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Mobile Games Distribution 2.0 - Why app stores are not enough Tel Aviv, 11th June 2013 Tim Koschella, Co-Founder, Managing Director

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About me About AppLift

• Co-Founder & MD AppLift

• Co-Founder & Partner HitFox Group

• Serial entrepreneuer, co-founded 3 successful tech startups

• Online & mobile performance marketing expert with focus on free2play games

• Gamer type: casual mobile

• Leading mobile games marketing platform, launched august 2012

• Working with 80+ mobile game publishers on their user acquisition

• Generating 1’000’000+ installs per month for top performing clients’ free2play games

• 50 tech, game and mobile marketing professionals from 15+ countries

• Offices in Berlin, Seoul, Paris, San Francisco

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The pre app store era in mobile gaming (before 2008)

Business Model: Game subscriptions & pre-installs

Discovery Channels: Carriers, mobile content providers, device manufacturers

Success Factor: „build a good game and close deals with multipliers“

No end consumer marketing done by game developers & publishers

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Rise of the appstores (2008-2012)

Business Model: Pay-per-download & free2play

Discovery Channels: Appstores, push-apps, cross promotion, incentivized downloads

Success Factors: Early mover advantage, app store rank manipulation via push apps and incent traffic, viral effects

! BUT: Traditional appstore success tactics are loosing power

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The journey ahead (2013+)

Business Model: Free2Play

Discovery Channels: Appstores & the prospering ecosystem around them (review sites+apps, specialized networks, in-app discovery mechanisms, etc..)

Success Factor: ROI based user acquisition & smart, non intrusive monetization

Measuring, understanding & optimizing metrics becomes more relevant than ever before

live demo

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Key trends and their implications for the future

1. App stores (iOS and Android) are becoming incredibly crowded with game apps

2. Monetization know how represents the core of free2play

3. Cross plattform gaming is getting popular (browser and mobile)

4. Game publishers & developers go global

5. Last but not least: Fragmented and rapidly changing mobile app marketing landscape

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From a global perspective, the growth of mobile has only now begun

Northern America

Latin America

Europe (incl RU)

MENA

Oceania

Asia

344mn

678mn

740mn

450mn

36mn

3’800mn

48%

17%

40%

19%

41%

12%

Population Smartphone Penetration

We are only at the beginning of a decade of global mobile growth

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Games is the dominating media category users spend their time on with mobile devices And games is where people spend

most of their time

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Games is the dominating media category users spend their time on with mobile devices Understanding and keeping up with the evolvoing marketing

landscape is extremely time consuming and challenging

- CPM & CPC inventory pricing accounts for ca. 90% of market - CPI based pricing accounts for ca. 10% of market You actually want to go beyond CPI pricing Downstream attribution (e.g. In app event based or aCPI based pricing)

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Games is the dominating media category users spend their time on with mobile devices King‘s candy crush saga masters the key success factors of today‘s free to

play app distribution

Very well integrated cross plattform gaming across browser, facebook, smartphones and tablets

Extremely smart monetization through in-app purchase & viral

enhancement Going global fast, localizing markets

Adding content regularly to keep „addicted“ core users playing

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Games is the dominating media category users spend their time on with mobile devices A few tips before you get started...

1. Make sure to setup install- and event-tracking for effective attribution of marketing spend

2. Test in game monetization and different audiences with test budgets, then optimize and finally go for the big spend (as soon as you know what you can afford to pay per user)

3. Differentiate between short term boost (push apps, incent traffic) and long term sustainable user acquisition

Questions? Thank you for listening

Q&A

Free ebook on mobile games marketing available on

www.applift.com