facebook, smartphones and customer data
DESCRIPTION
Presented by Harry Holmwood, Heldhand, in Cambridge Wireless Connected Devices SIG on 16/02/12TRANSCRIPT
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Facebook, Smartphones and
Customer DataHarry HolmwoodHeldhand Consulting
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Who am I?A few seconds only, I promise
All aboutme
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GamersWho is the average gamer?
All aboutgamers
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All aboutgamers
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All aboutgamers
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All aboutgamers
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What’s changed?There is no average gamer
All aboutgamers
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1977– Apple II
4 million sold
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1977 - Atari 2600
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1983 – Nintendo NES
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1994 – Sony PlayStation
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2000 – Sony PlayStation 2
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Current Generation
• Sony PlayStation 3
• Microsoft Xbox 360
• Nintendo Wii
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Games vs Movies
$775m $203m
* First five day gross
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25 million copiesBiggest ever launch of a media product
Hugesuccess
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But hang on…
Hugesuccess?
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7 billion
The Worldis big
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6,975,000,000people didn’t buy it
Hugesuccess?
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These guys did
Hugesuccess?
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Hardcoregamers
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Too Youngbut they played it
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Who didn’t?Where is everyone else playing?
Everyone else
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800 millionpeople on Facebook
Facebookis big
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100 million monthly average users (MAU)
Facebookgames
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• Founded in 2007• Contributes 12% of Facebook’s
revenue• IPO 2011• Market cap > $10bn
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$370m revenue last quarter
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What’s biggerthan Facebook?
Facebookis big
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2 billionsmartphones by 2015
Mobileis even bigger
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Apple App Store
• 20bn + apps downloaded
• Over 1m apps available
• Angry Birds – 30 million DAILY users
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Most games are free to play
Business Models
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Free to play games make more money than
paid ones
Business Models
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‘Freemium’ Model
• Free to start playing
• No barriers to entry
• Everyone can play
• Some people will pay
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1-3% of People Pay
Analyticsis critical
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Whales
• 1-3% of users pay
• 10% of those pay a lot
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Whalesthe highest spenders on social games
Whalestudy
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New Data Points
• Cost Per Acquisition (CPA)
• Average Revenue Per User (ARPU)
• ARPPU
• Retention
• Virality
• Engagement
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Who Are The Whales?
• Whales drive more 50% of the revenues
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Who Are The Whales?
69% of whales are women*
*Papaya
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Making the Games
• Develop quickly and cheaply• $300k for a game vs $30m+ for console game
• Launch Small• Test launches in smaller territories
• Iterate rapidly• Launching with only 20% of ‘game vision’
• Your ideas are all wrong• Learn from your customers’ behaviour
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Lessons so Far
• We were making games for ourselves
• Digital allowed us to be free to start
• Data lets us refine the experience
• Danger of identikit games
• Data + creativity is starting to emerge