Slide title goes here… Offerpal Media Inc. Confidential Incentivize and Monetize Social Traffic with Virtual Currency SNAP...
<ul><ul><li>Why Virtual Currency? </li></ul></ul><ul><ul><li>Top Ways Your Users Can Earn Virtual Currency </li></ul></ul>...
<ul><li>Phenomenal Growth… </li></ul><ul><li>68% of all US Internet users use social networks** </li></ul><ul><li>580M+ so...
User Engagement >$100 eCPM <10¢ eCPM Highest Advertising Industry eCPMs Monetization <$1 eCPM Ave app earns $75/day per 10...
Virtual Currency in Social Applications
Virtual Currency in Virtual Worlds
Virtual Currency in Social Games
Top Ways Your Users Can Earn Currency
<ul><li>#1: Logging in </li></ul><ul><li>Increases stickiness </li></ul><ul><li>Creates loyalty </li></ul><ul><li>Improves...
Top Ways Your Users Can Earn Currency <ul><li>#2: Inviting Friends </li></ul><ul><li>Increases virality </li></ul><ul><li>...
Top Ways Your Users Can Earn Currency <ul><li>#3: Completing Tasks </li></ul><ul><li>Deepens user engagement </li></ul><ul...
Top Ways Your Users Can Earn Currency <ul><li>#4: Completing Offers </li></ul><ul><li>Monetizes traffic </li></ul><ul><li>...
Integrating Currency Into the User Experience
<ul><li>MMORPGs:  </li></ul><ul><li>Allow users to communicate with their friends in a fun and competitive environment </l...
<ul><li>Functional Goods in MMORPGs: </li></ul><ul><li>Goods that meaningfully alter the user experience </li></ul><ul><li...
Integrating Currency Into the User Experience <ul><li>Providing Tips:  </li></ul><ul><li>Focuses user’s attention on what ...
Integrating Currency Into the User Experience <ul><li>Social Interactions: </li></ul><ul><li>A form of self-expression in ...
Integrating Currency Into the User Experience <ul><li>Customization: </li></ul><ul><li>Customizing the avatar increases us...
Promoting Virtual Currency = Monetization
Promoting Virtual Currency = Monetization  <ul><li>Promote currency within your app </li></ul><ul><li>Use banners, prestit...
<ul><li>Integrate currency into the game experience </li></ul>Promoting Virtual Currency = Monetization
Promoting Virtual Currency = Monetization  <ul><li>Promote currency on other apps/sites </li></ul><ul><li>Remind users to ...
Promoting Virtual Currency = Monetization  <ul><li>Use multiple communication vehicles: </li></ul><ul><li>Email </li></ul>...
Optimizing Your Virtual Currency
Optimizing Your Virtual Economy <ul><li>Maintain a balanced economy </li></ul><ul><li>Manage inflation by not issuing too ...
Optimizing Your Virtual Economy <ul><li>Setting your exchange rate </li></ul><ul><li>Increases or decreases to your exchan...
Optimizing Your Virtual Economy <ul><li>Measure, Test and Analyze </li></ul><ul><li>Offerpal Media’s testing platform moni...
Join More Than 400 Top Apps Today! <ul><li>On-board in minutes:  </li></ul><ul><li>http://www.myspace.com/offerpal </li></...
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OfferPal: Monetizing Traffic with Virtual Currency

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OfferPal: Monetizing Traffic with Virtual Currency

  1. 1. Slide title goes here… Offerpal Media Inc. Confidential Incentivize and Monetize Social Traffic with Virtual Currency SNAP Summit Anu Shukla Founder & CEO, Offerpal Media, Inc.
  2. 2. <ul><ul><li>Why Virtual Currency? </li></ul></ul><ul><ul><li>Top Ways Your Users Can Earn Virtual Currency </li></ul></ul><ul><ul><li>Integrating Virtual Currency Into the User Experience </li></ul></ul><ul><ul><li>Promoting Virtual Currency = Monetization </li></ul></ul><ul><ul><li>Optimizing Your Virtual Currency </li></ul></ul><ul><ul><li>Conclusion </li></ul></ul>Agenda
  3. 3. <ul><li>Phenomenal Growth… </li></ul><ul><li>68% of all US Internet users use social networks** </li></ul><ul><li>580M+ social network users worldwide*** </li></ul><ul><li>29 Billion minutes spent on SN in July 08** </li></ul><ul><li>67 Billion pageviews in July 08** </li></ul>The Social Network Advertising Dilemma * Robert Peck, Bear Stearns, August, 2007 ** comScore July 2008 ** * comScore World Metrix June 2008 <ul><li>Non-effective advertising </li></ul><ul><li>Interrupt-driven CPM banners: <50c CPM </li></ul><ul><li>Out of context CPC ads: <$1 CPM </li></ul><ul><li>Video ads: $1-$2+ CPM </li></ul>829M Users 733M Users 89.6% 83.3% SN Users as % of Total Internet Users* 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2006 2007 2008 2009 2010 90 %+ penetration 870M+ Users by 2010
  4. 4. User Engagement >$100 eCPM <10¢ eCPM Highest Advertising Industry eCPMs Monetization <$1 eCPM Ave app earns $75/day per 1000 DAU, some >$200/day CPM Banners CPC Adsense Monetization for Virtual Currency and Digital Products
  5. 5. Virtual Currency in Social Applications
  6. 6. Virtual Currency in Virtual Worlds
  7. 7. Virtual Currency in Social Games
  8. 8. Top Ways Your Users Can Earn Currency
  9. 9. <ul><li>#1: Logging in </li></ul><ul><li>Increases stickiness </li></ul><ul><li>Creates loyalty </li></ul><ul><li>Improves frequency of return visits by 10 – 20% </li></ul>Top Ways Your Users Can Earn Currency
  10. 10. Top Ways Your Users Can Earn Currency <ul><li>#2: Inviting Friends </li></ul><ul><li>Increases virality </li></ul><ul><li>Quickens growth </li></ul><ul><li>Helps grow applications up to 30% faster than without incentivization </li></ul>
  11. 11. Top Ways Your Users Can Earn Currency <ul><li>#3: Completing Tasks </li></ul><ul><li>Deepens user engagement </li></ul><ul><li>Focuses user attention </li></ul><ul><li>Increases user activity up to 20x or more on incentivized activities over non-incentivized activities </li></ul>
  12. 12. Top Ways Your Users Can Earn Currency <ul><li>#4: Completing Offers </li></ul><ul><li>Monetizes traffic </li></ul><ul><li>Taps into user motivation </li></ul><ul><li>Generates on average $75 per day per 1,000 Daily Active Users </li></ul>
  13. 13. Integrating Currency Into the User Experience
  14. 14. <ul><li>MMORPGs: </li></ul><ul><li>Allow users to communicate with their friends in a fun and competitive environment </li></ul><ul><li>Use points, levels, and currency to fuel competition and keep the user focused on advancing within the game </li></ul>Integrating Currency Into the User Experience
  15. 15. <ul><li>Functional Goods in MMORPGs: </li></ul><ul><li>Goods that meaningfully alter the user experience </li></ul><ul><li>Allows users to add more weapons, increase protection, add more lives, etc. </li></ul>Integrating Currency Into the User Experience
  16. 16. Integrating Currency Into the User Experience <ul><li>Providing Tips: </li></ul><ul><li>Focuses user’s attention on what you want them to do </li></ul><ul><li>Shapes user behavior and click-paths </li></ul>
  17. 17. Integrating Currency Into the User Experience <ul><li>Social Interactions: </li></ul><ul><li>A form of self-expression in a social context </li></ul><ul><li>Contribute to a cause </li></ul><ul><li>Currency is earned to facilitate the exchange </li></ul>
  18. 18. Integrating Currency Into the User Experience <ul><li>Customization: </li></ul><ul><li>Customizing the avatar increases user investment and creates a barrier to exit </li></ul>
  19. 19. Promoting Virtual Currency = Monetization
  20. 20. Promoting Virtual Currency = Monetization <ul><li>Promote currency within your app </li></ul><ul><li>Use banners, prestitials, reg-path offers or other forms of display ads </li></ul><ul><li>Include buttons or tabs in your nav bar, status bar, and other consistent placements </li></ul><ul><li>Currency-driven banners generate 10x click-through rates of non-incentivized banners </li></ul>
  21. 21. <ul><li>Integrate currency into the game experience </li></ul>Promoting Virtual Currency = Monetization
  22. 22. Promoting Virtual Currency = Monetization <ul><li>Promote currency on other apps/sites </li></ul><ul><li>Remind users to return your app </li></ul><ul><li>Re-engage with inactive users </li></ul><ul><li>Target inactive users on relevant sites/apps </li></ul>
  23. 23. Promoting Virtual Currency = Monetization <ul><li>Use multiple communication vehicles: </li></ul><ul><li>Email </li></ul><ul><li>Notifications </li></ul><ul><li>Contextual touch points </li></ul>
  24. 24. Optimizing Your Virtual Currency
  25. 25. Optimizing Your Virtual Economy <ul><li>Maintain a balanced economy </li></ul><ul><li>Manage inflation by not issuing too much currency </li></ul><ul><li>Monitor trades or exchanges, if allowed </li></ul><ul><li>Keep an eye out for “gold farming” and fraud </li></ul>
  26. 26. Optimizing Your Virtual Economy <ul><li>Setting your exchange rate </li></ul><ul><li>Increases or decreases to your exchange rate can impact revenue numbers between 5 – 25% </li></ul><ul><li>Adjust the exchange rate based on </li></ul><ul><ul><li>Which level the user is at within your game </li></ul></ul><ul><ul><li>A specific advertising offer </li></ul></ul><ul><ul><li>The behavior of specific users </li></ul></ul><ul><ul><li>Etc. </li></ul></ul>
  27. 27. Optimizing Your Virtual Economy <ul><li>Measure, Test and Analyze </li></ul><ul><li>Offerpal Media’s testing platform monitors and optimizes: </li></ul><ul><ul><li>Revenues </li></ul></ul><ul><ul><li>eCPM </li></ul></ul><ul><ul><li>Click-Through Rates </li></ul></ul><ul><ul><li>Take Rates </li></ul></ul><ul><ul><li>Exchange Rates </li></ul></ul><ul><ul><li>Conversions </li></ul></ul><ul><ul><li>Revenue/Click </li></ul></ul><ul><ul><li>Revenue/Completion </li></ul></ul>
  28. 28. Join More Than 400 Top Apps Today! <ul><li>On-board in minutes: </li></ul><ul><li>http://www.myspace.com/offerpal </li></ul><ul><li>http://apps.facebook.com/offerpalmedia </li></ul><ul><li>Ask about our App Install program </li></ul><ul><li>Sign up for our White Paper </li></ul><ul><li>Attend our Facebook Developers Garage </li></ul>

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