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

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.

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

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

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 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 Facebook Facebook games are losing users ARPUs on are lower than iOS User acquisition costs are high Developers are shifting to Mobile

Big Fish Free-to-play Casual Today iOS 1.5M New Installs per Week 3 very successful F2P Games: Android Casino is has shown strong results. 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 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! Mobile PC / Mac

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

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

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

Found: A Hidden Object Adventure Average Revenue per Daily Active User Hit #1 Free game on iOS at launch. Strong and consistent ARPDAU.

GameProductService ContentStaticDynamic Reasons to PlayRelaxing Collecting Customizing Competing Collaborating Play with others?Single PlayerSocial Average Weekly Play10 hours20+ hours Average Session Length1-2 hours10 mins Premium vs F2P Casual Games Premium Casual Premium Casual Free-to-Play Casual (F2P) Free-to-Play Casual (F2P)

TechnologyClient Social Features Game Configuration Content Download In Game Promotions Premium Casual Premium Casual Free-to-Play Casual (F2P) Free-to-Play Casual (F2P) Big Fish Provides this for Partners + Server Premium vs F2P Technology F2P requires daily iteration. Waiting 3 – 4 weeks for approved client updates is too slow.

Risk of no RevenueLowVery High Peak Revenue MonthMonth 1Month 6 + % of Paying Users20% +< 5% Revenue per Paying User$5 - $20$1 - $5,000+ Premium vs F2P – Revenue Premium Casual Premium Casual Free-to-Play Casual (F2P) Free-to-Play Casual (F2P)

Team Before Launch Team After Successful Launch010 + Team Roles Production Engineering Design, Art Quality Assurance Customer Support Localization Production Engineering Design, Art Quality Assurance Customer Support Localization Launch MarketingCustomer Acquisition Game Data Analyst Consumer Insights In Game Marketing Premium vs F2P – Your Team Premium Casual Premium Casual Free-to-Play Casual (F2P) Free-to-Play Casual (F2P) Big Fish Provides this for Partners

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

F2P Retention 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 Tracking a user’s in game activity every day since first install.

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

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

Fairway Solitaire Retention Daily courses dramatically improved retention and monetization

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 PLAY WAITPLAY WISH I WAS PLAYING PLAY

F2P - Monetization Example Game 1 DAU100,000 ARPDAU$0.05 Daily Revenue$5,000 DAU 100 Example Game 2 DAU10,000 ARPDAU$0.50 Daily Revenue$5,000 With ARPDAUs improving, a hit F2P games can succeed with fewer users 47% of the Top 1000 F2P games have > $0.25 ARPDAU Source: Flurry

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

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

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 Big Fish Confidential Apple’s iOS App Store

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

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

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

THANK YOU!