mobile games marketing – how to use tv, performance, and viral marketing in your strategies tung...

How to win with TV, IP and Viral Marketing in Mobile Games The Power of TV, World Class IP, and Excellent Monetization

Tung Nguyen-Khac

ProSiebenSat.1 key financials & Stock market

Revenues

Recurring EBITDA

Net income*

Continuing operations. *Net income after non-controlling interests.

2,605m

790m

360m

Recurring EBITDA margin 30%

** based on 5,585,400 treasury shares. Closing share price on XETRA as of April 1, 2014, at EUR 33.62. *** Source: Deutsche Börse, as of March 31, 2014.

Share price increased by 69% in 2013

Free float market cap ~EUR 7.2bn**

Member of

German MDAX index (rank #2***)

Key financials FY 2013

Stock market

Introducing ProSiebenSat1

Aeria Games Europe GmbH - ProSiebenSat.1 Games GmbH - Confidential 3

Digital Entertainment

Digital Commerce

Ventures

Games

2 Digital & Adjacent

Format Development

TV Content Production

Digital Production

3 Content Production & Global Sales

Free-to-Air Television

Basic Pay TV

Distribution

1 Broadcasting

Page 4

Global Sales

20 million unique online users per day

Significant TV + Digital synergies

11 million TV viewers per day

Multiple revenue growth opportunities

Leading TV & Digital media company

Early mover with strong position in digital entertainment and commerce

Leader in digital media business innovations

How does the Game business benefit from that?

Introducing SevenGames


Access to TV

Access to IP

Ownership of digital reach

The combination of Aeria and ProSieben Games has created the leading publisher in Europe

World leading monetization

Mobile + PC Expertise

Ignite distribution platform

Top publisher in Europe

Unparalleled marketing power + TV

International player base

+ = SevenGames

It’s been a busy year for us Over the last 6 months, we have successfully completed the merger and consolidated our international operations in Berlin

Completed post-merger integration of Aeria and ProSiebenSat.1 Games ✔ Migrated all games and community onto a single technical platform ✔ Built an international operations team in Berlin with now 300+ staff ✔

Opened a licensing office in Seoul ✔

6 new games ready for launch in Q4 ✔ Aeria Games Europe GmbH - ProSiebenSat.1 Games GmbH - Confidential 6


We are focused on growing our games portfolio with casual/ mid-core mobile titles aimed at capturing large audiences

The Future is Mobile

PC Mobile

Casual

Midcore

Hardcore

Hard-/Midcore •  Extensive experience •  Stable revenues

through long lifetimes •  Strong monetization

Casual/Mobile •  Large market due to

wider demographics •  TV driven audience

acquisition •  Easy to leverage well-

known IPs/brands

Monster Paradise

Immortalis

GoalOne

Social Casino

Puzzle

Poker

Portfolio Development Strategic Rationale EXAMPLES

Business Case: Goal1 Constantly analyzing the App Stores to find a gap and potential new markets.

We have analyzed all relevant games in detailed depth.

The Idea: A Mobile Football Manager – less crowded and the World Soccer Championships ahead of us (2013)


GoalOne is a good example of this strategy: In the beginning, this was just another football manager…

GoalOne – A Success Story

•  Co-developed with Bad Monkee GmbH (Hamburg)

•  Development started 12/2013

•  Cross-platform app for iOS and Android

•  Levering years of online football manager experience in the team

•  Deep gameplay and match mechanics


…until we partnered with the DFB to create a unique football manager game experience with the German national team

GoalOne – World Class IP

•  Partnership with DFB •  Official football manager

of the German National Football team

•  App launched on the first day of the World Cup (Jun-12)

•  Updates during the cup to reflecting the success of the German team

•  >250,000 installs in the first 30 days


The TV commercial was prepared just in time and went on air with the launch of the app on the App Store and Google Play

GoalOne – The Power of TV

Goal One TV Spot on Youtube


The spot worked like a charm driving a high volume of installs predictably at very competitive CPIs


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1-‐Jun 8-‐Jun 15-‐Jun 22-‐Jun 29-‐Jun 6-‐Jul 13-‐Jul 20-‐Jul 27-‐Jul 3-‐Aug 10-‐Aug 17-‐Aug 24-‐Aug 31-‐Aug 7-‐Sep 14-‐Sep

Goal One – Installs vs. TV Airtime

Installs

GMV

GMV = Gross Media Volume


Most installs come in the early afternoon and during prime time – most efficient times are after lunch and dinner


Goal One – Installs vs. TV Airtime (by Time of Day)

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Installs

GMV

GMV = Gross Media Volume


TV power drove the vast majority of installs to date – about 60% of installed base is on Android


iOS 43%

Android 57%

TV 93%

Other 7%

GoalOne Installs by Source

GoalOne Installs by Platform

Total: ~500k Installs Total: ~500k Installs


Our monetization strategy implemented best practices from years of free-to-play experience

GoalOne – Excellent Monetization

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Jun Jul Aug Sep

Private Scout

Scout

Transfer Market

Boosters

Leveling Up

SoJ Currency

GoalOne Premium Currency Spending by Item Category

Rebalanced Booster economy

Introduced “Gacha” system

Rebalanced Transfer Market

Focus on first-time buyers


Careful tweaking and active promotions are boosting ARPU

GoalOne – Excellent Monetization

GoalOne Daily ARPU

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12-Jun 19-Jun 26-Jun 3-Jul 10-Jul 17-Jul 24-Jul 31-Jul 7-Aug 14-Aug 21-Aug 28-Aug 4-Sep 11-Sep 18-Sep 25-Sep

New, larger Booster packs

“Private Scout” discount

“Private Scout” probabilities

improved

First “Mystery Box”

promotion

Launch of “Private Scout”


With strong user acquisition and improving monetization, we have been steadily climbing into the Top 10 grossing charts

GoalOne – A Success Story

#10 #11 #14

#17 #20 #21

#33

Source: App Annie, October 2014

GoalOne – iPhone Games Top Grossing Rank, Germany


Combining the power of TV with world class IP and excellent monetization we have created winning title

Summary

+ + +

Great Gameplay

World Class IP

The Power of TV

Excellent Monetization

Thank You!

Tung Nguyen-Khac