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How to Monetize your F2P Video Game
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How to Monetize your F2P Video Game

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You've assembled a bunch of super fun gameplay objectives, figured out in-game action, and conjured a bunch of awesome and engaging characters. You're ready to go, right? Well, not quite. Sooner or …

You've assembled a bunch of super fun gameplay objectives, figured out in-game action, and conjured a bunch of awesome and engaging characters. You're ready to go, right? Well, not quite. Sooner or later, you're going to have to figure out what your business model is, and how you are going to monetize your hit game. Social Point CMO, Pepe Cantos, talks you through the essentials of game monetization, with examples and tips for success.

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  • 1. Monetizing your Game Pepe Cantos CMO and Head of Product Jose.cantos@socialpoint.es
  • 2. Social Point: The Company #3 Worldwide Social Games Developer 9M Daily Active Users Offices in 22@ Barcelona 175 talented employees Social Point is one of the leading social gaming companies worldwide. With more than 9 million Daily Active Users, we create social games for Facebook and for mobile devices, delivering a unique cross platform experience. Our games are played every month by more than 50 million people, making us the 3rd largest social gaming developer on Facebook. Social Point HQ is based in 22@, Barcelona's innovation hub. Our team consists of 175 talented Social Pointers from around the world, who share a common goal: to deliver insanely immersive gameplay and set the standard in social gaming.
  • 3. So you want to monetize your game?
  • 4. ACQUISITION RETENTION MONETIZATION
  • 5. Sessions DAU DAU/MAU MAU LTV AR ARPPU Conversion Rate WAU IR CTI ARPDAU ASP PUR Retention ARPU
  • 6. Appointment mechanics AC (anytime collect) Traction Reach Friction Pinch point Balancing Scarcity Core loop Sub-loops Soft Currency Hard Currency Chance-based games Click-away Interface Agent Grinding mechanics Sink/Tap/Lever features Reference Price Points Mobile Crashes/DAU Minnows, seals (dolphins) and whales Cohort ROI Dynamic Pricing Gating LiveOps ASO Local Notifications Push Noticications IAPs SNS Following Day Retention LT Survival Curve Elasticity Refunds Chargebacks Reviews First Time Experience Top Grossing Charts Funnels Gen0, Gen1, Gen2… Manifest
  • 7. ACQUISITION RETENTION MONETIZATION
  • 8. Acquisition: Who’s Who • Organic Users – ASO – Featuring – Top charts (Free and Grossing) • Paid Users – Marketing  Adnetworks • Viral Users – Game Center – Facebook • Cross-promo users
  • 9. Acquisition • KPIs – – – – – – – – – DAU WAU MAU New Users CPI, CPA CTR AR (Action Rate), IR (Install Rate) DAU/Installs K-factor
  • 10. Retention • In-game mechanisms – – – – – – Appointment mechanics. Anytime Collect mechanics. Timing. Grinding features. Peer pressure. Social engagement. • External tools – Notifications (Local / Push) – Social (SNS integration required) • App to user • User to user – Emailing – Retargeting campaigns
  • 11. Retention • KPIs – – – – DAU WAU MAU Funnels • 1st session • Per level • Per goal – Retention • 1D, 2D, 3D, 7D, 9D, 14D, 21D, 30D • 1 Month, 2 Months, 3 Months, 6 Months • Following Day – Stickiness – DAU/MAU – # of sessions & session length
  • 12. Monetization • Friction & Pinch point • LTV • Focus on paying players – – – – Patterns and Paths Triggers Anchored prices Peak times • Mechanics – – – – Scarcity Gating Dynamic Pricing Shop management, LiveOps …
  • 13. Monetization • KPIs – Daily Active Customers – Paying players – Segmentation (Minnows, Dolphins, Whales) • Pareto’s Principle – – – – – – – – – ARPU – Needs a period of time DARPU ARPPU PUR Conversion Rate # of Purchases ASP In-game KPIs LTV
  • 14. “If you cannot explain something simply, you don´t understand it well.” Albert Einstein “The simpler, the better.” Occam´s Razor “Patientia prima virtus est.” Cicero
  • 15. Keys to succeed (I) • • • • • • • • • There is not single way to do things properly. 1st Session  Best experience ever Iteration Vs AB tests. Be quick or be dead. The one that shares shall receive – Share best practices. Console ≠ PC ≠ Browser ≠ Mobile ≈ Tablet iOS – difficult to iterate on Android – better platform for iterations Browser – best platform to iterate on
  • 16. Keys to succeed (II) • • • • First, design the economy and then the game. Focus on retention. If you don´t have BI Tools you’re dead! Real time dashboards will save your live: – Crashes & downtimes may end your adventure The real adventure starts when the game goes live. Proof of concept - Prototype – Vertical Slice – MVP – Alfa – Beta – Beta – Beta – Beta – Beta – Beta - …
  • 17. Keys to succeed (III) • iOS & Android – 50 Mbs max. • iOS – one update a month – painful submission – Perfect version  avoid asking for expedit submissions. • Android is a very difficult platform to deal with – Big fragmentation – Tons of devices + several textures and definitions • Butterfly effect
  • 18. Keys to succeed (IV) DO NOT RE-INVENT THE WHEEL!!! BENCHMARK!
  • 19. KEY TAKE AWAYS • F2P is also the future • Mobile devices rule the present and will rule the future • Shipping a game doesn’t mean that you’ve finished your job • The FUNNEL • Adquisition – Retention – Monetization (KPIs) • Benchmark!
  • 20. ACQUISITION RETENTION MONETIZATION

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