launching a free-to-play game: goals, strategies and pitfalls - eric seufert, rovio
TRANSCRIPT
Launching a free-to-play game: goals, strategies, and pitfalls
Eric Benjamin SeufertJune 9, 2015
Israeli Mobile Summit
Why is it difficult to launch a Free-to-Play game in 2015?
• Succeeding on the App Store is supposed to be hard
What kind of apps help them make money?
Apps that showcase their hardware
Apps that collect lots of data
App Store Discovery is Not Broken
How do they make money?
Selling hardware Selling ads
What kind of apps help them make money?
Apps that showcase their hardware
Apps that collect lots of data
What’s the best way for apps to do that?
Build large, self-perpetuating user bases
Build large, self-perpetuating user bases
App Store Discovery is Not Broken
How do they make money?
Selling hardware Selling ads
Why is it hard to launch a Free-to-Play game in 2015?
• Succeeding on the App Store is supposed to be hard
• You’re using advertising to compete with established networks
Top Downloaded, iPhone / USJune 1, 2015
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X
X
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Existing, pre-mobile network; beneficiary of the “Great Unbundling”
Temporary viral / paid blip
Truly Viral phenomenon
(6)
(2)
(2)
Advertising vs. Networks
• Advertising costs are going up……because the largest developers are monetizing their networks…
Advertising vs. Networks
• Advertising costs are going up……because the largest developers are monetizing their networks……and retaining them within their portfolio via cross-promotion…
Advertising vs. Networks
• Advertising costs are going up……because the largest developers are monetizing their networks……and retaining them within their portfolio via cross-promotion…• With a single title, you’re not competing with
large developers on the basis of LTV > CPI (game quality), you’re competing on the basis of network size. You lose.
Product Marketing for F2P Games
Old Greenlight Questions:• “What’s a good LTV for this game?”• “What kind of CPIs will I pay for this game?”
Product Marketing for F2P Games
Old Greenlight Questions:• “What’s a good LTV for this game?”• “What kind of CPIs will I pay for this game?”• “What’s a good Day 1 / 7 / 30 retention for
this game?”
Product Marketing for F2P Games
Old Greenlight Questions:• “What’s a good LTV for this game?”• “What kind of CPIs will I pay for this game?”• “What’s a good Day 1 / 7 / 30 retention for
this game?”• “What’s a good ARPDAU for this game?”
Product Marketing for F2P Games
• F2P market stratified into a multi-segment model based on marketing tactics
Unpaid Growth Paid Growth
No
Bala
nce
Shee
t Re
quire
men
tBa
lanc
e Sh
eet
Requ
irem
ent
F2P Product Marketing Strategy Segments
Unpaid Growth Paid Growth
No
Bala
nce
Shee
t Re
quire
men
tBa
lanc
e Sh
eet
Requ
irem
ent
Which games have been successful?
?
Unpaid Growth Paid Growth
No
Bala
nce
Shee
t Re
quire
men
tBa
lanc
e Sh
eet
Requ
irem
ent
“Gimmick” Games
Fast-follow Clones
IP Co-brands
Second-screen Extension
Full F2P Economy Games
Lightweight graphics-driven experiments
Which games have been successful?
?
Product Marketing for F2P Games
• F2P market stratified into a multi-segment model based on marketing tactics
• “LTV > CPI” questions are only relevant if…
Product Marketing for F2P Games
• F2P market stratified into a multi-segment model based on marketing tactics
• “LTV > CPI” questions are only relevant if…– Your game can only succeed via paid growth (even
if there’s a virality component that reduces acquisition costs!)
Product Marketing for F2P Games
• F2P market stratified into a multi-segment model based on marketing tactics
• “LTV > CPI” questions are only relevant if…– Your game can only succeed via paid growth (even
if there’s a virality component that reduces acquisition costs!)
– You have money!
Two Mistakes
• Don’t be fooled by VC-funded start-ups with games in the Top Right quadrant– They may have actually lost money!
Two Mistakes
• Don’t be fooled by VC-funded start-ups with game in the Top Right quadrant– They may have actually lost money!
• Don’t think that “viral games” don’t spend money on UA
Two Mistakes
• Don’t be fooled by VC-funded start-ups with game in the Top Right quadrant– They may have actually lost money!
• Don’t think that “viral games” don’t spend money on UA– Often UA is at the heart of their growth models!
Product Marketing for F2P Games
Greenlight Questions for the Other Strategies:• “Does this game have a large potential Total
Addressable Market?”
Product Marketing for F2P Games
Greenlight Questions for the Other Strategies:• “Does this game have a large potential Total
Addressable Market?”• “Can I partner with someone to reach that
market? Who?”
Product Marketing for F2P Games
Greenlight Questions for the Other Strategies:• “Does this game have a large potential Total
Addressable Market?”• “Can I partner with someone to reach that
market? Who?”• “Is this game unique enough to produce viral
growth?”
Product Marketing for F2P Games
Greenlight Questions for the Other Strategies:• “Does this game have a large potential Total
Addressable Market?”• “Can I partner with someone to reach that
market? Who?”• “Is this game unique enough to produce viral
growth?”• “Can the essence of the game be
communicated quickly and clearly?”