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Big Data in Mobile Gaming:
     Optimizing the User
Experience on iOS & Android



         Eric Seufert
      IGEXpo, Feb 1 2013
About Me
• Quantitative Marketer with focus on analytics
  and statistical predictive methods
• MA in Applied Economics, BBA in Finance / CS
• Head of Marketing & User Acquisition at Grey
  Area Labs (Helsinki)
  – Previously strategy / analytics positions at Digital
    Chocolate (Helsinki) and Skype (Tallinn)
About Me
• Blog frequently about F2P / “Big Data”
  decision science / analytics at
  http://ufert.se
• Feel free to reach out: eric@ufert.se
Presentation Agenda
•   Introduction to “data-driven game design”
•   Metrics portfolio – what’s important to track?
•   Feature selection and analytics strategy
•   Player segmentation and optimization
•   Free-to-play design (spreadsheet included!)
•   Q&A
What is “Big Data”?
• Buzzword, but with some substance
• Cheap storage = lots of data
• More data = less sophisticated statistical
  techniques required to derive insights
• More data = easier to spot true trends (vs
  anomalies)
What is “Big Data”?
• Example: A/B testing
• 200 data points = small sample size
  – Does sample size reflect population? Must
    perform t-test, possibly decrease confidence
    interval
  – What’s the distribution of data?
• 2 million data points = large sample size
  – Distribution easier to infer
  – Less testing / normalization required
What is “data-driven game design”?
• Iterative design
• Responsive to game metrics
• MVP -> behavioral feedback (metrics) ->
  iterate -> update -> repeat
• Half intuition, half data science: fundamental
  game mechanics established and then
  tweaked based on player behavior
What is “data-driven game design”?
• Players get more of what they want
• Most enthusiastic players given latitude to
  enjoy the game to greatest possible extent
The Metrics Portfolio
• Minimum set of metrics required to facilitate
  data-based decisions
• Let players tell you what they like / don’t like
  through their behavior
Four Key Metrics Groups
•   Retention
•   Monetization
•   Engagement
•   Virality
Retention
• D1-D7, D14, D28, D90, D365
• Most important set of metrics you track
• Communicates delight
  – extent to which players enjoy your game = extent
    to which they’re willing to return to it
Retention
• Retention “profile”: D1, D7, D28
• Follows general decay pattern:
  – D1 *.5 = D7, D7 * .5 = D28
• Used to calculate player lifetime
• Look for D1 >= 40% for launch
• More info: http://bit.ly/WLvAOV
Monetization (F2P)
• Conversion rate: % of users that ever spend
  money on IAPs
  – 3-4% is good, >=5% high
• ARPU: Average Revenue per User
  – Average amount of money users spend in-game
  – Varies genre-to-genre, game-to-game
• ARPPU: Average Revenue per Paying User
  – Greater the delta between ARPPU / ARPU, lower
    the conversion rate
Monetization (F2P)
• ARPDAU: Average Revenue per Daily Active
  User
  – Average money spent per day by users
• Catalog distribution:
  – Good to know where the bulk of revenue comes
    from. Small purchases? Large purchases? How do
    users engage with the product catalog? Best way
    of visualizing is graphically.
Engagement
• Average Session Length / Median Session Length
  – Daily lengths per user (what’s the average session
    length?)
• Average Session Count / Median Session Count
  – Daily counts per user (how frequently do they log in
    each day)
• Medians important to track because very
  enthusiastic players will skew the average (not
  uncommon to see individuals logging in dozens of
  times per day or playing hour-long sessions)
Virality
• K-Factor
  – Number of users, on average, a single user
    introduces to the game (>=1 = viral)
  – Hard to track on mobile
  – How to track k-factor when conversions are
    unknowable (blog post: http://bit.ly/YB8BuL)
     • You know purchased users, you can estimate organic
       installs, back these out and lump the rest into “k-
       factor”)
  – Virality model: http://bit.ly/114n3gq
Analytics Strategy
• How do we know what to track?
  – Retention is easy
  – Monetization is easy
  – Engagement is medium
  – Virality is hard
• For the very basics, tracking should be
  oriented toward first session and last session
• For the hard stuff (behavioral predictions),
  tracking must be far more extensive
Two approaches
• I’m a smaller studio with less than 500k DAU. I
  want to focus on the “big picture” stuff that
  will help me retain players and boost
  engagement
  – Backend: standard SQL-based data warehouse,
    nightly ETL
  – Frontend: Dashboards communicate high-level
    metrics across organization, PMs possibly use
    some desktop visualization software to perform
    basic analysis
Two approaches
• I’m a bigger studio with >500k DAU. I want to
  focus on driving ARPPU and converting players
  better
  – Backend: Hadoop-based system to handle
    processing large volumes of data
  – Frontend: Dashboards + desktop analysis software
    for PMs
  – Analysis layer: team of analysts / data scientists
    performing in-depth research, finding patterns,
    and delivering insight to product teams
What’s the point of my analytics
               system?
• Collect and process data that can be used to
  derive insight that helps increase revenue
• Your analytics system should deliver $$$
• Analytics is not an intellectual exercise.
  Analytics is the science of making more
  money.
“Analytics” is vague. Who works in
                analytics?
• The Analytics Engineer: system architect,
  designs the tracking library and data transfer /
  transformation / staging
• The Analyst: Handles reporting, dashboard
  design, implementation
• The Data Scientist: Research and algorithmic
  prediction. Helps drive data product design
  (recommendation engines, matchmaking,
  gameplay optimization)
What do I use analytics for?
• Optimizing the Player Experience:
• Give players the optimal experience based on
  the information they’ve given you through
  their behavior
• Improve the product catalog
  – What do players want to buy? Where / when do
    players want to buy? Are we accommodating this?
• UI / UX improvements through A/B Testing
Player Segmentation
Player Segmentation
My players are segmented. Now what?
• We have made some initial determinations
  about this user based on his behavior
• Now we adapt the experience to fit this profile
• We measure exit metrics and iterate on
  segmentation technique
F2P Design
• F2P is difficult
   – Paradigm shift from paid downloads, not to
     mention console titles
   – Requires a different approach to design
• How do F2P games make money?
   – LCV > CPA
   – Continuous monetization curve
   – High retention
   – Low likely conversion
The F2P Model
• http://bit.ly/SlKYV0
• Projects revenues based on comprehensive
  examination of user acquisition, virality,
  monetization and retention
• Useful tool for making priority decisions on
  game development
• Helpful when evaluating how much $ to invest
  in user acquisition
Thanks!
• Q&A
• More info on my blog: http://ufert.se
• Email me: eric@ufert.se

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Big Data in Mobile Gaming - Eric Seufert presentation from IGExpo Feb 1 2013

  • 1. Big Data in Mobile Gaming: Optimizing the User Experience on iOS & Android Eric Seufert IGEXpo, Feb 1 2013
  • 2. About Me • Quantitative Marketer with focus on analytics and statistical predictive methods • MA in Applied Economics, BBA in Finance / CS • Head of Marketing & User Acquisition at Grey Area Labs (Helsinki) – Previously strategy / analytics positions at Digital Chocolate (Helsinki) and Skype (Tallinn)
  • 3. About Me • Blog frequently about F2P / “Big Data” decision science / analytics at http://ufert.se • Feel free to reach out: eric@ufert.se
  • 4. Presentation Agenda • Introduction to “data-driven game design” • Metrics portfolio – what’s important to track? • Feature selection and analytics strategy • Player segmentation and optimization • Free-to-play design (spreadsheet included!) • Q&A
  • 5. What is “Big Data”? • Buzzword, but with some substance • Cheap storage = lots of data • More data = less sophisticated statistical techniques required to derive insights • More data = easier to spot true trends (vs anomalies)
  • 6. What is “Big Data”? • Example: A/B testing • 200 data points = small sample size – Does sample size reflect population? Must perform t-test, possibly decrease confidence interval – What’s the distribution of data? • 2 million data points = large sample size – Distribution easier to infer – Less testing / normalization required
  • 7. What is “data-driven game design”? • Iterative design • Responsive to game metrics • MVP -> behavioral feedback (metrics) -> iterate -> update -> repeat • Half intuition, half data science: fundamental game mechanics established and then tweaked based on player behavior
  • 8. What is “data-driven game design”? • Players get more of what they want • Most enthusiastic players given latitude to enjoy the game to greatest possible extent
  • 9. The Metrics Portfolio • Minimum set of metrics required to facilitate data-based decisions • Let players tell you what they like / don’t like through their behavior
  • 10. Four Key Metrics Groups • Retention • Monetization • Engagement • Virality
  • 11. Retention • D1-D7, D14, D28, D90, D365 • Most important set of metrics you track • Communicates delight – extent to which players enjoy your game = extent to which they’re willing to return to it
  • 12. Retention • Retention “profile”: D1, D7, D28 • Follows general decay pattern: – D1 *.5 = D7, D7 * .5 = D28 • Used to calculate player lifetime • Look for D1 >= 40% for launch • More info: http://bit.ly/WLvAOV
  • 13. Monetization (F2P) • Conversion rate: % of users that ever spend money on IAPs – 3-4% is good, >=5% high • ARPU: Average Revenue per User – Average amount of money users spend in-game – Varies genre-to-genre, game-to-game • ARPPU: Average Revenue per Paying User – Greater the delta between ARPPU / ARPU, lower the conversion rate
  • 14. Monetization (F2P) • ARPDAU: Average Revenue per Daily Active User – Average money spent per day by users • Catalog distribution: – Good to know where the bulk of revenue comes from. Small purchases? Large purchases? How do users engage with the product catalog? Best way of visualizing is graphically.
  • 15. Engagement • Average Session Length / Median Session Length – Daily lengths per user (what’s the average session length?) • Average Session Count / Median Session Count – Daily counts per user (how frequently do they log in each day) • Medians important to track because very enthusiastic players will skew the average (not uncommon to see individuals logging in dozens of times per day or playing hour-long sessions)
  • 16. Virality • K-Factor – Number of users, on average, a single user introduces to the game (>=1 = viral) – Hard to track on mobile – How to track k-factor when conversions are unknowable (blog post: http://bit.ly/YB8BuL) • You know purchased users, you can estimate organic installs, back these out and lump the rest into “k- factor”) – Virality model: http://bit.ly/114n3gq
  • 17. Analytics Strategy • How do we know what to track? – Retention is easy – Monetization is easy – Engagement is medium – Virality is hard • For the very basics, tracking should be oriented toward first session and last session • For the hard stuff (behavioral predictions), tracking must be far more extensive
  • 18. Two approaches • I’m a smaller studio with less than 500k DAU. I want to focus on the “big picture” stuff that will help me retain players and boost engagement – Backend: standard SQL-based data warehouse, nightly ETL – Frontend: Dashboards communicate high-level metrics across organization, PMs possibly use some desktop visualization software to perform basic analysis
  • 19. Two approaches • I’m a bigger studio with >500k DAU. I want to focus on driving ARPPU and converting players better – Backend: Hadoop-based system to handle processing large volumes of data – Frontend: Dashboards + desktop analysis software for PMs – Analysis layer: team of analysts / data scientists performing in-depth research, finding patterns, and delivering insight to product teams
  • 20. What’s the point of my analytics system? • Collect and process data that can be used to derive insight that helps increase revenue • Your analytics system should deliver $$$ • Analytics is not an intellectual exercise. Analytics is the science of making more money.
  • 21. “Analytics” is vague. Who works in analytics? • The Analytics Engineer: system architect, designs the tracking library and data transfer / transformation / staging • The Analyst: Handles reporting, dashboard design, implementation • The Data Scientist: Research and algorithmic prediction. Helps drive data product design (recommendation engines, matchmaking, gameplay optimization)
  • 22. What do I use analytics for? • Optimizing the Player Experience: • Give players the optimal experience based on the information they’ve given you through their behavior • Improve the product catalog – What do players want to buy? Where / when do players want to buy? Are we accommodating this? • UI / UX improvements through A/B Testing
  • 25. My players are segmented. Now what? • We have made some initial determinations about this user based on his behavior • Now we adapt the experience to fit this profile • We measure exit metrics and iterate on segmentation technique
  • 26. F2P Design • F2P is difficult – Paradigm shift from paid downloads, not to mention console titles – Requires a different approach to design • How do F2P games make money? – LCV > CPA – Continuous monetization curve – High retention – Low likely conversion
  • 27. The F2P Model • http://bit.ly/SlKYV0 • Projects revenues based on comprehensive examination of user acquisition, virality, monetization and retention • Useful tool for making priority decisions on game development • Helpful when evaluating how much $ to invest in user acquisition
  • 28. Thanks! • Q&A • More info on my blog: http://ufert.se • Email me: eric@ufert.se