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Playing with Pricing in Social Mobile Games

Oscar Clark EvangelistPapayaMobile Inc

Syllabus: Playing with Pricing

• Some of the theory behind Freemium billing models?

• Understanding Player Reward behaviours & Lifecycle

• The importance of the Free-Player, Minow & Whale

• Virtual Goods Techniques

• Working with Papaya

Image Source: http://jameslao.com/2008/04/

Billing and Game Design: Theories

Image Source: http://harmonyartmom.blogspot.co.uk/2009/04/sketch-tuesday-take-seat.html

Lets start with some economic principles

•Consumer Purchase Process•Price Elasticity of Demand•Barriers to Purchase•Short Term and Long Term

Risk

...and how they apply to Social Games

Consumer Purchase Process

Give your users a reason to buy goods

• How easy it is to buy?• What drives anticipation?• Are there blocking

events?• What motivates users?• What gives them

‘Permission?’

Blo

ckin

g E

ven

ts

Sti

mu

lus

Motivation

Consideration

Awareness

Permission

Purchase

Remorse

Review

Pricing Elasticity of Demand

Maximize the opportunity

•Price affects supply•Revenue = Price times users•$0 to $0.001 is huge barrier•$0.001 to $1 is easier•Multiple low price purchases

easier than fewer high price

Pricing Elasticity of Demand

Maximize the opportunity

•Price affects supply•Revenue = Price times users•$0 to $0.001 is huge barrier•$0.001 to $1 is easier•Multiple low price purchases

easier than fewer high price

≠

Short term and long term

Nagging has an impact on long term loyalty

•Consumables are easy short term •Durables are east longer term•The existence of both affects player confidence & willing to buy

•Durables should reduce the nagging/Blocking Events

Short term and long term

Nagging has an impact on long term loyalty

•Consumables are easy short term •Durables are east longer term•The existence of both affects player confidence & willing to buy

•Durables should reduce the nagging/Blocking Events

Short term and long term

Nagging has an impact on long term loyalty

•Consumables are easy short term •Durables are easy longer term•The existence of both affects player confidence & willing to buy

•Durables should reduce the nagging/Blocking Events

Short term and long term

Nagging has an impact on long term loyalty

•Consumables are easy short term •Durables are east longer term•The existence of both affects player confidence & willing to buy

•Durables should reduce the nagging/Blocking Events

Syllabus: Playing with Pricing

• Some of the theory behind Freemium billing models?

• Understanding Player Reward behaviours & Lifecycle

• The importance of the Free-Player, Minow & Whale

• Virtual Goods Techniques

• Using the Papaya Game Engine for rapid Social Game Development

Image Source: http://jameslao.com/2008/04/

Where does Social come in?

Image found via Flikr (Erica Glasier)

Keep me entertained

Build my trust

Who else plays?

Let me show off

Make the most of the game

Maslow’s Hierachy• Gamers need to be

entertained• Trust influences buying

decision making• Social Influences affect buying

choices• Players typically purchase

‘Customization’ items first • ‘True Fans’ spend most on

game accelerators

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!"

What do your players want now?

Mobile Players play based on Mood & Mode

• Entertain Me:– "Keep me from going mad"

• Max my time:– "Just two minutes to fill"

• Show and tell: – "Too cool for you"

• Habit Forming: – "My guilty pleasure"

The life of the game

Image Source: http://www.agilemodeling.com/essays/proof.htm

Where are your users in their lifecycle

• Products have a lifecycle• Players also have a

lifecycle• Early stages are vital• Push past the 'chasm'

Revenue starts here!

Syllabus: Playing with Pricing

• How does the billing model affect game design?

• Understanding Player Reward behaviours & Lifecycle

• The importance of the Free-Player, Minow & Whale

• Virtual Goods Techniques

• Working with Papaya

Image Source: http://jameslao.com/2008/04/

Why do people buy?

Understand the True Fans

True Fans are happy to spend money

•Don't break the Free Player experience

•Takes 8-12 days to start paying•Make it great to spend the first $1•Nurture one-time spenders & Minows

•What are your ‘Gateway’ purchases?

Talking Social: Total Lifetime Value

We don't just want a one night stand

•True fans can take 8-12 days to start spending

•Work with the user lifecycle to keep them engaged

•Build Anticipation between Games

•Cross-Game Virtual Currency

Typical number of Games an X-City player where spends money

Compulsion Loops

Give Players a reason to keep coming back

•Schedule of reinforcement•Grinding & flow•Visible achievement stream•"Just one more turn"•What happens between sessions?

Syllabus: Playing with Pricing

• How does the billing model affect game design?

• Understanding Player Reward behaviours & Lifecycle

• The importance of the Free-Player, Minow & Whale

• Virtual Goods techniques

• Working with Papaya

Image Source: http://jameslao.com/2008/04/

Applying The Theory

Offer low cost Consumables

• Each with their own play/refresh profiles

• Pay with Grind only• Pay with Cash only• Limit access by ‘Level’• Pay to skip ‘Cool-down’

Applying The Theory

Balance with different Durables

• Each with their own art style & impact on gameplay

• Encourage emergent play

• Grind or in-game currency

• Offset nagging of consumables

Applying The Theory

Image Source: http://www.speedrungames.com/?cat=5

Reward repeat play with Collections

• Each with an art style relevant to their source

• Encourage gifting/trade with friends

• Trade in for Consumables • Trade-in for Unique

Durables

Monetization 3.0

Make buying goods part of the fun

• Collection Cash-in• Grind relief goods• Level limited items• Purchase only items• Special “Level-

clearance” items

Things to Avoid…

Casual Gamers expect more fun

• Don’t Punish Players• Don’t require purchases

to continue• Don’t make the game

painful without spending• Don’t sell goods players

can’t show off

Syllabus: Playing with Pricing

• How does the billing model affect game design?

• Understanding Player Reward behaviours & Lifecycle

• The importance of the Free-Player, Minow & Whale

• Virtual Goods Techniques

• Working with Papaya

Image Source: http://jameslao.com/2008/04/

Socialize your game and connect to millions of engaged, active users

1.Integrated social features

2.Integrated social features

3.Virtual currency

4.Support major develop tools

5.Language support

Social SDK

A Cross-Platform Social Game Engine for Mobiles

1.Integrated social features

2.Virtual currency

3.Script based language

4.Advanced 2D graphics

5.Cross platform

6.Cloud server hosting

7.Language support

Social Game Engine

Summary

Image Source: http://www.speedrungames.com/?cat=5

Pricing should enhance gameplay

• Keep players entertained• Meaningful interaction

with others• Social Capital for

purchases• Consumables & Durables• Manage user lifecycle

Any Questions?

oscarclark@papayamobile.comTwitter: @AthanateusThank you :)