Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Eric Seufert - GDC 2018 - Succeeding with Licensed IP for Mobile F2P Games

3,281 views

Published on

Succeeding with Licensed IP for Mobile F2P Games
This presentation provides a framework for evaluating IP for use in mobile games. It also provides some guidance for negotiating IP licensing terms.

Published in: Marketing
  • Have you ever heard of taking paid surveys on the internet before? We have one right now that pays $50, and takes less than 10 minutes! If you want to take it, here is your personal link ■■■ https://tinyurl.com/make2793amonth
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Secrets to making $$$ with paid surveys...  http://ishbv.com/surveys6/pdf
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • I went from getting $3 surveys to $500 surveys every day!! learn more... ★★★ https://tinyurl.com/make2793amonth
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Hello! Get Your Professional Job-Winning Resume Here - Check our website! https://vk.cc/818RFv
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Eric Seufert - GDC 2018 - Succeeding with Licensed IP for Mobile F2P Games

  1. 1. Succeeding with Licensed IP for Mobile F2P Games Eric Benjamin Seufert Platform, N3TWORK
  2. 2. Who I Am N3TWORK Mobile Dev Memo Freemium Economics
  3. 3. Who I Am N3TWORK Mobile Dev Memo Freemium Economics
  4. 4. Presentation Structure 1) Why license an IP?
  5. 5. Presentation Structure 1) Why license an IP? 2) Evaluating an IP: fit, utility, and resonance
  6. 6. Presentation Structure 1) Why license an IP? 2) Evaluating an IP: fit, utility, and resonance 3) Negotiating an IP license: pitfalls and dealbreakers
  7. 7. Why license an IP?
  8. 8. User Acquisition is competitive. ● Lots of app developers -- and, increasingly, brands -- are all vying for the same impressions. It’s not easy to stand out. Why license an IP?
  9. 9. Mobile UA for Games in 2017 Unit Monetization MarginalUnitAcquisitionCost Hyper-Casual Build & Battle Social Casino PVP Card Collection Pure Casual Hybrid Casual Story-driven Sports / Racing Tournament-Driven PVP
  10. 10. Mobile UA for Games in 2017 Unit Monetization MarginalUnitAcquisitionCost Hyper-Casual Build & Battle Social Casino PVP Card Collection Pure Casual Hybrid Casual Story-driven Sports / Racing Tournament-Driven PVP Success! The licensed IP increased engagement / monetization and / or decreased marginal unit acquisition costs at scale.
  11. 11. Mobile UA for Games in 2017 Source: eMarketer
  12. 12. Mobile UA for Games in 2017 Source: eMarketer
  13. 13. Mobile UA for Games in 2017 Source: Liftoff
  14. 14. An IP provides an established, fully-vetted audience. ● Demonstrable affinity -> ability to reach people with a message that has proven resonance for them. Why license an IP?
  15. 15. Why license an IP?
  16. 16. “Free” user acquisition. ● It’s not going to happen; Why not license an IP?
  17. 17. “Free” user acquisition. ● It’s not going to happen; ● Brand affinity might increase CTRs from fans, but it won’t manifest clicks out of thin air. Why not license an IP?
  18. 18. Why not license an IP?
  19. 19. Earned media from the announcement of the partnership. ● It’s not going to happen; Why not license an IP?
  20. 20. Earned media from the announcement of the partnership. ● It’s not going to happen; ● IP licensing deals for mobile games aren’t big news anymore. Consumers don’t care; Why not license an IP?
  21. 21. Earned media from the announcement of the partnership. ● It’s not going to happen; ● IP licensing deals for mobile games aren’t big news anymore. Consumers don’t care; ● What’s that worth, anyway? Why not license an IP?
  22. 22. The IP has a huge presence on Facebook / Twitter / Snapchat. ● It’s not going to help; Why not license an IP?
  23. 23. The IP has a huge presence on Facebook / Twitter / Snapchat. ● It’s not going to help; ● Organic social media reach is almost non-existent. You’ll have to pay to reach the brand’s social media audience. Why not license an IP?
  24. 24. Why not license an IP?
  25. 25. Why not license an IP?
  26. 26. Hard truths to accept about IP licensing for mobile games
  27. 27. ● Difficult to align incentives between licensor / developer; Hard truths to accept about IP licensing for mobile games
  28. 28. ● Difficult to align incentives between licensor / developer; ● License owner might not understand mobile space / care about your success; Hard truths to accept about IP licensing for mobile games
  29. 29. ● Social Media followers won’t translate into downloads; Hard truths to accept about IP licensing for mobile games
  30. 30. ● Social Media followers won’t translate into downloads; ● You’re probably pricing the partnership on the basis of an entirely different form of media; Hard truths to accept about IP licensing for mobile games
  31. 31. ● No free lunch: you’ll still need to pay for installs; Hard truths to accept about IP licensing for mobile games
  32. 32. ● No free lunch: you’ll still need to pay for installs; ● Not every license owner knows their audience well / has recent, relevant data on their brand’s fans. Hard truths to accept about IP licensing for mobile games
  33. 33. 1) Why license an IP? 2) Evaluating an IP: fit, utility, and resonance 3) Negotiating an IP license: pitfalls and dealbreakers Presentation Structure
  34. 34. Finding Fit: Assessing Game Mechanics
  35. 35. Finding Fit: Assessing Game Mechanics ● What’s a Mechanic in this context?;
  36. 36. Finding Fit: Assessing Game Mechanics ● What’s a Mechanic in this context?; ● Defining, focal form that gameplay takes (outside of the metagame);
  37. 37. Finding Fit: Assessing Game Mechanics ● What’s a Mechanic in this context?; ● The defining, focal form that core (not meta) gameplay takes; ● Eg. Match 3, Build & Battle, Endless Runner, Simulation, Shooter, Platformer, etc.
  38. 38. Finding Fit: Assessing Game Mechanics ● Assessing the gaming landscape involves evaluating game mechanics first;
  39. 39. Finding Fit: Assessing Game Mechanics ● Assessing the IP landscape involves evaluating game mechanics first; ● Very few games on mobile are supported by games-first franchise (Angry Birds, Clash, Candy Crush);
  40. 40. Finding Fit: Assessing Game Mechanics ● When trying to deduce audience for successful games, makes sense to start by looking at appeal of mechanic along mass appeal / gender axes:
  41. 41. Finding Fit: Assessing Game Mechanics
  42. 42. Finding Fit: Assessing Game Mechanics
  43. 43. Finding Fit: Assessing Brand Audience ● Brands are not the same: they are already big by definition (otherwise they wouldn’t be “brands”);
  44. 44. Finding Fit: Assessing Brand Audience ● Brands are not the same: they are already big by definition (otherwise they wouldn’t be “brands”); ● Appeal makes no sense as evaluation vector, rather existing size of audience;
  45. 45. Finding Fit: Assessing Brand Audience ● Age is also a more appropriate evaluation metric because gender appeal is less stratified / more extreme with brands;
  46. 46. Finding Fit: Assessing Brand Audiences
  47. 47. Finding Fit: Assessing Brand Audiences
  48. 48. How to align Brand with Mechanic
  49. 49. How to align Brand with Mechanic ● Does the mix of this brand with that mechanic produce a game that:
  50. 50. How to align Brand with Mechanic ● Does the mix of this brand with that mechanic produce a game that: ● Is cheap / easy to distribute with UA?;
  51. 51. How to align Brand with Mechanic ● Does the mix of this brand with that mechanic produce a game that: ● Is cheap / easy to distribute with UA?; ● Is tonally consistent?;
  52. 52. How to align Brand with Mechanic ● Does the mix of this brand with that mechanic produce a game that: ● Is cheap / easy to distribute with UA?; ● Is tonally consistent?; ● Activates an existing audience in a way that makes them eager to spend money?
  53. 53. The Power Triad of Resonance https://mobiledevmemo.com/power-triad-resonance-mobile-games/
  54. 54. The Power Triad of Resonance
  55. 55. The Power Triad of Resonance
  56. 56. The Power Triad of Resonance
  57. 57. 1) Why license an IP? 2) Evaluating an IP: fit, utility, and resonance 3) Negotiating an IP license: pitfalls and dealbreakers Presentation Structure
  58. 58. Most contentious points in IP licensing agreements:
  59. 59. Most contentious points in IP licensing agreements: ● Recoup for marketing & other expenses;
  60. 60. Most contentious points in IP licensing agreements: ● Recoup for marketing & other expenses; ● Marketing commitments from IP holder;
  61. 61. Most contentious points in IP licensing agreements: ● Recoup for marketing & other expenses; ● Marketing commitments from IP holder; ● Accepted use / art guidelines;
  62. 62. Most contentious points in IP licensing agreements: ● Recoup for marketing & other expenses; ● Marketing commitments from IP holder; ● Accepted use / art guidelines; ● MG.
  63. 63. Marketing Recoup ● What is recoup?;
  64. 64. Marketing Recoup ● What is recoup?; ● Reimbursing marketing expenses before revenues are split;
  65. 65. Marketing Recoup ● What is recoup?; ● Reimbursing marketing expenses before revenues are split; ● Eg. Revenue to partner = (Gross Receipts - Marketing Expense) * Revenue Share;
  66. 66. Marketing Recoup ● It’s almost impossible to make UA work unless marketing spend is recouped before gross receipts are split;
  67. 67. Marketing Recoup: Example, Launch Month 30-Day LTV: $5 Margin: 20% Bid: $4 Installs @ Bid: 10,000 / day Daily Spend: $40,000 Revenue Split: 50% LTV Progression Day 1: Spend: $40,000 Revenue: $6,000 Day 15: Spend: $40,000 Revenue: $40,933.85 Day 30: Spend: $40,000 Revenue: $49,875.45
  68. 68. Recoup Scenario: Month 1 Spend: $1,200,000 Month 1 Revenue: $1,140,000 Developer Profit: $0 IP Holder Profit: $0 Developer Out of Pocket: -$60,000 Deferred Recoup: $60,000 LTV Progression Day 1: Spend: $40,000 Revenue: $6,000 Day 15: Spend: $40,000 Revenue: $40,933.85 Day 30: Spend: $40,000 Revenue: $49,875.45 Marketing Recoup: Example, Launch Month
  69. 69. No Recoup Scenario: Month 1 Spend: $1,200,000 Month 1 Revenue: $1,140,000 Developer Profit: $0 IP Holder Profit: $570,000 Developer Out of Pocket: -$630,000 Deferred Recoup: $0 LTV Progression Day 1: Spend: $40,000 Revenue: $6,000 Day 15: Spend: $40,000 Revenue: $40,933.85 Day 30: Spend: $40,000 Revenue: $49,875.45 Marketing Recoup: Example, Launch Month
  70. 70. Marketing Recoup ● It’s almost impossible to make UA work unless marketing spend is recouped before gross receipts are split; ● In order to grow a game with no recoup clause, LTV must be >= 2x unit acquisition cost -- massive hurdle to scale.
  71. 71. Marketing commitments from IP holder
  72. 72. Marketing commitments from IP holder ● Will IP holder post on social media?;
  73. 73. Marketing commitments from IP holder ● Will IP holder post on social media?; ● If so: how often? Will posts be boosted? Who pays?
  74. 74. Marketing commitments from IP holder ● Will IP holder post on social media?; ● If so: how often? Will posts be boosted? Who pays? ● Will IP holder promote game in owned channels?;
  75. 75. Marketing commitments from IP holder ● Will IP holder post on social media?; ● If so: how often? Will posts be boosted? Who pays? ● Will IP holder promote game in owned channels?; ● Will IP holder provide marketing materials?;
  76. 76. Accepted use / art guidelines
  77. 77. Accepted use / art guidelines ● Iteration speed on marketing / app store assets will be very slow if IP holder must approve all art;
  78. 78. Accepted use / art guidelines ● Iteration speed on marketing / app store assets will be very slow if IP holder must approve all art; ● Much faster if both parties agree to content guidelines.
  79. 79. Minimum Guarantee
  80. 80. Minimum Guarantee ● Generally kills all incentive on the part of the IP holder;
  81. 81. Minimum Guarantee ● Generally kills all incentive on the part of the IP holder; ● (potentially) Huge hurdle to clear in reaching profitability;
  82. 82. Minimum Guarantee ● Generally kills all incentive on the part of the IP holder; ● (potentially) Huge hurdle to clear in reaching profitability; ● Some IP holders won’t do a deal without it.
  83. 83. Minimum Guarantee ● Make sure there’s still a reason for IP holder to remain active;
  84. 84. Minimum Guarantee ● Make sure there’s still a reason for IP holder to remain active; ● Always better to align with performance (payment milestones, rev share increases, etc.);
  85. 85. Minimum Guarantee ● Make sure there’s still a reason for IP holder to remain active; ● Always better to align with performance (payment milestones, rev share increases, etc.); ● Ask: “For the IP holder, could this be the entire deal?”
  86. 86. Other considerations: ● Who travels?; ● Exclusivity; ● Chain of command / employee churn;
  87. 87. 3 Key Takeaways
  88. 88. 3 Key Takeaways ● IP will not generate installs out of thin air;
  89. 89. 3 Key Takeaways ● IP will not generate installs out of thin air; ● Purpose of IP isn’t to reduce UA costs -- it is to bolster unit economics;
  90. 90. 3 Key Takeaways ● IP will not generate installs out of thin air; ● Purpose of IP isn’t to reduce UA costs -- it is to bolster unit economics; ● “Cheap UA” could tank LTV; “high-value IP” could make UA more expensive;
  91. 91. 3 Key Takeaways ● IP will not generate installs out of thin air; ● Purpose of IP isn’t to reduce UA costs -- it is to bolster unit economics; ● “Cheap UA” could tank LTV; “high-value IP” could make UA more expensive; ● Without a recoup clause, UA will be very, very difficult.
  92. 92. Thank You! eric@mobiledevmemo.com @eric_seufert

×