boosting revenue: monetization practices for digital merchants
Post on 01-Nov-2014
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Boosting Revenue: Monetization Practices for Digital Merchants
Mark RoseVP Product ManagementPlaySpan
Dave GlaserVP Global ServicesCyberSource
Models
Free to Play
Fixed Price
Subscriptions
Micro-Transactions
Hybrid
Content
Games Apps Video Education Online / Social Media
PCSocial
Networks Mobile Console Connected TV
Platforms
Future
The Digital Goods Environment
Make a great user experience
Have the right support tools
Case Study
Next Steps
Make a great user experience
Create an in-app 1-click experience
Present Options Relevant to CustomerDynamic Currency
ConversionLocal
Language
Auto Display Relevant Payment
Types
Reduces PCI DSS Scope
Make the payment process seem like part of the game
In-app Subscriptions
Virtual currency ewallet
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2
34
5
One-click purchases
In-game storefront maximizes immersion
Recommendation engine & contextual commerce
Catalog management
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2
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4
5
Conversion uplift, higher ARPU, increased retention
In-app Wallets and Store Fronts
Support Tools
Smart Analytics
Increase conversion through roles-based immediate data insight
Smart Analytics
Increase Revenue
Analytics Insight Example
Increase Revenue
Mexico City
Increase Revenue
Dubai
Increase Revenue
Mexico City$20 average payment
Increase Revenue
Dubai$40 average payment
Smart Analytics
Manage Subscriptions
Create & Manage Private Virtual Currencies
Manage Catalogues, Items and Pricing
• In-house expertise (24x7)
• Rapid response
• Spot sampling & review
• Refund users preemptively
• Detailed investigation reports
• Represent and challenge
chargebacks
Fraud Management
CyberSource Decision Manager + Digital Add-ons
Constant Review
Case Study
Dungeons & Dragons Online Relaunch
Based on original D&D RPG First AAA MMO to embrace free to play
In depth e-commerce system
Scaled for large population gains
Hybrid model with premium subscriptions
Premium Subscription MMO Next-Generation Business Model
Principles
• Give Customers Choices – Time vs. money– Unlimited access vs. a la carte
• Build the Right Model– Don’t sell end-game loot– Preserve value of new content
• More Toll-Gates vs. Too Few
Model Impact
Subscription Model F2P w/Microtransactions
Pro
duct
App
eal
Market Size
Subscription Price
Pro
duct
App
eal
Market Size
Common Myths• “Hybrid Models Don’t Work”• “Subscription and MTX can’t co-exist”• “You’ll lose your subscribers”
Reality• Concurrencies up 10X• Revenues 3X in Asia
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Results• Reduced acquisition costs
– 3x ad banner click-through rates vs. previous
• Subscriptions up– Subscriber acquisition up 15%– Reacquisition up 40% since F2P announcement
• > 5x concurrencies since launch
• 22% of players transacting in store
• 70% cart to checkout rate – Customers not afraid to spend money
• 500% increase in revenues
Constant Fine Tuning Post-Launch
• Free vs. Premium
• Adjust Store Pricing
• New Store Items / Services– Re-spec Options– Character Transfer
• Price Plans & Service Levels– Tiered VIP Plans?– Product Bundles?
Application Investigation/Sign-up: CyberSource Account Manager
Integration Assistance: CyberSource Global Services
Subscription/Billing Optimization: Solution Assessment
Merged
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