Monetization

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

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Transcript of Monetization

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Slide title goes here…

Offerpal Media Inc. Confidential

Monetizing Social Games: A Step-by-Step Guide

Nick TalaricoDirector of Publisher Development, Offerpal Media, Inc.

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First, a bit about Offerpal Media…

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Management Team:

• Anu Shukla, Co-founder & CEO• Mitch Liu, Co-founder & VP• Bill Lonergan, CFO• Naghi Prasad, VP Engineering• Shannon Jessup, VP Sales

Quick Facts:

• Venture capital funded: June, 2007, and February, 2009o Interwest Partners

o Northbridge Venture Partners

o D.E. Shaw Ventures

• Launched October, 2007

• Publishers: 2,000+

• Global advertising offers: 5,000+

• Headquarters: Fremont, CA

Company Background

“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.”

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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

Worlds

Games

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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

Top Social Monetization Solution

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User Flow

1 2

3

2

4

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UserEngagement

>$150 eCPM

<10¢ eCPM

CPM Banners

CPC Adsense

Monetization for Virtual

Currency and Digital

ProductsMonetization

<$1 eCPM

Card Games $400

MMORPGs

Tamagotchi Games

Racing

Owning

Pets

Green

$225

$200

$175

$150

$100

$75

eCPM

Category

• 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

Virtual Currency Payouts

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10 Steps for Monetizing Social Games

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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.

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Tip #1: Define Your Sinks

Types of Sinks:

• Functional Goods• Decorative Goods• Behavioral Goods

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Tip #1: Define Your Sinks

Types of Sinks:

• Functional Goods• Decorative Goods• Behavioral Goods

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Step #1: Define Your Sinks

Types of Sinks:

• Functional Goods• Decorative Goods• Behavioral Goods

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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.

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Step #3: Define Sources for Your Currencies

Types of Sources:

• In-game currency– Missions/Quests– Logging in

• RMT currency– Cash payments– Ad offers

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Step #3: Define Sources for Your Currencies

Types of Sources:

• In-game currency– Missions/Quests– Logging in

• RMT currency– Cash payments– Ad offers

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Step #3: Define Sources for Your Currencies

Types of Sources:

• In-game currency– Missions/Quests– Logging in

• RMT currency– Cash payments– Ad offers

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Step #3: Define Sources for Your Currencies

Types of Sources:

• In-game currency– Missions/Quests– Logging in

• RMT currency– Cash payments– Ad offers

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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)

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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

=

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Step #6: Launch Game

vs.

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Promotion = Monetization

• Add a tab to “Add Credits”

• Include balance in a status bar

• Use newsfeeds, notifications, banners and other messaging opportunities

Step #7: Promote Your Virtual Currency

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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

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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.

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Step #10: Test, Measure, Optimize

What to test?

• User attributes • Exchange rate• Price points• User Interface options• User patterns

Attribute Graphs

Trend Graphs

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Case Study: Mousehunt

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Case Study: Mousehunt

Social websitesMMOGsDigital merchants…

About Mousehunt

• 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!

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Mousehunt: Sinks

Social websitesMMOGsDigital merchants…

• Cheese– Varies by price

– Some better at attractingmice than others

• Traps– Varies by price

– Some better at catchingmice than others

• Travel to new locations– Different types of mice in

different locations

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Mousehunt: Sinks

Social websitesMMOGsDigital merchants…

• Cheese– Varies by price

– Some better at attractingmice than others

• Traps– Varies by price

– Some better at catchingmice than others

• Travel to new locations– Different types of mice in

different locations

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Mousehunt: Sinks

Social websitesMMOGsDigital merchants…

• Cheese– Varies by price

– 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

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Mousehunt: Sources

Social websitesMMOGsDigital merchants…

Earn Gold by…

• Catching Mice– 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…

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Mousehunt: Sources

Social websitesMMOGsDigital merchants…

Completing Ad Offers

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Questions?