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.

Future of Monetizing Social Games

5,529 views

Published on

The future of social game monetization and the revolutionary change to observe and look out for.

  • Follow the link, new dating source: ♥♥♥ http://bit.ly/369VOVb ♥♥♥
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Dating direct: ♥♥♥ http://bit.ly/369VOVb ♥♥♥
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Future of Monetizing Social Games

  1. 1. The Future of Monetization?<br />Driving Game & Content Development<br />Elvin Li<br />Founder & CEO<br />Ryan Lou<br />Biz Dev Partner<br />Fiona Poh<br />Marketing Mgr<br />
  2. 2. About ZelRealm<br />Commerce Tools for Social Game Developers<br />Analysis<br />Monetization<br />Virtual Goods Management<br />
  3. 3. Is this a cheat sheet?<br />
  4. 4. Breakdown<br />
  5. 5. Maturity of gaming niches<br />Over expectations<br />Social Games<br />Steady growth<br />MMOGs<br />Mobile games<br />PC, Consoles games<br />Consolidation<br />
  6. 6. What’s Hot: Freemium<br />Micro-Transactions: <br /><ul><li>Virtual Goods
  7. 7. Virtual Currency</li></li></ul><li>Did you know? Monetization<br /><ul><li> Virtual Items
  8. 8. Virtual Currency
  9. 9. Brand sponsorships
  10. 10. Premium features
  11. 11. Virtual Gifting
  12. 12. Integration with real world transactions
  13. 13. Tradable currency
  14. 14. Subscription
  15. 15. Pay for time
  16. 16. Peripheral Enticement
  17. 17. Selling Branded Items from your site
  18. 18. Retail (bricks & mortar)
  19. 19. Digital Distribution
  20. 20. In-Game Advertising
  21. 21. Around-Game Advertising
  22. 22. Advertgames
  23. 23. Try Before you Buy
  24. 24. Episodic Entertainment
  25. 25. Skill-Based Progressive Jackpots
  26. 26. Velvet Rope or Member's Club
  27. 27. Foreign distribution deals
  28. 28. User Generated Content
  29. 29. Pay for Storage Space</li></ul>http://news.cnet.com/8301-13846_3-9983073-62.html<br />
  30. 30. What’s Hot: Hybrid Model<br />Micro-Transaction<br />+ Subscription<br />+ Immersive Brand Advertising<br />+ Metered System<br />+ ….<br />“Why get rid or alienate your current subscriber base?  Would you really cancel your current subscribers?” – LOGIN 2010, Fernando Paiz (DDO)<br />
  31. 31. My Background<br />Monetization<br />
  32. 32.
  33. 33. Understanding Monetization<br />(Lifetime Value – User Acquisition Costs) <br />x scale = Profit<br />Credit: Siqi Chen (Serious business)<br /> How long people play <br /> Conversion rates<br /> Game dynamics <br /> Marketing effectiveness<br /> Flow of game<br />Payments<br />
  34. 34. Understanding Monetization<br />(Lifetime Value – User Acquisition Costs) <br />x scale = Profit<br />Credit: Siqi Chen (Serious business)<br />Facebook killed virality<br />Typically Ads (US$1.50 per user) <br />Multiple Platforms<br />Cross promotion<br />
  35. 35.
  36. 36. Understanding Monetization<br />(Lifetime Value – User Acquisition Costs) <br />x scale = Profit<br />Credit: Siqi Chen (Serious business)<br />Same problems as Web 2.0<br />
  37. 37. Understanding Monetization<br />(Lifetime Value – User Acquisition Costs) <br />x scale = Profit<br />Credit: Siqi Chen (Serious business)<br />Is about managing trade-offs<br />
  38. 38. Understanding Monetization<br />(Lifetime Value – User Acquisition Costs) <br />x scale = Profit<br />Credit: Siqi Chen (Serious business)<br />Is about managing trade-offs<br />
  39. 39. Reducing leakages<br />Make it simple to learn<br />
  40. 40. Reducing leakages<br />
  41. 41. Reducing leakages<br />Yes, You need to make money<br />Use Analytics<br /><ul><li> ARPU
  42. 42. Virality
  43. 43. Entry/Exit
  44. 44. Revisit rates
  45. 45. Conversions</li></li></ul><li>Getting ‘em addicted<br />4 stages of addiction<br />Experimental stage <br />Recreational stage<br />Early dependency<br />Full Dependency<br />
  46. 46. Getting ‘em addicted<br />
  47. 47. The social gaming industry<br /> Predictions<br />Growing industry (like blogging before)<br />Where’s the innovation?<br />Every game will be social<br />
  48. 48. Why Free To Play?<br />Symptom of worldwide recession<br />Users as a KPI (Funding / Acquisition) <br />Bigger upside<br />Doesn’t require big spike<br />
  49. 49. Excuse me, are you a gamer?<br />
  50. 50. Who plays social games<br />
  51. 51. Demographics (ASIA)<br />Who Uses Facebook? The Asian Context<br />CASE: INDONESIA<br />
  52. 52. Compared to US: More males use Facebook than females (18.4% overall)<br />Male Age: 18-25 - 45.9%<br /> 13-17 – 23.5%<br />Overall: Users under 25 – 72.5%<br />More women in younger ages play Facebook compared to men<br />
  53. 53. Demographic (US)<br />average age is 48<br />90% reported the same or increased game play over the past 3 months<br />27% and 25% reported less time spent reading (mag, book, newspaper) and home TV/movie viewing respectively<br />43% of the time, game players log into social networks specifically to play games<br />friends’ recommendations are the #1 factor influencing social game selection<br />35% have purchased a virtual gift while playing a social game<br />
  54. 54. Gifting<br />
  55. 55. VS<br />
  56. 56.
  57. 57.
  58. 58. Social Whales<br />Players who spend massively on virtual goods and gifts<br />Whale: > USD$1, 000Super Whale: > USD$10,000<br />Mafia Wars, Happy Aquarium etc<br />Small percentage (10%) of users in the category<br />Single minded<br />
  59. 59. TOP SPENDER : SAUDI ARABIA<br />
  60. 60. Facebook phenomenon<br />Increased number of people using social media<br />Increased number of people playing social games too<br />
  61. 61. Facebook phenomenon<br />Increased number of people using social media<br />Increased number of people playing social games too<br />
  62. 62. Future of Social Game<br />Spending on social games is open –ended<br />Assumption: even LARGER whales<br />Larger spenders <br />No extreme spending foreseen<br />
  63. 63. The future?<br />
  64. 64. Future of monetization<br />Consolidation<br />Socializing<br />
  65. 65. Future of monetization<br />Remember this?<br />
  66. 66. Future of monetization<br />
  67. 67. Future of monetization<br />Selling IP<br />Selling Users<br />
  68. 68. Future of monetization<br />
  69. 69. Future of monetization<br />
  70. 70. Future of monetization<br />
  71. 71. Future of monetization<br />
  72. 72. Lessons: Relevance<br />
  73. 73. Lessons: Relevance<br />Ask more questions to understand your audience<br />
  74. 74. Lessons: Test TestTest<br />Ad models<br />Marketing methods<br />Promotions<br />Email methods<br />PPA<br />PPC<br />Word of mouth<br />PR<br />Video marketing<br />PPM<br />Expect the unexpected<br />Monetization models<br />Brand engagement<br />Freemium<br />Inter-operability<br />Virtual items<br />New markets<br />

×