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Game Monetization Analytics: How to use game metrics effectively

Browsergames forum 2011 – Frankfurt-Offenbach
19. November 2011

Tom Sente, CEO - HoneyTracks GmbH
Game Analytics
            Why it matters
Games portfolio monetization (example from 6Waves)*

                                     DAU vs ARPU
            3,50


            3,00

                                                                                                               ARPUs vary
            2,50                                                                                               significantly
                                                                                                               within
            2,00                                                                                               GAME GENRES.
  ARPU




                                                                                                               Game analytics
            1,50                                                                                               can help you to
                                                                                                               make the most of
            1,00                                                                                               your game


            0,50


            0,00
 -500.000          0       500.000   1.000.000   1.500.000   2.000.000       2.500.000   3.000.000

  Management           Gambling
                                      DAU (Daily Active User)
  Social RPG           Mini-games
  Caretaking

                                                     Copyright HoneyTracks                   * Source: 6waves.com/                2
Game Analytics
Market insiders view analytics as increasingly important



                   “As more free-to-play games become the norm and selling virtual goods
                   becomes the way to make money, game companies are relying more and
                   more on a small fraction of players (typically 1 to 3 percent) paying to
                   level up or for that shiny new virtual sword. Finding that 1 to 3 percent
                   of players or getting more to pay for virtual goods can have a big
                   impact on game revenues.”
                   (TechCrunch, 6 April 2010)



                   “Virtual economy optimization is now becoming a core competency
                   as competition stiffens.”
                   (Justin Smith, Inside Social Networks, Speech at Casual Connect 2010)




                         Copyright HoneyTracks                                                 3
Game Analytics
           How to approach it right


                                        what matters
                                      in game analytics


Monitor the entire      Layer by layer:                  It is an               For the
monetization funnel     „peel the onion“                 ongoing process        whole company
Every step matters:    Aggregated metrics rarely         Your game and its      Each department / team
Starting with user     tell the full story               monetization changes   has „their“ KPIs
acqusition matter                                        all the time
                       Actionable insights are not                              Easy to use for everyone
                       gained from aggregated
                       metrics


  Over the lifetime of a game different metrics matter at a different point in time




                                          Copyright HoneyTracks                                            4
Game Analytics
                           Metrics along the entire monetization funnel
                     Monetization Funnel

                          User
                                                Virality               Retention            Conversion              Revenue
                          Generation

                      • DAU                 • % viral signups       • Churn-rate          • Paying users        •   Revenue
                      • MAU                 • K-factor                    1-7 day         • % paying users      •   ARPU
                      • Sign-ups            • Viral invites               1-3 mths        • New paying          •   ARPPU
                      • Organic             • % invite accept       • User lifetime         users               •   User lifetime
         selected)
Metrics (selected




                        signups             • Invites               • DAU / MAU           • # charges               revenues
                      • Mkting signups        sent/DAU              • User log-ins        • Amount per          •   Virtual currency
                      • Click-to-registr.   • Viral invites by      • Log-ins per           charge                  purchased
                      • Reg-to-active         message                 user                • Time to first       •   Virtual currency
                                            • Viral invites by      • 3/5/10-day            charge (days)           spent
                                              message                 active users        • Level of first      •   Virtual currency
                                              acceptance                                    charge                  spent / DAU
                                                                                          • Payment types       •   Virt. good types
                                                                                                                    purchased

                                                           Custom Metrics (your game specifics)



                                                     • Track metrics along the entire monetization funnel
                                                     • Both standard metrics and game-specific metrics matter


                                                                 Copyright HoneyTracks                                                 5
Game Analytics: Example I
        „Peel the onion“: ARPU cohort analysis
Screenshot: ARPU cohort analysis




                                                                   Aggregate ARPU
                                                                      is 2 Euro




                                                          Monthly cohorts show
                         ... and we see that               that ARPU actually
                        ARPU improved from                  becomes 4 Euro!
                         April to May cohort


     • Aggregate numbers don‘t tell the
       truth

     • As a next step we would dig
       deeper into the May-cohort to
       understand why it generated
       better ARPU

                                           Copyright HoneyTracks                    6
Game Analytics: Example II
           „Peel the onion“: Revenue & user conversion

Screenshot: Revenue analysis by level


                                                                                                 Pretty effective at
                             Majority of revenues                                               monetizing advanced
                           achieved in levels 20-30                                                   users ...




                                                                          0          10        20        30         40        50
       0      10      20         30       40
                                                                                                           ... but what about users
                                                                                                                in earlier levels?
                                                                                     Can we push users
                                                                                   into making purchases
                                                                                          earlier?
                            What are virtual goods
                           that are useful at earlier
                                    levels?



                                                                 0            10          20        30        40         50


                                                  Copyright HoneyTracks
                                                                                                                                   7
Game Analytics: Example III
         „Peel the onion“: Virtual goods economy

                                At lower levels „food“ is
                               being purchased relatively
                                         higher



                                                              ... so this may be the
                                                                virtual good, which
                                                             converts users into „first
                                                                    time buyers“



                                                                                           ... even though „food“
                                                                                          doesn‘t play a major role
                                                                                                 in revenues




       We could improve the game:
• Offering „food“ specials to users at lower
  levels
• Try lower prices for food to generate more
  first time buyers


                                               Copyright HoneyTracks                                              8
Game Analytics: Example IV
           „Peel the onion“: Marketing channel

Screenshot: Channel profitability
                                                                                            ... shows that Channel 1
                                                                                             has 50% of Channel 32
                                                                                                 revenues despite
                                                                                                having 2.5x in DAU
                                              Segmenting users by
                                              marketing channel ...




                                                                                1                                           32
                                                                                              Marketing Channel


      1 2 3 4 5 6 7 8 9 1 11                                   32 33
                        0
                          Marketing Channel                                           Comparing payouts to
                                                                                      „revenues“ shows that
                                                                                     Channel 1 has more „lost
                                                                                    revenue“, i.e. issues in the
               We could improve the game:                                                payment process
  • Focus on user aquisition from ch32
  • Double check payment type (SMS) and charge
    backs in ch1
  • Switch off certain payment methods at special times
                                                                          1               Marketing Channel            32


                                                        Copyright HoneyTracks                                                    9
Game Analytics: Example V
          „Peel the onion“: Whales Analysis

                                                          What is her
                                                           profile
                Who are my
                 Whales?




                    What, when and how
                     much of each item
                    works best for her?
                                                                                     What payment
We could improve the game                                                            does she use
• See what works best for whales and offer
  higher variety of same type
• Increase prices stepwise for new items
  and monitor closely
• Try out special offers for items that work
  for other whales                                                      Different colors indicate different
• Optimize payment options for her to                                   feature/item types - “mouse over “shows
                                                                        details
                                               Copyright HoneyTracks                                          10
Game Analytics
Analytics is an ongoing task




                 • Your game changes
                 • Monetization changes
                 • Analytics help you to understand those ongoing
                   changes and optimize the game effectively


                          Copyright HoneyTracks                     11
Game Analytics
Metrics matter for the entire company



 Metrics for each team                           Information at your fingertips
  •   Product management                          • Metrics must be accessible at once
  •   Marketing                                   • Drill-down capability without having
  •   Management                                    to go back to tech-team every time
  •   Investors
  •   Others


  Easy to use                                     Insights – not data-dumps
  • Every one must be able to use the              • Insights that lead to action
    analytics system                               • Real time data not data-dumps
  • Graphical user interface                       • KPI and performance management




                                   Copyright HoneyTracks                                   12
Game Analytics
      Makes fun and pays off




http://www.penny-arcade.com/comic/2011/6/10
                               Copyright HoneyTracks   13
Contact information



                         Want to see      HoneyTracks in action?
                         Check out:


                         www.honeytracks.com
                            @HoneyTracks
HoneyTracks GmbH
Schellingstr. 35
80799 München, Germany   ts@honeytracks.com
+49 (0)89 2872 3995


                              Copyright HoneyTracks                14

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Game Monetization Analytics: How to use game metrics effectively

  • 1. Game Monetization Analytics: How to use game metrics effectively Browsergames forum 2011 – Frankfurt-Offenbach 19. November 2011 Tom Sente, CEO - HoneyTracks GmbH
  • 2. Game Analytics Why it matters Games portfolio monetization (example from 6Waves)* DAU vs ARPU 3,50 3,00 ARPUs vary 2,50 significantly within 2,00 GAME GENRES. ARPU Game analytics 1,50 can help you to make the most of 1,00 your game 0,50 0,00 -500.000 0 500.000 1.000.000 1.500.000 2.000.000 2.500.000 3.000.000 Management Gambling DAU (Daily Active User) Social RPG Mini-games Caretaking Copyright HoneyTracks * Source: 6waves.com/ 2
  • 3. Game Analytics Market insiders view analytics as increasingly important “As more free-to-play games become the norm and selling virtual goods becomes the way to make money, game companies are relying more and more on a small fraction of players (typically 1 to 3 percent) paying to level up or for that shiny new virtual sword. Finding that 1 to 3 percent of players or getting more to pay for virtual goods can have a big impact on game revenues.” (TechCrunch, 6 April 2010) “Virtual economy optimization is now becoming a core competency as competition stiffens.” (Justin Smith, Inside Social Networks, Speech at Casual Connect 2010) Copyright HoneyTracks 3
  • 4. Game Analytics How to approach it right what matters in game analytics Monitor the entire Layer by layer: It is an For the monetization funnel „peel the onion“ ongoing process whole company Every step matters: Aggregated metrics rarely Your game and its Each department / team Starting with user tell the full story monetization changes has „their“ KPIs acqusition matter all the time Actionable insights are not Easy to use for everyone gained from aggregated metrics Over the lifetime of a game different metrics matter at a different point in time Copyright HoneyTracks 4
  • 5. Game Analytics Metrics along the entire monetization funnel Monetization Funnel User Virality Retention Conversion Revenue Generation • DAU • % viral signups • Churn-rate • Paying users • Revenue • MAU • K-factor 1-7 day • % paying users • ARPU • Sign-ups • Viral invites 1-3 mths • New paying • ARPPU • Organic • % invite accept • User lifetime users • User lifetime selected) Metrics (selected signups • Invites • DAU / MAU • # charges revenues • Mkting signups sent/DAU • User log-ins • Amount per • Virtual currency • Click-to-registr. • Viral invites by • Log-ins per charge purchased • Reg-to-active message user • Time to first • Virtual currency • Viral invites by • 3/5/10-day charge (days) spent message active users • Level of first • Virtual currency acceptance charge spent / DAU • Payment types • Virt. good types purchased Custom Metrics (your game specifics) • Track metrics along the entire monetization funnel • Both standard metrics and game-specific metrics matter Copyright HoneyTracks 5
  • 6. Game Analytics: Example I „Peel the onion“: ARPU cohort analysis Screenshot: ARPU cohort analysis Aggregate ARPU is 2 Euro Monthly cohorts show ... and we see that that ARPU actually ARPU improved from becomes 4 Euro! April to May cohort • Aggregate numbers don‘t tell the truth • As a next step we would dig deeper into the May-cohort to understand why it generated better ARPU Copyright HoneyTracks 6
  • 7. Game Analytics: Example II „Peel the onion“: Revenue & user conversion Screenshot: Revenue analysis by level Pretty effective at Majority of revenues monetizing advanced achieved in levels 20-30 users ... 0 10 20 30 40 50 0 10 20 30 40 ... but what about users in earlier levels? Can we push users into making purchases earlier? What are virtual goods that are useful at earlier levels? 0 10 20 30 40 50 Copyright HoneyTracks 7
  • 8. Game Analytics: Example III „Peel the onion“: Virtual goods economy At lower levels „food“ is being purchased relatively higher ... so this may be the virtual good, which converts users into „first time buyers“ ... even though „food“ doesn‘t play a major role in revenues We could improve the game: • Offering „food“ specials to users at lower levels • Try lower prices for food to generate more first time buyers Copyright HoneyTracks 8
  • 9. Game Analytics: Example IV „Peel the onion“: Marketing channel Screenshot: Channel profitability ... shows that Channel 1 has 50% of Channel 32 revenues despite having 2.5x in DAU Segmenting users by marketing channel ... 1 32 Marketing Channel 1 2 3 4 5 6 7 8 9 1 11 32 33 0 Marketing Channel Comparing payouts to „revenues“ shows that Channel 1 has more „lost revenue“, i.e. issues in the We could improve the game: payment process • Focus on user aquisition from ch32 • Double check payment type (SMS) and charge backs in ch1 • Switch off certain payment methods at special times 1 Marketing Channel 32 Copyright HoneyTracks 9
  • 10. Game Analytics: Example V „Peel the onion“: Whales Analysis What is her profile Who are my Whales? What, when and how much of each item works best for her? What payment We could improve the game does she use • See what works best for whales and offer higher variety of same type • Increase prices stepwise for new items and monitor closely • Try out special offers for items that work for other whales Different colors indicate different • Optimize payment options for her to feature/item types - “mouse over “shows details Copyright HoneyTracks 10
  • 11. Game Analytics Analytics is an ongoing task • Your game changes • Monetization changes • Analytics help you to understand those ongoing changes and optimize the game effectively Copyright HoneyTracks 11
  • 12. Game Analytics Metrics matter for the entire company Metrics for each team Information at your fingertips • Product management • Metrics must be accessible at once • Marketing • Drill-down capability without having • Management to go back to tech-team every time • Investors • Others Easy to use Insights – not data-dumps • Every one must be able to use the • Insights that lead to action analytics system • Real time data not data-dumps • Graphical user interface • KPI and performance management Copyright HoneyTracks 12
  • 13. Game Analytics Makes fun and pays off http://www.penny-arcade.com/comic/2011/6/10 Copyright HoneyTracks 13
  • 14. Contact information Want to see HoneyTracks in action? Check out: www.honeytracks.com @HoneyTracks HoneyTracks GmbH Schellingstr. 35 80799 München, Germany ts@honeytracks.com +49 (0)89 2872 3995 Copyright HoneyTracks 14