Jia Shen, President

Social Game Strategies

Game

RevenueAd Network

Games Virtuous Cycle

Game

Revenue

Engagement

Virals

User Acquisition

ARPU

Payment Conversion

Marketing

CPA

Why Social Gaming is Interesting

Massive Reach – Casual Gamers

Cheap development costs

Fast and rapid development

The Secret Sauce: DAUs are Everything!

Network Effect

EngagementArbitrage

Key Threshold: .2 DAU/MAU

• Reach/Virality

• User acquisition

• Re-engagement

strategies

• ARPU

• K factor

• Feature

Releases

• Competition

• Friends help

users advance

Network Effect: DAU Growth and Rengagement

K Factor <.7 after recent change

User

Acquisition/Reengagement

Channel

Key Thresholds

Feed Posts • 3 FB users should click on every

feed post created

Requests • Focus request on friends already

in game

• Expect a 70% CTR on requests if

friend already in game

Book Marks • Expect 20% of DAUs to enter

through bookmarks

Engagement: Constant and Rapid Releases

5 weekly releases:

3 content, 1 viral event, 1 game play feature

Engagement: Competition Rules

• Create competition among friends using visible metrics

• Friend Walls

• Customization

• Player vs. Player engagments

Engagement: Get Friends To Help

• Increase Re-engagement rates by sending requests calling friends for help

• All Users helping get the prize

Castle Age

Arbitrage: Is Your Game Monetizing Well?

Measure on Revenue/1,000 DAU’s

Best Monetizing Apps $100+/1,000 DAU’s

On Average, Apps Monetize $10-30/1,000 DAU’s

$30+/1,000 DAU’s On the right track

Arbitrage: Direct Payments

1-3% of DAU’s Are Paying Customers

Payment Methods Biased to Default Method.– Usually Defaulted to Best Converting Method.

PayPal

Offers

Credit Card

15%

60%

25%

Arbitrage: Capitalize On Your Existing Consumers

1st 30-40%of Purchases2nd

Entice Users to Re-Purchase Premium Currency

Conversion Rates for Repeat Consumers are Higher.

>50% of Total Revenue Should be Repeat Consumers

Go Big Fast

Virals Getting Weaker

Competition copying fast

Need to get big fast

Strategy

User acquisition through Ads

Target and test cheap demographics

When good, promote big

Details

US CPA ~ 1$

international can be .10 cents

Big game marketing budgets are millions of dollars

Game

RevenueAd Network

Games Virtuous Cycle

Game

Revenue

Engagement

Virals

User Acquisition

ARPU

Payment Conversion

Marketing

CPA

Conclusion

Questions?