Papaya Winning Business Models

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Winning Business Models

Oscar Clark Evangelist

PapayaMobile Inc

Back to basics?

• General decline in Video Game

Sales

• Average iOS developers

generating only $2k in sales?

• Social Games revenues keep

growing

• Facebook is not the only game in

town

• Mobile offers unique 'mode of use'

Let's assume you have a good game

What is it and why will

people pay? • Known brand or license?

• One-time play or repeatable?

• Game of skill?

• Narrative or creative journey?

• Social/viral elements?

Collector

Competitor

Explorer

Socialiser

Who are your players?

Different Players buy for

different reasons

• Collector:

– "Got to catch them all"

• Explorer:

– "Where can I go today?"

• Socialiser:

– "I want to be popular"

• Competitor:

– "I'm going to Pwn ya!"

Only worth what people will pay

How are players going to

pay? • Premium Pricing

• Try Before Buy

• Hybrid (Rent/Buy/Subscribe)

• Free or Ad-Funded

• Virtual in-game goods

• Virtual creative goods

• Extra Levels

• Consumables

• Gifting

• Advertising

• Offer wall

Pricing is everything

Maximise the

opportunity • Purchases will be a barrier

• Reduce the risk to the user

• Understand Price Elasticity

• Retrofitting is very difficult

Premium

Anticipation is

everything • Players have to crave your

game

• Guarantees that players will

pay to play

• You can't measure the

players you turn away

• Only a select few can

sustain this model

Advertising

Brand sponsored

experiences • Can be a vital revenue

stream

• Media buying is getting

much better

• Most effective when relevant

to the game

• Needs to be increasingly

smart

Freemium

1:10:100 Rule* • Free-players are your data

and marketing

• Make it easy to spend the

first $1

• Offer goods to shoe off

creativity and skill

• Consumable in-game items

are key

• Make it possible to spend

$100 or more

* Apologies to Nick Lovell

Social interaction is vital

Other people give me

reasons to spend

• Let me show off my

achievements

• Gifting and Reciprocation

• Items gained must be

desirable to others

Understand the True Fans

True Fans are happy to

spend money

• Ensure that they get value

for paying

• Don't break the Free Player

experience

• Engage with your most

valuable players

• Avoid the 'hangover'

Who are Papaya?

• Founded in 2008 with $22M raised through DCM and Keytone.

• 90 staff with offices in San Francisco, London and Beijing

• More than 80% of users come from US and Europe

• Popular games earn more than $1 million per year

• Winner of Best Games Service Provider ME Awards 2011

1,050,000,000

$16.45/

13,611,930

37

...in the end it's all about the game

Any Questions?

Thank you :)

oscarclark@papayamobile.com

Twitter: @Athanateus

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