Aakrit VaishDirector, Flurry India

November 2, 2012

The Business of Mobile Gaming

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APP MEASUREMENT AND ADVERTISING PLATFORM

DOING FOR MOBILE APPS

WHAT NIELSEN DID FOR TV

DOUBLECLICK FOR DISPLAY

GOOGLE FOR SEARCH

Flurry OverviewLargest data set on mobile tracking 500m consumers; 99% penetration on iOS and Android

Mobile Gaming MarketBiggest market of our generation; fastest growing consumer technology ever

Source: Flurry Analytics; further analysis by Flurry

Mobile Gaming MarketIndie Game Makers Dominate

Source: Flurry Analytics; further analysis by Flurry

Gen Y Plays

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

11%

17% 17%

7%

2%

11%

15%

12%

7%

1%

TIME SPENT BY DEMOGRAPHIC

13 – 17 18 – 24 25 – 34 35 – 54 55+

Males (53%) Females (47%)

Gen X Pays

Source: Flurry Analytics

0%

5%

10%

15%

20%

25%

30%

MOBILE FREE-TO-PLAY GAMES: MONEY SPENT BY DEMOGRAPHIC

Males (58%) Females (42%)

13 – 17 18 – 24 25 – 34 35 – 54 55+

9%

16%

7%

20%

12%

1% 1%3% 2%

29%

Monetizationgetting them to pay

Retention getting them to stay

Acquisitiongetting players in

Premium:- Selling a product

Number of Units x Price

Freemium:- Service

AU x ARPU, CAC-LTV

Business ModelMeasurement driven approach where LTV and ARPU replace ASP

ACQUIRE

SEGMENT

RE-ENGAGE

Break the Churn Cycle

MARKETING

MEASUREMENT

DEVELOPMENT

AcquisitionAcquisition

• Viral/Social effects• All about game design and product

• App Store optimization• Optimize for search results, name, icon, screenshots

• Mobile advertising• Buy from everywhere and measure

• PR• Give a story rather than press release

• Cross promotion• Use existing economies of scale

What are the Options?

What: Use your players as ambassadors for the game

How: Virality, Social Proof

Acquisition

Social interaction

CACLTV

What: Make sure players understand what the game is and give it a fair try

How: Constantly optimizing Tutorial, Newbie Experience

Acquisition

Smooth Initial Experience

CACLTV

RetentionRetention

• Change from plain volume to Regularity; not just “fire and forget” but ongoing

• What to Measure1. Usage pattern: session behavior2. Retention: short-term, lifetime retention3. Feature engagement: % of users interacting with a feature

• Engagement1. Basics (core mechanics, progression, etc)2. Constant Balancing3. Regular Content Updates4. Player interaction5. Re-engagement

Retention#1 Challenge in the mobile gaming business

What: Evolve the game to keep maintain surprise and delight

How: Regular New Challenges, Content, Updates

LTV

Retention

Regular Content Updates

What: Get your players to interact with each other

How: Social Proof, Competition/Collaboration

LTV

Retention

Social Interaction

What: Bring people back to the game regularly

How: Appointments, Push Notifications, Player interactions

LTV

Retention

Re-engagement

Monetization

Monetization

• Worldwide distribution platform – unprecedented• There is always a FREE alternative• Easiest way to get scale• Once you have users, multiple ways to monetize

instead of a single, up-front transaction1. Micro-transactions2. Advertising3. Usage Behavior

• Paid apps model only for true IP innovation

The Rise of Freemium

MonetizationAverage transaction size in freemium games

MonetizationConsumable goods make up highest spend

MonetizationMobile Advertising

Mobile Advertising: Selling your ad space

Advertising typically forms 30-40% of total revenue for freemium apps

• Individual Ad Networks• Most common and easiest to integrate• Lowest revenue

• Supply Side Platforms• Combination of ad networks• Good revenue; most ideal solution currently

• Direct• Selling to advertisers on your own• Sales and technology overhead

Mobile Advertising: Ad Types

Ad Placement is most important; during “ideal time” has highest conversion

• Static• Banners or interstitials (roadblock ads)• Most common, lowest revenue; interstitials perform 4-5x better

• Video• 15-30 second pre roll, post roll• Highest revenue and fill currently

• Rich Media• Mini app within app• High revenue but relatively new and low demand

Mobile Advertising: Sponsorship

Co-Branded Interstitial Sprint Brand Integration

Summary

• Measure or Die• Acquire, monetize, re-engage• Constant Balancing• Regular Content Updates• Social Interaction• Freemium for all

Top 6 Successful Game Types

ENDLESS PASS TIME

SOCIAL RPG

NURTURING & COLLECTING

GAMER’S GAME

BUILDING & SIMULATION

POKER / CASINO

Thank youaakrit@flurry.com

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