1. Slide title goes here…
Monetizing Social Games:
A Step-by-Step Guide
Nick Talarico
Director of Publisher Development, Offerpal Media, Inc.
Offerpal Media Inc. Confidential

2. First, a bit about Offerpal Media…

3. Company Background
Quick Facts: Management Team:
• Venture capital funded: June, • Anu Shukla, Co-founder & CEO
2007, and February, 2009 • Mitch Liu, Co-founder & VP
o Interwest Partners • Bill Lonergan, CFO
o Northbridge Venture Partners • Naghi Prasad, VP Engineering
o D.E. Shaw Ventures • Shannon Jessup, VP Sales
• Launched October, 2007
• Publishers: 2,000+
• Global advertising offers: 5,000+
• Headquarters: Fremont, CA
“Offerpal Media is built on the science of inserting scientifically
targeted and relevant advertising offers into the virtual
economies of social web sites, games and applications.”

4. The Leading Social Advertising Platform
• More than 150 million user accounts created since October 2007
• 2,000+ publishers across multiple platforms and environments
• 5,000+ advertising offers in 80+ countries
• 30+ billion virtual points issued
Platforms
Applications
Games
Worlds

5. Top Social Monetization Solution
Offerpal’s turnkey payment
platform allows online gamers
to earn virtual currency for
taking part in targeted,
personalized advertising offers
(or buy it through global
payment options).
– Integrated within game play of
social applications and web sites
– Deepens user engagement
– Increases stickiness and pageviews
– Improves virality

6. User Flow
1 2
3 4
2

7. Virtual Currency Payouts
• Network-wide eCPM: $150 – 200
• Average publisher payout: $75/day/1,000 users
• Conversion rate: >5% (40x better than traditional CPA)
• Revenues per completion: >$5.00
>$150 eCPM $400
Card Games
MMORPGs $225
Tamagotchi Games $200
<$1 eCPM
Racing $175
<10¢ eCPM
Owning $150
Monetization
for Virtual
Category Pets $100
Currency and
Monetization CPM CPC Adsense
Digital
Green $75
Banners Products
User eCPM
Engagement

8. 10 Steps for
Monetizing Social Games

9. Tip #1(A): Make It Fun
Before you do anything,
ask yourself:
• Is your game fun?
• Will users come back?
• Will they invite their
friends?
If not, go back to square one.

10. Tip #1: Define Your Sinks
Types of Sinks:
• Functional Goods
• Decorative Goods
• Behavioral Goods

11. Tip #1: Define Your Sinks
Types of Sinks:
• Functional Goods
• Decorative Goods
• Behavioral Goods

12. Step #1: Define Your Sinks
Types of Sinks:
• Functional Goods
• Decorative Goods
• Behavioral Goods

13. Step #2: Assign Currency to Your Sinks
• Use “in-game”
currency to engage
• Use “RMT” currency to
monetize
• Assign currencies to
each sink or set of
sinks
Happy Harvest uses “Game Coins” for its engagement
currency and “Credits” for RMT currency.

14. Step #3: Define Sources for Your Currencies
Types of Sources:
• In-game currency
– Missions/Quests
– Logging in
• RMT currency
– Cash payments
– Ad offers

15. Step #3: Define Sources for Your Currencies
Types of Sources:
• In-game currency
– Missions/Quests
– Logging in
• RMT currency
– Cash payments
– Ad offers

16. Step #3: Define Sources for Your Currencies
Types of Sources:
• In-game currency
– Missions/Quests
– Logging in
• RMT currency
– Cash payments
– Ad offers

17. Step #3: Define Sources for Your Currencies
Types of Sources:
• In-game currency
– Missions/Quests
– Logging in
• RMT currency
– Cash payments
– Ad offers

18. Step #4: Get them hooked
Balance engagement
with monetization:
• Crack dealer: Engage first,
monetize second
• Cheater: Allow all to play,
but let people pay to
cheat
• Focus on constant
balance between sources
and sinks (the sinkhole
must always be slightly
larger)

19. Step #5: Set Your Exchange Rate
Tips on setting the exchange rate:
• Too low = low perceived value
• Too high = high inflation
• Find the sweet spot
=

20. Step #6: Launch Game
vs.

21. Step #7: Promote Your Virtual Currency
Promotion =
Monetization
• Add a tab to “Add
Credits”
• Include balance in
a status bar
• Use newsfeeds,
notifications,
banners and other
messaging
opportunities

22. Step #8: Keep Demand for Currency High
What drives demand?
• User psychology
– Self-expression
– Collection
– Achievement
• Limited edition goods
• Level-specific goods
• Perishable goods
• New, fresh content
• Global leaderboards
and social competition

23. Step #9: Maintain a Balanced Economy
Tips for a healthy economy:
• Try upping exchange rate for a day
• NEVER flood your RMT currency
• Don’t keep the economy too tight –
remember, it’s free to play
• If they aren’t complaining, you
aren’t monetizing.

24. Step #10: Test, Measure, Optimize
What to test? Attribute Graphs
• User attributes
• Exchange rate
• Price points
• User Interface options
• User patterns
Trend Graphs

25. Case Study: Mousehunt

26. Case Study: Mousehunt
Social websites
About Mousehunt MMOGs
Digital merchants…
• 481,643 MAUs on Facebook
• Developed by HitGrab, Inc.
• You are a hunter, hired by
the king to trap the mice
that infest his kingdom. For
each mouse you catch, you'll
receive a unique reward,
with the aim of being the
best in the land!

27. Mousehunt: Sinks
Social websites
• Cheese MMOGs
– Varies by price merchants…
Digital
– Some better at attracting
mice than others
• Traps
– Varies by price
– Some better at catching
mice than others
• Travel to new locations
– Different types of mice in
different locations

28. Mousehunt: Sinks
Social websites
• Cheese MMOGs
– Varies by price merchants…
Digital
– Some better at attracting
mice than others
• Traps
– Varies by price
– Some better at catching
mice than others
• Travel to new locations
– Different types of mice in
different locations

29. Mousehunt: Sinks
Social websites
• Cheese MMOGs
– Varies by price merchants…
Digital
– Some better at attracting
mice than others
• Traps
– Varies by price
– Some better at catching
mice than others
• Travel to new locations
– Different types of mice in
different locations

30. Mousehunt: Sources
Earn Gold by… Social websites
MMOGs
• Catching Mice Digital merchants…
– The heavier the mouse, the more gold
you earn
• Accepting gifts from the King
• Picking up “loot” dropped by
mice when they are trapped
• Returning surplus cheese,
traps and crafting materials
for a refund
• Or by…

31. Mousehunt: Sources
Completing Ad Offers Social websites
MMOGs
Digital merchants…

32. Questions?