Slide title goes here…




             Monetizing Social Games:
                         A Step-by-Step Guide
           ...
First, a bit about Offerpal Media…
Company Background
Quick Facts:                                 Management Team:
  • Venture capital funded: June,        ...
The Leading Social Advertising Platform
•   More than 150 million user accounts created since October 2007
•   2,000+ publ...
Top Social Monetization Solution

 Offerpal’s turnkey payment
 platform allows online gamers
 to earn virtual currency for...
User Flow
1           2




 3          4

                2
Virtual Currency Payouts
 •   Network-wide eCPM: $150 – 200
 •   Average publisher payout: $75/day/1,000 users
 •   Conver...
10 Steps for
Monetizing Social Games
Tip #1(A): Make It Fun

                         Before you do anything,
                         ask yourself:

         ...
Tip #1: Define Your Sinks

Types of Sinks:
• Functional Goods
• Decorative Goods
• Behavioral Goods
Tip #1: Define Your Sinks

Types of Sinks:
• Functional Goods
• Decorative Goods
• Behavioral Goods
Step #1: Define Your Sinks

Types of Sinks:
• Functional Goods
• Decorative Goods
• Behavioral Goods
Step #2: Assign Currency to Your Sinks

• Use “in-game”
  currency to engage
• Use “RMT” currency to
  monetize
• Assign c...
Step #3: Define Sources for Your Currencies


Types of Sources:
• In-game currency
  – Missions/Quests
  – Logging in
• RM...
Step #3: Define Sources for Your Currencies


Types of Sources:
• In-game currency
  – Missions/Quests
  – Logging in
• RM...
Step #3: Define Sources for Your Currencies


Types of Sources:
• In-game currency
  – Missions/Quests
  – Logging in
• RM...
Step #3: Define Sources for Your Currencies


Types of Sources:
• In-game currency
  – Missions/Quests
  – Logging in
• RM...
Step #4: Get them hooked


Balance engagement
with monetization:
• Crack dealer: Engage first,
  monetize second
• Cheater...
Step #5: Set Your Exchange Rate


Tips on setting the exchange rate:
• Too low = low perceived value
• Too high = high inf...
Step #6: Launch Game




                       vs.
Step #7: Promote Your Virtual Currency

 Promotion =
 Monetization
• Add a tab to “Add
  Credits”
• Include balance in
  a...
Step #8: Keep Demand for Currency High
What drives demand?
• User psychology
     – Self-expression
     – Collection
    ...
Step #9: Maintain a Balanced Economy


 Tips for a healthy economy:
• Try upping exchange rate for a day
• NEVER flood you...
Step #10: Test, Measure, Optimize
What to test?                Attribute Graphs


•   User attributes
•   Exchange rate
• ...
Case Study: Mousehunt
Case Study: Mousehunt

                                         Social websites
                        About Mousehunt  M...
Mousehunt: Sinks

                                    Social websites
                   • Cheese         MMOGs
          ...
Mousehunt: Sinks

                                     Social websites
                   • Cheese          MMOGs
        ...
Mousehunt: Sinks

                                     Social websites
                   • Cheese          MMOGs
        ...
Mousehunt: Sources

                     Earn Gold by… Social websites
                                           MMOGs
  ...
Mousehunt: Sources

Completing Ad Offers   Social websites
                       MMOGs
                       Digital mer...
Questions?
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Monetization

  1. 1. Slide title goes here… Monetizing Social Games: A Step-by-Step Guide Nick Talarico Director of Publisher Development, Offerpal Media, Inc. Offerpal Media Inc. Confidential
  2. 2. First, a bit about Offerpal Media…
  3. 3. Company Background Quick Facts: Management Team: • Venture capital funded: June, • Anu Shukla, Co-founder & CEO 2007, and February, 2009 • Mitch Liu, Co-founder & VP o Interwest Partners • Bill Lonergan, CFO o Northbridge Venture Partners • Naghi Prasad, VP Engineering o D.E. Shaw Ventures • Shannon Jessup, VP Sales • Launched October, 2007 • Publishers: 2,000+ • Global advertising offers: 5,000+ • Headquarters: Fremont, CA “Offerpal Media is built on the science of inserting scientifically targeted and relevant advertising offers into the virtual economies of social web sites, games and applications.”
  4. 4. The Leading Social Advertising Platform • More than 150 million user accounts created since October 2007 • 2,000+ publishers across multiple platforms and environments • 5,000+ advertising offers in 80+ countries • 30+ billion virtual points issued Platforms Applications Games Worlds
  5. 5. Top Social Monetization Solution Offerpal’s turnkey payment platform allows online gamers to earn virtual currency for taking part in targeted, personalized advertising offers (or buy it through global payment options). – Integrated within game play of social applications and web sites – Deepens user engagement – Increases stickiness and pageviews – Improves virality
  6. 6. User Flow 1 2 3 4 2
  7. 7. Virtual Currency 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 MMORPGs $225 Tamagotchi Games $200 <$1 eCPM Racing $175 <10¢ eCPM Owning $150 Monetization for Virtual Category Pets $100 Currency and Monetization CPM CPC Adsense Digital Green $75 Banners Products User eCPM Engagement
  8. 8. 10 Steps for Monetizing Social Games
  9. 9. Tip #1(A): Make It Fun Before you do anything, ask yourself: • Is your game fun? • Will users come back? • Will they invite their friends? If not, go back to square one.
  10. 10. Tip #1: Define Your Sinks Types of Sinks: • Functional Goods • Decorative Goods • Behavioral Goods
  11. 11. Tip #1: Define Your Sinks Types of Sinks: • Functional Goods • Decorative Goods • Behavioral Goods
  12. 12. Step #1: Define Your Sinks Types of Sinks: • Functional Goods • Decorative Goods • Behavioral Goods
  13. 13. Step #2: Assign Currency to Your Sinks • Use “in-game” currency to engage • Use “RMT” currency to monetize • Assign currencies to each sink or set of sinks Happy Harvest uses “Game Coins” for its engagement currency and “Credits” for RMT currency.
  14. 14. Step #3: Define Sources for Your Currencies Types of Sources: • In-game currency – Missions/Quests – Logging in • RMT currency – Cash payments – Ad offers
  15. 15. Step #3: Define Sources for Your Currencies Types of Sources: • In-game currency – Missions/Quests – Logging in • RMT currency – Cash payments – Ad offers
  16. 16. Step #3: Define Sources for Your Currencies Types of Sources: • In-game currency – Missions/Quests – Logging in • RMT currency – Cash payments – Ad offers
  17. 17. Step #3: Define Sources for Your Currencies Types of Sources: • In-game currency – Missions/Quests – Logging in • RMT currency – Cash payments – Ad offers
  18. 18. Step #4: Get them hooked Balance engagement with monetization: • Crack dealer: Engage first, monetize second • Cheater: Allow all to play, but let people pay to cheat • Focus on constant balance between sources and sinks (the sinkhole must always be slightly larger)
  19. 19. Step #5: Set Your Exchange Rate Tips on setting the exchange rate: • Too low = low perceived value • Too high = high inflation • Find the sweet spot =
  20. 20. Step #6: Launch Game vs.
  21. 21. Step #7: Promote Your Virtual Currency Promotion = Monetization • Add a tab to “Add Credits” • Include balance in a status bar • Use newsfeeds, notifications, banners and other messaging opportunities
  22. 22. Step #8: Keep Demand for Currency High What drives demand? • User psychology – Self-expression – Collection – Achievement • Limited edition goods • Level-specific goods • Perishable goods • New, fresh content • Global leaderboards and social competition
  23. 23. Step #9: Maintain a Balanced Economy Tips for a healthy economy: • Try upping exchange rate for a day • NEVER flood your RMT currency • Don’t keep the economy too tight – remember, it’s free to play • If they aren’t complaining, you aren’t monetizing.
  24. 24. Step #10: Test, Measure, Optimize What to test? Attribute Graphs • User attributes • Exchange rate • Price points • User Interface options • User patterns Trend Graphs
  25. 25. Case Study: Mousehunt
  26. 26. Case Study: Mousehunt Social websites About Mousehunt MMOGs Digital merchants… • 481,643 MAUs on Facebook • Developed by HitGrab, Inc. • You are a hunter, hired by the king to trap the mice that infest his kingdom. For each mouse you catch, you'll receive a unique reward, with the aim of being the best in the land!
  27. 27. Mousehunt: Sinks Social websites • Cheese MMOGs – Varies by price merchants… Digital – Some better at attracting mice than others • Traps – Varies by price – Some better at catching mice than others • Travel to new locations – Different types of mice in different locations
  28. 28. Mousehunt: Sinks Social websites • Cheese MMOGs – Varies by price merchants… Digital – Some better at attracting mice than others • Traps – Varies by price – Some better at catching mice than others • Travel to new locations – Different types of mice in different locations
  29. 29. Mousehunt: Sinks Social websites • Cheese MMOGs – Varies by price merchants… Digital – Some better at attracting mice than others • Traps – Varies by price – Some better at catching mice than others • Travel to new locations – Different types of mice in different locations
  30. 30. Mousehunt: Sources Earn Gold by… Social websites MMOGs • Catching Mice Digital merchants… – The heavier the mouse, the more gold you earn • Accepting gifts from the King • Picking up “loot” dropped by mice when they are trapped • Returning surplus cheese, traps and crafting materials for a refund • Or by…
  31. 31. Mousehunt: Sources Completing Ad Offers Social websites MMOGs Digital merchants…
  32. 32. Questions?
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