1. Monetizing Social Games
Lisa Marino, Chief Revenue Officer
lisa@rockyou.com

2. Agenda
1) Making A Good Game
2) Network Effect
3) Engagement
4) Arbitrage
5) The Future of Monetization
6) Questions

3. Why Social Gaming is Succeeding
 Fast Paced Environment Cutting Edge Ideas
 Tools and information lead to better
understanding.
 Under-monetized International Reach
 Convert Non-Gamers to Casual Gamers
– Nintendo Wii

4. The Secret Sauce: DAUs are Everything!
• Reach/Virality
• User acquisition
Key Threshold: • Re-engagement
.2 DAU/MAU strategies
Network
Effect
• Feature
• ARPU Releases
Arbitrage Engagement • Competition
• K factor
• Friends help
users advance

5. Network Effect: DAU Growth and
Rengagement
With Notifications going away, expect K Factor <.7
User
Acquisition/Reengagement Key Thresholds
Channel
Feed Posts • 3 FB users should click on every
feed post created
Requests • Focus request on friends already
in game
• Expect a 70% CTR on requests if
friend already in game
Book Marks • Expect 20% of DAUs to enter
through bookmarks

6. Engagement: What Have You Done for Me
Lately?
5 weekly releases:
3 content, 1 viral event, 1 game play feature

7. Engagement: Competition Rules
• Create competition
among friends using
visible metrics
• Friend Walls
• Customization
• Player vs. Player
engagments

8. Engagement: Get Friends To Help
• Increase Re-
engagement rates by
sending requests
calling friends for
help
Castle Age
• All Users helping get
the prize

9. Engagement: How To Engage Your Users
 6 Basic Strategies of Keeping Your Users
– Collecting
– Decorating
– Friendship/Collaboration
– Exploring
– Caring
– Competition

10. Arbitrage: Where Monetization is Coming
From
Users
User-Initiated
Actions
User-
Participation

11. Arbitrage: Is Your Game Monetizing Well?
 Measure on Revenue/1,000 DAU’s
 Best Monetizing Apps $100+/1,000 DAU’s
 On Average, Apps Monetize $10-30/1,000 DAU’s
 $30+/1,000 DAU’s  On the right track

12. Arbitrage: Keys To Monetization
Drama
Individuality Friendship/Love
Keys to
Monetization
Gambling Competition
Collections

13. Arbitrage: Understand Your Economy
 Keep economies fluid
 Make currencies
valuable
 Let users decide how
to acquire currency
and advancement
 Sources and Sinks

14. Arbitrage: Know Your Key Demographic
 Focus Tools on Your Primary Users
– Geography
– Age
– Gender
– Time Of Week
– Time Of Day

15. Arbitrage: Direct Payments
 1-3% of DAU’s Are Paying Customers
 Payment Methods Biased to Default Method.
– Usually Defaulted to Best Converting Method.
Offers
15%
Credit PayPal
Card 60%
25%

16. Arbitrage: Capitalize On Your Existing
Consumers
 Entice Users to Re-Purchase Premium Currency
 Conversion Rates for Repeat Consumers are
Higher.
 >50% of Total Revenue Should be Repeat
Consumers
1st 2nd 30-40%of
Purchases

17. Arbitrage: Difference Makers in Offers Walls
Surveys
Local Strategy

18. Future of Monetization: Expand the Digital
Goods Pie
Increase a game’s digital
goods monetization rate
from 3% to 25%

19. Future of Monetization: Advertising
Why Advertising will be Successful
 Games have huge user bases so brand need to
be there
 Users want to level up and not pay for it
 Expands Monetization rates of user base
 Safe and Clean Advertising Environment

20. Future of Monetization: In Game Case
Study
• Customized and controlled
Brand Experience
• Cost Per Engagement
Model
• In Game converts as high
as 50% of opt in users
• Highest CPMs of all
monetization tools

21. Conclusion
Questions?

22. Lisa Marino
Chief Revenue Officer
lisa@rockyou.com