offerpal: monetizing traffic with virtual currency

Slide title goes here…

Offerpal Media Inc. Confidential

Incentivize and Monetize Social Traffic with Virtual Currency

SNAP SummitAnu Shukla

Founder & CEO, Offerpal Media, Inc.

I. Why Virtual Currency?II. Top Ways Your Users Can Earn Virtual CurrencyIII. Integrating Virtual Currency Into the User ExperienceIV. Promoting Virtual Currency = MonetizationV. Optimizing Your Virtual CurrencyVI. Conclusion

Agenda

Phenomenal Growth…• 68% of all US Internet users use social networks**• 580M+ social network users worldwide***• 29 Billion minutes spent on SN in July 08**• 67 Billion pageviews in July 08**

The Social Network Advertising Dilemma

* Robert Peck, Bear Stearns, August, 2007 ** comScore July 2008** * comScore World Metrix June 2008

Non-effective advertising• Interrupt-driven CPM banners: <50c CPM• Out of context CPC ads: <$1 CPM• Video ads: $1-$2+ CPM

SN Users as % of Total Internet Users*

0%

10%

20%

30%

40%

50%

60%70%

80%90%

100%

2006 2007 2008 2009 2010

90 %+ penetration870M+ Users by

2010

90 %+ penetration870M+ Users by

2010

829M Users

733M Users

89.6% 83.3%

UserEngagement

>$100 eCPM

<10¢ eCPM

Highest Advertising Industry eCPMs

CPM Banners CPC Adsense

Monetization for Virtual Currency

and Digital ProductsMonetization

<$1 eCPM

Ave app earns $75/day per 1000 DAU, some >$200/day

Virtual Currency in Social Applications

Virtual Currency in Virtual Worlds

Virtual Currency in Social Games

Top Ways Your Users Can Earn Currency

Top Ways Your Users Can Earn Currency

#1: Logging in

• Increases stickiness• Creates loyalty• Improves frequency

of return visits by 10 – 20%

Top Ways Your Users Can Earn Currency

#2: Inviting Friends

• Increases virality• Quickens growth• Helps grow

applications up to 30% faster than without incentivization

Top Ways Your Users Can Earn Currency

#3: Completing Tasks

• Deepens user engagement

• Focuses user attention• Increases user activity

up to 20x or more on incentivized activities over non-incentivized activities

Top Ways Your Users Can Earn Currency

#4: Completing Offers

• Monetizes traffic• Taps into user motivation• Generates on average $75

per day per 1,000 Daily Active Users

Integrating Currency Into the User Experience

Integrating Currency Into the User Experience

MMORPGs:

• Allow users to communicate with their friends in a fun and competitive environment

• Use points, levels, and currency to fuel competition and keep the user focused on advancing within the game

Integrating Currency Into the User Experience

Functional Goods in MMORPGs:

• Goods that meaningfully alter the user experience

• Allows users to add more weapons, increase protection, add more lives, etc.

Integrating Currency Into the User Experience

Providing Tips: • Focuses user’s attention on

what you want them to do• Shapes user behavior and

click-paths

Integrating Currency Into the User Experience

Social Interactions:• A form of self-expression in a

social context• Contribute to a cause • Currency is earned to

facilitate the exchange

Integrating Currency Into the User Experience

Customization:• Customizing the avatar

increases user investment and creates a barrier to exit

Promoting Virtual Currency = Monetization

Promoting Virtual Currency = Monetization

Promote currency within your app

• Use banners, prestitials, reg-path offers or other forms of display ads

• Include buttons or tabs in your nav bar, status bar, and other consistent placements

• Currency-driven banners generate 10x click-through rates of non-incentivized banners

Promoting Virtual Currency = Monetization

Integrate currency into the game experience

Promoting Virtual Currency = Monetization

Promote currency on other apps/sites

• Remind users to return your app

• Re-engage with inactive users

• Target inactive users on relevant sites/apps

Promoting Virtual Currency = Monetization

Use multiple communication vehicles:

• Email• Notifications• Contextual touch

points

Optimizing Your Virtual Currency

Optimizing Your Virtual Economy

Maintain a balanced economy

• Manage inflation by not issuing too much currency

• Monitor trades or exchanges, if allowed

• Keep an eye out for “gold farming” and fraud

Optimizing Your Virtual Economy

Setting your exchange rate

• Increases or decreases to your exchange rate can impact revenue numbers between 5 – 25%

• Adjust the exchange rate based on• Which level the user is at within your

game• A specific advertising offer• The behavior of specific users• Etc.

Optimizing Your Virtual Economy

Measure, Test and Analyze

Offerpal Media’s testing platform monitors and optimizes: • Revenues • eCPM• Click-Through Rates• Take Rates• Exchange Rates• Conversions• Revenue/Click • Revenue/Completion

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