winning business models
TRANSCRIPT
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Winning Business Models
Oscar Clark EvangelistPapayaMobile Inc
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Back to basics?
•General decline in Video Game Sales
•Average iOS developers generating only $2k in sales?
•Social Games revenues keep growing
•Facebook is not the only game in town
•Mobile offers unique 'mode of use'
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Let's assume you have a good game
What is it and why will people pay?
• Known brand or license?• One-time play or repeatable?• Game of skill?• Narrative or creative journey?• Social/viral elements?
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Collector Competitor
ExplorerSocialiser
Who are your players?
Different Players buy for different reasons
•Collector: – "Got to catch them all"
•Explorer: – "Where can I go today?"
•Socialiser: – "I want to be popular"
•Competitor: – "I'm going to Pwn ya!"
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Only worth what people will pay
How are players going to pay?
• Premium Pricing• Try Before Buy• Hybrid (Rent/Buy/Subscribe)• Free or Ad-Funded• Virtual in-game goods • Virtual creative goods• Extra Levels• Consumables• Gifting • Advertising • Offer wall
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Pricing is everything
Maximise the opportunity
• Purchases will be a barrier• Reduce the risk to the user• Understand Price Elasticity• Retrofitting is very difficult
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Premium
Anticipation is everything
• Players have to crave your game
• Guarantees that players will pay to play
• You can't measure the players you turn away
• Only a select few can sustain this model
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Advertising
Brand sponsored experiences
• Can be a vital revenue stream
• Media buying is getting much better
• Most effective when relevant to the game
• Needs to be increasingly smart
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Freemium
1:10:100 Rule*• Free-players are your data
and marketing• Make it easy to spend the
first $1• Offer goods to shoe off
creativity and skill • Consumable in-game items
are key• Make it possible to spend
$100 or more
* Apologies to Nick Lovell
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Social interaction is vital
Other people give me reasons to spend
•Let me show off my achievements
•Gifting and Reciprocation• Items gained must be
desirable to others
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Understand the True Fans
True Fans are happy to spend money
• Ensure that they get value for paying
• Don't break the Free Player experience
• Engage with your most valuable players
• Avoid the 'hangover'
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Who are Papaya?
• Founded in 2008 with $22M raised through DCM and Keytone.• 90 staff with offices in San Francisco, London and Beijing • More than 80% of users come from US and Europe• Popular games earn more than $1 million per year• Winner of Best Games Service Provider ME Awards 2011
1,050,000,000
$16.45/
13,611,930
37
190
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...in the end it's all about the game