PUBLISHING 101

June 2014

Agenda

1. Quick Intro2. Publishing 101

INTRODUCTION

Overview

Industry Leader

• Industry-leading engagement – 75M players• 3+ hours gaming sessions• Kingdoms of Camelot – Top grossing iOS app in 2012• Fast & Furious 6: The Game – Editor’s Choice in 100

countries• Two games in top 10 and 4 Star+ ratings for iOS• 13 languages and played in 100+ countries

$125M Raised

• $360MM revenue run rate in 2013• 4+ years in gaming• $75MM+ cash in bank• Profitable

KeyStatistics

Launch

Collect Data

Analyze

Optimize &

Repeat

Identifying areas to improve through consumer insights, UA, in game analytics

Constantly iterate and improve

A linear improvement X linear improvement = Nonlinear result

Kabam PhilosophyIterate and Scale

Last Twelve Months Revenue in Western Markets

Source: App Annie

Kingdoms of Camelot$250M franchise between web and mobile Top Grossing App for 2012 on iOSLocalized in EFIGS + Br. Portuguese, Turkish, Russian, Swedish, Danish

Fast & Furious 6: The GameNamed Editor’s Choice in 100 countriesiOS top grossing game application in 66 countries Localized in EFIGS + Chinese, Japanese, Korean, Br. Portuguese, Russian

The Hobbit: Kingdoms of Middle-earthTolkien themed strategy titleTop 5 iOS grossing game appin 51 countriesLocalized in EFIGS + Br. Portuguese

King

Supercell

Electronic Arts

Kabam

GREE

Gameloft

DeNA

Machine Zone

Caesars Entertainment

Storm8

Zynga

Big Fish Games

Glu

Social Quantum

Nordeus

Iterate and Scale

Delivers Consistent Performance

• Distribution Rights: Geographic/Language & Platform

• Economic: Upfront (License Fee/Minimum Guarantee/Royalty Advance) + Variable Revenue Share (Flat, Tiered, No/Partial/Full Marketing Recoup)

• Marketing Commitment: # of Installs, Fixed Dollar, % of Trailing Rev, KPI Dependent

• Other: IP Ownership, Sequel/Derivate Rights, Term & Termination

Publishing Terms

Who is going to be doing what?

Development Operations Marketing

Pre Submission

• Game development• Handset compatibility• Source code modification• SDK implementation• Localization• Culturalization

• Server provisioning and/or hosting

• BI intelligence• Live op tools (admin)

• KPI setting and marketing• Promotion plan

development• Marketing creative• PR/Event• Platform BD

• Content –ongoing• Bug fixes (major)• Server development• Post loc QA and testing

• Event operation• Server operation &

monitoring• Customer support• Game progression

optimization

• Ongoing user acquisition• PR/Event• Platform BD

Development Operations Marketing

Post Submission

Who is going to be doing what?

• Game : with commitment to continuously update. Reasonable feature cadence and bug fixes.

• Implement various SDK for analytics.

• Implement localization.

• Implement other requested features – from product advice/best practices to platform specific requirements.

• Live Operations. What is the content plan? And what tools are there to run promotions and events?

Publisher Expectations for Developer

• Funded user acquisition

• Assist with Live Ops

• Best practices (tech to product management)

• Platform BD

• Localization & Culturization

• F2P game design and monetization consulting

How Developers Help Publishers

No simple prescription for success– rather, a collection of best practices, a commitment to continuous improvement,and data driven decisions

And then lots of hard work!

User acquisition• Cohort, Yield-based Bidding/Buying • A/B test: Creative, Targeting, Source

Retention• A/B test: Content, Flow/Timing• A/B test: Game Mechanics

Monetization• A/B test: Item pricing, Flow/Timing, Track Sources/Sinks• Loop back to Targeting

Example Areas

Beta WW Launch Sustained

Inst

all p

/day

Monitor game stability, conversion funnel and CPIEvaluate CTR, CPC, CTD and other funnel metricsFocus on data validation for retention, monetization

Ramp spend across multiple networks, affiliates and proprietary distribution

Adjust spend to balance growth and performance

User Acquisition Plan

Sustained spend to support DAU and Revenue

Optimize spend for ROI

Paid User Acquisition Strategy

• What should you look for in a publishing partner

• Understands your game

• Distribution (either cross promo or funded marketing)

• Fair

• What are publishers looking for

• Games with strong appeal to that publisher’s audience

• Ability to retain players for a long period of time

• Monetization that supports spending marketing dollars

Paid User Acquisition Strategy

PUBLISHING 101

June 2014