Posted tagged ‘monetization’

Coverage of Social Gaming Summit 2009

June 24, 2009

sgs2009

I’m catching up on the Social Gaming Summit 2009 on the net, and here’s my bounty of news, twitter tidbits and links to further coverage.

Presentations

Blog coverage

Misc tidbits from #sgs09 backlog

These are misc tidbits from the backlog that stuck out.

  • Social Gaming ARPU’s: top games $1-2/month, good FB $0.30-0.40, good MS $0.60-.070
  • Conversions to paying users for social games 0.5% to 1.5% much lower than traditional MMOG’
  • Greg Tseng/Tagged: The most important social network conversion rate is # of monthly users that become daily users look closely at conversion from monthly active to daily active — and see 50% as a gold standard.
  • Jia Shen/RockYou – 5-7% of daily returning users is good (discounting promos), Shukla – RPGs can see 40%
  • Panel on retention/acq: use FB and provide free virtual goods at a staggered pace to bring user pack to app/game
  • Jia Shen/RockYou: Vanity URLs help with branding and discoverability in Facebook. Finding apps is still hard
  • Simplest thing for retention is to give incentives or alerts at a specific amount of time. Mafia Wars’ alert says New Jobs available
  • jnusser/vindicia: in RMT, friendly fraud 100x real, malicious fraud
  • Women, 34 to 50 in the US is the best audience you can get for monetization
  • Jia Shen/RockYou: FB retention is easier. Nobody uninstalls apps, devs can always try to reingage. MS has signif churn on apps
  • Jia Shen/RockYou: News feed momentum is important metric for distribution that is overlooked now. The reciprocation must happen quickly
  • Jia Shen/RockYou – the new FBook redesign is creating the same engagement growth as FB had during prev peak… but less spammy
  • Super Rewards: Free-mium social game monetization rates ~5% of users playing on any given day.
  • Zong: Fraud chargeback rates often in 5% range. Developers usually very happy with 1-1.5. Paypal: greater than 0.5% a concern
  • Virtual goods business in China is worth $4.5-$5Bn this year. Many games have over 1 million concurrent users
  • Playfish:5 weeks ago, we launched RestaurantCity with no cross promotion & grew to 5M users.
  • MySpace interesting stats: 70MM monthly in the US, 30MM are active app users
  • Playfish sold 20 million christmas trees and ornaments mirroring social behavior in real world
  • Zynga invested $2mil in guild of heroes. Seems kind of high!
  • on FB, there are 100 games with 100,000 players 30 games by 1 million, 3 games with 10,000,000 games
  • Zynga: Building social capital can go beyond your real friends” – Pincus; but 70% of the time you log into Poker, a ‘real’ friend is there
  • Playdom sold $100K worth of virtual pink Volkswagon’s on Sorority Life in 2 days
  • Keys to a successful social game by Mark Pincus at Zynga: 1) real friends, 2) self expression, 3) stored value
  • Zynga (Pincus) games have to give you 1) feeling of playing with friends, 2) social outlet, expression 3) invest in game
  • 3rd secret to Pincus – buy items (i am paraphrasing). Result is that players has social capital. Pincus is master of buzz words
  • 2nd secret: Pincus from Zynga – social games must be playground for your personality. Express yourself (channeling Madonna)
  • 1st secrets:  Pincus:  Games must appeal to your friends
  • A pillar of social game is to invest in game over time and give players a sense of value. This is why virtual goods are valued.
  • Design games as objects of social interaction, you get the benefit as a user of inviting your friends into the game
  • game themes (pets, farms, restaurants) in top 10 apps – starting to mirror the over 35 crowd (similar to casual games)

Read the full backlog via Twitter search

Virtual Goods Summit 2008 mindmaps

December 16, 2008

vgsummit2008Before I started Everyplay I was researching the virtual goods market, and I stumbled upon the most excellent Virtual Goods Summit 2007 organized by Charles Hudson. I was glued to the panel videos (BTW, they are still relevant). The US pioneers of this market were speaking frankly, openly and insightfully. There was lot to be learned: from market data, conversion rates, ARPUs to best practices.

The Virtual Goods Summit 2008 lived up to the great expectations set up by the first event. The sessions ranged from very good to simply outstanding. The Metrics presentation by Daniel James and Andrew Chen was amazingly detailed, candid and stock full of industry leading insights. I loved when Susan Wu put the virtual good economy vendors on the hotseat. David Perry of Acclaim, Gene Hoffman of Vindicia and several other panelists really delivered on their respective panels.

However, watching 7 hours of video is not for the faint of heart and not all of the sessions were covered by bloggers. So I decided to post-humously liveblog live-mindmap the video recordings. These are not the most readable mindmaps I’ve created as I focused on capturing detail, not on distilling the gist of the panels.

What Users Want – Branded and User-Generated Virtual Goods

Making Virtual Economies Work – Lessons from the Leaders

Virtual Goods and Social Networks

Metrics for Virtual Goods Businesses: The Whirled Case Study

Generating Real Revenue from Virtual Goods

Getting Paid – Building a Dominant Payments and Billing Strategy

Do leave a comment if you found the mindmaps useful!