advergames In Game Ads Micro-Transactions Purchase of branding or link to drive traffic to portal’s site Providers: Armor Games Crazy Monkey Games Hallpass AddictingGames Kongregate FlashGameLicense

Around Game Ads

Game Portal Sponsorships

Revenue Share

Licensing / Advergames

In Game Ads

Micro-Transactions

Providers:

Armor Games

Crazy Monkey Games

Hallpass

AddictingGames

Kongregate

FlashGameLicense

Making Money Estimates Monetization Method Payout Around Game Ads $0.50 CPMs for dynamic “pre-game” $0.25 - $3 CPMs for website ads Game Portal Sponsorships $100s upwards of $30,000+ Averages currently $2000

Revenue Share Providers: Kongregate Microsoft King.com /MyGame.com Shockwave Meez Around Game Ads Game Portal Sponsorships Revenue Share Licensing / Advergames In Game Ads Micro-Transactions Performance-based revenue share to game developer

Providers:

Kongregate

Microsoft

King.com /MyGame.com

Shockwave

Meez

Around Game Ads

Game Portal Sponsorships

Revenue Share

Licensing / Advergames

In Game Ads

Micro-Transactions

Making Money Estimates Monetization Method Payout Around Game Ads $0.50 CPMs for dynamic “pre-game” $0.25 - $3 CPMs for website ads Game Portal Sponsorships $100s upwards of $30,000+ Averages currently $2000 Revenue Share $100s per month

Licensing / Advergames Around Game Ads Game Portal Sponsorships Revenue Share Licensing / Advergames In Game Ads Micro-Transactions Advergames: custom-built games for products or services Licensing is more broad, e.g. ad-free, re-skinning, distribution rights, etc. Providers: Wrigley’s Candystand MTV Smaller game portals

Around Game Ads

Game Portal Sponsorships

Revenue Share

Licensing / Advergames

In Game Ads

Micro-Transactions

Providers:

Wrigley’s Candystand

MTV

Smaller game portals

Making Money Estimates Monetization Method Payout Around Game Ads $0.50 CPMs for dynamic “pre-game” $0.25 - $3 CPMs for website ads Game Portal Sponsorships $100s upwards of $30,000+ Averages currently $2000 Revenue Share $100s per month Licensing / Advergames $100s to $1,000s for low-end Prices increase with level of customization ($40-150k+)

In Game Ads Around Game Ads Game Portal Sponsorships Revenue Share Licensing / Advergames In Game Ads Micro-Transactions Ads displayed as elements of the game itself Providers: IGA Double Fusion WildTangent

Around Game Ads

Game Portal Sponsorships

Revenue Share

Licensing / Advergames

In Game Ads

Micro-Transactions

Providers:

IGA

Double Fusion

WildTangent

Making Money Estimates Monetization Method Payout Around Game Ads $0.50 CPMs for dynamic “pre-game” $0.25 - $3 CPMs for website ads Game Portal Sponsorships $100s upwards of $30,000+ Averages currently $2000 Revenue Share $100s per month Licensing / Advergames $100s to $1,000s for low-end Prices increase with level of customization ($40-150k+) In Game Ads $20 - 50 CPMs, depending on 2D/3D Upwards of $150 CPM

Micro-Transactions Around-Game Ads Game Portal Sponsorships Revenue Share Licensing / Advergames In-Game Ads Micro-Transactions Small payments from users to unlock features

Around-Game Ads

Game Portal Sponsorships

Revenue Share

Licensing / Advergames

In-Game Ads

Micro-Transactions

Making Money Estimates Monetization Method Payout Around Game Ads $0.50 CPMs for dynamic “pre-game” $0.25 - $3 CPMs for website ads Game Portal Sponsorships $100s upwards of $30,000+ Averages currently $2000 Revenue Share $100s per month Licensing / Advergames $100s to $1,000s for low-end Prices increase with level of customization ($40-150k+) In Game Ads $20 - 50 CPMs, depending on 2D/3D Upwards of $150 CPM Micro-Transactions $100s per month

Getting Your Game to the Masses Distribution & Marketing Viral distribution Top Game Portals - Mindjolt, Addicting Games Distribution programs – MochiAds Mailing lists to publishers

Viral distribution

Top Game Portals - Mindjolt, Addicting Games

Distribution programs – MochiAds

Mailing lists to publishers

Case Study How do these opportunities stack up?

Desktop Tower Defense

Handdrawn Games/Desktop Tower Defense Developer Case Study: Distribution HandDrawnGames.com 1 site, 1.6 MM monthly PVs (peak of 5 MM) 1 game, 2.5 million plays in distribution (peak of 8 MM) Around Game Ads Game Portal Sponsorships Donations Revenue Share Not in use: Licensing / Advergames In Game Ads Micro-Transactions Desktop Tower Defense

HandDrawnGames.com

Around Game Ads

Game Portal Sponsorships

Donations

Revenue Share

Not in use:

Licensing / Advergames

In Game Ads

Micro-Transactions

PixelJam Games Developer Case Study: Branding 1 site, 500,000 monthly PVs 4 games, 1.1 million monthly plays in distribution Licensing * Donations Around Game Ads Not in use: Revenue Share Game Portal Sponsorships In Game Ads Micro-Transactions

Licensing

* Donations

Around Game Ads

Not in use:

Revenue Share

Game Portal Sponsorships

In Game Ads

Micro-Transactions

Dan Hoelck Developer Case Study: Micro-Transactions 1 site, 25k monthly PVs 2 games, 2 million monthly plays in distribution Around Game Ads Game Portal Sponsorships Micro-Transactions Revenue Share Not in use: In Game Ads Licensing / Advergames We Are Legend Drunken Masters

Around Game Ads

Game Portal Sponsorships

Micro-Transactions

Revenue Share

Not in use:

In Game Ads

Licensing / Advergames

Ninja Kiwi Developer Case Study: Strong Branding 3 sites, 20 million monthly PVs 20+ games, 30 million monthly plays in distribution Around Game Ads Licensing Revenue Share Not in use: Game Portal Sponsorships In Game Ads Micro-Transactions

Around Game Ads

Licensing

Revenue Share

Not in use:

Game Portal Sponsorships

In Game Ads

Micro-Transactions

Pulling it all together Use multiple monetization methods Around game ads are often a tipping point Focus on un-capped, recurring revenues Payouts are starting to go up, and developers / games are evolving to become more complex Distribution and deal sourcing solutions are still emerging It’s all about the hustle

Use multiple monetization methods

Around game ads are often a tipping point

Focus on un-capped, recurring revenues

Payouts are starting to go up, and developers / games are evolving to become more complex

Distribution and deal sourcing solutions are still emerging

It’s all about the hustle

Contact Info Ada Chen [email_address] com +1 415 683 6682 Thank You Brian Robbins Mike Vann Chris Harris Miles Tilman David Scott Paul Preece Dan Hoelck Stephen Harris

Ada Chen [email_address] com

+1 415 683 6682