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Maximizing User Lifetime Value in Mobile Gaming Industry

Learn from Andy Yang, CEO of PlayHaven, about strategies to boost user acquisition, engagement, and retention in the competitive mobile gaming market. Discover key metrics and revenue outlook in this ever-evolving industry.

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Maximizing User Lifetime Value in Mobile Gaming Industry

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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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