big bucks for bits and bytes: a holistic approach to selling virtual goods
DESCRIPTION
The Free to Play (Freemium) model has gained more and more widespread acceptance in the marketplace during the course of last years. Now even retail developers and publishers are trying to get into the market and a lot of "classical" game designers are trying to figure out how (or what) to best sell virtual products, be they items, unlockable content or comfort features. Naturally most designers approach this challenge by taking a look at the traditional domain of game design: The features. This usually ends with them directly focusing on the design of the virtual goods themselves. This talk presents a more holistic alternative by looking at the entire chain of events and actions that a user undergoes on his way from player to payer. Through this lens it will point out some important factors that influence a game's monetization. Generate Awareness: The first step to selling a product is to have your users know of it. In the real world this is mostly done through ads, but advertisement for micropayments isn't something that's done yet. Instead there are other ways to show off virtual goods. This talk will present the attendees with ways to increase the in-game visibility of an item: Example methods for this are to highlight it's use through other players and to properly design your shop to affect a player's knowledge of your items. Generate Desirability: Once the player is aware of your product he needs to be motivated to buy it. Examining all the different elements that raise or hinder an item's valence, the lecture provides some insight into how to make your products more desirable. This will be done through examining different types of players and their wishes and presenting various categories of goods that speak to them. The talk also delves into the pricing of virtual items and give a set of tricks and techniques to further increase the perceived value of a virtual product. So in short, this lecture will give you a look at the entire player experience in regards to micropayments and tell you how you can shape it to the advantage of your game's virtual goods.TRANSCRIPT
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BITS AND BYTESBig Bucks forBITS AND BYTES
A holistic approach to F2P monetization
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OVERVIEWLecture
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Speaker Details
Martin NerurkarMartin Nerurkar
Dipl.-Ing. Architecture
Lead of Game Design
Gameforge Productions
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What to Expect
Monetization in F2P GamesMonetization in F2P Games
A few current approaches
A look at the user experience
A bag of tips and advice
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Presentation Goals
My goals are ToolboxMy goals are
Designers: Ideas and approaches
Companies: Increased revenue
Users: Better experience
Toolbox
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MODELSCurrent
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Lifetime Overview
Visitor User Payer
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Lifetime Overview
Visitor User Payer
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The Simple Approach
User Payer
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The Simple Approach
User PayerProduct
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USER STORYWorst Case
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Game Login
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Game Login
Mary Johnson
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Game Login
Big Mick
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Game Login
ShadowBlade666
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Holistic Model
Extended approachExtended approach
Be aware of entire process
The steps every user goes through
Make it as easy for players as possible
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5-Steps
Aware-SaleDesireness Sale
Ability
Desire
Under-standing
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Why use this model?Why use this model?
Small changes can have large effects
Effects multiply with product design
Can help reduce frustration for user
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METHODSAdvice and
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?
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Make product visible
Player needs to be aware of existence
Danger of being too intrusive
Awareness
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Awareness methods
ShopShop
Advertising
Embedded products
Other players
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Shop
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Mixing premium with non-premium
Non-payer sees products
Products are comparable
Makes premium transparentMakes premium transparent
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Increase visibility of shop
Dont hide the option
Lead player into it
Highlight to attract attentionHighlight to attract attention
+30%
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Advertisment
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Ads can be used in many locations
Loading screen, launcher, website
Can be obnoxious
Can break immersionCan break immersion
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Ad space needs to remain interesting
Mix in regular game infos
Refresh content frequently
Can be personalized with special offersCan be personalized with special offers
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Awareness recap:
Advertising
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Shop
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?
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UnderstandingExplain product functionality
Makes benefit to player clear
Some items are more intuitive than others
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Understanding methodsUnderstanding methods
Tutorial
Demo products
Help text
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Tutorial
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Can explain complex context
Requires significant work
Useful for very desireable items
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Demo Products
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Is very effective
Player is aware of existence
Using item makes its value well understood
High desire items can give a tasteHigh desire items can give a taste
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But has some dangers
Frustrating if used at the wrong time
Annoying if special status was unclear
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Understanding recap:
Tutorial
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Demo products
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?
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DesireIncrease value of product
Value only perceived
Mostly based on functionality
and artificial scarcityand artificial scarcity
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Desire methods
EventsEvents
Price
Virtual physicality (items)
Duration
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Events
Christmas TreeChristmas Tree
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Types of limitation
Limited number
Limited sale duration
Limited availabilityLimited availability
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Very effective
Limited special/unique items
Limited payment bonuses
Limited ingame discountsLimited ingame discounts
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Advantages of artificial scarcity
Increased perceived value
Reduced time for judgement
Feeling of missing outFeeling of missing out
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Pricing
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Price is closely linked to value
Free products are seen as worthless
High prices create a feeling of quality
High prices reduce availabiltyHigh prices reduce availabilty
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Prices are relative
Products are bargain only compared to others
Keep in mind the prices of all products
Look at the prices of your competitorsLook at the prices of your competitors
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Adjusting prices later on is difficult
Start with high prices (careful!)
Test your prices as soon as possible
Add new, better items and remove oldAdd new, better items and remove old
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Desire recap:
Events
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Price
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?
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AbilityEasy access to product
Step 1: Payment
Step 2: Shopping
Relevant for first payersRelevant for first payers
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Ability methodsAbility methods
Payment Options
Starting Bonus
Shop Design
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Payment Options
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Provide variety
Countries favor different methods
Weigh options based on revenue
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Starting Bonus
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Starting coupon
Not using coupon would be a loss
Player sees payment system
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Starting hard currency
Player will take a look at products
Wrong spending can be frustrating
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Ability recap:
Payment Options
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Starting Bonus
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TAKEAWAYLecture
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Wrapup
Five steps to
Under-standing
Aware-ness Desire SaleAbility
Five steps to
improve
be more profitable
create a smoother experience
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ENDThe
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Questions?Available for hire or contract
Contact infoContact info
www.martin.nerurkar.de
www.gamearch.com
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