putting the “life-time” back into ltv | henning kosmack

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Page 1: Putting The “Life-Time” Back Into LTV | Henning Kosmack

Putting “life-time” back into LTV

Page 2: Putting The “Life-Time” Back Into LTV | Henning Kosmack

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Profitable and growing gaming studio from Munich, Germany

We develop evergreen F2P game titles

Our highly synergistic code-base allows us to bring up games faster and operate them very cost-efficiently

We built two successful game franchises with repeat hits

A focus on analytics permeates all company functions

1

23

45

STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH

heroes & entertainment

Page 3: Putting The “Life-Time” Back Into LTV | Henning Kosmack

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GamesWe are a makers of evergreen franchises

Trails Franchise Suburbia Franchise

Trails franchise integrates progression game mechanics with the most popular games

titles

Unannounced title

Suburbia franchise integrates life simulation mechanics with episodic TV-style story lines

Unannounced title

Unannounced title

STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH

Page 4: Putting The “Life-Time” Back Into LTV | Henning Kosmack

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EvergreenGreat boots, but with a huge difference

STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH

Page 5: Putting The “Life-Time” Back Into LTV | Henning Kosmack

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EvergreenGreat cars, but with a huge difference

STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH

Page 6: Putting The “Life-Time” Back Into LTV | Henning Kosmack

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Shark Finning

Marketing Push at Launch

People and Marketing is

shifted to new games

» Game Team starts game from scratch

» When ready, marketing releases fire power

» After 6-24 months, team is shifted to a new game

» Marketing is reduced

» New game is started from scratch

STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH

Page 7: Putting The “Life-Time” Back Into LTV | Henning Kosmack

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The other pathThe overlooked component to profitability

V: Some influence via CRM, good balancing and new content

eCPI: Some influence via virality, smart campaigns, ASO, getting featured

LT: This you can influence a lot and it is (totally) up to you

LTV > eCPI

STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH

Page 8: Putting The “Life-Time” Back Into LTV | Henning Kosmack

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Revenue Mahjong Trails

STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH

Page 9: Putting The “Life-Time” Back Into LTV | Henning Kosmack

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Revenue per UserMahjong Trails

STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH

Page 10: Putting The “Life-Time” Back Into LTV | Henning Kosmack

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DAU/MAUMahjong Trails

Dec-12Mar-

13Jul-

13Oct-

13Jan

-14Ap

r-14Jul-

14Oct-

14Jan

-15Ap

r-15Jul-

15Oct-

15Jan

-160%

5%

10%

15%

20%

25%

30%

35%

40%

STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH

Page 11: Putting The “Life-Time” Back Into LTV | Henning Kosmack

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» Extending the LT is something that sometimes can be done post-launch

» Ideally, however, you plan for it beforehand

» It has implications on these factors:› Team› Genre / Game Design› Demographics / Audience › Technology› Platform

STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH

Chosing new TitlesThe basics

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» At MegaZebra, the team developing the game is the same that works on it post-launch

» During the course of the years, there will be some changes in the team

» However, people will be working on it for longer than in other setups

» Ensure enough personal progression to account for this

» Never lose focus and commitment

STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH

TeamSetting up teams for long-term projects

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» Don’t go for short-term trends

» Pick genres with ever-green potential

» Watch out for content war» Create endless game

design loops» Develop prototypes for the

end game as well

STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH

The GameGame Play and Genre Decisions

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» Avoid audiences that change rapidly

» Kids / teenagers force you to constantly acquire new users as they get older

» Go mass-market» Go for broad appeal to

ensure a big enough target audience

STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH

The PlayersDemographics and Audience

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» Pick technologies that don’t change too rapidly or are currently declining

» Use technology that will be mass-market for years to come

» Avoid declining platforms like browser-based games

» Avoid niche technologies and brand new tech that appeals only to early adopters

» Avoid unproven technologies / platforms

» Build tools to efficiently add content and features

STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH

DevelopmentWhat Technology and Platform to us

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» Extending the life-time might be the biggest lever to reach profitability

» Chose carefully before you start development

» Build modern classics that define a category

» Become profitable

STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH

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Thank You!

STRICTLY CONFIDENTIAL - ©2016 MegaZebra GmbH