how to make money from online games

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How to Make Money from Online Games ?

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Games Analytics' top 10 useful tips to make money with online games.

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Page 1: How to make money from online games

How to Make Money from Online Games ?

Page 2: How to make money from online games

Analytics Tips For Games

Page 3: How to make money from online games

Focus on the player

Page 4: How to make money from online games

#10. Focus on the player

• Build a player-centric view of game design

• Model your expected user base

• Understand how different players interact with the

game

• Build a player level revenue forecast

Page 5: How to make money from online games

#10. Focus on the player

• Aim to make the players enjoy the gameplay – in the

different ways they play – sociable, completers,

explorers

• Length of gameplay is generally a good indication of

monetisation

• Analytics allows the game to be tailored to individual

types of players

Page 6: How to make money from online games

Co

llect

th

e r

igh

t d

ata

Page 7: How to make money from online games

#9. Collect the right data

• Understand the information you want to analyse

• Focus on player level, not game level information

• Identify significant events in the game

• Build good data integrity

Page 8: How to make money from online games

#9. Collect the right data

Page 9: How to make money from online games

Understand the metrics

Page 10: How to make money from online games

#8. Understand the metrics

• Metrics generally means dashboards

• This provides historic information

• It tells you the health of your game

• Use metrics to identify the areas of the

game that need focus

Page 11: How to make money from online games

#8. Understand the metrics

• Stickiness

• ARPU / ARPPU

• Payment Size

• Time to First & Second Payment

• Virality

• Demographics

• Paying Players by Country

Page 12: How to make money from online games

Segment player

behaviour

Page 13: How to make money from online games

#7. Segment player behaviour

Focusing on the Player

Revenue Potential

Viralit

y P

ote

ntial

31%

0.89%

22%

$1.75

%Volume

%Paying

7Day Ret

CAC

25%

1.30%

26%

$2.21

5%

0.19

9%

$2.3

8

14%

0.97

21%

$1.9

4

Early Enthusiasts

Confident Completers

Social Involver

Sporadic Semi Engaged

Losing Momentum

Need Guidance

Borderline Incompetent

6%

2.34

57%

$4.4

0

12%

0.86

59%

$3.5

7

7%

0.55

36%

$0.75

Page 14: How to make money from online games

Soci

al in

tera

ctio

n

Page 15: How to make money from online games

#6. Social interaction

• Connectedness

• Centrality

• Cohesion

• Reciprocity

Page 16: How to make money from online games

#6. Social interaction

• Identify player ‘bridges’

• Isolated players

• Gaps and holes, leading to group fragmentation

• Reward highly influential players

• Manage cohesion, caused by influential players

• Reconnect isolated players

• Build bridges and connect sub networks

Page 17: How to make money from online games

Identify player value

Page 18: How to make money from online games

#5. Identify player value

• Total lifetime value

• This is a factor of both the revenue directly and

indirectly attributed to the player

• This can be predicted to identify potential value

Page 19: How to make money from online games

#5. Identify player value

• Time to first payment (2-4 weeks drive high LTV)

• Payment patterns (regular, increasing, decreasing)

• Triggers for first spend (why now?)

• Time lag to second spend (be quick)

• Reasons for reactivation (paying players stick around)

• All actionable to raise LTV

• Overlay profiles to refine targets

Page 20: How to make money from online games

Pattern analysis

Page 21: How to make money from online games

#4. Pattern analysis

1st Event 2nd Event 3rd Event

61%

12%

9%

Challenge Start

Gifted item

Visited Home

Invite Neighbour

Bought Item

Use event order to predict and

encourage next action

Intervention here

Page 22: How to make money from online games

#4. Pattern analysis

• Pattern analysis is a powerful technique

• Using it allows behaviours to be tracked and

identified

• This can be used to react to next best option

• This can also be used to identify actions that precede

abandonment

Page 23: How to make money from online games

Predictive Modelling

Page 24: How to make money from online games

#3. Predictive Modelling

• Ability to predict player behaviour

• Identify players likely to undertake an action if

encouraged

• Provide the means to deliver a marketing

intervention that is:

– Timely

– Personal

– Appropriate

Page 25: How to make money from online games

Act

ion

able

re

sult

s

Page 26: How to make money from online games

#2. Actionable results

• The key to Analytics is to provide the tools to

improve the game

• This can be:

– Improve Gameplay

– Increase Revenue

– Reduce Abandonment

– Increase Retention

– Reward Loyalty

Page 27: How to make money from online games

#2. Actionable results

• Analytics provides the means to identify these traits

• To group players into manageable segments

• To predict their future behaviour

• To intervene to change behaviours and move the

graph

Page 28: How to make money from online games

Analytics is a tool

Page 29: How to make money from online games

#1. Analytics is a tool

• Analytics is a tool

• Like a good 3D engine, used well it can improve a

game

• But turn the findings into actions

• And measure the results – “TEST & LEARN”

• You can raise your game revenues by more than 30%!

Page 30: How to make money from online games

Copyright GamesAnalytics © 2011

UK & Europe Chris Wright

CEO

[email protected]

+44 7971 952 943

Do you need us to maximize your revenue from your MMO, casual, social, mobile games ?

www.gamesanalytics.com

North America Alan Miller

Head of Operations

[email protected]

+1 408 718 4145

France Nathalie Lamri

Head of Operations

[email protected] +33 (0)6 59 56 05 62