1. Social Gaming

2. Kirill Popov
 11 Years of Internet Marketing
 Supported Mom&Pops to Fortune 500s
 Numerous published industry articles
 Talks on Email Marketing and Privacy
 Founder, Izelis.com, social gaming studio

3. Traditional Marketing
 High Volume, Low Relevance
 Poor tracking
 Low attribution
 Long delays for metrics
 Long optimization times

4. Conversion Funnel
 Acquire 10,000
 Activate 5,000
 Retain 2,000
200
 Revenue
Ad Optimization : iterating through ad tests & measuring
through the funnel

5. Acquisition

6. Ads Marketing
Google
 Highly Relevant to Search
 Targeted Display
Facebook
 Targeted by Demographics
and Interests
 Social Context

7. Ads Marketing
Key Strengths
 Direct tracking through the channel
 Instant tests and optimization against funnel

8. Activation

9. Lead Nurturing
Focus on Activation Dropoff
 Automated
 Targeted
 Efficient
Eloqua.com, 2011

10. Landing Page Optimization
 Personalized to Visitor
 Leverages Known Data
 Intelligently drives
conversion

11. Retention

12. Engagement Campaigns
 Highly Relevant
 Leverage Customer Behavior (or lack
thereof)
Responsys Email Design Lookbook 2011

13. Social Channels
 Notifications – App Generated
 Notifications – Friend Generated

14. Early Player Growth of Zynga
 Farmville – 28 Million in 6 months
 Café World – 10 Million in 3 months
 Fishville – 7.5 Million in 1 month
 PetVille – 4.8 million in 1 month
Compare to :
 Industry Record breaking launch
 18 million copies sold globally after 9 months
InsideSocialGames.com March5th, 2010

15. Revenue

16. “Virtual” Goods
Global Virtual Goods Market
= $3.00 US, $2 bn
Ultimate Control
Asia, $8 bn
 Rarity
 Scarcity
 Exclusivity
 Durability

17. Fantastic Results
 Unparalleled expansion of testing methodology
 Automation leads to scale
 Conversion lift of 500% to 1000%
 Response rates of 60% to 80%
 Compare to Traditional Media of %1-%2 to untargeted internet marketing of %12

18. Why Jump In?

19. Problem
Zynga et al
 Going after the Casual
market
 Not much innovation from
competitors
 2/3 of the market
Global Gaming Market unaddressed
$65 bn
The rest of the market – “core”
gamers not targeted
 Spend ~14 hours a week
playing
 Purchase retail consoles, games
 40% household income of
>$75k

20. Solution
Target “Core” Social gamers
 Engaging, Competitive Gameplay
 Social Functions to facilitate growth
Deliver Games as a Service
 Free-2-Play : Minimize cost of acquisition
 Enhance product with user growth
 Optimized engagement
 Optimized revenue

21. Target Market - Facebook
 Over 300m monthly game players on Facebook (Zynga
MAU, appdata.com)
 45% of FB’s 750+ mm are males age 14 to 25
 50% of the monthly players are active daily (Venture Beat,
July 2011)
 31% of online gamers have purchased virtual content
with real money (Visa’s PlaySpan, VG Market study, Aug 2011)

22. Key Customer Lifecycle
 Players: Average players of the game
 Evangelists: Share content with social graph
Optimize on:
Players Evangelists
Activation Visitor installs game Post to wall
Retention Active 4 days out of 7 Play with friends 4 days
out of 7
Revenue Purchase K-Factor > 1

23. Marketing Strategy
Our marketing strategies will rely on multiple vectors for advertising:
 Viral – Make social growth part of gameplay
 Social Marketing – FB ads/pages/likes, traffic sharing across apps
 Internet Marketing – Ad space on FB/Google and other ad networks
optimization
 Search Engine Optimization – Web presence with user feedback forums
 Email Marketing – Automated lifecycle marketing to drive retention
Optimize through the Marketing Funnel

24. Projections
Short Term
 Profitable within 5 months from
Launch
 Break even at approx
$35,000/month
 25k daily active users
 2 Years from launch:
 No profitability due to expansion
 5 Years from launch:
 Revenue $140m, Profits of $80m
 6 Titles released

25. Projections - Methodology
Target Average Revenue Per Conservative Estimates
User $ 0.05
• $0.05 Average Revenue Per User vs $2.57
User per Game Growth YoY: 20%
seen by Zynga (S1)
ARPU Growth YoY: 20%
• Slow growth compared to analog games
Employee Cost Premium: 50% • 50% higher employee, hosting costs
Hosting Cost Premium: 50% • 30% marketing allocation
Marketing Allocation: 30%

26. Who We Are
Kirill Popov Anton Popov Alex Markhovskiy
Founder & CEO Co-Founder & COO Co-Founder & Producer
 11 years of internet  15 years of large  5 years of production in
marketing infrastructure traditional, social
 Part of successful management @ Siebel gaming industry
marketing automation and Oracle  Managed QA and
startup; acquired.  Lead Security, Business Production teams @
 Senior management Continuity, Disaster LucasArts, Zynga
roles at SaaS Recovery teams @ Oracle  BS in Computer Science
companies, Facebook  MBA from USF from SFSU

27. Milestones
 Two Quarters from launch:
 Reach 25,000 daily active users
 Reach $0.05 Average Revenue per User
 One and a Half Years from launch:
 Reach 200,000 daily active users per game
 Reach $300,000 in monthly revenue
 Two Years from launch:
 Launch second title
 Reach $945,000 in monthly revenue
 Three Years from launch:
 Launch two additional titles
 Reach $2.6 million in monthly revenue

28. Exits
 Sustained profitability
 Continue to release high quality profitable games
 Expand into mobile, global markets
 Acquisition of company
 Izelis acquired for market penetration, high value games, optimized
monetization strategy
 IPO
 Raising capital for major expansion of business
 Acquire smaller successful game development studios with
complimentary visions
 Leverage established distribution network and expand into
publishing

29. Investment
Personal Co-Founder Investment: $120,000
 100% Team Hired
 Multiple Prototypes deployed
 Product Launch: October
Seeking $500,000 angel seed round

30. Q&A