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Common Business Terms And Publisher/Developer Expectations -- Daniel Wiggins, Director, Business Development at Kabam (The White Nights: Mobile Games Conference 2014 http://www.wnconf.com).
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PUBLISHING 101
June 2014
Agenda
1. Quick Intro2. Publishing 101
INTRODUCTION
Overview
Industry Leader
• Industry-leading engagement – 75M players• 3+ hours gaming sessions• Kingdoms of Camelot – Top grossing iOS app in 2012• Fast & Furious 6: The Game – Editor’s Choice in 100
countries• Two games in top 10 and 4 Star+ ratings for iOS• 13 languages and played in 100+ countries
$125M Raised
• $360MM revenue run rate in 2013• 4+ years in gaming• $75MM+ cash in bank• Profitable
KeyStatistics
Launch
Collect Data
Analyze
Optimize &
Repeat
Identifying areas to improve through consumer insights, UA, in game analytics
Constantly iterate and improve
A linear improvement X linear improvement = Nonlinear result
Kabam PhilosophyIterate and Scale
Last Twelve Months Revenue in Western Markets
Source: App Annie
Kingdoms of Camelot$250M franchise between web and mobile Top Grossing App for 2012 on iOSLocalized in EFIGS + Br. Portuguese, Turkish, Russian, Swedish, Danish
Fast & Furious 6: The GameNamed Editor’s Choice in 100 countriesiOS top grossing game application in 66 countries Localized in EFIGS + Chinese, Japanese, Korean, Br. Portuguese, Russian
The Hobbit: Kingdoms of Middle-earthTolkien themed strategy titleTop 5 iOS grossing game appin 51 countriesLocalized in EFIGS + Br. Portuguese
King
Supercell
Electronic Arts
Kabam
GREE
Gameloft
DeNA
Machine Zone
Caesars Entertainment
Storm8
Zynga
Big Fish Games
Glu
Social Quantum
Nordeus
Iterate and Scale
Delivers Consistent Performance
• Distribution Rights: Geographic/Language & Platform
• Economic: Upfront (License Fee/Minimum Guarantee/Royalty Advance) + Variable Revenue Share (Flat, Tiered, No/Partial/Full Marketing Recoup)
• Marketing Commitment: # of Installs, Fixed Dollar, % of Trailing Rev, KPI Dependent
• Other: IP Ownership, Sequel/Derivate Rights, Term & Termination
Publishing Terms
Who is going to be doing what?
Development Operations Marketing
Pre Submission
• Game development• Handset compatibility• Source code modification• SDK implementation• Localization• Culturalization
• Server provisioning and/or hosting
• BI intelligence• Live op tools (admin)
• KPI setting and marketing• Promotion plan
development• Marketing creative• PR/Event• Platform BD
• Content –ongoing• Bug fixes (major)• Server development• Post loc QA and testing
• Event operation• Server operation &
monitoring• Customer support• Game progression
optimization
• Ongoing user acquisition• PR/Event• Platform BD
Development Operations Marketing
Post Submission
Who is going to be doing what?
• Game : with commitment to continuously update. Reasonable feature cadence and bug fixes.
• Implement various SDK for analytics.
• Implement localization.
• Implement other requested features – from product advice/best practices to platform specific requirements.
• Live Operations. What is the content plan? And what tools are there to run promotions and events?
Publisher Expectations for Developer
• Funded user acquisition
• Assist with Live Ops
• Best practices (tech to product management)
• Platform BD
• Localization & Culturization
• F2P game design and monetization consulting
How Developers Help Publishers
No simple prescription for success– rather, a collection of best practices, a commitment to continuous improvement,and data driven decisions
And then lots of hard work!
User acquisition• Cohort, Yield-based Bidding/Buying • A/B test: Creative, Targeting, Source
Retention• A/B test: Content, Flow/Timing• A/B test: Game Mechanics
Monetization• A/B test: Item pricing, Flow/Timing, Track Sources/Sinks• Loop back to Targeting
Example Areas
Beta WW Launch Sustained
Inst
all p
/day
Monitor game stability, conversion funnel and CPIEvaluate CTR, CPC, CTD and other funnel metricsFocus on data validation for retention, monetization
Ramp spend across multiple networks, affiliates and proprietary distribution
Adjust spend to balance growth and performance
User Acquisition Plan
Sustained spend to support DAU and Revenue
Optimize spend for ROI
Paid User Acquisition Strategy
• What should you look for in a publishing partner
• Understands your game
• Distribution (either cross promo or funded marketing)
• Fair
• What are publishers looking for
• Games with strong appeal to that publisher’s audience
• Ability to retain players for a long period of time
• Monetization that supports spending marketing dollars
Paid User Acquisition Strategy
PUBLISHING 101
June 2014