This document discusses how online marketing is under pressure and provides tips on how to work smarter with data. It notes that key metrics like revenues, players and payers increased modestly from 2011 to 2010 for both pay-to-play and free-to-play games. To improve targeting, it recommends getting a deep understanding of user types from first and third party data, testing ads across segments, tracking user behavior to identify the best performing segments, and finding look-alike audiences on other platforms to expand reach in a cost-effective manner. The document provides examples of how to segment audiences, measure ad performance, and optimize campaigns over time to improve user acquisition and monetization.

1. Online Marketing under Pressure
How to work smarter, not harder in
Free2Play online games

2. Structure
• Who is Oliver Kern
• Why is Online Marketing under pressure
• What is big data
• How can this help
• How can I apply this to my small data
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3. Who is Oliver Kern?
http://bit.ly/oliverkern
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4. Why is Online Marketing under pressure?
2011 vs. 2010 2011 vs. 2010
revenues revenues
$ 2,571,000,000 +3% € 473,000,000 +13%
P2P F2P P2P F2P
53% 47% 42% 58%
players players
39,400,000 +3% 8,700,000 +11%
payers payers
22,300,000 +6% 4,500,000 +13%
$ / month € / month
$ 9.61 -3% € 8.76 +1%
2011 vs 2010 2011 vs 2010
F2P spending F2P spending
+24% +14%
© NewZoo, 2011
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5. Why is Online Marketing under pressure?

6. Why is Online Marketing under pressure?
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7. Why is Online Marketing under pressure?
Until today…
• It’s becoming more and more challenging to
find affordable traffic sources
• Data has not (really) worked for you
• You have been focussing on key traffic sources
and tried to optimize the ROI
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8. Why is Online Marketing under pressure?
What to do?
1. Get a deep understanding of your user types
2. Use the benefits of online advertising
3. Diversify channel mix
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9. In the world of marketing, targeting is king.
And in the world of targeting, data rules!
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10. What is big data?
In IT, big data consists of datasets that grow so
large that they become awkward to work with
on-hand/manual data management tools.
Difficulties include capture, storage, search,
sharing, analytics, and visualizing
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11. What is big data?
Data Infrastructure Insights & Analysis
Media Performance
Gamer iQU Audience Insight
1st Party Data Audience Forecasting
Data Management
Platform
- Behavioral Data
- Conversion Events
- Appended Data Decisioning
Rules Engine
Segment Builder Ad Optimization
Predictive Optimization
LP Optimization
3rd Party Data
Secure and Private Environment
Media Optimization
- Numerous 3rd party
Bidding Optimization
data relationships
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12. So how
can big data
help?
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13. In the World of targeting, data rules
This is Mae Santos,
she is Australian, lives in the Netherlands and
loves playing Thirst of Night (kabam).
Thirst of Night (MMORTS)
Target audience (2 properties): male, 18-38
What did the ad look like that brought
her into the game?
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14. In the World of targeting, data rules
She viewed the ad on yahoo.co.au from the Netherlands
Her sign-up time was 1.1 minutes
She completed tutorial in 6.8 minutes
Her first payment was after 27 days
…
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15. If demographic- and geo-targeting are
not good enough anymore….
…how else do you build meaningful
segments to target?
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16. How to build meaningful segments

17. How to build meaningful segments

18. How to build meaningful segments

19. How to build meaningful segments

20. How to build meaningful segments

21. How to build meaningful segments

22. How to build meaningful segments

23. How to build meaningful segments

24. How to build meaningful segments

25. The look-a-like Strategy

26. I only have “small” data.
Where can I start?
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27. 5 steps to improve targeting
Step 1: Create ads for 4 Segments plus a control group (broad appeal)
Control Group

28. 5 steps to improve targeting
Step 2: Verify Segments
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29. 5 steps to improve targeting
Step 3: Track behavior
advert CPM CTR registration-rate return-rate CPRU CPPU*
Killer1 $2,50 0,33% 17,95% 32,14% $13,13 $87,54
control1 $2,50 0,42% 14,05% 20,03% $21,15 $141,01
Achiever1 $2,50 0,65% 12,80% 44,90% $6,74 $44,96
control1 $2,50 0,42% 14,05% 20,03% $21,15 $141,01
Explorer1 $2,50 0,20% 18,65% 18,18% $37,81 $252,08
control1 $2,50 0,42% 14,05% 20,03% $21,15 $141,01
Socializer1 $2,50 0,17% 19,25% 14,17% $55,55 $370,31
control1 $2,50 0,42% 14,05% 20,03% $21,15 $141,01
*CPPU calculated with 15% conversion from active user
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30. 5 steps to improve targeting
Step 4: Evaluate Segments
1.61 3.13
1
0.38 0.56
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31. 5 steps to improve targeting
Step 5: Find look-a-like media
13% registration rate
45% return rate
15% customer rate*
18% registration rate
32% return rate
15% customer rate*
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32. What to do?
1. Get a deep understanding of your user types
(who is playing and how do they behave)
2. Use the benefits of online advertising
(target and measure)
3. Diversify channel mix
(find appropriate targets across all archetypes)
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33. Thank You!
E: oliver.kern@iqu.com
T: @freewebgames
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