Delivered at Casual Connect Tel Aviv 2016 | One of the exciting things about the mobile games market is that it changes so fast. What worked last year may not work this year. We will take you on a journey through the market developments and emerging trends and discuss why just making a killer game is no longer enough. To conclude, we'll look at what the most successful developers are doing differently, and what others can do to make the cut.

1. CASUAL CONNECT, TEL-AVIV
Nov. 1st, 2016
Why Just Making Great Games Is
Not Enough
@anders_lykke, VP, Talking to People
www.prioridata.com

2. Agenda
1. Intro
2. The Story of thousands of failed games/week and
why making great games just isn‘t enough anymore
3. What do the successful publishers do differently?
4. Questions?

3. HELLO!? It‘s me...
Nationality: Danish (tiny country, happy people, north
of Germany)
Twittering: @anders_lykke & @prioridata
Before going Tech: I studied opera, did stand-up and
had a TV Production Company in Denmark, ate a lot
of pizza and played a lot of games.
Talked to: about 1000 app publishers over the past
3.5 years, this is what I have learned from the most
successful ones.
3
COMPANY OVERVIEW
Anders Lykke
VP OF
TALKING TO
PEOPLE
Ex.
@prioridata / www.prioridata.com

4. OUR MISSION
Our mission is to crowdsource the world’s largest
panel of mobile app data.
We want to deliver reliable statistics on any app,
publisher and market trend
Confidential 4
WIR SIND WE
ANALYSE
EIN BERLINER APP STORES
Founded June 2013
International team of 18

5. We Estimate App Download & Revenues For
every Game, Publisher and Market across 55 countries
Confidential 5

6. What we are up against (we’re kinda ‘indie’ too)
Confidential 6
INTRO

7. We believe in Partnerships with other industry players...
Confidential 7

8. And at the core of it all: App Developers and Publishers
8
Gaming:
Travel & Navigation:
Sports / Kids / Food:
News & Reference:
Social / Music / Entertainment:
Health & Fitness / Finance:
E-commerce:
PRIORI DATA BACKGROUND

9. Starting out on a high
note:
9

10. You are in the right industry: Mobile is 37% of $ and growing like crazy!
Confidential 10

11. The recipe for success
in the App Store is easy!!
11

12. Apple App Store, US
In 2015, 4 in 1,000 new games made
it into the top 100 free overall.
12@prioridata / www.prioridata.com

13. Apple App Store, US
In 2015, 1 in 1,000 new games made
it into the top 10 free overall
13@prioridata / www.prioridata.com

14. Apple App Store, US
63% of new games that made it into
top 10 were featured beforehand
14@prioridata / www.prioridata.com

15. Apple App Store, US
100% of these were featured on the
iTunes front page
15@prioridata / www.prioridata.com

16. Apple App Store, US
Growth Hack # 1:
Get featured on the iTunes front
page!
16@prioridata / www.prioridata.com

17. But not all apps or
games get there: The
story of a million failed
apps…
17

18. There’s like… a lot!! of new apps coming out
In the week of October 11th-17th, 2016,
more than 15,000 new apps were
launched in the Google Play and Apple
App Store…
18@prioridata / www.prioridata.com

19. Apple App Store, US
907 of these…
Got more than 1.000 downloads.
Globally.
19@prioridata / www.prioridata.com

20. Example: One of the Indie ‘Games of the Year’
*Apple App Store and Google Play Store combined, based on June 2015 data 20
STATE OF THE (APP) UNION
Story Warriors: Fairy
Tales By Thumbstar
Games
• Launched July, 2015
• #4 on Indie Gamer
Reviewer’s top 10 best
Indie Games in 2015
• An IndieCade 2015
Festival pick

21. 21

22. We Can Argue About Whether It Should be The Goal...
22
STATE OF THE (APP) UNION
But Top Charts are Still the Best Proxy for Reach, Scale, and $$$

23. Getting in is not the
problem…
23

24. 76
25
56
38
60
43
114
85
99
-10
10
30
50
70
90
110
130
150
DE US GB
Free Charts Paid Charts
Our Data Shows ~100 New Games Achieve a Top Position/Day
24
Daily # of New Games in Top 200
Based on Apple App Store in June 2015
STATE OF THE (APP) UNION
• 60% are free games,
except in the US where
70% are paid.
@prioridata / www.prioridata.com

25. Remaining in the charts
is a problem
25

26. STATE OF THE (APP) UNION
Top Chart Turnover (& Discovery) Offer Only Fleeting Success
26
Average Length of Stay per New App
3%
7%
41%
49%
1%
3%
71%
25%
0%
10%
20%
30%
40%
50%
60%
70%
80%
>2 weeks 1-2 weeks <1 week one day
Average Free App Average Paid App
• 50% of new free apps
are in and out of the
charts within 1 day,
• 90% out within 1 week.
• Only 4% of new apps
last more than 2 weeks
in the charts.
Based on Apple Top 200 Charts. „New“ designates first-time appearance in the top chart, not age of the app.

27. STATE OF THE (APP) UNION
Apps Represent a “Winner Takes All” Market
27
Share of Market to Top Publishers • 100 companies
command ~70% of
store downloads and
60% of store revenue
by leveraging their
portfolios and large
ass marketing budgets
• Smaller devs often do
zero market research
and are taken by
surprise
72%
59%
9%
8%
5%
5%
14%
28%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% of Total Store Downloads % of Total Store Revenue
Top 100 101-200 201-300 Everyone Else
Based on Apple App Store in June 2015. Global
Estimates.
% of Downloads % of Revenue

28. So the question really
is…
28

29. Do you want to build
great games, or do you
want to build a great
business?
29

30. Confidential 30

31. Say Whaaaat?! Nobody is downloading my amazing game!!
Confidential 31
I DON’T NEED MONEY, DEAR…

32. Making Games is an art form. Game developers are artists.
• Mobile began as (and still is) a Creative Industry
• Creative genius was enough for initial success
• Business planning / goal setting / benchmarking was (and still is)
secondary for the “long-tail” of devs
32
I DON’T NEED MONEY, DEAR…
@prioridata / www.prioridata.com

33. How are our most
successful partners
thinking about launching
apps and growing their
businesses?
33

34. 1.They understand the
value of a
Data/Marketing Wizard!
34

35. What characterizes our most successful partners?
“Today, without organic installs, apps cannot stay above water. The only reason a
mobile game player will invite his friend into an app today is if he needs his friends to
join his game experience in order to continue playing and evolving.”
- Michael Velkes, Mobile Games Consultant
35
1. GET THE RIGHT PEOPLE
@prioridata / www.prioridata.com

36. What characterizes our most successful partners?
• The successful gaming companies – including indies –have as good UA / BI /
Marketing / Growth Hackers as they have developers.
• They empower these people through tools and the mandate to change the direction
of the company by having them take part in shaping the product from the get-go.
• This is the most important part. With great data people, you can accomplish the
following…
36
1. GET THE RIGHT PEOPLE
@prioridata / www.prioridata.com

37. 2.They Soft-launch & Test
a lot!
37

38. Fewer, calculated bets through soft-launches
• “If app developers don’t deliver a surprising and delightful app from the get-
go, they set themselves up to blow every chance — and budget — they
have.” (Oliver Kern)
• The first week after commercial launch is (the most) crucial, so you need to
have realized and addressed the critical bugs/issues in advance thereof.
• You don’t need a perfect product to soft-launch and understand if your
game truly has potential or if it needs to be buried.
38
2. TEST LIKE THERE IS NO TOMORROW
@prioridata / www.prioridata.com

39. Wordalot – Picture Crossword / MAG Interactive
Launched June 2nd, 2016
39
Source: Priori Data Gmbh, All data are estimates
@prioridata / www.prioridata.com

40. Wordalot – Picture Crossword / MAG Interactive
40
Source: Priori Data Gmbh, All data are estimates
@prioridata / www.prioridata.com

41. Wordalot – Picture Crossword / MAG Interactive
41
Source: Priori Data Gmbh, All data are estimates
Pre Launch Country Daily
Downloads
Daily
Revenues
Revenue /
Download
1 month Global 1012 $398,00 $0,39
2 months Global 3438 $2.054,00 $0,60
Today Global 6747 $6.121,00 $0,91
@prioridata / www.prioridata.com

42. 3.They Pay attention to
the Stores and their
competition
42

43. Think about timing: - MOM % Increase in # new submissions
43
THE APP STORES ARE SUPER MARKET

44. Think about major events that may impact you
44
THE APP STORES ARE SUPER MARKET
Sources: 9-5 Mac

45. World Cup - Category Impact
45
THE APP STORES ARE SUPER MARKET
Sources: Priori Data

46. Consider the world around you
• App downloads denote consumer demands. Consumer demands
are driven by needs, events and marketing.
• Are there any major events going on at the moment that may affect
demand for my app/game?
• What are my competitors doing?
46
THE APP STORES ARE SUPER MARKET
@prioridata / www.prioridata.com

47. 4.They identify new market(s)
and set realistic benchmarks
using data
47

48. Using Priori Data To Determine Global Growth Opportunities
48

49. Looking for the right market: Example
• Puzzle Games, iOS
• Business model: Free w/ in-app purchase
• Competition: ~18k games worldwide
• For this study: France, Germany & Brazil
• Goal: top 10 free spot
49
IDENTIFY NEW MARKETS
@prioridata / www.prioridata.com

50. iOS Puzzle Games: Which market should I target?
50
IDENTIFY NEW MARKETS
Country September
Country
Downloads
Sep. IAP Revenues Rev/Download
ratio
Germany 2.6M $2.8M $1.08
France 3.3M $3.2M $0.97
Brazil 1.6M $455k $0.28
Source: Priori Data

51. iOS Puzzle Games: Which market should I target?
51
IDENTIFY NEW MARKETS
Country September
Country
Downloads
(excluding top 3
grossing)
Sep. IAP Revenues
(excluding top 3
grossing)
Rev/Download
ratio (excluding
top 3 grossing)
Germany 2.4M $2.1M $0.87 (-20%)
France 3.1M $1.9M $0.61 (-38%)
Brazil 1.5M $337k $0.22 (-15%)
Source: Priori Data

52. iOS Puzzle Games: Which market should I target?
52
IDENTIFY NEW MARKETS
Source: Priori Data
Country Q3 Downloads Q3 Downloads
growth
(Q/O/Q)
Q3 Revenues Q3 Revenues
growth
(Q/O/Q)
Germany 7.3M 2.1M (28%) $8.1M $967k (12%)
France 9.3M 2.7M (29%) $8.2M $2.4M (29%)
Brazil 4.5 1.1M (24%) $1.3 $203k (16%)

53. What’s the cost associated
with achieving a top 10 spot?
53

54. iOS Puzzle Games: What is the cost of a top 10 chart position?
54
IDENTIFY NEW MARKETS
Country Daily
Downloads
needed to
reach top 10
(30 day avg.)
Assuming we
need to buy
half of those
installs
Avg. CPI for
Puzzle games
(Chartboost)
Cost per day
assuming you
need to
purchase 50%
thereof)
Germany 1430 715 $2.53 $1,808
France 1480 740 $2.00 $1,480
Brazil 780 390 $0.90 $351
Source: Priori Data & Chartboost

55. Looking for the right market: Summary
• Germany: most $ per download, but slower
growth and highest CPIs.
• France: Solid Revenue Growth, but top market
concentration.
• Brazil: Lower $ per download, but CPI levels =>
top 10 spot can be more easily acquired
55
IDENTIFY NEW MARKETS
@prioridata / www.prioridata.com

56. Looking for the right market: Brazil
• There are 45 iOS Puzzle Games that make >1$
/download in Brazil.
• Estimated downloads needed for a top 10: 780
• Estimated cost/day: $351
• Estimated revenue per download: $1 = 780/day
• Estimated profit: $429/day ($780-$351)
56
IDENTIFY NEW MARKETS
Source: Priori Data @prioridata / www.prioridata.com

57. 5.They are able to provide
answers to these
questions:
57

58. You can start answering the questions that make a difference
• What is our avg. LTV of users?
• How well do we retain our users?
• What’s our ideal app store top chart position?
• What is the organic uplift we get from being ranked in the top charts?
• What is the ratio between acquired and ‘organic’ users?
• How are we performing relative to our peers over time?
• What will it cost us to go Global and how should we go about testing new markets?
• Should we raise money to accelerate our growth and how do we justify that to
potential investors?
58
IF YOU GET IT RIGHT…
@prioridata / www.prioridata.com

59. Companies that can
answer these simple
questions, are growing
3X faster
59

60. 6
0
Data Quality Powers a Comprehensive Intelligence Platform
Customized
Lead Lists
Market Trends
Competitive
Tracking
API
App Intelligence:
• Daily Downloads & Total Install Base
• Daily Revenues & Total Revenues
• Rankings
Publisher Intelligence:
• Portfolio Overview
• Business Model Breakdown
• Location of Developer
Market Intelligence:
• Top Charts
• New Entrants
• Market Sizing
• Identify Top Local Developers

61. Thank you!
Get a free account at www.prioridata.com
Use code ‚CC2016‘ for an upgrade
@anders_lykke / anders@prioridata.com