Presentation for Mobile Game Publishers who wish to enter the European Smartphone App Gaming Market

1. Global Mobile Vision 2012
How to enter the European Mobile Market
CEO & Founder Rumble Media
David An
Executive MBA HSG, M.Sc.
November 2012

2. About Rumble Media
Rumble Media GmbH
CEO: David An 안종혁
Foundation: 2007
Major Shareholder: Holtzbrinck
HQ in Karlsruhe, Germany
Number of employees: 11
Mobile
Portal
Publishing
Business
Solutions
Online Gaming Mobile Gaming Mobile SaaS Reseller
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3. Agenda
- European Mobile Market
- Current Challenges
- Potential Growth Strategies
- Solution
- Conclusion
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4. European Mobile
Market
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5. How big is the market
Largest 6 European Countries
Population Population 3G 3G
(Mio) % Subscriber %
(Mio)
Germany 82 23% 38 18%
France 61 17% 30 14%
Great 62 18% 42 20%
Britain
Italy 61 17% 44 20%
Poland 39 11% 28 13%
Spain 47 13% 33 15%
Total 351 215
The top 6 countries make up 350 million inhabitants which is about ~50%
of total Europe and 70% of EU (500 M).
Source: Morgan Stanley, Wikipedia 5

6. Statistics – German Market
82 Million total
38 Million Mobile 3G
Subscriber
26 Million Smartphone
Users
Germany has a ~ 68% smartphone penetration.
Source: Bitcom 6

7. OS Penetration Germany
Incumbent App Stores
In Germany, Android has become market leader. There are only 3 significant appstores
Source: Madvertise 7

8. New Smartphone Sales
Symbian 5%
RIM 6%
iOS 14%
Windows 5%
Android 68%
Bada 2%
Other 0%
Currently, in the top 6 European countries 2/3 of every newly sold
smartphone is an Android phone.
Source: Kantar worldpanel 8

9. Revenue Models Germany
0.6% 13%
19% 46%
Android apps are more advertising driven with only 0.6% pure paid apps and 13% in-
app-purchase apps.
Apple iOS paid apps still have 20% share.
Source: xyologic 9

10. Current
Challenges
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11. New Smartphone Sales
A game on Android will make only 24% of the iOS version. Amazon is ~ 89%
Lower payment conversion for Android in Europe is due to the lack of Google
Wallet accounts → which Google is working on of course.
Source: Madvertise 11

12. Current Challenge: Customer Acquisition Costs
$2.50
$2.00
$2.00
$1.50
$1.00
$0.75
$0.50
$0.00
 According to Pocketgamer user acquisition costs have recently jumped
from 0.75$ to 2$.
 This is due to incumbent players currently buying themselves at a loss into
the future (→ Zynga, Gree, DeNA)
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13. Current CPI Levels are not sustainable
Cost per User (Cost per install) $2 $1.86 $0.75 $0.75
Conversion Rate 5% 5% 5% 5%
Break-Even $40 $37 $15 $15
Target Margin 30% 30% 30% 50%
Life-Time Value (LTV) Target $57 $53 $21 $30
 Buying users at 2$ equals to burning money.
 Assuming a low target margin of 30%, 0.75$ CPI seems feasible.
 But the question is: Can you get the right audience ?
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14. Potential Growth
Strategies
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15. Overview of Growth Strategies
1.Viral
Out of product itself (Kakaotalk, Anipang)
Social media (Social graph)
Free
2. Organic
SEO (Google)
PR (Public Relations)
Appstore Relations (Have good relations)
3. Advertising Networks
CPM (Cost per Mille)
CPC (Cost per Click)
CPI (Cost per Install)
4. Special Paid Networks Pay
Incentivized (Tapjoy, Sponsorpay)
Free App a Day (FAAD)
Chart Booster
5. M&A
6. Partnerships Share
Channelling (LTV)
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16. Paid Advertising - CPC
Some real numbers!
Clickrate 2.5%
CPC 20cents
1 Million Banner
Impressions
1 Million x 2.5% x .2€
= 5,000 Euro
→ 25,000 Clicks
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17. Paid Advertising – Facebook Ads CPI
Advertise in the timeline
- high CTR
- good targeting
- however high costs
- ~1 $ CPI
In addition:
- use social graph
features like requests,
challenges, invitations,
score API, open graph
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18. M&A
Most deals were bought at a high premium:
- Zynga bought OMGPOP for $ 180 - 210 Million → 6$ / user
- Gree bought Pokelabo ($7m revenues $2m profit 2011)
for $170m by Gree 25 Price/Sales and 85 Price/Earnings
multiple
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19. In addition, build your own distribution eco-system
Eco-system approach (channeling) forces you to build a good monetizing
game right from from scratch and build long-term partnerships.
You need an external solution to manage all the tracking and analytics.
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20. Solution
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21. First step into the right direction
 TinyCo shares up to 75% of realized revenues (at least 30%
needed)
 Incremental revenues for app publishers
 Drawbacks:
• Limited to apps
• SDK for app publishers needed
• No detailed reporting
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22. Mobile PS is a solution that supports your eco-system
Game Publishers
 Build a longterm global network of affiliate partners
 Don't waste marketing dollars & ad network fees
 Flexibility to mix different revenue models
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23. Mobile PS – SaaS Technology
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24. Conclusion
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25. Conclusion
- Don't inflate your business plan on Android
- Control your conversion funnel at any time
- Public Relations builds awareness & word-of-mouth
- Don't outspend your competition
- Hire Managers with cultural empathy
- Build a long-term distribution network & ecosystem
- Outsource solutions which are not a core competence
- Use Mobile PS as Software-as-a-service
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26. Any questions?
Please visit our website for
further information
www.mobile-ps.com
david_an@rumblemedia.de
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