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Playcrafting - Mastering The Art Of Scaling Your Mobile Game

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Playcrafting - Mastering The Art Of Scaling Your Mobile Game

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At Pollen, we work with a lot of studios when they’re launching or scaling their game. Often times, we come across studios that make amazing games but just don’t know how to capitalize on the business side. We hope that by the end of this class, you’ll be well equipped to maximize your game’s potential

At Pollen, we work with a lot of studios when they’re launching or scaling their game. Often times, we come across studios that make amazing games but just don’t know how to capitalize on the business side. We hope that by the end of this class, you’ll be well equipped to maximize your game’s potential

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Playcrafting - Mastering The Art Of Scaling Your Mobile Game

  1. 1. MASTERING THE ART OF SCALING YOUR MOBILE GAME For More Information About Launching or Scaling Your Mobile Game, Follow @pollenvc on Twitter PART 2 OF THE POLLEN/PLAYCRAFTING SERIES
  2. 2. Mastering the Art of Scaling your Mobile Game 2 KENNETH LUI • Business Development • Competitive Dota 2 and Smash (Melee & 4) player • Previously addicted to Clash Royale, Pokemon GO, Summoner’sWar, and Non- stop Knight
  3. 3. Mastering the Art of Scaling your Mobile Game 3 BUILD A GREAT GAME
  4. 4. Mastering the Art of Scaling your Mobile Game 4 WHAT IS SUCCESS?
  5. 5. Mastering the Art of Scaling your Mobile Game 5 PRE- SOFT LAUNCH
  6. 6. How To Launch Your Mobile Game MEASUREMENT • Bug Tracking • Analytics • Chart Tracking • Attribution/Campaign Performance WHAT ARE OTHER STUDIOS USING?
  7. 7. Mastering the Art of Scaling your Mobile Game 7 Apple Releases your cash • Average Revenue Per Daily Active User • 1, 3 & 30 Day Retention • Benchmarks ARPDAU AND RETENTION
  8. 8. How to Launch Your Mobile Game 8 ALPHA/BETA TESTS
  9. 9. Mastering the Art of Scaling your Mobile Game 9 SOFT LAUNCH
  10. 10. Mastering the Art of Scaling your Mobile Game 10 PURPOSE • Competition is fierce, and getting your game right for the first time is essential! • Testing the user experience/behavior in the game • Testing that analytics is working (Marketing -> In-Game) • Get an understanding of UAC and LTV
  11. 11. 11How To Launch Your Mobile Game PLATFORM
  12. 12. Mastering the Art of Scaling your Mobile Game 12 • ~ 3-4 months • ~ $15-20k USD • ~ 2,000 DAU DURATION, BUDGET & SAMPLE
  13. 13. AALTO EE / GAME EXECUTIVE 2016 13 Apple Releases your cash • Bugs/Events • Downloads - by channel • Monetization ARPDAU - over $. 20 • Retention • D1 ∼ 40% • D7 ∼ 20% • D30 ∼ 10% • Organic Growth /Virality (k- factor) WHAT TO MEASURE? Source: Fiksu
  14. 14. Mastering the Art of Scaling your Mobile Game 14 Apple Releases your cash Overspend Even Underspend Large English Speaking Population COUNTRIES
  15. 15. 15How To Launch Your Mobile Game Examples of Great Icons: ASO AND APP ICON *Tune study 2015
  16. 16. AALTO EE / GAME EXECUTIVE 2016 16 UA CAMPAIGN MEASUREMENT
  17. 17. AALTO EE / GAME EXECUTIVE 2016 17 IN-GAME ANALYTICS
  18. 18. Mastering the Art of Scaling your Mobile Game YOUR PLATFORM RELATIONSHIPS 18 • No substitute for making a quality game that’s fun. • Pitching platforms early on • Meet reps at events • Ask someone if they’ll share your game • Submit through App Support
  19. 19. AALTO EE / GAME EXECUTIVE 2016 19 TRACKING APP STORE POSITION
  20. 20. Mastering the Art of Scaling your Mobile Game 20 LAUNCH
  21. 21. 21 TYPICAL LAUNCH SCENARIO LAUNCH Fail to get credit with ad networks Can’t reinvest to acq more users You get paid by Apple DOWNLOADS REVENUE Revenue/Downloads AALTO EE / GAME EXECUTIVE 2016
  22. 22. 22 LOWER YOUR EFFECTIVE CPI BY REINVESTING WHEN YOU ARE RIDING HIGH… How To Launch Your Mobile Game
  23. 23. THANK YOU
  24. 24. HOW TO SCALE YOUR MOBILE GAME MARTIN MACMILLAN, CEO
  25. 25. How to Finance Your Growth: A Metrics Based Approach 25 ABOUT POLLEN VC MARTIN MACMILLAN, CEO & FOUNDER Pollen VC provides a new type of growth capital for app developers who are ready to scale We enable developers to fund advertising by unlocking the value in app store revenues early Our model is a flexible and non-dilutive alternative to equity financing, allowing developers to retail control while growing their business Our mission is to get start-ups to think about capital efficiency, using the right type of funding for the right purpose
  26. 26. How to Finance Your Growth: A Metrics Based Approach 26 AGENDA PREPARE TO SCALE ALL ABOUT THE METRICS/UNIT ECONOMICS FINANCIALS WHAT DOES YOUR ORGANIZATION LOOK LIKE?
  27. 27. How to Finance Your Growth: A Metrics Based Approach 27 ARE YOU READY? WHAT DOES YOUR BUSINESS LOOK LIKE? MOTIVATIONS WHAT’S THE END GAME?
  28. 28. 28 Everyone knows the stories about a few apps that go viral with no promotion. For the 99.9% of all other apps launched, it’s necessary to spend to acquire users. THE REALITY IS THAT YOU NEED TO SUPPORT YOUR APP WITH PAID UA How to Finance Your Growth: A Metrics Based Approach
  29. 29. 29 Let’s start with the basics… UNIT ECONOMICS OF PAID UA LTV - Lifetime Value • Expected value of that customer over it’s lifetime, i.e. total amount earned • What does it mean for app developers? • How long is a lifetime? CPI - Cost Per Install • How much does it cost to acquire a user? • Where do I find these users? • How do I target these users? • When do I pay for these users? How to Finance Your Growth: A Metrics Based Approach
  30. 30. 30 UA HAPPINESS $2$1 How to Finance Your Growth: A Metrics Based Approach
  31. 31. 31 50c$1 UA MISERY How to Finance Your Growth: A Metrics Based Approach
  32. 32. 32 THE USER ACQUISITION REALITY Unless you have worked out an ROI positive way to spend money on paid UA, no amount of VC or external investment will get you the result you need. FACT Prepare to Join the App Millionaires Club
  33. 33. 33 CONSTANTLY TRACK METRICS - DOWNLOADS, CONVERSIONS, RETENTION, ARPDAU, CPI etc. ATTRIBUTION - WHICH NETWORKS ARE WORKING OR NOT WORKING - NB THIS CAN CHANGE DAILY
  34. 34. 34 CONSTANTLY TRACK UNDERSTAND WHAT THEY MEAN, NOT WHAT THEN STAND FOR!
  35. 35. 35 RECIPE FOR SUCCESS Understand what it costs to acquire a user How to Finance Your Growth: A Metrics Based Approach How long before you receive the revenue? The revenue they will generate VS +
  36. 36. How to Finance Your Growth: A Metrics Based Approach 36 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 1 11 21 31 41 51 61 71 81 91 101 111 121 131 141 151 161 171 181 191 201 211 221 231 241 251 261 271 281 291 301 311 321 331 341 351 361 PROFIT & LOSS DOES NOT EQUAL CASH-FLOW Days from launch
  37. 37. 37 THE PROBLEM: PLATFORMS ONLY PAY OUT REVENUE UP TO 60+ DAYS AFTER YOU’VE EARNED IT. LAUNCH You’re earning money from day 1 This is your money trapped in the payment system Platforms release your cash… How to Finance Your Growth: A Metrics Based Approach
  38. 38. 38 HOW TO USE THIS TO YOUR ADVANTAGE Unlock the value of your earnings rather than using venture capital to fund growth Think of your accrued app store earnings as an untapped asset How to Finance Your Growth: A Metrics Based Approach
  39. 39. 39 LTV CALCULATION ASSUMPTIONS How to Finance Your Growth: A Metrics Based Approach $1.50 LTV
  40. 40. 40 LTV CALCULATION ASSUMPTIONS How to Finance Your Growth: A Metrics Based Approach $1.50 LTV 365 Day max.
  41. 41. 41 LTV CALCULATION ASSUMPTIONS How to Finance Your Growth: A Metrics Based Approach $1.50 LTV 365 Day max. $1.00 CPI
  42. 42. 42 LTV CALCULATION ASSUMPTIONS How to Finance Your Growth: A Metrics Based Approach $1.50 LTV 365 Day max. $1.00 CPI 1,000 Installs daily
  43. 43. How to Finance Your Growth: A Metrics Based Approach 43 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 1 11 21 31 41 51 61 71 81 91 101 111 121 131 141 151 161 171 181 191 201 211 221 231 241 251 261 271 281 291 301 311 321 331 341 351 361 LET’S GET BACK TO LTV Days from launch
  44. 44. How to Finance Your Growth: A Metrics Based Approach -$100,000 -$80,000 -$60,000 -$40,000 -$20,000 $0 $20,000 $40,000 $60,000 $80,000 $100,000 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 44 NET CASH POSITION Net Cash Position first becomes Positive First App Store payment hits bank account Spending $1,000/ day on ads
  45. 45. How to Finance Your Growth: A Metrics Based Approach 45 USING REVENUE RECYCLING NetCashPosition -$400,000 -$320,000 -$240,000 -$160,000 -$80,000 $0 $80,000 $160,000 $240,000 $320,000 $400,000 Weeks After Launch 0 4 8 12 16 20 24 28 32 36 40 44 48 52 Net Position w Revenue Recycling Net Position -$100,000 -$80,000 -$60,000 -$40,000 -$20,000 $0 $20,000 $40,000 $60,000 $80,000 $100,000 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16
  46. 46. How to Finance Your Growth: A Metrics Based Approach 46 USING REVENUE RECYCLING NetCashPosition -$400,000 -$320,000 -$240,000 -$160,000 -$80,000 $0 $80,000 $160,000 $240,000 $320,000 $400,000 Weeks After Launch 0 4 8 12 16 20 24 28 32 36 40 44 48 52 Net Position w Revenue Recycling Net Position -$100,000 -$80,000 -$60,000 -$40,000 -$20,000 $0 $20,000 $40,000 $60,000 $80,000 $100,000 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Recycling revenue allows you to achieve same UA spend on 20% of your starting budget or spend 4x more on paid UA with same budget c.$20,000 required c.$80,000 required
  47. 47. How to Finance Your Growth: A Metrics Based Approach 4747 Reinvest earned LTV directly into advertising Acquire more users faster Extract LTV on a daily basis A NEW WAY… Extract your LTV as you earn it, to fund your advertising spend and fuel your growth. Keep your VC money in the bank!
  48. 48. How to Finance Your Growth: A Metrics Based Approach 48 FINANCES WHO IS THE CFO? WHERE ARE THE GAPS IN KNOWLEDGE? PROCESSES AND SYSTEMS
  49. 49. 49 FINANCING OPTIONS VENTURE FUNDING Product Team Acquisitions DEBT FUNDING Marketing/Paid User Acquisition Financing projected cash flow
  50. 50. How to Finance Your Growth: A Metrics Based Approach 50 LONG TERM GOALS WHO WILL BUY YOUR COMPANY AND WHY? BUILD YOUR BRAND! PUBLISHER OR SELF PUBLISH? RAISING VC/ANGEL FUNDING
  51. 51. IF YOU WANT US TO MODEL YOUR LTV AND CASHFLOW PLS EMAIL US! martin@pollen.vc @PollenVC

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