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Andy Yang CEO of PlayHaven since April 2011

About PlayHaven. Andy Yang CEO of PlayHaven since April 2011 10+ years building web, social and mobile businesses Grew PlayHaven's business by over 900% since 2011 PlayHaven Lifetime value maximization platform for user acquisition, engagement, and retention Key Metrics

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Andy Yang CEO of PlayHaven since April 2011

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  1. About PlayHaven Andy Yang • CEO of PlayHaven since April 2011 • 10+ years building web, social and mobile businesses • Grew PlayHaven's business by over 900% since 2011 PlayHaven • Lifetime value maximization platform for user acquisition, engagement, and retention • Key Metrics • 4,000+ mobile games • 2.5 billion monthly games sessions, • 100 million monthly unique users • Partners include:

  2. Focus of Presentation • Freemium games • Science aspects not art -> maximize your opportunity • More specifically LTV * Users – eCPI * Users

  3. Agenda

  4. Mobile Revenue Outlook • That’s more than the GDP of the Bahamas $10.6B • And all of these countries combined! • Monaco $5.5B • Belize $2.7B • Greenland $2.1B By 2015, the global market for virtual goods will surpass $20 billion which is more than the entire GDP for Armenia $19B *Mobile games revenues are set to surpass $11 billion in 2015 - Juniper Research report / *By 2015, the global market for virtual goods will surpass $20 billion – Super Data Research report / *Global GDP by Country report

  5. What is Lifetime Value • LTV = Lifetime Value • Average dollar value per new user over a period of time • Your LTV can vary wildly based on: • Who the player is • Traffic source • Region of world • Platform • Device: iPad > iPhone > iPod • Not all users users are worth the same • Less than 1% of your users may generate 80%+ of your IAP revenue • Including IAP + Ads in the calculation is important

  6. Understanding Your Players

  7. Segment and Target Whales Dolphins Minnows

  8. User Lifecycle Whales: Re-engagement Focus on IAP’s Cross- Promotion Retention / Info Monetize w/ Ads (reset the LTV curve in new game) User Churn Day 1 TIME

  9. IAP vs Ads Revenue Distribution

  10. IAP vs Ads Revenue Distribution by Customer

  11. Acquisition Challenge 15 Mins of fame Your Traffic: Unpredictable and Unreliable A select few make it work Rollercoaster

  12. Acquisition 101 • Think margin not CPI • Understand the difference between burst and sustain • Don’t blindly spend. Understand audience by traffic source, country, device, or any other targeting parameter supported. • Don’t rely on any one source…diversify your risk. • Get as fast of a sense of user LTV by source and targeting parameter and manage your bids closely

  13. Acquisition Pitfalls • Watch out for snake oil • Directly track every action you can and keep your partners honest. • Network attribution – Many if not most advertisers likely paying for the same user multiple times. Don’t let this happen. • Data integrity and Ops – requires constant attention. • ID Systems – It’s a mess

  14. Process for Lifetime Value Current Process LTV Maximization Management Traffic Source User Lifecycle Management Output Ad Networks Organic Viral Internal Cross Promo

  15. The Math • eCPI (c) • App store rank achieved (a) • Organic from app store rank (o) • k factor (k) • LTV (l) • Revenue Share (r) • Margin (m) m = l*(1-r)*a(o)*k – c The more titles you can then cross-promote them to the better. Think about user LTV across your portfolio not just in a single game. • Measure the above and setup tiered bids by: • Platform • Channel • Geo • Device

  16. Tips and Hints • Make sure you have a solid data infrastructure and understand every metric • Keep asking yourself questions and test • Don’t get into a rabbit hole – 80/20 rule • Take calculated risks, but make sure you learn from failures • Keep your partners honest • LTV > customer acquisition • Be creative and scrappy • Be agile • Be patient

  17. What You Can Do With PlayHaven

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