Slide title goes here… Offerpal Media Inc. Confidential Incentivize and Monetize Social Traffic with Virtual Currency SNAP Summit Anu Shukla Founder & CEO, Offerpal Media, Inc.

Why Virtual Currency? Top Ways Your Users Can Earn Virtual Currency Integrating Virtual Currency Into the User Experience Promoting Virtual Currency = Monetization Optimizing Your Virtual Currency Conclusion Agenda

Why Virtual Currency?

Top Ways Your Users Can Earn Virtual Currency

Integrating Virtual Currency Into the User Experience

Promoting Virtual Currency = Monetization

Optimizing Your Virtual Currency

Conclusion

Phenomenal Growth… 68% of all US Internet users use social networks** 580M+ social network users worldwide*** 29 Billion minutes spent on SN in July 08** 67 Billion pageviews in July 08** The Social Network Advertising Dilemma * Robert Peck, Bear Stearns, August, 2007 ** comScore July 2008 ** * comScore World Metrix June 2008 Non-effective advertising Interrupt-driven CPM banners: <50c CPM Out of context CPC ads: <$1 CPM Video ads: $1-$2+ CPM 829M Users 733M Users 89.6% 83.3% SN Users as % of Total Internet Users* 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2006 2007 2008 2009 2010 90 %+ penetration 870M+ Users by 2010

Phenomenal Growth…

68% of all US Internet users use social networks**

580M+ social network users worldwide***

29 Billion minutes spent on SN in July 08**

67 Billion pageviews in July 08**

Non-effective advertising

Interrupt-driven CPM banners: <50c CPM

Out of context CPC ads: <$1 CPM

Video ads: $1-$2+ CPM

User Engagement >$100 eCPM <10¢ eCPM Highest Advertising Industry eCPMs Monetization <$1 eCPM Ave app earns $75/day per 1000 DAU, some >$200/day CPM Banners CPC Adsense Monetization for Virtual Currency and Digital Products

Virtual Currency in Social Applications

Virtual Currency in Virtual Worlds

Virtual Currency in Social Games

Top Ways Your Users Can Earn Currency

#1: Logging in Increases stickiness Creates loyalty Improves frequency of return visits by 10 – 20% Top Ways Your Users Can Earn Currency

#1: Logging in

Increases stickiness

Creates loyalty

Improves frequency of return visits by 10 – 20%

Top Ways Your Users Can Earn Currency #2: Inviting Friends Increases virality Quickens growth Helps grow applications up to 30% faster than without incentivization

#2: Inviting Friends

Increases virality

Quickens growth

Helps grow applications up to 30% faster than without incentivization

Top Ways Your Users Can Earn Currency #3: Completing Tasks Deepens user engagement Focuses user attention Increases user activity up to 20x or more on incentivized activities over non-incentivized activities

#3: Completing Tasks

Deepens user engagement

Focuses user attention

Increases user activity up to 20x or more on incentivized activities over non-incentivized activities

Top Ways Your Users Can Earn Currency #4: Completing Offers Monetizes traffic Taps into user motivation Generates on average $75 per day per 1,000 Daily Active Users

#4: Completing Offers

Monetizes traffic

Taps into user motivation

Generates on average $75 per day per 1,000 Daily Active Users

Integrating Currency Into the User Experience

MMORPGs: Allow users to communicate with their friends in a fun and competitive environment Use points, levels, and currency to fuel competition and keep the user focused on advancing within the game Integrating Currency Into the User Experience

MMORPGs:

Allow users to communicate with their friends in a fun and competitive environment

Use points, levels, and currency to fuel competition and keep the user focused on advancing within the game

Functional Goods in MMORPGs: Goods that meaningfully alter the user experience Allows users to add more weapons, increase protection, add more lives, etc. Integrating Currency Into the User Experience

Functional Goods in MMORPGs:

Goods that meaningfully alter the user experience

Allows users to add more weapons, increase protection, add more lives, etc.

Integrating Currency Into the User Experience Providing Tips: Focuses user’s attention on what you want them to do Shapes user behavior and click-paths

Providing Tips:

Focuses user’s attention on what you want them to do

Shapes user behavior and click-paths

Integrating Currency Into the User Experience Social Interactions: A form of self-expression in a social context Contribute to a cause Currency is earned to facilitate the exchange

Social Interactions:

A form of self-expression in a social context

Contribute to a cause

Currency is earned to facilitate the exchange

Integrating Currency Into the User Experience Customization: Customizing the avatar increases user investment and creates a barrier to exit

Customization:

Customizing the avatar increases user investment and creates a barrier to exit

Promoting Virtual Currency = Monetization

Promoting Virtual Currency = Monetization Promote currency within your app Use banners, prestitials, reg-path offers or other forms of display ads Include buttons or tabs in your nav bar, status bar, and other consistent placements Currency-driven banners generate 10x click-through rates of non-incentivized banners

Promote currency within your app

Use banners, prestitials, reg-path offers or other forms of display ads

Include buttons or tabs in your nav bar, status bar, and other consistent placements

Currency-driven banners generate 10x click-through rates of non-incentivized banners

Integrate currency into the game experience Promoting Virtual Currency = Monetization

Integrate currency into the game experience

Promoting Virtual Currency = Monetization Promote currency on other apps/sites Remind users to return your app Re-engage with inactive users Target inactive users on relevant sites/apps

Promote currency on other apps/sites

Remind users to return your app

Re-engage with inactive users

Target inactive users on relevant sites/apps

Promoting Virtual Currency = Monetization Use multiple communication vehicles: Email Notifications Contextual touch points

Use multiple communication vehicles:

Email

Notifications

Contextual touch points

Optimizing Your Virtual Currency

Optimizing Your Virtual Economy Maintain a balanced economy Manage inflation by not issuing too much currency Monitor trades or exchanges, if allowed Keep an eye out for “gold farming” and fraud

Maintain a balanced economy

Manage inflation by not issuing too much currency

Monitor trades or exchanges, if allowed

Keep an eye out for “gold farming” and fraud

Optimizing Your Virtual Economy Setting your exchange rate Increases or decreases to your exchange rate can impact revenue numbers between 5 – 25% Adjust the exchange rate based on Which level the user is at within your game A specific advertising offer The behavior of specific users Etc.

Setting your exchange rate

Increases or decreases to your exchange rate can impact revenue numbers between 5 – 25%

Adjust the exchange rate based on

Which level the user is at within your game

A specific advertising offer

The behavior of specific users

Etc.

Optimizing Your Virtual Economy Measure, Test and Analyze Offerpal Media’s testing platform monitors and optimizes: Revenues eCPM Click-Through Rates Take Rates Exchange Rates Conversions Revenue/Click Revenue/Completion

Measure, Test and Analyze

Offerpal Media’s testing platform monitors and optimizes:

Revenues

eCPM

Click-Through Rates

Take Rates

Exchange Rates

Conversions

Revenue/Click

Revenue/Completion

Join More Than 400 Top Apps Today! On-board in minutes: http://www.myspace.com/offerpal http://apps.facebook.com/offerpalmedia Ask about our App Install program Sign up for our White Paper Attend our Facebook Developers Garage

On-board in minutes:

http://www.myspace.com/offerpal

http://apps.facebook.com/offerpalmedia

Ask about our App Install program

Sign up for our White Paper

Attend our Facebook Developers Garage