christian o. petersen 16 years of
Post on 25-Feb-2016
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Christian O. Petersen16 years of Games
mobile and marketing
Producer of
over 100
advergamesx
Getting brands to payfor in-game purchases Iryna Liashchuk
Head of Marketing at Zigi
• Over 200 most successful game developers about their challenges on mobile
• Over 40 leading US brands about their marketing needs
• Hundreds of mobile gamers about their playing habits
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IHS
Started out by asking:
Retailers pay for your
virtual goods
Increase retention by giving non-paying users
virtual goods for free
Monetize your non-paying users when they visit
stores
Get access to huge retai advertising
budgets
1 2 3
Show this screen to get your discount
The mobile games industry is moving to Freemium, because it
allows to get wide adoption
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IHS
In-app purchas-ing64%
No in-app purchasing
36%
iPhone and AndroidSource: Flurry and IHS 2012
Freemium: Losing Users
Most mobile game users
leave the first 30 days
The Freemium Pressure Cooker
2-3% of users spend money
Users see that their fun is limited without paying and loose interest
Paying users get more fun and stay
Bad app store reviews, poor WOM
Pressure to buy in-
game items
Low
Medium
High
Broad reach through
Freemium model
Monetized
Users
Sellingitems
Retention problems:When you push users to buy, they start to leave
With all that pressure …Can Freemium still ensure
user retentionand
optimal monetization
?
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Freemium: Leaving Money on the Table?
Growth in mobile game revenue 2010-
2012
3xGrowth in mobile
game sessions 2010-2012
10x
Making Freemium Better
STOPLeaving Money on the Table
STOPLosing Users
1 2
2-3% of the DAU are monetized by selling virtual goods
Users who pay stay longer because they get more game opportunities
WhalesWhales
Making Freemium Better
STOPLeaving Money on the Table
STOPLosing Users
1 2
2-3% of the DAU can be monetized by selling virtual goods
Users who pay stay longer because they get more game opportunities
4-6% of DAU can be monetized with location based sponsorships
Users who get virtual goods for free from sponsors stay longer as they get more fun
Whales
Dolphins
Whales
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Making Freemium Better
STOPLeaving Money on the Table
STOPLosing Users
1 2
2-3% of the DAU can be monetized by selling in-game items
Users who pay stay longer because they get more game opportunities
4-6% of DAU can be monetized with location based sponsorships
Users who get virtual goods for free from sponsors stay longer as they get more fun
The rest 94-96% can be monetized with ads
Whales
Dolphins
Small Fish
Whales
Users have a choice of buying, getting for free from retailers or viewing ads
The User Experience
1. Playing a free game*
Anytime the user is playing, the game checks for nearby Zigi
spots
Patents pending
*Free and freemium apps dominate the mobile market, accounting for 89 percent of total downloads in 2012. Source: Brian Blau, research director at Gartner”
2. There is a Zigi Spot nearby
Patents pending
You are very close to a place where you can get a new level for free!
The user is notified that he can get virtual goods unlocked by
walking into the store/restaurant
3. See where on the map
The user sees the closest Zigi spots on the map
Patents pending
Unlock new Monkey Star level at Toffee Coffee
4. The user enters the retail location
When the user enters the retail location, the game item is
automatically unlocked
Patents pending
5. Retail product promotion
In addition to the free game item, the retail brand can show
users a special offer
Patents pending
Pretty cool, right …
Now let’ talk more about MONEY
So far all the fishing hasbeen in the small pool
Budgets for banner ads come from E-Commerce= less than 7% of overall marketing budgets
We have the key tohuge retail ad budgets
Traditional retail is 15 times bigger than e-commerce,but retailers are not getting clear ROI from the CPM
and CPC based ads
Retail is the top US ad spender with $21.5Bn (US =33% of global ad spend)
US Retail Ad Budgets:Walmart $1.8BSears $1.7BTarget $1.6BMacy’s $1.5BMcDonalds 1.5BJCPenney $1.2B
Why Retailers Love Zigi model
Being a part of the game
Driving consumers to
the stores
Getting measurable
results
1 2 3
Beverage andFast food
$1
1 2 3ClothingStores
$3
Supermarket or Restaurant
$2
RevenuePer Visit
Why Users LoveZigi
Allows not to choose between
paying or leaving
Enhances rather than
compromises the user
experience
Gives free virtual goods & real rewards in-
store
1 2 3
Why Developers Love this
model
Increase retention by giving non-
paying users access to
virtual goods
Monetize users who never
spend money in games
Get access to huge retail advertising
budgets
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Summary
Opens access to huge retail ad budgets
Increases the game’s retention of users
Works alongside other monetization tools
Makes Freemium work!
✔✔✔✔
Changing the Game
Serving the world’s on-the-go people
iryna@zigi.com
Email me and let’s have a chat
www.zigi.com
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