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Offerpal Media Inc. Confidential
Monetizing Social Games: A Step-by-Step Guide
Nick TalaricoDirector of Publisher Development, Offerpal Media, Inc.
First, a bit about Offerpal Media…
Management Team:
• Anu Shukla, Co-founder & CEO• Mitch Liu, Co-founder & VP• Bill Lonergan, CFO• Naghi Prasad, VP Engineering• Shannon Jessup, VP Sales
Quick Facts:
• Venture capital funded: June, 2007, and February, 2009o Interwest Partners
o Northbridge Venture Partners
o D.E. Shaw Ventures
• Launched October, 2007
• Publishers: 2,000+
• Global advertising offers: 5,000+
• Headquarters: Fremont, CA
Company Background
“Offerpal Media is built on the science of inserting scientifically targeted and relevant advertising offers into the virtual economies of social web sites, games and applications.”
The Leading Social Advertising Platform
• More than 150 million user accounts created since October 2007
• 2,000+ publishers across multiple platforms and environments
• 5,000+ advertising offers in 80+ countries
• 30+ billion virtual points issued
Platforms
Applications
Worlds
Games
Offerpal’s turnkey payment platform allows online gamers to earn virtual currency for taking part in targeted, personalized advertising offers (or buy it through global payment options).
– Integrated within game play of social applications and web sites
– Deepens user engagement
– Increases stickiness and pageviews
– Improves virality
Top Social Monetization Solution
User Flow
1 2
3
2
4
UserEngagement
>$150 eCPM
<10¢ eCPM
CPM Banners
CPC Adsense
Monetization for Virtual
Currency and Digital
ProductsMonetization
<$1 eCPM
Card Games $400
MMORPGs
Tamagotchi Games
Racing
Owning
Pets
Green
$225
$200
$175
$150
$100
$75
eCPM
Category
• Network-wide eCPM: $150 – 200
• Average publisher payout: $75/day/1,000 users
• Conversion rate: >5% (40x better than traditional CPA)
• Revenues per completion: >$5.00
Virtual Currency Payouts
10 Steps for Monetizing Social Games
Tip #1(A): Make It Fun
Before you do anything, ask yourself:
• Is your game fun? • Will users come back?• Will they invite their
friends?
If not, go back to square one.
Tip #1: Define Your Sinks
Types of Sinks:
• Functional Goods• Decorative Goods• Behavioral Goods
Tip #1: Define Your Sinks
Types of Sinks:
• Functional Goods• Decorative Goods• Behavioral Goods
Step #1: Define Your Sinks
Types of Sinks:
• Functional Goods• Decorative Goods• Behavioral Goods
Step #2: Assign Currency to Your Sinks
• Use “in-game” currency to engage
• Use “RMT” currency to monetize
• Assign currencies to each sink or set of sinks
Happy Harvest uses “Game Coins” for its engagement currency and “Credits” for RMT currency.
Step #3: Define Sources for Your Currencies
Types of Sources:
• In-game currency– Missions/Quests– Logging in
• RMT currency– Cash payments– Ad offers
Step #3: Define Sources for Your Currencies
Types of Sources:
• In-game currency– Missions/Quests– Logging in
• RMT currency– Cash payments– Ad offers
Step #3: Define Sources for Your Currencies
Types of Sources:
• In-game currency– Missions/Quests– Logging in
• RMT currency– Cash payments– Ad offers
Step #3: Define Sources for Your Currencies
Types of Sources:
• In-game currency– Missions/Quests– Logging in
• RMT currency– Cash payments– Ad offers
Step #4: Get them hooked
Balance engagement with monetization:
• Crack dealer: Engage first, monetize second
• Cheater: Allow all to play, but let people pay to cheat
• Focus on constant balance between sources and sinks (the sinkhole must always be slightly larger)
Step #5: Set Your Exchange Rate
Tips on setting the exchange rate:
• Too low = low perceived value• Too high = high inflation• Find the sweet spot
=
Step #6: Launch Game
vs.
Promotion = Monetization
• Add a tab to “Add Credits”
• Include balance in a status bar
• Use newsfeeds, notifications, banners and other messaging opportunities
Step #7: Promote Your Virtual Currency
Step #8: Keep Demand for Currency High
What drives demand?
• User psychology– Self-expression– Collection– Achievement
• Limited edition goods• Level-specific goods• Perishable goods• New, fresh content • Global leaderboards
and social competition
Step #9: Maintain a Balanced Economy
Tips for a healthy economy:
• Try upping exchange rate for a day• NEVER flood your RMT currency• Don’t keep the economy too tight –
remember, it’s free to play• If they aren’t complaining, you
aren’t monetizing.
Step #10: Test, Measure, Optimize
What to test?
• User attributes • Exchange rate• Price points• User Interface options• User patterns
Attribute Graphs
Trend Graphs
Case Study: Mousehunt
Case Study: Mousehunt
Social websitesMMOGsDigital merchants…
About Mousehunt
• 481,643 MAUs on Facebook
• Developed by HitGrab, Inc.
• You are a hunter, hired by the king to trap the mice that infest his kingdom. For each mouse you catch, you'll receive a unique reward, with the aim of being the best in the land!
Mousehunt: Sinks
Social websitesMMOGsDigital merchants…
• Cheese– Varies by price
– Some better at attractingmice than others
• Traps– Varies by price
– Some better at catchingmice than others
• Travel to new locations– Different types of mice in
different locations
Mousehunt: Sinks
Social websitesMMOGsDigital merchants…
• Cheese– Varies by price
– Some better at attractingmice than others
• Traps– Varies by price
– Some better at catchingmice than others
• Travel to new locations– Different types of mice in
different locations
Mousehunt: Sinks
Social websitesMMOGsDigital merchants…
• Cheese– Varies by price
– Some better at attracting
mice than others
• Traps– Varies by price
– Some better at catching
mice than others
• Travel to new locations– Different types of mice in
different locations
Mousehunt: Sources
Social websitesMMOGsDigital merchants…
Earn Gold by…
• Catching Mice– The heavier the mouse, the more gold
you earn
• Accepting gifts from the King
• Picking up “loot” dropped by mice when they are trapped
• Returning surplus cheese, traps and crafting materials for a refund
• Or by…
Mousehunt: Sources
Social websitesMMOGsDigital merchants…
Completing Ad Offers
Questions?