monetizing applications with video

Monetizing applications with video

How we do it, the opportunities, some inspiration and how to grow your business

This is

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We create & publish games

We do casual skill gaming!

Collect as many points as possible

A game session is between 1-5 minutes long

Skill, not luck, is how you win

Play against your own high score or someone else

We’ll assure that you meet a equal opponent.

25-55 years old

Spends 35+ minutes per visit

49% have children in household

92% shop online.

74% have pets.

59% are primary household shopper.Comscore

Women love our games

A very common social gaming profile.

8 years & 200+ high-quality browser games.

10+ million active players

250+ million games played every month

+ in London, Los Angeles, Rome, Malta & Hamburg.

This is where the magic happens.

Our cross-platform strategy

Our cross-platform vision

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Video advertisingon King.com

How we monetize our games

Tournament fees (optional)

Advertising(Classic fremium)

In-game purchase (optional)

100M+ pre rolls (or pre-game) per month

New users are not seeing any ads

Retention, conversion & long term value.

600,000+ game plays in 3 weeks.

Adding value to our users.

Making users like & enjoy advertising

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Applications & video advertisingon Facebook & stand-alone

Social gaming is hot!

And it’s just getting started.

50% of Facebook log-ins are specifically to play games.

FarmVille

Bubble Saga

Poke friend

Status update

And how does it change advertising?

Why are applications different?

App users are engaged users!

Engaged users will share, click & like more.

Source: TubeMogul

Flexible lengthHigh completion rate

High CTR

Source: King.com & TubeMogul

How we do video ads on Facebook

Want to win some extra game coins? Spin the daily spinner!

Why do users care about this?

Because the game becomes more fun!

But not everyone will pay for it.

With “optional” video advertising everyone is a winner.

Click to play with share widget

Editorial video with share widget

How YouTube is doing it.

Creating engagement.

Both Hulu & YouTube are doing this.

How to find application publishers

on.fb.me/findapps

Facebook application directory

My absolute favorite: Appdata.com

Free, independent & up to date

It’s a goldmine full of publishers!

And there’s lots of publishers out there!

Publisher Daily active users

Zynga 48 265 725

Electronic Arts 5 260 217

wooga 4 579 755

Playdom 4 410 008

Popcap Games 3 788 192

Digital Chocolate 2 913 919

CrowdStar 2 470 948

Happy Elements 2 127 058

GSN 1 831 716

King.com 1 582 458

2,000 publishers with 20k monthly users

Find publisher

Find game

Understand game mechanics Would video work here?

Making Facebook publishers happy

Good CPMs

Should not cannibalize

Easy to integrate/scale

(Our Director of Performance)

If you want to put a big smile on that publisher…

DARPUDaily av. revenue per user

MAU Monthly active users

DAUDaily active users

…You learn some basic app lingo

Recap – Video formats in apps

Mid-rolls & post rollscan be used between levels but could be complicated to implement.

Pre roll can easily be applied, but should be used carefully.

Incentivized video (long or short) in a win-win.

Video with skip-button will increase engagement.

Letting the user choose a video will become more popular

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Looking into the futureMobile & TV

88 downloaded applications

Using her iPhone 84 minutes / day.

Why mobile is so important

Source: Appsfire

10 minutes every day on games…

May ‘11: 500k apps in the App Store!

37% are free = Could they do video ads?

Is this only about games?

Users love to explore, but are loyal to games.

Game publishers will generate the most video inventory.

This is one way of doing mobile video

Could this be the future?

Is this only about this guy?

No, but with 61% he’s really important

TV Channels will be replaced with TV applications.

TV – Meet Smart TV

But TV isn’t really dying.

It’s just changing.

Traditional TV commercials will be replaced with “online” video ads.

This is great news!

Video ads in mobile apps (games) will become huge!

Letting users choose, skip or opt in will be popular!

Social gaming & apps are still very young.

App users and app publishers like video

Remember the TV, that’s where it all started!

Bonus: Most video networks are NOT focusing on this.

What we have talked about today

Questions & answersor send them to aron.levin@king.com

Thank you for listening!

aron.levin@king.com