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1 Christian O. Petersen 16 years of Games mobile and marketing Producer of over 100 advergames x x Getting brands to pay for in-game purchases Iryna Liashchuk.

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Presentation on theme: "1 Christian O. Petersen 16 years of Games mobile and marketing Producer of over 100 advergames x x Getting brands to pay for in-game purchases Iryna Liashchuk."— Presentation transcript:

1 1 Christian O. Petersen 16 years of Games mobile and marketing Producer of over 100 advergames x x Getting brands to pay for in-game purchases Iryna Liashchuk Head of Marketing at Zigi

2 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 2 IHS Started out by asking:

3 Retailers pay for your virtual goods 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 Freemium Pressure Cooker 2-3% of users spend money Users see that their fun is limited without paying and loose interest Paying users get more fun and stay Bad app store reviews, poor WOM Pressure to buy in-game items Low Medium High Broad reach through Freemium model Monetized Users Selling items Retention problems: When you push users to buy, they start to leave

7 With all that pressure … Can Freemium still ensure user retention and optimal monetization ? 7

8 Freemium: Leaving Money on the Table? Growth in mobile game revenue x Growth in mobile game sessions x

9 Making Freemium Better STOP Leaving Money on the Table STOP Losing Users % of the DAU are monetized by selling virtual goods Users who pay stay longer because they get more game opportunities Whales

10 Making Freemium Better STOP Leaving Money on the Table STOP Losing Users % of the DAU can be monetized by selling virtual goods Users who pay stay longer because they get more game opportunities 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 Whales Dolphins Whales

11 11 Making Freemium Better STOP Leaving Money on the Table STOP Losing Users % of the DAU can be monetized by selling in- game items Users who pay stay longer because they get more game opportunities 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 The rest 94-96% can be monetized with ads Whales Dolphins Small Fish Whales 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 Patents pending *Free and freemium apps dominate the mobile market, accounting for 89 percent of total downloads in Source: Brian Blau, research director at Gartner

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

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

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 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 Macys $1.5B McDonalds 1.5B JCPenney $1.2B

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

22 Beverage and Fast food $ Clothing Stores $3 Supermarket or Restaurant $2 Revenue Per Visit

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

24 Why Developers Love this model 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 2 3 1

25 Summary Opens access to huge retail ad budgets Increases the games retention of users Works alongside other monetization tools Makes Freemium work!

26 Changing the Game Serving the worlds on-the-go people me and lets have a chat


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