Transcript
Introduction
Social Network
+ =
570.000.000Facebook Users
Facebook Growth
Video
Photo’s
Events
Messages
Social Games
Farmville
Farmville growth
Free-to-playMicro Transactions
Top 250 Growth
Research Question
How has the free-to-play micro-transaction business model
influenced the growth of Facebook Games?
F2P Business
Model
Data
Other Game
Business
Models
Methodology
Looking for the correlations
MethodologyData from:
Articles From:
Presentation
General Business ConceptMetrics
MonetizingAcquiring Users
Digital Gold Rush
General Business Concept
(LTV – CAC) * scale = profit
LTV = Life Time ValueCAC= Customer Acquisition Cost
Balancing LTV & CAC
Positive Balance
Metrics
Google Analytics
Kon
Web metrics
Social Gaming Metrics
Kontagent
Specialised metrics: Viral & FB Demographics
Metrics
Optimize through A/B testing
Metrics vs Intuition
Intuition lets you find new designs.
Life time value
=Daily ARPU * Retention
ARPU = Average Revenue per UserRetention = Avg. Active Days
Micro Transactions
Selling Digital Goods
Advantages:No price Barrier
Continual Revenue Stream
Digital Goods
Gameplay enhancing
Progression boosting Customizing
Daily Arpu
ARPU = Average Revenue per User
$30Divided by1000 users
=Daily ARPU of $0,03
Total Average Days spend
Retention
Customer Acquisition Cost
=(Cost per Acquisition / Conversion
Rate) / (1+k-factor)
Cost Per Acquisition
Advertisement
Conversion Rate
%Of
Users who completed the tutorial
Conversion Funnel
Viral
• News Feeds• Invites• Sending gifts• Referals
Viral
K-FactorK-Factor >1
Conclusion
((LTV – CAC) * scale) – Investment =
profit
LTV = Daily ARPU * RetentionCAC= (Cost per Acquisition / Conversion Rate) / (1+k-factor)
Digital Gold Rush
Viral
Digital Gold Rush
Each ad earns you more than it costs!
Policy Change
Policy Change
Viral Channels and 3rd party apps blocked from Facebook
Policy Change
Viral
Smaller titles Growth
Top 250 Growth
Smaller titles Growth
Questions
New Development Style
Cityvilles Growth
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