#sgsconfla

1. STOP IGNORING 98%
OF YOUR AUDIENCE!
Damon Marshall
VP of Business Development

2. Remember when…..
….we used to talk about ARPU?
But then a sea of animals started getting
in the way of our total audience.

3. So, we added a “P” to get ARPPU
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4. Monetization Strategy
Direct
Payments
Ads
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5. Here Are Some Facts
Web
“Only 1% - 5% of a social game’s audience purchase
virtual items.”
- Casual Games Association; Social Network Games Report; 2012
Mobile
“The number of people that spend money on in-game
items in free-to-play games ranges from 0.5% to 6%,
depending on a game's quality and mechanics.”
- Flurry July 7, 2011
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6. Here Are Some Facts
King.com’s advertising revenue from social games has
increased tenfold over 2012 and currently accounts for
15% of total annual revenue.
- Inside Social Games, Nov. 12, 2012
Angry Birds reported between $1M-$6M per month of
ad based revenue .
- Casual Games Sector Report: Mobile Games; 2012
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7. Here Are Some Facts
Casual Games Association; Social
Network Games Report; 2012 ;
Inside Network; Inside Social Gold 2010
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8. Popular Myths
Advertising is going to f*ck up
my game!
Ads take users out of the
“experience”
I don’t want to cannibalize my
paying users
The revenue is not meaningful
enough
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9. Advertising is going to f*ck up my game!
Chose the right ad product
Display Ads
Interstitials
“Achievement” Ads
Offerwall
Rewards-based Video
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10. Advertising is going to f*ck up my game!
Avoid these pitfalls:
Interruption
Distraction, Annoyance
Wrong ad, not relevant
Clicking on ads by mistake while playing
Gamer feels exploited
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11. Advertising is going to f*ck up my game!
Interruption- No, it is opt-in
Distraction/Annoyance – subtle ad unit, not intrusive to gameplay
Wrong ad, not relevant: Mighty Pirates => The Pirates movie
Clicking on ads by mistake: Good Design
Gamer not feeling exploited
Rewarded for their actions
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12. Ads take gamers out of the experience
Ads act as “enablers” in the game
Users engage on their terms!
Ads can be a utility, a service in the game;
similar to other utilities you create
Ads are “friends” of non-paying users
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13. Be thoughtful….
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14. Be thoughtful….
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15. I Don’t Want To Cannibalize Paying Users
Treat different users differently!
Example Datapoint: 95% of users who do not buy
anything after playing for 30 days, never buy anything
throughout their lifetime.
Time to treat them to a delicious ad!
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16. I Don’t Want To Cannibalize Paying Users
Integrating ads results in:
Increased engagement
Increased retention
Reduces churn
Increased traffic (word of mouth, friends start playing)
Increased ARPU (one “P”)
Increased conversion from non-paying to paying users
Remember, free players are essential to your game’s
success, so keep them happy!
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17. The revenue is not meaningful enough
Advertisers love the social gaming audience!
80% Re-booking rate
Increased spend after first buy
Audience engagement rates 3x as high as TV (IAB 2011)
Positive Brand Association
Post video view click rates are typically 15 - 30%
CPV is preferable to CPM
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18. The revenue is not meaningful enough
A well thought out ad strategy is yeilding $10,000+ a day for
publishers
Branded video is yielding $.04 to $.06 CPV (Cost per view) which is
equivalent to $40 to $60 CPM
Click through rates on this engagement are as high as 20%
Completion rates are 80%
Be strategic in selecting your ad network partners to achieve 100%
fill rate.
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19. Facebook Examples
Toyota American Pie Pepsi
Ice Age Adidas Disney

20. Mobile Examples
Gamer is presented BrandConnect player Once the video is
User must watch
with ‘Free’ icon opens, presents 100% of the video
complete, CTA
User initiated Content brand and video message appears
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21. Concluding Slide
Games have become a new mass medium that is
scalable and targeted for advertisers
Don’t “P” on your audience
Direct payments and ad monetization can live in harmony
(not an “either/or”)
Be thoughtful about how you roll out your ad products –
one size does NOT fit all
It’s happening!!! Brands and agencies are on board, and
more are coming!
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22. Thank you!