launching a free-to-play game: goals, strategies and pitfalls - eric seufert, rovio

Launching a free-to-play game: goals, strategies, and pitfalls

Eric Benjamin SeufertJune 9, 2015

Israeli Mobile Summit

Why is it difficult to launch a Free-to-Play game in 2015?


• Advertising costs are high


• Succeeding on the App Store is supposed to be hard

App Store Discovery is Not Broken


How do they make money?

Selling hardware Selling ads

What kind of apps help them make money?

Apps that showcase their hardware

Apps that collect lots of data




What kind of apps help them make money?

Apps that showcase their hardware

Apps that collect lots of data

What’s the best way for apps to do that?

Build large, self-perpetuating user bases

Build large, self-perpetuating user bases





January 2015:

1.43MM apps

1.21MM apps


How many apps can fit here?

Why is it hard to launch a Free-to-Play game in 2015?

• Succeeding on the App Store is supposed to be hard

• You’re using advertising to compete with established networks

Top Downloaded, iPhone / USJune 1, 2015

Top Downloaded, iPhone / USJune 1, 2015

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X

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Existing, pre-mobile network; beneficiary of the “Great Unbundling”

Temporary viral / paid blip

Truly Viral phenomenon

(6)

(2)

(2)

Advertising vs. Networks

• Advertising costs are going up…


• Advertising costs are going up……because the largest developers are monetizing their networks…


• Advertising costs are going up……because the largest developers are monetizing their networks……and retaining them within their portfolio via cross-promotion…


• Advertising costs are going up……because the largest developers are monetizing their networks……and retaining them within their portfolio via cross-promotion…• With a single title, you’re not competing with

large developers on the basis of LTV > CPI (game quality), you’re competing on the basis of network size. You lose.

Product Marketing for F2P Games


Old Greenlight Questions:


Old Greenlight Questions:• “What’s a good LTV for this game?”


Old Greenlight Questions:• “What’s a good LTV for this game?”• “What kind of CPIs will I pay for this game?”


Old Greenlight Questions:• “What’s a good LTV for this game?”• “What kind of CPIs will I pay for this game?”• “What’s a good Day 1 / 7 / 30 retention for

this game?”


Old Greenlight Questions:• “What’s a good LTV for this game?”• “What kind of CPIs will I pay for this game?”• “What’s a good Day 1 / 7 / 30 retention for

this game?”• “What’s a good ARPDAU for this game?”


• F2P market stratified into a multi-segment model based on marketing tactics

Unpaid Growth Paid Growth

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F2P Product Marketing Strategy Segments


No

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Which games have been successful?

?


No

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“Gimmick” Games

Fast-follow Clones

IP Co-brands

Second-screen Extension

Full F2P Economy Games

Lightweight graphics-driven experiments

Which games have been successful?

?



• “LTV > CPI” questions are only relevant if…



• “LTV > CPI” questions are only relevant if…– Your game can only succeed via paid growth (even

if there’s a virality component that reduces acquisition costs!)



• “LTV > CPI” questions are only relevant if…– Your game can only succeed via paid growth (even

if there’s a virality component that reduces acquisition costs!)

– You have money!

Two Mistakes

Two Mistakes

• Don’t be fooled by VC-funded start-ups with games in the Top Right quadrant

Two Mistakes

• Don’t be fooled by VC-funded start-ups with games in the Top Right quadrant– They may have actually lost money!

Two Mistakes

• Don’t be fooled by VC-funded start-ups with game in the Top Right quadrant– They may have actually lost money!

• Don’t think that “viral games” don’t spend money on UA

Two Mistakes

• Don’t be fooled by VC-funded start-ups with game in the Top Right quadrant– They may have actually lost money!

• Don’t think that “viral games” don’t spend money on UA– Often UA is at the heart of their growth models!


Greenlight Questions for the Other Strategies:


Greenlight Questions for the Other Strategies:• “Does this game have a large potential Total

Addressable Market?”



Addressable Market?”• “Can I partner with someone to reach that

market? Who?”




market? Who?”• “Is this game unique enough to produce viral

growth?”




market? Who?”• “Is this game unique enough to produce viral

growth?”• “Can the essence of the game be

communicated quickly and clearly?”

Thanks!

[email protected]@eric_seufert

launching a free-to-play game: goals, strategies and pitfalls - eric seufert, rovio

Technology

networks advertising

hardware apps

established networks

kind of apps

product marketing

f2p games old

hardware selling ads

basis of ltv cpi game