Monetizing Social Games - RockYou at GDC

Monetizing Social Games Lisa Marino, Chief Revenue Officer lisa@rockyou.com

Agenda 1) Making A Good Game 2) Network Effect 3) Engagement 4) Arbitrage 5) The Future of Monetization 6) Questions

Why Social Gaming is Succeeding  Fast Paced Environment Cutting Edge Ideas  Tools and information lead to better understanding.  Under-monetized International Reach  Convert Non-Gamers to Casual Gamers – Nintendo Wii

The Secret Sauce: DAUs are Everything! • Reach/Virality • User acquisition Key Threshold: • Re-engagement .2 DAU/MAU strategies Network Effect • Feature • ARPU Releases Arbitrage Engagement • Competition • K factor • Friends help users advance

Network Effect: DAU Growth and Rengagement With Notifications going away, expect K Factor <.7 User Acquisition/Reengagement Key Thresholds Channel Feed Posts • 3 FB users should click on every feed post created Requests • Focus request on friends already in game • Expect a 70% CTR on requests if friend already in game Book Marks • Expect 20% of DAUs to enter through bookmarks

Engagement: What Have You Done for Me Lately? 5 weekly releases: 3 content, 1 viral event, 1 game play feature

Engagement: Competition Rules • Create competition among friends using visible metrics • Friend Walls • Customization • Player vs. Player engagments

Engagement: Get Friends To Help • Increase Re- engagement rates by sending requests calling friends for help Castle Age • All Users helping get the prize

Engagement: How To Engage Your Users  6 Basic Strategies of Keeping Your Users – Collecting – Decorating – Friendship/Collaboration – Exploring – Caring – Competition

Arbitrage: Where Monetization is Coming From Users User-Initiated Actions User- Participation

Arbitrage: Is Your Game Monetizing Well?  Measure on Revenue/1,000 DAU’s  Best Monetizing Apps $100+/1,000 DAU’s  On Average, Apps Monetize $10-30/1,000 DAU’s  $30+/1,000 DAU’s  On the right track

Arbitrage: Keys To Monetization Drama Individuality Friendship/Love Keys to Monetization Gambling Competition Collections

Arbitrage: Understand Your Economy  Keep economies fluid  Make currencies valuable  Let users decide how to acquire currency and advancement  Sources and Sinks

Arbitrage: Know Your Key Demographic  Focus Tools on Your Primary Users – Geography – Age – Gender – Time Of Week – Time Of Day

Arbitrage: Direct Payments  1-3% of DAU’s Are Paying Customers  Payment Methods Biased to Default Method. – Usually Defaulted to Best Converting Method. Offers 15% Credit PayPal Card 60% 25%

Arbitrage: Capitalize On Your Existing Consumers  Entice Users to Re-Purchase Premium Currency  Conversion Rates for Repeat Consumers are Higher.  >50% of Total Revenue Should be Repeat Consumers 1st 2nd 30-40%of Purchases

Arbitrage: Difference Makers in Offers Walls Surveys Local Strategy

Future of Monetization: Expand the Digital Goods Pie Increase a game’s digital goods monetization rate from 3% to 25%

Future of Monetization: Advertising Why Advertising will be Successful  Games have huge user bases so brand need to be there  Users want to level up and not pay for it  Expands Monetization rates of user base  Safe and Clean Advertising Environment

Future of Monetization: In Game Case Study • Customized and controlled Brand Experience • Cost Per Engagement Model • In Game converts as high as 50% of opt in users • Highest CPMs of all monetization tools

Conclusion Questions?

Lisa Marino Chief Revenue Officer lisa@rockyou.com

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Monetizing Social Games - RockYou at GDC

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