1 Christian O. Petersen 16 years of Games mobile and marketing Producer of over 100 advergames x x Getting brands to pay for in-game purchases Iryna Liashchuk.

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Christian O. Petersen

16 years of Gamesmobile and marketing

Producer of

over 100

advergamesx

Getting brands to payfor in-game purchases Iryna Liashchuk

Head of Marketing at Zigi

• Over 200 most successful game developers about their challenges on mobile

• Over 40 leading US brands about their marketing needs

• Hundreds of mobile gamers about their playing habits

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IHS

Started out by asking:

Retailers pay for your

virtual goods

Increase retention by giving non-paying users

virtual goods for free

Monetize your non-paying users when they visit

stores

Get access to huge retai advertising

budgets

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Show this screen to get your discount

The mobile games industry is moving to Freemium, because it

allows to get wide adoption

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IHS

In-app purchas-ing64%

No in-app purchasing

36%

iPhone and AndroidSource: Flurry and IHS 2012

Freemium: Losing Users

Most mobile game users

leave the first 30 days

The Freemium Pressure Cooker

2-3% of users spend money

Users see that their fun is limited without paying and loose interest

Paying users get more fun and stay

Bad app store reviews, poor WOM

Pressure to buy in-

game items

Low

Medium

High

Broad reach through

Freemium model

Monetized

Users

Sellingitems

Retention problems:When you push users to buy, they start to leave

With all that pressure …Can Freemium still ensure

user retentionand

optimal monetization

?

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Freemium: Leaving Money on the Table?

Growth in mobile game revenue 2010-

2012

3xGrowth in mobile

game sessions 2010-2012

10x

Making Freemium Better

STOPLeaving Money on the Table

STOPLosing Users

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2-3% of the DAU are monetized by selling virtual goods

Users who pay stay longer because they get more game opportunities

WhalesWhales

Making Freemium Better

STOPLeaving Money on the Table

STOPLosing Users

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2-3% of the DAU can be monetized by selling virtual goods

Users who pay stay longer because they get more game opportunities

4-6% of DAU can be monetized with location based sponsorships

Users who get virtual goods for free from sponsors stay longer as they get more fun

Whales

Dolphins

Whales

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Making Freemium Better

STOPLeaving Money on the Table

STOPLosing Users

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2-3% of the DAU can be monetized by selling in-game items

Users who pay stay longer because they get more game opportunities

4-6% of DAU can be monetized with location based sponsorships

Users who get virtual goods for free from sponsors stay longer as they get more fun

The rest 94-96% can be monetized with ads

Whales

Dolphins

Small Fish

Whales

Users have a choice of buying, getting for free from retailers or viewing ads

The User Experience

1. Playing a free game*

Anytime the user is playing, the game checks for nearby Zigi

spots

Patents pending

*Free and freemium apps dominate the mobile market, accounting for 89 percent of total downloads in 2012. Source: Brian Blau, research director at Gartner”

2. There is a Zigi Spot nearby

Patents pending

You are very close to a place where you can get a new level for free!

The user is notified that he can get virtual goods unlocked by

walking into the store/restaurant

3. See where on the map

The user sees the closest Zigi spots on the map

Patents pending

Unlock new Monkey Star level at Toffee Coffee

4. The user enters the retail location

When the user enters the retail location, the game item is

automatically unlocked

Patents pending

5. Retail product promotion

In addition to the free game item, the retail brand can show

users a special offer

Patents pending

Pretty cool, right …

Now let’ talk more about MONEY

So far all the fishing hasbeen in the small pool

Budgets for banner ads come from E-Commerce= less than 7% of overall marketing budgets

We have the key tohuge retail ad budgets

Traditional retail is 15 times bigger than e-commerce,but retailers are not getting clear ROI from the CPM

and CPC based ads

Retail is the top US ad spender with $21.5Bn (US =33% of global ad spend)

US Retail Ad Budgets:Walmart $1.8BSears $1.7BTarget $1.6BMacy’s $1.5BMcDonalds 1.5BJCPenney $1.2B

Why Retailers Love Zigi model

Being a part of the game

Driving consumers to

the stores

Getting measurable

results

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Beverage andFast food

$1

1 2 3ClothingStores

$3

Supermarket or Restaurant

$2

RevenuePer Visit

Why Users LoveZigi

Allows not to choose between

paying or leaving

Enhances rather than

compromises the user

experience

Gives free virtual goods & real rewards in-

store

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Why Developers Love this

model

Increase retention by giving non-

paying users access to

virtual goods

Monetize users who never

spend money in games

Get access to huge retail advertising

budgets

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Summary

Opens access to huge retail ad budgets

Increases the game’s retention of users

Works alongside other monetization tools

Makes Freemium work!

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Changing the Game

Serving the world’s on-the-go people

[email protected]

Email me and let’s have a chat

www.zigi.com