the case for monetization design

info@@scientificrevenue.com The World’s Best Dynamic Pricing Engine.

The Case for Monetization Design

September 5, 2016


About Us


When We Do Initial Sales Calls, We’re Often Surprised

People are not tracking key metrics

People are not sure how their monetization funnel works

People are not taking advantage of key design decisions (read: are not making key design decisions)

What we’ve come to realize is that there’s often an unfilled job position: monetization *designer*


In Retrospect, We Shouldn’t Have Been Surprised

Scientific Revenue recently benchmarked industry best practices using IAPs.


This is In Spite of Things like This:

Most of our respondents use IAPs


Old News: The No Brainer First Purchase


Wisdom from England


How to use Rewarded Video Effectively

From http://venturebeat.com/2015/08/04/5-ways-to-accelerate-app-monetization-with-rewarded-video/


Purchases and Training Effects

• Random game from the ones we manage:

• D7 Retention of D{1-3} purchasers: 39%

• D7 Retention of non-purchasers: 21%

• Another random game from the ones we manage:

• D7 Retention of D{1-3} purchasers: 43%

• D7 Retention of non-purchasers: 16%

• In general the pattern holds:

• People who buy, retain at about a 2X rate


Note Also That People Who Buy Also Buy Again

• (Same) Random game:

• Second Purchase Rate: 36%

• (Same second) random game:

• Second Purchase Rate: 29%

• In general the pattern holds:

• Most games have a 20% to 60% second purchase rate


Annuities

http://www.gamasutra.com/blogs/IsaacKnowles/20160512/272484/Want_to_Increase_Your_FreetoPlay_Game_Revenue__Retention_Experiment_With_Virtual_Currency_Annuities.php


Daily Login Rewards

http://www.gamasutra.com/blogs/WilliamGrosso/20160613/274759/The_Science__Craft_of_Designing_Daily_Rewards__and_Why_FTP_Games_Need_Them.php


My Favorite Daily Login Reward of All Time


Etcetera

• Your game has a coin store

• Your game has a virtual goods store

• At some point, your game will have flash sales for virtual goods

• At some point, your game will have flash sales for currency


Wisdom from England (Yes, Same Slide)


Key Takeaways

You have to have an economy before you can optimize it

There’s a lot of (design) work involved in getting IAP monetization right

What “Free to Play” really means is that you control the point of sale

This talk is an attempt to kickstart the “monetization design” conversation


The Library

• Our Resources Page. http://www.scientificrevenue.com/resources/• On Daily Login Bonuses.

http://www.gamasutra.com/blogs/WilliamGrosso/20160613/274759/The_Science__Craft_of_Designing_Daily_Rewards__and_Why_FTP_Games_Need_Them.php

• On Annuities.http://www.gamasutra.com/blogs/IsaacKnowles/20160512/272484/Want_to_Increase_Your_FreetoPlay_Game_Revenue__Retention_Experiment_With_Virtual_Currency_Annuities.php

• Our IAP Survey. http://www.pocketgamer.biz/data-and-research/63436/scientific-revenue-survey/ and http://www.scientificrevenue.com/iap-survey/

• On Feeder Apps. http://www.scientificrevenue.com/blog-posts/how-to-turn-free-viral-apps-into-feeder-apps-that-actually-make-money/

• On Powerup Design. http://www.scientificrevenue.com/blog-posts/rescues-buffs-skips-how-to-design-mobile-game-power-ups-for-optimal-iap/

• On Payment Wall Design. http://www.scientificrevenue.com/blog-posts/how-to-design-an-in-app-purchase-paywall-that-earns-you-money-without-annoying-your-players/

• On Non-virtual-currency IAP Strategies.http://www.gamasutra.com/blogs/WilliamGrosso/20160202/264646/IAP_Strategies_Most_Mobile_Gamers_Dont_Hate__And_Most_AAA_Publishers_Should_Try.php


The Library: Coming Soon

• The Annuity Design Worksheet• Window Shopping and Stickershock• Monetization Myths (a series)• How to Use Subscriptions Effectively• ….


Continuing the Conversation

Twitter:

https://twitter.com/SciRevenue

Excellent Mailing Lists:


https://mailman.stanford.edu/mailman/listinfo/gsb-videogames

https://gaminginsiders.mobilize.io/users/sign_in



Thank You

William [email protected]

[email protected]

mailto:[email protected]

the case for monetization design

Data & Analytics