Your SlideShare is downloading. ×
0
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Virtual goods forum_uk__vikas_v1_6-17-10
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Virtual goods forum_uk__vikas_v1_6-17-10

11,258

Published on

Vikas Gupta, CEO of Social Gold, presented customer spending behavior insights at Virtual Goods Forum in London, on July 24, 2010.

Vikas Gupta, CEO of Social Gold, presented customer spending behavior insights at Virtual Goods Forum in London, on July 24, 2010.

Published in: Technology, Economy & Finance
0 Comments
32 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
11,258
On Slideshare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
0
Comments
0
Likes
32
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • Add Slideshareurl, website url
  • Transcript

    • 1. Real Money in Virtual Goods: Consumer Spending Habitsand Strategies for Growing the Pie
      Powering Virtual Economies Worldwide
    • 2. Agenda
      About Social Gold
      Quick recap of Social Gaming
      Virtual Currency: The spend driver
      Consumer Behaviors & Habits
      Growth Strategies
    • 3. About Social Gold
      The leading virtual goods monetization platform
      Launched in Sept 2008
      Grew 2000% in revenue in 2009
      Founded by ex-Amazon veterans
      In-game payments, Secure in-Flash payments
    • 4. About Social Gold
      A platform that allows you to . . .
       monetize through virtual currency
       merchandise your virtual goods
       optimize your virtual economy
    • 5. The Social Gold PlatformAll the Critical Tools to Help Manage Your Virtual Economy
      Micropayments
      &
      Subscriptions
      Virtual Currency
      &
      Inventory Mgmt
      Analytics
      &
      Reporting
      PLUS:
      • Fraud Management
      • 6. Customer Service
    • About Social Gold
      Social Games | Casual Games | Virtual Worlds
    • 7. Virtual Goods & Social Games
      Timeline
      2007 Facebook platform
      Casual Apps
      SuperPoke, FunWall, Hug Me
      2008: Dawn of the Games
      Green Patch, Mob Wars, Friends for Sale
      MySpaceplatform
      2009: Flash Based Games
      Farmville, Pet Society, Happy Aquarium
    • 8. Virtual Goods & Social Games
      • Bite sized chunks of engagement
      • 9. Timed visits
      • 10. Casually Immersive
      Users pay for power-up, faster ways to grow in the game
    • 11. Virtual Goods & Social Games
      What makes this space so exciting?
      Social Networks are an Engaged Audience
      Games act as fillers – perfect fit
      Distribution via News Feed leads to low cost viral growth
      Social Networks provide Distribution
      Games provide engagement + monetization
    • 12. Some Examples of High Spenders
      $14,794
      $11,635
      $25,540
      $13,960
      $19,054
    • 13.
    • 14. Defining Virtual EconomyWhy do people buy Virtual Goods?
    • 15. Virtual Currency: Means to an Experience
    • 16.
    • 17. Why Virtual Currency?
      Separate “Value” from “Cost”
      Virtual currency is “cheaper” than “money”
      Train User Behavior
      Economy around user generated content
    • 18. Defining Virtual Economy
      Lessons from the Real World Economy
      “Labour is the real measure of exchangeable value.
      Wealth is power of purchasing labour.”
      Value in your economy is in your goods.
      Currency is a means, not the end.
    • 19. Consumer Behaviors & Habits
      How Much do People Spend on Virtual Goods?
    • 20. Some Caveats
      Data spans publishers on Social Gold network
      LTV and behavior in games varies considerably
      Social Gold tends to drive higher LTV and user spending
    • 21. Virtual Goods enable much higher spending behavior in loyal users
    • 22. Loyal Repeat Purchaser: $250
      One time purchaser: $12
      Loyal purchasers spend the same as about20
      one time purchasers
    • 23. Highest Spender: $25,000
      Loyal Spender: $250
      One high spender spent the same as about100 loyal spenders.
    • 24. Strong Global LTV Anchored by Europe & NA
      Average LTV: $60
    • 25. Average Spender: $60
      Roughly 2-4% of all your users spend money
      “Revenue potential” from virtual currency per user:
      $1-$2
      What is your cost of customer acquisition?
      What does it cost you to serve this user?
    • 26. How do you grow the pie?
      Get more users (peasants)
      Convert more users to spenders (farmers)
      Get spenders to spend more money (knights)
      Serve and retain your high spenders well (kings and lords)
    • 27. Growing more users
      Viral Growth
      Viral Factor > 1 implies exponential growth
      Good Viral Factor in new games: 0.7
      Build Friends into the game
      Focus on the User Experience
      Retention reaps bigger rewards than pure viral
      Cross promote, Buy traffic
    • 28. Functional Goods drive more users to pay
      Experiment with price points
      Understand your user demographics and customize for them
      Keep them engaged for longer
    • 29. “Sales” and “Specials” drive people to spend more money
    • 30. Make repeat purchase experience extremely seamless
      “Encourage” higher price points
      Make sure the game is still engaging
    • 31. How many?
      Average: 50% of all spenders  9%
      Best Farming Game: 30%  15%
      Worst Farming Game: 63%  4%
      Best Social Game: 36%  51%
    • 32.
    • 33. Growth StrategiesTop 5 Strategies to Grow the Virtual Goods Pie
      Increase conversion of “like customers” (CRM 101)
      Expand offerings to reach different consumer segments
      Increase ARPPU
      Merchandising
      Promotions (price, seasonal, etc)
      Loyalty programs (recognize “high click pressure”, feed it, reward it)
      Increase stickiness / addictiveness of the experience (eg, product innovation)
      Cross-promote and migrate users to new experiences
    • 34. Summary
      Focus on Experience, Retention, Economy
      Loyal purchasers spend $250 for virtual goods
      Building seamless purchase experience (e.g., Social Gold in-Flash) builds more loyal repeat purchasers
      How much a user spends depends on the experience you provide them
    • 35. http://getsocialgold.com
      Powering Virtual Economies Worldwide
      vikas@jambool.com

    ×