Understanding Your Audience and Optimizing Revenue Streams A key to increasing revenue potential is by understanding your audience and figuring out what payment and alternative payment methods fit to each unique experience. This session will help you uncover insights, like defining which goods or incentives to use, knowing where to place the call-to-action, understanding users in order to best direct payment and alternative payment methods, and how to optimize and continually test placements and payment providers against detailed user demographics - to know how and where offers are most effective and productive. Ian Swanson Co Founder and CEO, Sometrics www.sometrics.com

1. Sometrics, Inc. ‐ Confiden7al 2009
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2. Understanding Your Audience
and Optimizing Revenue Streams
Ian Swanson – Sometrics
March 10, 2009
Sometrics, Inc. ‐ Confiden7al 3/9/09 2

3. Know Your Audience
Can you answer these? (really?)
Who are your avid gamers?
Which gamers perform the most revenue
transactions?
Where are your valuable gamers located?
What items generate the most revenue
growth?
How do your players most effectively earn
virtual currency?
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4. Where do you start?
Understand Your Audience
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5. Know Your Audience: Get Started
Start with the basics:
It is critical that publishers
establish base metrics with
audience demographics.
These are your consumers!!!
We use these demographic
metrics across the business:
• Traffic
• Marketing Spend
• Revenue
• Operation Costs
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6. Know Your Audience: Demographics
Start with the basics:
• Age
• Gender
• Location
• Language
• Interests - Social
• Networks – Social
Create Buckets (media kit):
• 60% Male
• 75% 18-24
• 70% Turkey
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7. Awesome! I have demographic buckets.
Now WHAT???????
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8. Know Your Audience: Comparing Metrics
Compare Metrics:
Use the audience demographic metrics and compare across
TRAFFIC, REVENUE, MARKETING, etc.
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9. Know Your Audience: Revenue
Must Have Metrics ~ Revenue:
• eCPM
• per user
• per game
• per transaction
• per game level/exp/virtual item
• per day (time of day)
• per transaction type (credit, card, ASTs)
• per each demographic
Create Revenue Buckets (using demographics):
• 10% gamers in Turkey pay $15 monthly
• 7% gamers in Germany pay $18 monthly
• 5% gamers in the United States pay $25 monthly
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10. Know Your Audience: Most Valuable Audience?
Create Revenue Buckets:
• 10% gamers in Turkey pay $15 monthly
• 7% gamers in Germany pay $18 monthly
• 5% gamers in the United States pay $25 monthly
$30
$25
$25
$20 $18
$15
$15 Monthly Revenue (user)
Paid User %
10
$10
7
5
$5
$0
Turkey Germany United States
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11. Know Your Audience: Most Valuable Audience?
What audience is more valuable?
• Turkey ?
• Germany ?
• United States ?
Turkey Germany United States
Total Users 1000 1000 1000
% Paying 10% 7% 5%
Paid Users 100 70 50
Revenue (user) $15 $18 $25
Revenue (total) $1500 $1260 $1250
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12. Know Your Audience: Most Valuable Audience?
What audience is more valuable? Not enough data!
 Turkey
 Germany
 United States
Turkey Germany United States
Total Users 1000 1000 1000
% Paying 10% 7% 5%
Paid Users 100 70 50
Revenue (user) $15 $18 $25
Revenue (total) $1500 $1260 $1250
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13. Most Valuable Audience?
Use ALL DATA
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14. Know Your Audience: The Full Picture
Compare All Data to Paint a Full Picture
(monthly numbers):
• Turkey, Male, 18-24
• Revenue Per Active User - $15
• Cost Per Acquisition* - $.50
• Active Paid Users – 10%
• Dev/Customer Service - $.20
Turkey (audience) Gamer Value:
+ $80 per 100 active Turkish users
(100 x 10% x $15) – (100 x $.70)
* assuming cpa is for an active user
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15. Know Your Audience: Tools
Compile a ton of stats…
• Use many solutions
• Compile and Compare
• Server Log Data!!!
• IP Data Sources (Digital Envoy)
• Become a spreadsheet wizard
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16. Wait… There’s More!
Now we understand your audience -
Let’s learn about different revenue opportunities
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17. Revenue: Many Different Payment Methods
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18. Revenue: Many Different Payment Methods
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19. Revenue: Many Different Payment Methods
Different Payment Methods:
Credit – payment charged to a debit/credit card
(Visa, Amex, Discover)
Mobile – payment charged to mobile device/account
(Zong, MobileCash, Paymo)
Pre-Paid – gamer cards purchased in store used online
(Ultimate Game Card)
Payment Gateways – user purchases virtual item on 3rd party site
(Paypal, Amazon, Google Checkout)
ASTs – Advertising Supported Transactions
(Sometrics, Offerpal, TrialPay)
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20. Revenue: Many Different Payment Methods
OK… There are many payment options.
Compare them across your audience metrics!
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21. Revenue: A/B Test Payment Methods
A/B Test Payment Methods:
• Placement
• Audience Completion %
• Avg. Revenue Per User
• Free Users to Paid Users
• Loyalty - keep coming for more 
Fine tune each payment method for your audience!
Each payment method has DIFFERENT results.
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22. Revenue: Ad Supported Transac7ons
Let’s focus on ASTs for a moment.
AST = Advertising Supported Transactions
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23. Revenue: Ad Supported Transac7ons
What is an ad supported transaction?
Gamer is presented with offers/ads (Netflix). If they complete
the offer, then they are rewarded with a virtual item (gift or
currency).
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24. Revenue: Ad Supported Transac7ons
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25. Sometrics, Inc. ‐ Confiden7al 3/9/09 25

26. Revenue: Ad Supported Transac7ons
Ad Supported Transactions: Real Numbers
• 10% of daily players to offer page
• 40% click through rate
• 10% conversion
• $1.00 - $2.50 / conversion for US traffic
• $0.75 - $1.00 / conversion for UK traffic
• Multiplied by users completing more than 1 offer
Sometrics has seen eCPM rates higher than $200
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27. Revenue: Ad Supported Transac7ons
What would we learn if we did a data analysis on ad
supported transactions?
• ASTs convert your non-paying users
• High conversion rates
• High customer service costs
• Many AST ads will work for users under 18 (surveys)
Fine tune each payment method for your audience!
Each payment method has DIFFERENT results.
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28. Revenue: Ad Supported Transac7ons
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29. Revenue: Tools
Cool revenue tools …
• Payment Metric Dashboard – Sometrics
• Virtual Item Metrics – Jambool
• Curreny Manager - Twofish
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30. In Conclusion...
Thoroughly analyze your audience and A/B test
against multiple payment methods.
Proper Data Analysis = Increase Revenue
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31. Contact:
Ian Swanson
ian@sometrics.com
White Paper:
blog.sometrics.com
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