Slide title goes here… Offerpal Media Inc. Confidential Nick Talarico Director of Publisher Development, Offerpal Media, Inc. www.facebook.com/ntalarico @nptca Monetizing Social Games: A Step-by-Step Guide
Jan 28, 2015
Slide title goes here…
Offerpal Media Inc. Confidential
Nick TalaricoDirector of Publisher Development, Offerpal Media, Inc.
www.facebook.com/ntalarico
@nptca
Monetizing Social Games: A Step-by-Step Guide
First, a bit about Offerpal Media…
Management Team:
• George Garrick, CEO• Mitch Liu, Co-founder & VP• Bill Lonergan, CFO• Mihir Shah, CRO• Naghi Prasad, VP Engineering• Shannon Jessup, VP Sales
Quick Facts:
• 100+ million Unique Visits / mo.
• 4+ million transactions / mo.
• Venture capital funded: June, 2007, and February, 2009o Interwest Partners
o Northbridge Venture Partners
o D.E. Shaw Ventures
• Launched October, 2007
• 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.”
In 2007, Offerpal Media launched the first platform to give consumers a way to earn virtual currency for free – whether by participating in targeted ad offers, completing online surveys or shopping at brand-name retailers.
Today, we have:
• 165 Million User Accounts
• 4,000 Advertising Offers
• 2,000 Publishers/Developers
• 750 Billion Virtual Points Issued
• $19.6 Million in Venture Funding
Pioneer in Virtual Currency Monetization
User Flow
1 2
3
2
4
First, some things to consider…
Not All Games Monetize the Same
DeVitoSchwarzenegger
UserEngagement
>$150 eCPM
<10¢ eCPM
CPM Banners
CPC Adsense
Monetization for Virtual
Currency and Digital
Products
Monetization
<$1 eCPM
Card Games $400
RPGs & MMORPGs
Resource Management Games
Owning
“Trivia”
$225
$200
$150
$25
eCPM
Category
Consider:• The Type of game – compelling theme & mechanics? (below)• The Demand for Virtual Currency• The Balance of Sources & Sinks (+ Non-Monetizing Sources)• The Promotion of the Monetizing Sources• User Engagement & Retention (DAU:MAU)
All of these things, when optimized, will improve monetization.
Not All Games Monetize the Same
First of all, 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. Monetization mode comes AFTER your game is engaging and viral.
And now…
10 Steps for Monetizing Social Games
Tip #1: Define Your Sinks
Some Types of Sinks:
• Functional Goods• Decorative Goods• Behavioral Goods
Tip #1: Define Your Sinks
Types of Sinks:
• Functional Goods• Decorative Goods• Behavioral Goods
Step #1: Define Your Sinks
Types of Sinks:
• Functional Goods• Decorative Goods• Behavioral Goods
Step #2: Assign Currency to Your Sinks
• Dual Currencies:– Use “in-game” currency
to engage users– Use “RMT” currency to
monetize
• Assign currencies to each sink or set of sinks
• The decision to use multiple currencies may be one of the biggest decisions you make.
Happy Harvest uses “Game Coins” for its engagement currency and “Credits” for RMT currency.
Step #3: Define Sources for Your Currencies
Types of Sources:
• In-game currency– Missions/Quests– Logging in
• RMT currency– Cash payments– Ad offers– Shopping– & more to come…
Step #3: Define Sources for Your Currencies
Types of Sources:
• In-game currency– Missions/Quests– Logging in
• RMT currency– Cash payments– Ad offers– Shopping– & more to come…
Step #3: Define Sources for Your Currencies
Types of Sources:
• In-game currency– Missions/Quests– Logging in
• RMT currency– Cash payments– Ad offers– Shopping– & more to come…
Step #3: Define Sources for Your Currencies
Types of Sources:
• In-game currency– Missions/Quests– Logging in
• RMT currency– Cash payments– Ad offers– Shopping– & more to come…
Step #3: Define Sources for Your Currencies
Types of Sources:
• In-game currency– Missions/Quests– Logging in
• RMT currency– Cash payments– Ad offers– Shopping– & more to come…
Step #3: Define Sources for Your Currencies
Types of Sources:
• In-game currency– Missions/Quests– Logging in
• RMT currency– Cash payments– Ad offers– Shopping– & more to come…
Step #4: Get them hooked
Balance engagement with monetization:
• Engage your users first & monetize once engaged
• Allow all to play, but let people pay to advance more quickly
• Focus on constant balance between sources and sinks (the sinkhole must always be slightly larger)
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 by using Offerpal’s Multivariate Testing Platform (free like all Offerpal products)
=
Step #6: Launch Game
vs.
Users of Facebook games expect them to be alive… constantly evolving and improving. Release games when they’re not 100% finished and iterate with improvements as new features.
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
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 &
social competition
Step #9: Maintain a Balanced Economy
Tips for a healthy economy:
• Try upping exchange rate for a day & promoting it to users.
• NEVER (ever) flood your RMT currency. Ever. Seriously.
• Don’t keep the economy too tight – remember, it’s free to play
• If your economy is too loose (if it’s too easy to acquire currency), then you’re missing out on monetization.
Step #10: Test, Measure, Optimize What to test?
• Exchange rate• Price points• User Interface options• User patterns
• Use the Offerpal Virtual Currency Analytics System(free like all Offerpal products)
Attribute Graphs
Trend Graphs
Questions? Sign ups?
www.Offerpal.com
@Offerpal
http://myofferpal.wordpress.com
www.facebook.com/ntalarico
@nptca