The digital gold rush

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The digital gold rush

  1. 1.
  2. 2. Introduction<br />
  3. 3. SocialNetwork<br />+ =<br />570.000.000<br />Facebook Users<br />
  4. 4. Facebook Growth<br />
  5. 5. Facebook<br /> Video<br />Photo’s<br />Events<br />Messages<br />
  6. 6. Social Games<br />
  7. 7. Farmville<br />
  8. 8. Farmvillegrowth<br />
  9. 9. Free-to-play<br />Micro Transactions<br />
  10. 10. Top 250 Growth<br />
  11. 11. Research Question<br />How has the free-to-play micro-transaction business model influenced the growth of Facebook Games?<br />
  12. 12. Methodology<br />Looking for the correlations<br />
  13. 13. Data from:<br />Articles From:<br />Methodology<br />
  14. 14. Presentation<br />General Business Concept<br />Metrics<br />Monetizing<br />Acquiring Users<br />Digital Gold Rush<br />
  15. 15. General Business Concept<br />(LTV – CAC) * scale = profit<br />LTV = Life Time Value<br />CAC= Customer Acquisition Cost<br />
  16. 16. Balancing LTV & CAC<br />
  17. 17. PositiveBalance<br />
  18. 18. Metrics<br />Google Analytics<br />Kon<br />Web metrics<br />
  19. 19. SocialGamingMetrics<br />Kontagent<br />Specialised metrics: <br />Viral & FB Demographics<br />
  20. 20. Metrics<br />Optimize through A/B testing<br />
  21. 21. MetricsvsIntuition<br />Intuition lets you find new designs.<br />
  22. 22. Life time value<br />=<br />Daily ARPU * Retention<br />ARPU = Average Revenue per User<br />Retention = Avg. Active Days<br />
  23. 23. Micro Transactions<br />Selling Digital Goods<br />Advantages:<br />No price Barrier<br />Continual Revenue Stream<br />
  24. 24. Digital Goods<br />Gameplay enhancing<br />Customizing<br />Progression boosting<br />
  25. 25. DailyArpu<br />ARPU = Average Revenue per User<br />$30<br />Divided by<br />1000 users<br />=<br />Daily ARPU of $0,03<br />
  26. 26. Total Average Daysspend<br />Retention<br />
  27. 27. CustomerAcquisitionCost<br />=<br />(Cost per Acquisition / Conversion Rate) / (1+k-factor)<br />
  28. 28. Cost Per Acquisition<br />Advertisement<br />
  29. 29. ConversionRate<br />%<br />Of<br />Userswhocompleted the tutorial<br />
  30. 30. ConversionFunnel<br />
  31. 31. Viral<br />News Feeds<br />Invites<br />Sendinggifts<br />Referals<br />
  32. 32. Viral<br />K-Factor<br />K-Factor >1<br />
  33. 33. Conclusion<br />((LTV – CAC) * scale) – Investment <br />= <br />profit<br />LTV = Daily ARPU * Retention<br />CAC= (Cost per Acquisition / Conversion Rate) / (1+k-factor)<br />
  34. 34. Digital Gold Rush<br />Viral<br />
  35. 35. Digital Gold Rush<br />Each ad earnsyou more thanitcosts!<br />
  36. 36. PolicyChange<br />
  37. 37. PolicyChange<br />ViralChannels and 3rd party appsblockedfrom Facebook<br />
  38. 38. PolicyChange<br />Viral<br />
  39. 39. Smaller titlesGrowth<br />
  40. 40. Top 250 Growth<br />
  41. 41. Smaller titlesGrowth<br />
  42. 42. Questions<br />
  43. 43. New DevelopmentStyle<br />
  44. 44. CityvillesGrowth<br />

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