Social Games on Facebook: Worth it?

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Part of a discussion panel I moderated in July, 2008.

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  • Social Games on Facebook: Worth it?

    1. 1. Social Games on Facebook: Worth It?
    2. 2. Arseny Lebedev Large Animal Games, New York City
    3. 3. My Talking Points <ul><li>Entry </li></ul><ul><li>Commitment </li></ul><ul><li>Monetization </li></ul><ul><li>Pitfalls </li></ul>
    4. 4. ENTRY
    5. 5. <ul><li>“ Social games are games designed to be played together with friends .” – Kristian Segerstråle, Playfish </li></ul>
    6. 6. Facebook By The Numbers <ul><li>80+ Mn users </li></ul><ul><li>6 th most trafficked website </li></ul><ul><ul><li>85% of college students use it </li></ul></ul><ul><li>24,000+ applications </li></ul><ul><ul><li>95% of users installed at least one application </li></ul></ul>Sources: Facebook.com and comScore
    7. 7. Facebook Demographics Source: Facebook Social Ads
    8. 8. Involvement Levels
    9. 9. Acquiring Users
    10. 10. Integration Points Source: Facebook Ecosystem , O’Reilly , March 2008
    11. 11. COMMITMENT
    12. 12. Evolution of Facebook Layout Before After
    13. 13.
    14. 14. MONETIZATION
    15. 15. Business Models Third Party Ads Branded Sponsorship
    16. 16. Ad networks on Facebook
    17. 17. Some Calculations… <ul><li>10 Mn installs </li></ul><ul><li>600,000 Active users </li></ul>600K DAU = 1.7 to 2.5 Mn Impressions / Day At $.35 CPM: $11,000 to $26,000 / Month At $3 CPM: $150,000 to $210,000 / Month Source: Adonomics.com
    18. 18. Some Calculations… <ul><li>38 Mn Installs </li></ul><ul><li>1.9 Mn Active users </li></ul>1.9 Mn DAU = 6 to 9 Mn Impressions / Day At $.35 CPM: $40,000 to $90,000 / Month At $3 CPM: $680,000 to $810,000 / Month
    19. 19. PITFALLS
    20. 20. Growth Average: 50 Average: 6,800 Source: Facebook Ecosystem , O’Reilly , March 2008 Application growth over 11 weeks
    21. 21. Growth 5%/day growth rate
    22. 22. <ul><li>January, 2008 </li></ul><ul><li>1 </li></ul>50 DAU February, 2008 1 216 DAU May, 2008 1 17,446 DAU April, 2008 1 4,037 DAU March, 2008 1 934 DAU June, 2008 1 75,399 DAU
    23. 23. Application Spam
    24. 24. When Facebook Gets Mad … Source: TechCrunch, July 7, 2008
    25. 25. A Gold Rush

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