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The Case for Monetization Design

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In this talk, we sketch out a few of the individually complex aspects of monetization (for example, annuity design) and make the case for a new role in the gaming org: monetization designer.

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The Case for Monetization Design

  1. 1. info@@scientificrevenue.com The World’s Best Dynamic Pricing Engine. The Case for Monetization Design September 5, 2016
  2. 2. info@@scientificrevenue.com The World’s Best Dynamic Pricing Engine. About Us
  3. 3. info@@scientificrevenue.com The World’s Best Dynamic Pricing Engine. When We Do Initial Sales Calls, We’re Often Surprised People are not tracking key metrics People are not sure how their monetization funnel works People are not taking advantage of key design decisions (read: are not making key design decisions) What we’ve come to realize is that there’s often an unfilled job position: monetization *designer*
  4. 4. info@@scientificrevenue.com The World’s Best Dynamic Pricing Engine. In Retrospect, We Shouldn’t Have Been Surprised Scientific Revenue recently benchmarked industry best practices using IAPs.
  5. 5. info@@scientificrevenue.com The World’s Best Dynamic Pricing Engine. This is In Spite of Things like This: Most of our respondents use IAPs
  6. 6. info@@scientificrevenue.com The World’s Best Dynamic Pricing Engine. Old News: The No Brainer First Purchase
  7. 7. info@@scientificrevenue.com The World’s Best Dynamic Pricing Engine. Wisdom from England
  8. 8. info@@scientificrevenue.com The World’s Best Dynamic Pricing Engine. How to use Rewarded Video Effectively From http://venturebeat.com/2015/08/04/5-ways-to-accelerate-app- monetization-with-rewarded-video/
  9. 9. info@@scientificrevenue.com The World’s Best Dynamic Pricing Engine. Purchases and Training Effects • Random game from the ones we manage: • D7 Retention of D{1-3} purchasers: 39% • D7 Retention of non-purchasers: 21% • Another random game from the ones we manage: • D7 Retention of D{1-3} purchasers: 43% • D7 Retention of non-purchasers: 16% • In general the pattern holds: • People who buy, retain at about a 2X rate
  10. 10. info@@scientificrevenue.com The World’s Best Dynamic Pricing Engine. Note Also That People Who Buy Also Buy Again • (Same) Random game: • Second Purchase Rate: 36% • (Same second) random game: • Second Purchase Rate: 29% • In general the pattern holds: • Most games have a 20% to 60% second purchase rate
  11. 11. info@@scientificrevenue.com The World’s Best Dynamic Pricing Engine. Annuities http://www.gamasutra.com/blogs/IsaacKnowles/20160512/272484/Want_to_Increase_Your_FreetoPlay_Ga me_Revenue__Retention_Experiment_With_Virtual_Currency_Annuities.php
  12. 12. info@@scientificrevenue.com The World’s Best Dynamic Pricing Engine. Daily Login Rewards http://www.gamasutra.com/blogs/WilliamGrosso/20160613/274759/The_Science__Craft_of_Designing_Daily _Rewards__and_Why_FTP_Games_Need_Them.php
  13. 13. info@@scientificrevenue.com The World’s Best Dynamic Pricing Engine. My Favorite Daily Login Reward of All Time
  14. 14. info@@scientificrevenue.com The World’s Best Dynamic Pricing Engine. Etcetera • Your game has a coin store • Your game has a virtual goods store • At some point, your game will have flash sales for virtual goods • At some point, your game will have flash sales for currency
  15. 15. info@@scientificrevenue.com The World’s Best Dynamic Pricing Engine. Wisdom from England (Yes, Same Slide)
  16. 16. info@@scientificrevenue.com The World’s Best Dynamic Pricing Engine. Key Takeaways You have to have an economy before you can optimize it There’s a lot of (design) work involved in getting IAP monetization right What “Free to Play” really means is that you control the point of sale This talk is an attempt to kickstart the “monetization design” conversation
  17. 17. info@@scientificrevenue.com The World’s Best Dynamic Pricing Engine. The Library • Our Resources Page. http://www.scientificrevenue.com/resources/ • On Daily Login Bonuses. http://www.gamasutra.com/blogs/WilliamGrosso/20160613/274759/The_Science__Craft_of_Desi gning_Daily_Rewards__and_Why_FTP_Games_Need_Them.php • On Annuities. http://www.gamasutra.com/blogs/IsaacKnowles/20160512/272484/Want_to_Increase_Your_Free toPlay_Game_Revenue__Retention_Experiment_With_Virtual_Currency_Annuities.php • Our IAP Survey. http://www.pocketgamer.biz/data-and-research/63436/scientific-revenue-survey/ and http://www.scientificrevenue.com/iap-survey/ • On Feeder Apps. http://www.scientificrevenue.com/blog-posts/how-to-turn-free-viral-apps-into- feeder-apps-that-actually-make-money/ • On Powerup Design. http://www.scientificrevenue.com/blog-posts/rescues-buffs-skips-how-to- design-mobile-game-power-ups-for-optimal-iap/ • On Payment Wall Design. http://www.scientificrevenue.com/blog-posts/how-to-design-an-in-app- purchase-paywall-that-earns-you-money-without-annoying-your-players/ • On Non-virtual-currency IAP Strategies. http://www.gamasutra.com/blogs/WilliamGrosso/20160202/264646/IAP_Strategies_Most_Mobil e_Gamers_Dont_Hate__And_Most_AAA_Publishers_Should_Try.php
  18. 18. info@@scientificrevenue.com The World’s Best Dynamic Pricing Engine. The Library: Coming Soon • The Annuity Design Worksheet • Window Shopping and Stickershock • Monetization Myths (a series) • How to Use Subscriptions Effectively • ….
  19. 19. info@@scientificrevenue.com The World’s Best Dynamic Pricing Engine. Continuing the Conversation Twitter: https://twitter.com/SciRevenue Excellent Mailing Lists: https://twitter.com/SciRevenue https://mailman.stanford.edu/mailman/listinfo/gsb-videogames https://gaminginsiders.mobilize.io/users/sign_in
  20. 20. info@@scientificrevenue.com The World’s Best Dynamic Pricing Engine. Thank You William Grossobill@scientificrevenue.com bill@scientificrevenue.com

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