Monetization As Part Of Game Design

1. MONETIZATION An integral part of game design Tanvi Kapoor Game Lover (& Hobby Developer)

2. Local Presence, Global Operations 6 Billion Daily Ad Requests 140 Billion Monthly Ad Impressions Mobile First Advertising Platform 17 Offices and 900 Employees

3. A BRIEF HISTORY Designing Games = Creating Fun!

4. Focus on MECHANICS, DYNAMICS & AESTHETICS Aim to create fun, immersive & entertaining experiences

5. The only money exchange was at the point of sale. Traditionally, monetization was not part of game design

6. But ‘free to play’ games changed everything Monetization must be at the core of game design Facilitated by the rise and ubiquity of smartphones Making games accessible to a wider audience

7. MONETIZATION STRATEGIES What is the most suitable business model?

8. Monetization choices Traditional model of ‘pay before you play’ which can still work well for big franchises and other niche titles Free download of the game with monetisation coming later through sale of virtual currency or consumable items Monetise your traffic through advertising revenue by showing banners, interstitial and video ads Although a viable business model on PC / MMO games, Apple has forbidden this for games (iOS Guidelines 11.15)SUBSCRIPTION ADVERTISING IN APP PURCHASES PAID

9. Global IAP & Ad revenue in billion USD 2012 2013 2014 2.1 4.6 7.7 9.7 11.4 13.5 IAP vs. Ads Revenue Ad monetization can represent up to 50% of a game’s revenue

10. Killers Competitive gamers who like to beat the game and other players while mastering new tools of the trade. Perfect target for limited edition sales and early adopters of new virtual goods. Socialites Competitive or casual gamers who are more concerned about sharing their achievements with their social network be it good or bad. Perfect target for creating a viral effect for your game. Achiever Generally casual gamers who are interested in collecting badges, coins, etc as a matter of prestige. They generally pay for level ups and have the potential to be big spenders. Scrooges Casual gamers who are loathe to spending any money on the game. Hacks and social incentives are the most common tricks of their trade to get ahead in the game play. Types of Gamers…

11. IN APP PURCHASES Monetizing ‘emotional’ states

12. CURIOSITY IAPs can be centered around FOUR player emotions COMFORT AMBITION IMPATIENCE

13. 1.  If your game has new levels/content, announce them ahead of time. 2.  Log all stats of your player’s games. You can offer statistics on how your users stack up, as an IAP 3.  Provide samples of IAP-based content. Eg: a special gun that can be used twice for free before you can buy it. CURIOSITY Monument Valley Ruzzle Fruit Ninja

14. 1.  IAPs that help users overtake friends (which would imply a social angle to the game) 2.  Own awesome things/collectibles 3.  Cater to different demographics and tastes Draw SomethingAgent DashTemple Run 2 AMBITION

15. 1.  Provide tools for easy progress 2.  Give things that will speed things up in a game COMFORT Jetpack JoyrideCookie Clickers

16. IMPATIENCE 1.  Offer IAPs at tough moments. Eg: ‘save me’ 2.  Limited time offers / One time deals Doodle Jump: DC Edition Image source: raywenderlich.com

17. WINNING WITH AD MONETIZATION Unlocking a significant revenue stream

18. Questions, Choices, Decisions What is the optimal ad placement? What ad formats are available and which ones should I use? How many ads should I show per user per session per day per hour? Will ads impact user retention and IAP monetization? How can I maximize my ad revenue? What is mediation, and how does it work? How many ad networks should I work with?

19. Player goes through an emotional rollercoaster while playing a game Leading to states of EXPLORATION, ACHIEVEMENT & DISENGAGEMENT

20. Multiple Ad Formats USE ONE or USE ALL? Standard Banners Static Interstitials Animated (Rich Media) Interstitials Video Interstitials Rewarded Video Native Ads

21. INTERSTITIAL HIGH CONVERSION FULL SCREEN FORMAT “Push” Format Segment user base to only non- buyers Placement at natural pauses in the game Custom frames improve CTRs Static Animated Video $8 - $12 eCPM In tier 1 countries

22. REWARDED VIDEO HIGH CONVERSION FULL SCREEN FORMAT $10 - $15 eCPM In tier 1 countries 2 3 4 1 Featured Game: Compass Point West by Next Games “Pull” Format Works for both buyers and non buyers Make them feature in the game, a retention tool Offer currency, consumables and exclusives!

23. Lets explore a few examples

24. Casino & slots More than 5% Paying Users Game Dynamics: 10 Sessions per Week for Casino 20+ Sessions per Week for Slots 40-45 yr old Males 35-50 yr old Females A user who hasn’t been paying for 9 months can also turn out to be a whale. Hence User Experience is key! Monetization Method: Focus on in-app purchases Limit the use of banners Show only high eCPM ad formats at suﬃciently long intervals Leverage Rewarded Ads to increase retention

25. Endless runner games Less than 2% Paying Users Game Dynamics: 5-10 Sessions per Week Average session length of 2-5min 20-25 yr old Players Almost 60% of players are Females Monetization Method: Combination of interstitials, rich media (videos) and rewarded videos Show video ads when the gamer beats his high score or every 5 turns Show rewarded ads when the gamer has failed in his attempt to beat the challenge Show interstitials every 2/3 turns

26. Arcade games Less than 1% Paying Users Game Dynamics: 5-15 Sessions per Week Average session length of < 4 min 25-35 yr old Players 50 - 65% of players are Females Monetization Method: Combination of interstitials, rich media / videos Show video ads when the gamer beats his high score or every 10 turns Show interstitials every 3-5 turns

27. Action & adventure games 2-5% Paying Users Game Dynamics: 5-10 Sessions per Week Average session length of 10 mins 20-35 yr old Players 70% of players are Males Monetization Method: Combination of rich media /videos, rewarded video ads Show video ads when the gamer beats his high score Show rewarded video ads in the shop front to complement IAP

28. Playable Ads After trying 10 times, disengagement sets in. It is best to monetize with a high eCPM format. Long Wait Level Win Short Wait Level Lose Turn Counter %10 = 0? Turn Counter %5 = 0? Rewarded Counter = Y? Score < 10? Score < High Score? Score < 15 Yes No NoYes Turn Counter %3 = 0? Native Interstitials If time spent playing the game is less (<10 seconds), show the interstitial every 3 times. Yes No Do Nothing Yes Yes Rewarded Ad Video Ad If rewarded deals for the day are over for the user, monetize with a video ad. No No Yes Yes If time spent playing is less than 15 seconds, show an interstitial ad instead A simple ad-rule template can be customized for every game category

29. IMPLEMENTATION Choose the right partners!

30. Choosing the right mediation partner # of networks integrated with Ad formats supported Tech support offered Ease of use Commercial offer

31. Choosing the right ad networks PERFORMANCE: eCPM and fill rates SCALE: To match your users & inventory AD FORMATS: Networks often specialize EASE OF USE: Documentation, customer support PAYMENT TERMS: Payment cycle, etc.

32. Thank You! Tanvi Kapoor For more such developer resources check inDecode.inmobi.com

Monetization As Part Of Game Design

InMobi

Monetization As Part Of Game Design