1. Mobile Monetization Optimization Richard OConnell Global Marketing Director| PapayaMobile Inc

2. Papaya story so far… Mobile Games Social Network Open APIs, Game Engine Cross-Promotion Network 2009201020112012

3. A few of our partners…

4. Overview 1.Monetization Overview 2.Freemium Social Games 3.Freemium Ad Supported 4.Maximimizing lifetime value

5. Awesome isnt good enough!

6. Most arent getting rich from mobile 59% of Apps dont generate enough revenue to break even on development costs 80% dont generate enough revenue to support a standalone business 68% earned less than $5000 with their most successful app http://app-promo.com/wake-up-call-infographic/

7. Mobile Game Monetization Models 1.Freemium in App Purchase 2.Mobile Ads / Cross-Promotion 3.Paid 4.Merchandizing Social Games Arcade Games Deep Console style experience Monster Global Mega Hits Game Types Monetization Model

8. Todays focus 1.Freemium in App Purchase 2.Mobile Ads / Cross-Promotion 3.Paid 4.Merchandizing Social Games Arcade Games Deep Console style experience Monster Global Mega Hits Game Types Monetization Model

9. Todays focus 1.Freemium in App Purchase 2.Mobile Ads / Cross-Promotion Monetization Platforms Monetization Model

10. 1.Monetization Overview 2.Freemium Social Games 3.Freemium Ad Supported 4.Maximimizing lifetime value

11. Consider Elasticity of Demand Price affects supply $0 to $0.001 is huge barrier $0.001 to $1 is easier Multiple low price purchases easier than fewer high price

12. True Fans make up just 4% of paying Papaya farm users… …but account for 60% of virtual good revenue

13. True Fans spend a greater proportion on consumables

14. Offer low cost Consumables Each with their own play/refresh profiles Pay with Grind only Pay with Cash only Limit access by Level Pay to skip Cool-down Nagging has an impact on long term loyalty

15. Applying The Theory Balance with different Durables Each with their own art style & impact on gameplay Encourage emergent play Grind or in-game currency Offset nagging of consumables

16. High spenders start small – but increase with time, peaking in 2 nd and 3 rd months

17. True Fans are happy to spend money in the long term Don't break the Free Player experience Takes 8-12 days to start paying Make it great to spend the first $1 Nurture one-time spenders & low spenders What are your Gateway purchases? Free players are your most important marketing channel. Keep them happy!

18. Monetization 3.0 Make buying goods part of the fun Collection Cash-in Grind relief goods Level limited items Purchase only items Special Level-clearance items

19. Compulsion Loops - Give Players a reason to keep coming back Schedule of reinforcement Grinding & flow Visible achievement stream "Just one more turn" What happens between sessions?

20. Applying The Theory Image SourceImage Source: http://www.speedrungames.com/?cat=5http://www.speedrungames.com/?cat=5 Reward repeat play with Collections Each with an art style relevant to their source Encourage gifting/trade with friends Trade in for Consumables Trade-in for Unique Durables

21. Things to Avoid… Dont Punish Players Dont require purchases to continue Dont make the game painful without spending Dont sell goods players cant show off Happy free players are vital for your high spenders

22. 1.Monetization Overview 2.Freemium Social Games 3.Freemium Ad Supported 4.Maximimizing lifetime value

23. In-game banners require large volumes of traffic Industry CTR for mobile ads just 0.79% in 2012 1 Average eCPM for mobile ads just $1.35 in 2012 2 Ads were only viable for mega hit titles such as Angry Birds. Players hate banners. Most titles make little revenue. 1: http://www.forbes.com/sites/ericjackson/2012/08/03/why-the-higher- click-through-rates-for-mobile-ads-which-facebook-touts-mean-nothing/2/ 2: http://www.clickz.com/clickz/news/2220099/us-widens-lead-with- average-mobile-ecpm-of-usd137

24. Interstitials produce high CTRs. On AppFlood we saw a network average of 9% CTR in October. Top games over 30% CTR ECPMs on AppFlood Interstitials 12x higher than banners New ad formats a significant driver in game discovery New ad formats offer hope!

25. Why do these ad formats work? Offers content related to users current behavior Users constantly looking for Something else to do / try Games have definitive end points. Game Over, level reached etc. Prospect of free new games always appealing. Earn from churn!

26. Ad Optimization tips Show interstitials when game paused. Show interstitials after levels cleared. Show interstitials after new items are unlocked. Use interstitials after a game is left idle for more than a minute. Balance volume of ads with effect on retention

27. Try avoiding... Displaying more than one ad on a single page. Interrupting any active gameplay. Forcing users to click in order to complete tasks Misleading users or causing accidental clicks Poorly thought out ad placements can impact on retention

28. Word Drop Plus Oct 29 th – Nov 4th Average CTR 15.04%

29. Dragon Kingdom Oct 29 th – Nov 4th Average CTR 10.91%

30. 1.Monetization Overview 2.Freemium Social Games 3.Freemium Ad Supported 4.Maximimizing lifetime value

31. True fans can take 8-12 days to start spending Work with the user lifecycle to keep them engaged Build Anticipation between Games Cross-Game Virtual Currency Typical number of Games an X-City player spends money We don't just want a one night stand…

32. Products have a lifecycle Players also have a lifecycle Churn is inevitable Ensure churn is monetized Use cross- promotions to maximize lifetime value

33. Traditional Ad Networks: Selling Traffic Buying Traffic Total value lost to Ad Networks: 60%

34. Your Shar e

35. Commission-free cross-promotion No minimum traffic requirements No lengthy deal negotiations Free to setup, free to use 100,000,000s monthly impressions available appflood.com

36. Thanks ! Richard OConnell Global Marketing Director, PapayaMobile richard.oconnell@papayamobile.com papayamobile.c om appflood.com