The document discusses strategies for social game success. Daily active users (DAUs) are critical, and maintaining a DAU to monthly active user (MAU) ratio above 0.2 is a key threshold. Engagement can be increased through frequent feature releases, competition among friends, and requests for help. Games should aim for revenue of $30 or more per 1,000 DAUs. Existing customers account for over 50% of revenue, so enticing repeat purchases is important. Rapid user acquisition through ads can help games "get big fast" before competition copies strategies.

1. Social Game Strategies
Jia Shen, President

2. Games Virtuous Cycle
Game
Game
Engagement
Virals
Revenue
Ad Network
User Acquisition Revenue
Marketing ARPU
CPA Payment Conversion

3. Why Social Gaming is Interesting
 Massive Reach – Casual Gamers
 Cheap development costs
 Fast and rapid development

4. The Secret Sauce: DAUs are Everything!
• Reach/Virality
• User acquisition
Key Threshold: • Re-engagement
.2 DAU/MAU strategies
Network
Effect
• Feature
• ARPU Releases
Arbitrage Engagement • Competition
• K factor
• Friends help
users advance

5. Network Effect: DAU Growth and
Rengagement
K Factor <.7 after recent change
User
Acquisition/Reengagement Key Thresholds
Channel
Feed Posts • 3 FB users should click on every
feed post created
Requests • Focus request on friends already
in game
• Expect a 70% CTR on requests if
friend already in game
Book Marks • Expect 20% of DAUs to enter
through bookmarks

6. Engagement: Constant and Rapid Releases
5 weekly releases:
3 content, 1 viral event, 1 game play feature

7. Engagement: Competition Rules
• Create competition
among friends using
visible metrics
• Friend Walls
• Customization
• Player vs. Player
engagments

8. Engagement: Get Friends To Help
• Increase Re-
engagement rates by
sending requests
calling friends for
help
Castle Age
• All Users helping get
the prize

9. Arbitrage: Is Your Game Monetizing Well?
 Measure on Revenue/1,000 DAU’s
 Best Monetizing Apps $100+/1,000 DAU’s
 On Average, Apps Monetize $10-30/1,000 DAU’s
 $30+/1,000 DAU’s  On the right track

10. Arbitrage: Direct Payments
 1-3% of DAU’s Are Paying Customers
 Payment Methods Biased to Default Method.
– Usually Defaulted to Best Converting Method.
Offers
15%
Credit PayPal
Card 60%
25%

11. Arbitrage: Capitalize On Your Existing
Consumers
 Entice Users to Re-Purchase Premium Currency
 Conversion Rates for Repeat Consumers are
Higher.
 >50% of Total Revenue Should be Repeat
Consumers
1st 2nd 30-40%of
Purchases

12. Go Big Fast
 Virals Getting Weaker
 Competition copying fast
 Need to get big fast

13. Strategy
 User acquisition through
Ads
 Target and test cheap
demographics
 When good, promote big

14. Details
 US CPA ~ 1$
 international can be .10
cents
 Big game marketing
budgets are millions of
dollars

15. Games Virtuous Cycle
Game
Game
Engagement
Virals
Revenue
Ad Network
User Acquisition Revenue
Marketing ARPU
CPA Payment Conversion

16. Conclusion
Questions?