2. Games Virtuous Cycle
Game
Game
Engagement
Virals
Revenue
Ad Network
User Acquisition Revenue
Marketing ARPU
CPA Payment Conversion
3. Why Social Gaming is Interesting
Massive Reach – Casual Gamers
Cheap development costs
Fast and rapid development
4. The Secret Sauce: DAUs are Everything!
• Reach/Virality
• User acquisition
Key Threshold: • Re-engagement
.2 DAU/MAU strategies
Network
Effect
• Feature
• ARPU Releases
Arbitrage Engagement • Competition
• K factor
• Friends help
users advance
5. Network Effect: DAU Growth and
Rengagement
K Factor <.7 after recent change
User
Acquisition/Reengagement Key Thresholds
Channel
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
6. Engagement: Constant and Rapid Releases
5 weekly releases:
3 content, 1 viral event, 1 game play feature
7. Engagement: Competition Rules
• Create competition
among friends using
visible metrics
• Friend Walls
• Customization
• Player vs. Player
engagments
8. Engagement: Get Friends To Help
• Increase Re-
engagement rates by
sending requests
calling friends for
help
Castle Age
• All Users helping get
the prize
9. 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
10. Arbitrage: Direct Payments
1-3% of DAU’s Are Paying Customers
Payment Methods Biased to Default Method.
– Usually Defaulted to Best Converting Method.
Offers
15%
Credit PayPal
Card 60%
25%
11. Arbitrage: Capitalize On Your Existing
Consumers
Entice Users to Re-Purchase Premium Currency
Conversion Rates for Repeat Consumers are
Higher.
>50% of Total Revenue Should be Repeat
Consumers
1st 2nd 30-40%of
Purchases
12. Go Big Fast
Virals Getting Weaker
Competition copying fast
Need to get big fast
