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Christian O. Petersen 16 years of

Christian O. Petersen 16 years of . Getting brands to pay for in-game purchases . Games mobile and marketing. Iryna Liashchuk Head of Marketing at Zigi. Producer of over 100 advergames. x. 2. Started out by asking: .

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Christian O. Petersen 16 years of

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  1. Christian O. Petersen 16 years of Getting brands to payfor in-game purchases Gamesmobile and marketing IrynaLiashchuk Head of Marketing at Zigi Producer of over 100 advergames x

  2. 2 Started out by asking: Over 200 most successful game developers about their challenges on mobile Over 40 leading US brands about their marketing needs Hundreds of mobile gamers about their playing habits IHS

  3. Retailers pay for your virtual goods 1 2 3 Increase retention by giving non-paying users virtual goods for free Monetize your non-paying users when they visit stores Get access to huge retai advertising budgets Show this screen to get your discount

  4. The mobile games industry is moving to Freemium, because it allows to get wide adoption 4 IHS iPhone and Android Source: Flurry and IHS 2012

  5. Freemium: Losing Users Most mobile game users leave the first 30 days

  6. The FreemiumPressure Cooker Bad app store reviews, poor WOM Game Instruments Medium Retention problems: When you push users to buy, they start to leave Low High Pressure to buy in-game items Broad reach through Freemium model Users see that their fun is limited without paying and loose interest Sellingitems 2-3% of users spend money MonetizedUsers Paying users get more fun and stay

  7. With all that pressure … Can Freemiumstill ensureuserretention and optimal monetization ? 7

  8. Freemium: Leaving Money on the Table? Growth in mobile game revenue 2010-2012 3x Growth in mobile game sessions 2010-2012 10x

  9. Making Freemium Better 1 2 STOP Leaving Money on the Table STOP Losing Users Whales Users who pay stay longer becausethey get more game opportunities 2-3% of the DAU are monetized by selling virtual goods Whales

  10. Making Freemium Better 1 2 STOP Leaving Money on the Table STOP Losing Users 2-3% of the DAU can be monetized by selling virtual goods Whales Users who pay stay longer because they get more game opportunities Whales Dolphins 4-6% of DAU can be monetized with location based sponsorships Users who get virtual goods for free from sponsors stay longer as they get more fun

  11. Making Freemium Better 1 2 STOP Leaving Money on the Table STOP Losing Users 2-3% of the DAU can be monetized by selling in-game items Whales Users who pay stay longer because they get more game opportunities Whales 4-6% of DAU can be monetized with location based sponsorships Users who get virtual goods for free from sponsors stay longer as they get more fun Dolphins The rest 94-96% can be monetized with ads Small Fish Users have a choice of buying, getting for free from retailers or viewing ads

  12. The User Experience

  13. 1. Playing a free game* • Anytime the user is playing, the game checks for nearby Zigi spots *Free and freemium apps dominate the mobile market, accounting for 89 percent of total downloads in 2012. Source: Brian Blau, research director at Gartner” Patents pending

  14. 2. There is a Zigi Spot nearby You are very close to a place where you can get anew level for free! • The user is notified that he can get virtual goods unlocked by walking into the store/restaurant Patents pending

  15. 3. See where on the map Unlock new Monkey Star level at Toffee Coffee • The user sees the closest Zigi spots on the map Patents pending

  16. 4. The user enters the retail location • When the user enters the retail location, the game item is automatically unlocked Patents pending

  17. 5. Retail product promotion • In addition to the free game item, the retail brand can show users a special offer Patents pending

  18. Pretty cool, right … Now let’ talk more about MONEY

  19. So far all the fishing has been in the small pool Budgets for banner ads come from E-Commerce= less than 7% of overall marketing budgets

  20. We have the key to huge retail ad budgets Traditional retail is 15 times bigger than e-commerce,but retailers are not getting clear ROI from the CPM and CPC based ads • Retail is the top US ad spender with $21.5Bn (US =33% of global ad spend) • US Retail Ad Budgets: • Walmart$1.8B • Sears $1.7B • Target $1.6B • Macy’s $1.5B • McDonalds 1.5B • JCPenney $1.2B

  21. Why Retailers Love Zigi model 1 2 3 Being a part of the game Driving consumers to the stores Getting measurable results

  22. RevenuePer Visit 1 2 3 Beverage and Fast food $1 Supermarket or Restaurant $2 ClothingStores $3

  23. Why Users LoveZigi 1 2 3 Allows not to choose between paying or leaving Enhances rather than compromises the user experience Gives free virtual goods & real rewards in-store

  24. Why Developers Love this model 1 2 3 Increase retention by giving non-paying users access to virtual goods Monetize users who never spend money in games Get access to huge retail advertising budgets

  25. Summary ✔ ✔ ✔ ✔ Opens access to huge retail ad budgets Increases the game’s retention of users Works alongside other monetization tools Makes Freemium work!

  26. Changing the GameServing the world’s on-the-go people www.zigi.com iryna@zigi.com Email me and let’s have a chat

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