Slide title goes here…
                  Monetizing Social Games:
                             A Step-by-Step Guide




  ...
First, a bit about Offerpal Media…
Company Background
Quick Facts:                                Management Team:
  • 100+ million Unique Visits / mo.      ...
Pioneer in Virtual Currency Monetization

In 2007, Offerpal Media launched
the first platform to give
consumers a way to e...
User Flow
1           2




 3          4

                2
First, some things to consider…
Not All Games Monetize the Same

Schwarzenegger
                                  DeVito
Not All Games Monetize the Same
 Consider:
 •   The Type of game – compelling theme & mechanics? (below)
 •   The Demand f...
First of all, Make It Fun

                            Before you do anything,
                            ask yourself:

...
And now…

      10 Steps for
Monetizing Social Games
Tip #1: Define Your Sinks

Some Types of Sinks:
• Functional Goods
• Decorative Goods
• Behavioral Goods
Tip #1: Define Your Sinks

Types of Sinks:
• Functional Goods
• Decorative Goods
• Behavioral Goods
Step #1: Define Your Sinks

Types of Sinks:
• Functional Goods
• Decorative Goods
• Behavioral Goods
Step #2: Assign Currency to Your Sinks

• Dual Currencies:
  – Use “in-game” currency
    to engage users
  – Use “RMT” cu...
Step #3: Define Sources for Your Currencies


Types of Sources:
• In-game currency
  – Missions/Quests
  – Logging in

• R...
Step #3: Define Sources for Your Currencies


Types of Sources:
• In-game currency
  – Missions/Quests
  – Logging in

• R...
Step #3: Define Sources for Your Currencies


Types of Sources:
• In-game currency
  – Missions/Quests
  – Logging in
• RM...
Step #3: Define Sources for Your Currencies


Types of Sources:
• In-game currency
  – Missions/Quests
  – Logging in
• RM...
Step #3: Define Sources for Your Currencies

   Types of Sources:
   • In-game currency
     – Missions/Quests
     – Logg...
Step #3: Define Sources for Your Currencies


Types of Sources:
• In-game currency
  – Missions/Quests
  – Logging in
• RM...
Step #4: Get them hooked


Balance engagement
with monetization:
• Engage your users first &
  monetize once engaged
• All...
Step #5: Set Your Exchange Rate


Tips on setting the exchange rate:
• Too low = low perceived value
• Too high = high inf...
Step #6: Launch Game




                             vs.

 Users of Facebook games expect them to be alive…
 constantly e...
Step #7: Promote Your Virtual Currency

 Promotion =
 Monetization
• Add a tab to “Add
  Credits”

• Include balance in
  ...
Step #8: Keep Demand for Currency High
What drives demand?
• User psychology
     – Self-expression
     – Collection
    ...
Step #9: Maintain a Balanced Economy

Tips for a healthy economy:
• Try upping exchange rate for a day
  & promoting it to...
Step #10: Test, Measure, Optimize
What to test?
                                        Attribute Graphs
•   Exchange rate...
Questions? Sign ups?
      www.Offerpal.com
        @Offerpal
http://myofferpal.wordpress.com

 www.facebook.com/ntalarico...
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Offerpal Media - Ten Tips For Monetizing With Virtual Currency (Nick Talarico, Facebook Developers Garage - Taipei)

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Ten Tips on How to Best Monetize Social Games

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Offerpal Media - Ten Tips For Monetizing With Virtual Currency (Nick Talarico, Facebook Developers Garage - Taipei)

  1. 1. Slide title goes here… Monetizing Social Games: A Step-by-Step Guide Nick Talarico Director of Publisher Development, Offerpal Media, Inc. www.facebook.com/ntalarico @nptca Offerpal Media Inc. Confidential
  2. 2. First, a bit about Offerpal Media…
  3. 3. Company Background Quick Facts: Management Team: • 100+ million Unique Visits / mo. • George Garrick, CEO • 4+ million transactions / mo. • Mitch Liu, Co-founder & VP • Venture capital funded: June, • Bill Lonergan, CFO 2007, and February, 2009 • Mihir Shah, CRO o Interwest Partners • Naghi Prasad, VP Engineering o Northbridge Venture Partners • Shannon Jessup, VP Sales o D.E. Shaw Ventures • Launched October, 2007 • Headquarters: Fremont, CA “Offerpal Media is built on the science of inserting scientifically targeted and relevant advertising offers into the virtual economies of social web sites, games and applications.”
  4. 4. Pioneer in Virtual Currency Monetization In 2007, Offerpal Media launched the first platform to give consumers a way to earn virtual currency for free – whether by participating in targeted ad offers, completing online surveys or shopping at brand-name retailers. Today, we have: • 165 Million User Accounts • 4,000 Advertising Offers • 2,000 Publishers/Developers • 750 Billion Virtual Points Issued • $19.6 Million in Venture Funding
  5. 5. User Flow 1 2 3 4 2
  6. 6. First, some things to consider…
  7. 7. Not All Games Monetize the Same Schwarzenegger DeVito
  8. 8. Not All Games Monetize the Same Consider: • The Type of game – compelling theme & mechanics? (below) • The Demand for Virtual Currency • The Balance of Sources & Sinks (+ Non-Monetizing Sources) • The Promotion of the Monetizing Sources • User Engagement & Retention (DAU:MAU) All of these things, when optimized, will improve monetization. >$150 eCPM Card Games $400 RPGs & MMORPGs $225 <$1 eCPM Resource Management Games $200 <10¢ eCPM Owning $150 Monetization for Virtual Category “Trivia” $25 Monetization Currency and CPM Digital CPC Adsense Products Banners User eCPM Engagement
  9. 9. First of all, Make It Fun Before you do anything, ask yourself: • Is your game fun? • Will users come back? • Will they invite their friends? If not, go back to square one. Monetization mode comes AFTER your game is engaging and viral.
  10. 10. And now… 10 Steps for Monetizing Social Games
  11. 11. Tip #1: Define Your Sinks Some Types of Sinks: • Functional Goods • Decorative Goods • Behavioral Goods
  12. 12. Tip #1: Define Your Sinks Types of Sinks: • Functional Goods • Decorative Goods • Behavioral Goods
  13. 13. Step #1: Define Your Sinks Types of Sinks: • Functional Goods • Decorative Goods • Behavioral Goods
  14. 14. Step #2: Assign Currency to Your Sinks • Dual Currencies: – Use “in-game” currency to engage users – Use “RMT” currency to monetize • Assign currencies to each sink or set of sinks • The decision to use multiple currencies may be one of the biggest decisions you make. Happy Harvest uses “Game Coins” for its engagement currency and “Credits” for RMT currency.
  15. 15. Step #3: Define Sources for Your Currencies Types of Sources: • In-game currency – Missions/Quests – Logging in • RMT currency – Cash payments – Ad offers – Shopping – & more to come…
  16. 16. Step #3: Define Sources for Your Currencies Types of Sources: • In-game currency – Missions/Quests – Logging in • RMT currency – Cash payments – Ad offers – Shopping – & more to come…
  17. 17. Step #3: Define Sources for Your Currencies Types of Sources: • In-game currency – Missions/Quests – Logging in • RMT currency – Cash payments – Ad offers – Shopping – & more to come…
  18. 18. Step #3: Define Sources for Your Currencies Types of Sources: • In-game currency – Missions/Quests – Logging in • RMT currency – Cash payments – Ad offers – Shopping – & more to come…
  19. 19. Step #3: Define Sources for Your Currencies Types of Sources: • In-game currency – Missions/Quests – Logging in • RMT currency – Cash payments – Ad offers – Shopping – & more to come…
  20. 20. Step #3: Define Sources for Your Currencies Types of Sources: • In-game currency – Missions/Quests – Logging in • RMT currency – Cash payments – Ad offers – Shopping – & more to come…
  21. 21. Step #4: Get them hooked Balance engagement with monetization: • Engage your users first & monetize once engaged • Allow all to play, but let people pay to advance more quickly • Focus on constant balance between sources and sinks (the sinkhole must always be slightly larger)
  22. 22. Step #5: Set Your Exchange Rate Tips on setting the exchange rate: • Too low = low perceived value • Too high = high inflation • Find the sweet spot by using Offerpal’s Multivariate Testing Platform (free like all Offerpal products) =
  23. 23. Step #6: Launch Game vs. Users of Facebook games expect them to be alive… constantly evolving and improving. Release games when they’re not 100% finished and iterate with improvements as new features.
  24. 24. Step #7: Promote Your Virtual Currency Promotion = Monetization • Add a tab to “Add Credits” • Include balance in a status bar • Use newsfeeds, notifications, banners and other messaging opportunities
  25. 25. Step #8: Keep Demand for Currency High What drives demand? • User psychology – Self-expression – Collection – Achievement • Limited edition goods • Level-specific goods • Perishable goods • New, fresh content • Global leaderboards & social competition
  26. 26. Step #9: Maintain a Balanced Economy Tips for a healthy economy: • Try upping exchange rate for a day & promoting it to users. • NEVER (ever) flood your RMT currency. Ever. Seriously. • Don’t keep the economy too tight – remember, it’s free to play • If your economy is too loose (if it’s too easy to acquire currency), then you’re missing out on monetization.
  27. 27. Step #10: Test, Measure, Optimize What to test? Attribute Graphs • Exchange rate • Price points • User Interface options • User patterns • Use the Offerpal Virtual Currency Analytics System (free like all Offerpal products) Trend Graphs
  28. 28. Questions? Sign ups? www.Offerpal.com @Offerpal http://myofferpal.wordpress.com www.facebook.com/ntalarico @nptca

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