www.infobip.com

REACH.ENGAGE.MONETIZE.

Paolo Rizzardini – VP Mobile Payments

Gamelab - Barcelona 26/06/2014

Presented by:

AGENDA

•Once upon a time…

•Understanding market trends

•Different possibilities

•Different challenges

•Five steps to success

•Your takeaway

ONCE UPON A TIME...

What would happen if I tried embarking on that adventure today?

When I was a student, I fell in love with this game and – together with a friend – we decided to create a better version of it and enter the gaming industry. It was around early 2000s… with not nearly as many possibilities as we have today for content creation, distribution and monetization.

UNDERSTANDING MARKET TRENDS

NewZoo – 2014 Global Games Market Report & Service (June 2014)

UNDERSTANDING MARKET TRENDS

NewZoo – 2014 Global Games Market Report & Service (June 2014)

Some additional (notable) facts: Thailand new in the iPad chart at #18, Hong Kong climbed 4 places to #12 in the iPhone chart, Indonesia new entry at #20 in the Play store chart.

BASED ON THE MARKET TRENDS…

… today I would:

Give priority to mobile devices (in terms of content creation)

Be selective and concentrate on certain (promising) markets, I would surely start from Asia-Pacific

DIFFERENT POSSIBILITIES…

+ Creation. Content creation has never been so rich in possibilities (Unity, Marmelade, GameSalad, Construct2, GameMaker, Stencyl…)

+ Accessibility. The content is always with us. Among all the devices we own, our mobile ones (feature-phones, smartphone and tablets) are increasingly used for entertainment

+ Distribution. Many different channels to reach end users (social networks, app stores, direct marketing, preloading…)

+ Monetisation. Most of the distribution channels offer a billing system (mostly credit card related) and/or advertisement option.

…DIFFERENT CHALLENGES

- Creation. Quality content production requires huge investments

- Visibility. It’s easier to access the channels but it’s very difficult to stand out in the crowd, especially with a limited or no budget

- Market knowledge. The same content cannot always be pushed to users in different markets, same goes for marketing activities

- Efficient monetisation. You have to make sure that all your users have the option to smoothly conduct the purchase

FIVE STEPS TO SUCCESS

And now that you created your amazing (mobile) game…

1. Reach your potential user

2. Provide a smooth start

3. Acquire new users through happy users

4. Engage them more and more

5. Monetise at the right moment and in the right way

1 - REACH YOUR POTENTIAL USER

• Standard app stores are a must but they are not the only option

• Do not forget the Operators’ app store and independent app stores• Explore the device manufacturer’s preloaded content• Spread your message. Social networks, PR, affiliates’ networks

(balance the channels and the budget, try and monitor the conversion)

• And don’t forget about the efficient and cost-effective SMS - the only communications channel with a 99% read rate*

*mobileSQUARED Research Agency - Conversational Advertising

TWO HINTS TO REACH MORE USERS…

Explore the Japanese market.

If approached in the right way it can be a gold mine.

Put the content directly in the hands of your users.

Select the right device manufacturer appear in millions of devices instantly.

2 - PROVIDE A SMOOTH START

• Shorten & simplify the registration process. Go straight to the gaming experience without asking too many questions

• Simplify identity verification. If you need them to do this opt for the most efficient option

• Show the user the core of your service before asking for something in exchange (that’s one of the reasons why users tend not to come back after the initial opening)

• Use deeplinks to drive the user to a specific location inside your app based on where the user is coming from (of course, this has its costs. Ask Deeplinkme and Sparq)

A HINT FOR A SMOOTH START…

Simplify the login process with Two-Factor Authentication.

A one-time PIN is sent via SMS and it links the user’s phone number to the account.

Leading social networks and app companies such as Twitter, Google, Skype and WhatsApp are already using 2FA

3 - ACQUIRE NEW USERS THROUGH HAPPY USERS

• Do not focus only on CPI (Cost Per Install). In 2013, in Japan the average CPI was $1.86. In USA $2.17, in Germany $2.07.*

• There’s no better referral than a happy user’s referral!• Social invitations work. They have the highest conversion rate and,

if done properly, a low cost.

• Reward your existing user for inviting new users (…but do it cleverly to avoid unsolicited messages)

* Chartboost - CPI heat map Q4 2013 and AppAnnie - How the most successful App monetize globally (February 2014)

A HINT TO ACQUIRE NEW USERS…

Try a social invite with SMS.

Do you remember the read rate value? A user’s address book is filled with high quality contacts that likely share similar interests so you can reach your ideal segment!

4 - ENGAGE THEM MORE AND MORE

• A person needs interaction from the initial download and beyond. Push notifications are the best way to achieve this goal.

• Be selective. Use push notifications in a targeted manner. Avoid generic notifications, they don’t work!

• Be on time and reliable. Provide the information when it’s valuable to the user.

• Guide your users. The more sophisticated the app, the more appreciated your help will be.

• Show you care. Inform a person about something a friend did with the same app.

TWO HINTS FOR ENGAGEMENT…

Media push (pics, video, rich text) have a higher impact.

In case of text notifications, include SMS fallback in case the user is out of data coverage.

…and did you know that returning users influence app stores’ ranking algorithm the same way as new users?

5 – MONETIZE AT THE RIGHT MOMENT AND IN THE RIGHT WAY

• Do not rely solely on what the standard channel provides• Remember that mobile users are a cut above credit card users in

terms of engagement, in some (interesting!) markets comparing the two is not even worth it

• Combine the options and don’t forget about market specific solutions like scratch cards or virtual currencies

• The most important thing is a smooth and unified payment flow where you minimize the number of required user actions without sacrificing clarity and security

A HINT FOR MONETIZATION…

Implement One-Tap payments with Carrier billing.

Nothing converts better.

No other payment channel has such a huge penetration rate (especially in emerging markets, typically unbanked).

In January of 2012, in-app purchases only generated 46 percent of revenue in the United States on iOS. In November 2013 an all-time high of 81 percent was reached*.

*AppAnnie – How the most successful App monetize globally (February 2014)

YOUR TAKEAWAY

• Make sure that a user can find your game

• Try different channels for user acquisition and remember that happy users are the best

• User happiness comes with engagement. Use push notifications in the right way and make them happy before trying to make a profit

• Monetize cleverly and do not put all your eggs in one basket

• Find a good, trustworthy partner and concentrate on your core business

www.infobip.com

THANK YOU FOR YOUR ATTENTION!

Email: paolo.rizzardini@Infobip.comSkype: paolo.rizzardini

Paolo Rizzardini – VP Mobile Payments

www.infobip.com – www.infobip.es