Best Practices in Free-to-Play Casual Connect-Europe 2013

1. Best Practices in Free-to-Play Casual Connect-Europe 2013 Chris Williams, VP & GM of F2P at Big Fish

2. F2P Terminology: • KPI – Key Performance Indicator – this is DATA! • DAU – Daily Active User • MAU – Monthly Active User • ARPDAU or DARPU – On average, how much money am I making per day per user? • CPI – Cost Per Install (paid) • LTV – Life Time Value – Total money spent by a user while playing a game.

3. Who is Big Fish? Big Fish is the world’s largest producer and publisher of casual games. • Founded in 2002. • Has distributed more than 2 billion casual games. • LaunchesA New Game Everyday!® for PC & Mac. • 3,000+ games, 550+ game developer partners worldwide. • Gamessold in 150+ countries in 12 Languages. • 250+ unique mobile games and 800+ SKUs across iOS, Android, and others. • Offices located in Seattle, WA; Oakland, CA; Vancouver, Canada; Cork, Ireland; and Luxembourg.

4. You will learn today: • How Big Fish is succeeding in F2P Casual • How F2P is different than Premium Casual • Best practices in F2P Retention & Monetization • Why Big Fish is the best global partner for F2P casual games

5. Free-to-play Casual Today Mobile PC / Mac • iOS • Top grossing charts dominated by F2P • Hit driven business - #10 grossing makes 10x the $ of #100. • Cost per paid install >$4 • Market is saturated, devs need a publishing partner with users and customer reach • Android • A lot of users and devices, but ARPUs are < 20% of iOS • Device Fragmentation makes development a challenge • Facebook • Facebook games are losing users • ARPUs on are lower than iOS • User acquisition costs are high • Developers are shifting to Mobile

6. Big Fish Free-to-play Casual Today Mobile PC / Mac • iOS • 1.5M New Installs per Week • 3 very successful F2P Games: • Android • Casino is has shown strong results. • Big Fish PC App Store is now launching: • Ports of Mobile & Online games • Original Partner Content • 2 very successful F2P Games are Live: Big Fish is ready to fund, publish, and distribute your F2P games ideas!

7. Big Fish 2012 F2P Game Bookings With only 3 F2P games, Big Fish grew F2P bookings by 275% in 2012 +275% Net Bookings Per Month

8. Big Fish Casino The #1 Mobile Social Casino App in the World for over 12 months 1 20 U.S. App Store Top Grossing Rank 40

9. Fairway Solitaire Ongoing updates since launch have improved monetization by 300% +300%

10. Found: A Hidden Object Adventure Hit #1 Free game on iOSat launch. Strong and consistent ARPDAU. AverageRevenue per Daily Active User

11. Premium vs F2P Casual Games Free-to-Play Casual (F2P) Premium Casual

12. Premium vs F2P Technology Free-to-Play Casual (F2P) Premium Casual Big Fish Provides this for Partners + Server F2P requires daily iteration. Waiting 3 – 4 weeks for approved client updates is too slow.

13. Premium vs F2P – Revenue Free-to-Play Casual (F2P) Premium Casual

14. Premium vs F2P – Your Team Premium Casual Free-to-Play Casual (F2P) Big Fish Provides this for Partners

15. F2P Retention The most important Metric for success in F2P is your game’s retention. Q: Is my game’s retention 10%, 50% or 90%? A: It can depend on how you measure it.

16. F2P Retention Tracking a user’s in game activity every day since first install. Most users will only play for a day or two Retained User Percent (Active) Some users will play every day for a very long time Days Since Install

17. F2P Engagement & Retention Frequency of play and long term retention will vary by game type. Source: Flurry

18. Fairway Solitaire Retention Tracking the % of active users who are retained month to month. New Churn Users Users Typical Range Month 1 Month 2 Big Fish Confidential

19. Fairway Solitaire Retention Daily courses dramatically improved retention and monetization

20. F2P Retention Best Practices • Focus on the First User Experience You have < 5mins to win a user over. • Provide a benefit for users to play constantly. BAD: GOOD: • Create anticipation around upcoming content, events, promotions, and updates. • Have daily bonuses and motivations to play • Notifications can drive 20%+ of all sessions. PLAY WAIT WAIT PLAY PLAY PLAY WISH I WAS PLAYING PLAY

21. F2P - Monetization With ARPDAUs improving, a hit F2P games can succeed with fewer users DAU 100 47% of the Top 1000 F2P games have > $0.25 ARPDAU Source: Flurry

22. F2P Revenue Concentration A large number of paying users will pay very little Percent of Revenue A small number of paying users will pay a lot Percent of Paying Users

23. F2P Monetization Best Practices • Show users the FREE way to success and reward. • Retention first, monetization second. • Allows users time to love your game before asking them to monetize. • Create a “rhythm of play” before disrupting it. • Users will value: • Their time and convenience • Creating ownership and pride • Items that are scarce or rare • Status and rank Big Fish Confidential

24. F2P on Big Fish’s Global PC App Store • Reach 1.2 Billion PC Users • 14 million unique Gamers visiting each month • First F2P games with in-app purchasing have launched • Both online and PC downloadable F2P opportunities Apple’s iOS App Store Big Fish Confidential

25. F2P on Big Fish’s Global PC App Store Big Fish Confidential

26. Found: A Hidden Object Adventure Avg revenue per daily user on PC is 3x the same game on iOS. AverageRevenue per Daily Active User Big Fish Confidential

27. What you learned today • F2P represents a big opportunity, but with high risk and a steep learning curve. • F2P is very different than Premium Casual. • Big Fish is the best global partner for your F2P games. • Proven track record of hit F2P games and growth • Distribution on both Mobile and PC • Large existing user base of paying users • Long term view of F2P game services and partnerships • Development, technology, and live ops support

28. THANK YOU!