Global Domination for Your
Social and Mobile Games
Sociality Rocks! Kyiv 2012

Stephen Lee, Executive Director, Business Development




            Confidential
• About 6waves
• Global Social Opportunities
• Asia
  – Japan and China
• Insights for Developers
• Summary




              Confidential      All Rights Reserved.   2
ABOUT 6WAVES




      Confidential   All Rights Reserved.   3
“The Largest Independent
Publisher of Social Games on
         Facebook”




           Confidential    All Rights Reserved.   4
“To Bring the                      “To Bring
Best Games to                   Global Gamers
Users All Over                  to our Partners
 the World”                         Games”




                 Confidential            All Rights Reserved.   5
Company Snapshot
 2008   Company founded in Hong Kong



   #1   Independent publisher on Facebook



15mm    Monthly Active Users on Facebook



2.5mm   Daily Active Users on Facebook



 130+   Games launched since 2009



    5   Global teams (Hong Kong | San Francisco | Tokyo | Beijing | Moscow)



    6   Platforms




                                                                   All Rights Reserved.   6
Bringing Users and Developers
        Together Through Games



               Social Platform


 Growth &        Cross                  Real-Time
                           Engagement               Localization
Distribution   Promotion                Analytics




                               7
                                                          All Rights Reserved.
Well Diversified User Base



 30%          30%
                           25%
               3%

       9%
                             3%




            Confidential          All Rights Reserved.   8
6waves Global Partners




        Confidential   All Rights Reserved.   9
Top Games that 6waves Published
6w has helped scale many games across a
range of genres

Peak 1M+ MAU Titles on Facebook:
Township             Kingdoms of Camelot
Astro Garden         Animal Paradise
Ravenskye City       Resort World
Airport City         Simply Hospital
Zombie Island        Big Business
Baby & Me            Birdland
Mystery Manor        Legacy of Rome
Ravenwood Fair       Spartacus: The Game
Mall World           My Fishbowl

                           Confidential      All Rights Reserved.   10
User Acquisition Strategy
     • Soft-launch with minimal                     • Once stable, turn on paid
       new users to secure the                        acquisition and cross
       game stability and basic                       promotion are the base for
       metrics review for                             organic growth
       optimization




Source: 6waves Internal Data,

                                          Confidential               All Rights Reserved.   11
Case Studies




   Confidential   All Rights Reserved.   12
GLOBAL SOCIAL OPPORTUNITIES




       Confidential           13
Industry Reports
   • Growth in social games to come from:
         – games in newer genres on Facebook;
         – improving monetization of games on Facebook
                • conversion rates (from free-users to paying users)
                • alternative monetization such as ads;
   • Social games off Facebook including other social
     networks, and platforms
         – such as mobile, online, and console.
   • Overall, we expect the worldwide social game market
     to grow at 30%

Source: Lazard Capital Markets, Oct 2011

                                           Confidential                All Rights Reserved.   14
Social/Mobile Represents the Highest Growth


 Game
                                      Social-   $ 8.4
Industry
  2012     $ 50 Bn                    Mobile     Bn




                       Confidential              All Rights Reserved.   15
Reaching the Social Gamers




            Confidential. All Rights Reserved.   16
Best Platform for Global Audience

        Over 900mm users…and counting




               Confidential      All Rights Reserved.   17
Confidential. All Rights Reserved.   18
Confidential. All Rights Reserved.   19
Confidential. All Rights Reserved.   20
What About Asia?
       • 3,879,740,877 Asia Population
       • 1,016,799,076 Internet Users




SOURCES: INTERNET WORLD STATS ACCESSED Dec 2011; www.socialbakers.com


                                                         Confidential. All Rights Reserved.   21
Selected Countries with Low Penetration
                                         • Japan penetration still
                                           low
                                         • China continues to be
                                           blocked




Source: www.socialbakers.com

                               Confidential              All Rights Reserved.   22
JAPAN




        Confidential   All Rights Reserved.   23
Japan
The Opportunity
• Game-friendly society
• Fast, reliable internet
  infrastructure
• Mobile Country
• 100+ MM SNS/social
  game users
• ARPU could be 5X – 10X
  other countries
• Retention could be 2X –
  5X other countries
• 11 games launched by
  6waves

                                All Rights Reserved.
Japan
The Challenge
-   Localization
-   Developer Support
-   Regulatory Issues
-   User Consumption
-   Customer Service
-   The platform




                                All Rights Reserved.
Localization – Not Just Translation




            Confidential. All Rights Reserved.   26
Localization
Localization
Localization
Developer Support Issue




Integration:          Submission:
User Authentication   Apply for launch and if
Payment API           rejected, fix errors/bugs
Friend API            according to the platform
Text Data API         review (repeat as
Etc.                  necessary)
Regulatory Issues
                               Airport City Coin Purchase Page

• Japan platform’s
  regulations and policies
  are very strict
• By law, virtual currencies
  (i.e. in-game currencies)
  must expire in 180 days
  from the date of
  purchase
• Gacha mechanism being
  banned
Japanese Users Consume Rapidly
                                  JP Users consumed virtual items quickly just
• JP users go through the         after 2 days of launch of Ravenwood Fair
  game quickly.
   – Unique features for the JP
     version will extend
     gameplay and retain users.
• Higher consumption of
  virtual goods
   – JP users consume more
                                  New assets and features made uniquely
     virtual items = high
                                  for the Ravenwood Fair JP version
     ARPU. More assets mean
     higher monetization.
JP Customer Support
                           Airport City Community Page on Yahoo! Mobage

JP users are highly
sensitive to CS and CM
issues.

Unattended bug reports
and suggestions can
lead to flaming and poor
game performance.

More care is required
for JP customer
maintenance.
The Platforms

Promotional channels
are limited

Banner ads must be bid
for, and some are not
for sale

Developers must stay in
sync with platforms
CHINA




        Confidential   35
Facebook vsQzone




251 m                                        550 m
        Confidential. All Rights Reserved.           36
Huge Market




         Confidential. All Rights Reserved.   37
But It’s Also Complicated




       Confidential. All Rights Reserved.   38
ChinaSocial Games
The Opportunity
-   800+ MM social network users
-   Chinese internet users spend 41% of
    their online time on social networks
-   Lower APRU but explosive growth
    potential
-   High ARPU games have PvP
    elements




                                           All Rights Reserved.
Top China Social Networks
                                                          Users in Millions
600
                 550


500




400


                                              310
300
                                                                        250


200

                                                                                           137
                                                                                                    116
100




  0
           Tencent Qzone                  Tencent Weibo              Sina Weibo           Renren   Kaixin

Source: Reported by respective websites

                                                     Confidential. All Rights Reserved.                     40
Tencent
                     • 3/2011
                             – 1 billion installs
                     • 9/2011
                             – Top developers with
                               monthly revenue over
                               $1.5m
                     • 3/2012
                             – 200 million MAUs for 3rd
                               party developers
                     • 45,000 applications
                     • 30,000 developers
                     • Total rev share $90m

Confidential. All Rights Reserved.                        41
China Social Games
The Challenge
-   Localization
-   Developer Support Issue
-   Regulatory Issues
-   User Behavior
-   Customer Service/Community
-   The platform itself




                                 All Rights Reserved.
Localization - Platform VIP system
  Attractive VIP benefit                  VIP members get discount on purchase




                           Confidential                                          43
Localization - Weibo
Interact with your friends thru Weibo            Get update news from Weibo




                        Share your decoration to Weibo




                                  Confidential                                44
Localization - Sharing
Qzone will integrated your QQ IM friends
list, you can easily invite your best friends              Incentive reward via sharing




                                            Confidential                                  45
Localization – virtual items




           Confidential        46
Developer Support Issues
• Open platform APIs
  available but limited
  English support
• Complicated submission
  process
• Differences across
  different platforms




         A good local partner can ensure smooth integration, launch, and
                           developer/customer support.
Regulatory Issues
• Strict policies/regulations on
  online gaming
• Need to apply for several licenses
  to operate online games in China
• Gamers need to register their
  account with ID and real name
• Restriction on the playing time of
  those under 18.
Chinese Consumers
PVP element is key to high ARPU               Gift Works
                                              The Chinese way of showing your girlfriend the love 




”Loyal “ Customers
Generally high retention and lower pay rate
Customer Support/Community
                                 Ravenwood Fair’s QQ Discussion Group


• Email support requests are
  rare, users prefer to use
  instant messaging tools to
  get answers;
• Weibo(Chinese Twitter) + QQ
  Pages + old-style discussion
  boards are also popular;
The Platform

Huge channel cut

All games must be
approved

The power to make or
break your game
Industry Insights
for Developers




      Confidential
THE COMPETITIVE LANDSCAPE
HOW ARE MY PROSPECTS?
The Playing Field is Not Level
The Challenges
-   Discovery
-   Fierce Competition
-   Marketing Budget
-   Marketing Expertise
-   Short Life Cycle




                                All Rights Reserved.
BIGGER DOES NOT NECESSARILY
MEAN BETTER
WHY DAU AND MAU ARE LESS IMPORTANT
Profitability Matters Most
The Challenges
-   Market saturation
-   Increasing acquisition costs
-   Most users won’t pay




                                   All Rights Reserved.
GLOBAL DOMINATION
WHAT’S THE NEXT STEP?
Find the Right Partner
The Challenges
-   Experience
-   Advice and expertise
-   Trustworthiness
-   Relationships
-   Synergies




                                     All Rights Reserved.
Payment Page Optimization




                  BEFORE




                           All Rights Reserved.
How to increase pay rate and
          ARPU?
          - Label and highlight the ‘Best
            Deal’ option
          - Make sure the ‘Best Deal’
            option is above the fold
            (visible without scrolling
            down)
          - Give away special items
            when players buy the ‘Best
            Deal’ package




Confidential                 All Rights Reserved.   60
All Rights Reserved.
All Rights Reserved.
Library of Best Practices from 6waves
  Retention          Viral Features                  Monetization       Tutorial Optimization




 Achievements       Frictionless Requests             Crafting System       Flow Optimization




Daily Login Bonus    Help from Friends                 Point of Sales         Magic Arrows




 Gifting System     Power of Neighbors               Consumable Items    Educate Players to Spend

                                  … and more!
                                      Confidential                        All Rights Reserved.   63
SUMMARY




     Confidential   64
Going Global
Leverage the Global Reach of Social Networks
   Facebook - 900 million users
   Huge opportunities in Asia



Maximize Revenue Potential of the Game
   Bigger is not always better
   Know your audience, and how to reach them

Work with the Right Local Partners
   Expert in optimizing the game for the local audience
   Local Marketing channels + Customer Service
   Strong Relationships with Dominant Platforms


                                                  All Rights Reserved.
Thanks
BD enquiries
bd@6waves.com

stephen@6waves.com




        Confidential

Global domination for your social and mobile games - Stephen Lee - 6waves

  • 1.
    Global Domination forYour Social and Mobile Games Sociality Rocks! Kyiv 2012 Stephen Lee, Executive Director, Business Development Confidential
  • 2.
    • About 6waves •Global Social Opportunities • Asia – Japan and China • Insights for Developers • Summary Confidential All Rights Reserved. 2
  • 3.
    ABOUT 6WAVES Confidential All Rights Reserved. 3
  • 4.
    “The Largest Independent Publisherof Social Games on Facebook” Confidential All Rights Reserved. 4
  • 5.
    “To Bring the “To Bring Best Games to Global Gamers Users All Over to our Partners the World” Games” Confidential All Rights Reserved. 5
  • 6.
    Company Snapshot 2008 Company founded in Hong Kong #1 Independent publisher on Facebook 15mm Monthly Active Users on Facebook 2.5mm Daily Active Users on Facebook 130+ Games launched since 2009 5 Global teams (Hong Kong | San Francisco | Tokyo | Beijing | Moscow) 6 Platforms All Rights Reserved. 6
  • 7.
    Bringing Users andDevelopers Together Through Games Social Platform Growth & Cross Real-Time Engagement Localization Distribution Promotion Analytics 7 All Rights Reserved.
  • 8.
    Well Diversified UserBase 30% 30% 25% 3% 9% 3% Confidential All Rights Reserved. 8
  • 9.
    6waves Global Partners Confidential All Rights Reserved. 9
  • 10.
    Top Games that6waves Published 6w has helped scale many games across a range of genres Peak 1M+ MAU Titles on Facebook: Township Kingdoms of Camelot Astro Garden Animal Paradise Ravenskye City Resort World Airport City Simply Hospital Zombie Island Big Business Baby & Me Birdland Mystery Manor Legacy of Rome Ravenwood Fair Spartacus: The Game Mall World My Fishbowl Confidential All Rights Reserved. 10
  • 11.
    User Acquisition Strategy • Soft-launch with minimal • Once stable, turn on paid new users to secure the acquisition and cross game stability and basic promotion are the base for metrics review for organic growth optimization Source: 6waves Internal Data, Confidential All Rights Reserved. 11
  • 12.
    Case Studies Confidential All Rights Reserved. 12
  • 13.
  • 14.
    Industry Reports • Growth in social games to come from: – games in newer genres on Facebook; – improving monetization of games on Facebook • conversion rates (from free-users to paying users) • alternative monetization such as ads; • Social games off Facebook including other social networks, and platforms – such as mobile, online, and console. • Overall, we expect the worldwide social game market to grow at 30% Source: Lazard Capital Markets, Oct 2011 Confidential All Rights Reserved. 14
  • 15.
    Social/Mobile Represents theHighest Growth Game Social- $ 8.4 Industry 2012 $ 50 Bn Mobile Bn Confidential All Rights Reserved. 15
  • 16.
    Reaching the SocialGamers Confidential. All Rights Reserved. 16
  • 17.
    Best Platform forGlobal Audience Over 900mm users…and counting Confidential All Rights Reserved. 17
  • 18.
  • 19.
  • 20.
  • 21.
    What About Asia? • 3,879,740,877 Asia Population • 1,016,799,076 Internet Users SOURCES: INTERNET WORLD STATS ACCESSED Dec 2011; www.socialbakers.com Confidential. All Rights Reserved. 21
  • 22.
    Selected Countries withLow Penetration • Japan penetration still low • China continues to be blocked Source: www.socialbakers.com Confidential All Rights Reserved. 22
  • 23.
    JAPAN Confidential All Rights Reserved. 23
  • 24.
    Japan The Opportunity • Game-friendlysociety • Fast, reliable internet infrastructure • Mobile Country • 100+ MM SNS/social game users • ARPU could be 5X – 10X other countries • Retention could be 2X – 5X other countries • 11 games launched by 6waves All Rights Reserved.
  • 25.
    Japan The Challenge - Localization - Developer Support - Regulatory Issues - User Consumption - Customer Service - The platform All Rights Reserved.
  • 26.
    Localization – NotJust Translation Confidential. All Rights Reserved. 26
  • 27.
  • 28.
  • 29.
  • 30.
    Developer Support Issue Integration: Submission: User Authentication Apply for launch and if Payment API rejected, fix errors/bugs Friend API according to the platform Text Data API review (repeat as Etc. necessary)
  • 31.
    Regulatory Issues Airport City Coin Purchase Page • Japan platform’s regulations and policies are very strict • By law, virtual currencies (i.e. in-game currencies) must expire in 180 days from the date of purchase • Gacha mechanism being banned
  • 32.
    Japanese Users ConsumeRapidly JP Users consumed virtual items quickly just • JP users go through the after 2 days of launch of Ravenwood Fair game quickly. – Unique features for the JP version will extend gameplay and retain users. • Higher consumption of virtual goods – JP users consume more New assets and features made uniquely virtual items = high for the Ravenwood Fair JP version ARPU. More assets mean higher monetization.
  • 33.
    JP Customer Support Airport City Community Page on Yahoo! Mobage JP users are highly sensitive to CS and CM issues. Unattended bug reports and suggestions can lead to flaming and poor game performance. More care is required for JP customer maintenance.
  • 34.
    The Platforms Promotional channels arelimited Banner ads must be bid for, and some are not for sale Developers must stay in sync with platforms
  • 35.
    CHINA Confidential 35
  • 36.
    Facebook vsQzone 251 m 550 m Confidential. All Rights Reserved. 36
  • 37.
    Huge Market Confidential. All Rights Reserved. 37
  • 38.
    But It’s AlsoComplicated Confidential. All Rights Reserved. 38
  • 39.
    ChinaSocial Games The Opportunity - 800+ MM social network users - Chinese internet users spend 41% of their online time on social networks - Lower APRU but explosive growth potential - High ARPU games have PvP elements All Rights Reserved.
  • 40.
    Top China SocialNetworks Users in Millions 600 550 500 400 310 300 250 200 137 116 100 0 Tencent Qzone Tencent Weibo Sina Weibo Renren Kaixin Source: Reported by respective websites Confidential. All Rights Reserved. 40
  • 41.
    Tencent • 3/2011 – 1 billion installs • 9/2011 – Top developers with monthly revenue over $1.5m • 3/2012 – 200 million MAUs for 3rd party developers • 45,000 applications • 30,000 developers • Total rev share $90m Confidential. All Rights Reserved. 41
  • 42.
    China Social Games TheChallenge - Localization - Developer Support Issue - Regulatory Issues - User Behavior - Customer Service/Community - The platform itself All Rights Reserved.
  • 43.
    Localization - PlatformVIP system Attractive VIP benefit VIP members get discount on purchase Confidential 43
  • 44.
    Localization - Weibo Interactwith your friends thru Weibo Get update news from Weibo Share your decoration to Weibo Confidential 44
  • 45.
    Localization - Sharing Qzonewill integrated your QQ IM friends list, you can easily invite your best friends Incentive reward via sharing Confidential 45
  • 46.
    Localization – virtualitems Confidential 46
  • 47.
    Developer Support Issues •Open platform APIs available but limited English support • Complicated submission process • Differences across different platforms A good local partner can ensure smooth integration, launch, and developer/customer support.
  • 48.
    Regulatory Issues • Strictpolicies/regulations on online gaming • Need to apply for several licenses to operate online games in China • Gamers need to register their account with ID and real name • Restriction on the playing time of those under 18.
  • 49.
    Chinese Consumers PVP elementis key to high ARPU Gift Works The Chinese way of showing your girlfriend the love  ”Loyal “ Customers Generally high retention and lower pay rate
  • 50.
    Customer Support/Community Ravenwood Fair’s QQ Discussion Group • Email support requests are rare, users prefer to use instant messaging tools to get answers; • Weibo(Chinese Twitter) + QQ Pages + old-style discussion boards are also popular;
  • 51.
    The Platform Huge channelcut All games must be approved The power to make or break your game
  • 52.
  • 53.
  • 54.
    The Playing Fieldis Not Level The Challenges - Discovery - Fierce Competition - Marketing Budget - Marketing Expertise - Short Life Cycle All Rights Reserved.
  • 55.
    BIGGER DOES NOTNECESSARILY MEAN BETTER WHY DAU AND MAU ARE LESS IMPORTANT
  • 56.
    Profitability Matters Most TheChallenges - Market saturation - Increasing acquisition costs - Most users won’t pay All Rights Reserved.
  • 57.
  • 58.
    Find the RightPartner The Challenges - Experience - Advice and expertise - Trustworthiness - Relationships - Synergies All Rights Reserved.
  • 59.
    Payment Page Optimization BEFORE All Rights Reserved.
  • 60.
    How to increasepay rate and ARPU? - Label and highlight the ‘Best Deal’ option - Make sure the ‘Best Deal’ option is above the fold (visible without scrolling down) - Give away special items when players buy the ‘Best Deal’ package Confidential All Rights Reserved. 60
  • 61.
  • 62.
  • 63.
    Library of BestPractices from 6waves Retention Viral Features Monetization Tutorial Optimization Achievements Frictionless Requests Crafting System Flow Optimization Daily Login Bonus Help from Friends Point of Sales Magic Arrows Gifting System Power of Neighbors Consumable Items Educate Players to Spend … and more! Confidential All Rights Reserved. 63
  • 64.
    SUMMARY Confidential 64
  • 65.
    Going Global Leverage theGlobal Reach of Social Networks Facebook - 900 million users Huge opportunities in Asia Maximize Revenue Potential of the Game Bigger is not always better Know your audience, and how to reach them Work with the Right Local Partners Expert in optimizing the game for the local audience Local Marketing channels + Customer Service Strong Relationships with Dominant Platforms All Rights Reserved.
  • 66.

Editor's Notes

  • #8 Platform Focus, Why? Differentiation. (Compare Platform Model with Pure Development Model, Risk vs. Return)
  • #12 6waves manages the paid acquisition and cross promotion.Developer focus on making compelling viral feature.
  • #18 Actual number is probably closer to 879mm
  • #22 The largest region of users, and growing by 10M new users each month
  • #31 Although there are some developer support docs in English, they are incomplete and not frequently updated. A GOOD LOCAL PARTNER is NEEDED to ensure smooth integration, launch, and developer/customer support.