How to monetize your social app / game with sponsored or paid virtual goods and how measure and optimize your success.

1. Cash = Community * Context * Content * Currency Martin Szugat, SnipClip GmbH

2. Tomorrow is Now. Sharing. Gaming. Web 2.0 Post Web 2.0

3. Funware: Design for Fun!

4. Agenda

6. More with Less

8. Digital vs. Virtual Goods

9. Business Models Non Branded Branded Sponsored Paid User-generated Farm- Ville Virtual Greats SnipClip Second Life

13. Users Love Brands.

14. User-generated Targeting

15. Value Chain (Paid Goods)

17. 1) Community (Maslow)

18. 2) Context Hedonic Functional Social

19. Do you want to play a game? Social Context + Casual Gaming = Social Gaming

20. 3) Content

21. 4) Currency

22. Payment Methods

23. Virtual Goods Strategy

24. Jumping the Shark

25. 3R-Metrics

26. Comparison of Virtual Goods Virtual Worlds Social Games Social Networks Average Revenues per Monthly Active User per Year $0.37 $3.56 $8.23

27. ARPPU accross different genres

29. AARRR!!!!! Acquisition Retention Referral Revenue

30. Acquisition

32. Retention

33. Stickiness

34. Referral k-Factor = Number of Invites * Acceptance Rate k-Factor > 1  Viral Growth 

37. Stickiness, Virality and Churn

38. Revenue Age ARPPU 15 $2.65 18 $2.92 22 $2.82 25 $2.99 29 $3.33

42. Viral & Engagement Loops Active User

46. Reading