Stop Ignoring 98 Percent Of Your Audience! Best Practices for Monetizing Non-paying Users, Damon Marshall
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This document discusses how to effectively monetize games through advertising without negatively impacting the player experience or cannibalizing paying users. It notes that only 1-6% of users typically make in-app purchases, so advertising can monetize the remaining 98% of users. The document provides tips on choosing appropriate ad formats and placements to avoid interrupting gameplay. It argues that ads can act as "enablers" if implemented thoughtfully and that they increase engagement, retention and the potential for non-paying users to convert. Examples from mobile games and social networks are given to illustrate how ads have become a meaningful revenue stream without compromising the core experience. The overall message is that direct payments and advertising can successfully co
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Stop Ignoring 98 Percent Of Your Audience! Best Practices for Monetizing Non-paying Users, Damon Marshall
- 1. STOP IGNORING 98% OF YOUR AUDIENCE! Damon Marshall VP of Business Development
- 2. Remember when….. ….we usedto talk about ARPU? But then a sea of animals started getting in the way of our total audience.
- 3. So, we addeda “P” to get ARPPU 3 3
- 4. Monetization Strategy Direct Payments Ads 4
- 5. Here Are SomeFacts Web “Only 1% - 5% of a social game’s audience purchase virtual items.” - Casual Games Association; Social Network Games Report; 2012 Mobile “The number of people that spend money on in-game items in free-to-play games ranges from 0.5% to 6%, depending on a game's quality and mechanics.” - Flurry July 7, 2011 5
- 6. Here Are SomeFacts King.com’s advertising revenue from social games has increased tenfold over 2012 and currently accounts for 15% of total annual revenue. - Inside Social Games, Nov. 12, 2012 Angry Birds reported between $1M-$6M per month of ad based revenue . - Casual Games Sector Report: Mobile Games; 2012 6
- 7. Here Are SomeFacts Casual Games Association; Social Network Games Report; 2012 ; Inside Network; Inside Social Gold 2010 7
- 8. Popular Myths Advertisingis going to f*ck up my game! Ads take users out of the “experience” I don’t want to cannibalize my paying users The revenue is not meaningful enough 8
- 9. Advertising is goingto f*ck up my game! Chose the right ad product Display Ads Interstitials “Achievement” Ads Offerwall Rewards-based Video 9
- 10. Advertising is goingto f*ck up my game! Avoid these pitfalls: Interruption Distraction, Annoyance Wrong ad, not relevant Clicking on ads by mistake while playing Gamer feels exploited 10
- 11. Advertising is goingto f*ck up my game! Interruption- No, it is opt-in Distraction/Annoyance – subtle ad unit, not intrusive to gameplay Wrong ad, not relevant: Mighty Pirates => The Pirates movie Clicking on ads by mistake: Good Design Gamer not feeling exploited Rewarded for their actions 11
- 12. Ads take gamersout of the experience Ads act as “enablers” in the game Users engage on their terms! Ads can be a utility, a service in the game; similar to other utilities you create Ads are “friends” of non-paying users 12
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- 15. I Don’t WantTo Cannibalize Paying Users Treat different users differently! Example Datapoint: 95% of users who do not buy anything after playing for 30 days, never buy anything throughout their lifetime. Time to treat them to a delicious ad! 15
- 16. I Don’t WantTo Cannibalize Paying Users Integrating ads results in: Increased engagement Increased retention Reduces churn Increased traffic (word of mouth, friends start playing) Increased ARPU (one “P”) Increased conversion from non-paying to paying users Remember, free players are essential to your game’s success, so keep them happy! 16
- 17. The revenue isnot meaningful enough Advertisers love the social gaming audience! 80% Re-booking rate Increased spend after first buy Audience engagement rates 3x as high as TV (IAB 2011) Positive Brand Association Post video view click rates are typically 15 - 30% CPV is preferable to CPM 17
- 18. The revenue isnot meaningful enough A well thought out ad strategy is yeilding $10,000+ a day for publishers Branded video is yielding $.04 to $.06 CPV (Cost per view) which is equivalent to $40 to $60 CPM Click through rates on this engagement are as high as 20% Completion rates are 80% Be strategic in selecting your ad network partners to achieve 100% fill rate. 18
- 19. Facebook Examples Toyota American Pie Pepsi Ice Age Adidas Disney
- 20. Mobile Examples Gameris presented BrandConnect player Once the video is User must watch with ‘Free’ icon opens, presents 100% of the video complete, CTA User initiated Content brand and video message appears 20
- 21. Concluding Slide Games havebecome a new mass medium that is scalable and targeted for advertisers Don’t “P” on your audience Direct payments and ad monetization can live in harmony (not an “either/or”) Be thoughtful about how you roll out your ad products – one size does NOT fit all It’s happening!!! Brands and agencies are on board, and more are coming! 21
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