2. Goals
⢠Overview of Free-To-Play Monetization Best Practices
⢠Viewed from a design perspective
⢠Long on case studies; light on numbers
⢠Going broad on a variety of topics
⢠Purchase motivations
⢠Categories of items
⢠Advanced selling techniques
⢠Monetization optimization
3. Working Group
⢠Dave Rohrl, Chair â Owner, Mobile Game Doctor
⢠David Chiu â Owner, DC Game Consulting
⢠William Grosso â CEO, Scientific Revenue
⢠Bruce Harlick â Sr. Game Designer, Hangar 13
⢠Ethan Levy â Executive Producer, N3TWORK
⢠Bryan Mashinter â Director of Product, Wooga
4. Ground Rules
⢠Ask questions any time
⢠Will do my best to answer
⢠Slides available afterward
11. Advertising
⢠Pluses
⢠Easy to insert and update
⢠Wide variety of units
⢠Easy to design for
⢠Minuses
⢠Hidden complexity
⢠Lower total revenue
12. Advertising Types
⢠Display
⢠Traditional banner ads
⢠Unobtrusive
⢠Low rate of interaction
⢠Very low CPM
⢠Video
⢠Current standard in mobile ads
⢠Can proxy for IAP
⢠Interfere with experience
⢠Good CPMs
⢠Good fill rate
13. Advertising Types
⢠Interactive
⢠Emergent
⢠Rough representation of gameplay
⢠Hard on UX
⢠Amazing CPMs
⢠Lower fill rate, gaining momentum
18. Alt-Money â Skill gaming
⢠Pluses
⢠Easy model
⢠High ARPU
⢠Minuses
⢠Smaller market
⢠Limited open platforms
⢠Good for ad-supported games
⢠See me for best practices ď
24. What About âPay To Winâ?
⢠Selling competitive advantage that cannot be gained without
paying
⢠Is this ever ok?
⢠PvE vs PvP
⢠Skill vs. engagement
⢠Consider matchmaking progress
⢠Be cautious of in-match
33. Top monetization motivators:
⢠Time & convenience
⢠Competitive edge
⢠Power & validation
⢠Group identity
⢠Collection/completion
⢠Self expression/vanity
⢠Joy of spending
40. One-Offs
⢠Pluses
⢠Clear value proposition
⢠No purchase fatigue
⢠Minuses
⢠No recurring revenue
⢠Fresh content can be expensive
41. Collectibles & Gacha
⢠Large array of objects with variable rarity
⢠Supported by explicit collection UI
⢠Weighted random drops, often bundled
44. Collectibles and Gacha
⢠Pluses
⢠Highly repeatable
⢠Can drive high spend
⢠Minuses
⢠Can feel discouraging
⢠Need to stay ahead of content train
45. Warning: Gacha Legal Issues
⢠Some view as slot machines for kids
⢠Increasing regulatory environment
⢠Disclosure requirements:
⢠Started in China
⢠Now part of iOS review guidelines
50. Events
⢠Time-limited period with exclusive/additional rewards
⢠Leveraging classic selling techniques
⢠Urgency
⢠Limited supply
⢠Herding
⢠Influence: The Power of Persuasion by Robert Cialdini
⢠Beware of overuse/fatigue
57. ⢠Encourage player to make first purchase with a very attractive offer
Juggernaut ChampionsAdCap and Best Fiends Forever
Bundles â First-Time Buyers
61. Shop UI
⪠Have all items in each section
viewable without scrolling
⪠Easier for comparing packages
⪠Clearly call out bonuses for bigger
packages
⪠Call out Most Popular and Best
Deal packages
63. Shop Tutorial
⢠Seed players with some hard currency at the beginning
⢠Lead them to the shop
⢠Guide them thru a âfreeâ introductory purchase
⢠Player gets a taste of the benefits of buying (like free samples at
Costco!)
64. 1) Hard currency unlocked 2) Show players where they can spend them
Almost a Hero
65. 3) Introduce to shop with free introductory purchase
Almost a Hero
66. A/B Test EVERYTHING!
⪠During soft launch, conduct A/B tests
to determine:
⪠Shop UI
⪠Optimal pricing tiers
⪠First Time Buyer Packages and
Time Limited/ Event Bundles
⪠When to introduce
⪠Placement
⪠Price
⪠Whatâs in the bundle
⪠Expiration
Dungeon Boss
68. Closing Thoughts
⢠Have a rich monetization technique blend
⢠Understand your playersâ motivations and needs
⢠Deliver real value on every transaction to maintain user trust
⢠Pay attention to your merchandising
⢠Tactical optimization matters
⢠Test everything
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And those evil, money grubbing suits are ruining all of gaming
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In order to succeed, you must embrace and internalize the thinking behind successful F2P businesses
You must be designer and developer and pm and marketer, in order to succeed
It is this integration of business function that drives frustration and angst with F2P
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ASK MANY AD NETWORKS WHAT THEIR CPM IS. VERIFY NUMBERS THEY QUOTE.
When you sell advertising space, you get paid for impressions or views.
When you buy advertising (later), you buy installs (or other actions)
Declining? Yes. Lots and lots and lots of inventory out there. Especially when you start, your display inventory is of unknown value.
Games supported by ads tend to rely on âorganicâ traffic
By which we mean: SEO, featuring, word of mouth, âŚ
By which we donât mean: users acquired via advertising
The vast majority of games are ad-supported
Many of these games make money, but they donât make a lot of money
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JUAN: 2 case studies on convenience, including time-based pricing (Price-O-Tronic?)
[image] time is money pack from Lords Mobile
A major thing that F2P games sell is convenience and time savings. Often times, players are buying the amount of time it takes to become competitive.
Think about your engaged players in three groups. Time rich, money poor players are those who love the game, are happy to play 8+ hours a day, and grind away to grow their in-game power and score high during events.
Time poor, money rich players are those who want to compete, but donât have time to match those blessed souls who can spend 8 hours a day playing. These players spend money to catch up.
Then you have time rich, money rich players. Wouldnât it be nice to be one of them? These players are the ones who can buy their way into power and then spend tons of time playing. These are usually the most competitive players in your game.
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JUAN: Deep dive on advantages of two Marvel champs
[image] the 5-star hero pack is advertised
Many players have a thirst for competition, and a desire to get that validation they seek by proving that they are better than others
They want a game to validate that they are the best at something, in their league, social group, country or even the world
Top Grossing F2P games sell competitive edge that allow them to pursue this validation
The common pattern is to sell something that gives you the chance for the most powerful cards in the game (often for a limited time)
Pair that with an event where those characters give you a competitive edge
The event is limited time and grants the top rewards in the game (as well as the validation of winning)
In most games, you must be skilled, time-rich and money-rich in order to be the best in the world. Buying the cards alone wonât win you the competition. It will give you a chance to if you put in more time and are more skilled than other players who also own the competitive edge.
Hereâs an example from Marvel CoC. In this image from the home screen, you can see that they are advertising New 5-Star Heroes
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JUAN: Need a more concrete example/case study
[left] announcement of the first-ever Global Control Point event in Mobile Strike
[right] celebrating AnyTwoWillDo the top player in Mobile Strike following their first-ever global control point event
Videogames in general fill a deep rooted need for external validation
All the rich audiovisual feedback and structure of games is there to validate the player, provide them with positive reinforcement for their actions that is rare in day-to-day life
In F2P games, especially those with competitive edges, many times that validation comes from accumulating power and overcoming a challenge or another player
Whether directly (like in GoW speed ups) or obfuscated (gacha in Yu-Gi-Oh duel links) F2P games sell the power that leads to validation
For instance, in this global control point event, the guild Original Killer Crew must have spent gobs of money for the right to be crowned the best in the world, and most likely their player AnyTwoWillDo spent the most in order for this validation of being the best.
Getting their name in a pop up may look trivial, but to the players who earn that validation it must feel sweeter than finally defeating that crazy-hard boss in Dark Souls III
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[Left] guild chat in Legendary
[right] the guild War Beasts is celebrated for winning the first World Conqueror event
Guilds/groups are one of the strongest forces in F2P games
We (the devs) give players a hobby, and then provide them with a pier group with which to socialize about that hobby
[for instance] in Legendary, players in top guilds frequently use line to call eachother daily. These players were complete strangers before the game.
Players self select into groups, and their identity within that group can motivate them to spend
Eg I am the MVP player in my group
We are the best guild in the world
We are a competitive guild that stays in the top 100 but doesnât take itself too seriously
As a playerâs guild identity becomes more and more important to them, their behavior will change to reinforce that identity
Another common tactic to de-stigmatize spending is to give everyone in the guild something when a player spends money. That way, a player feels like they are contributing not only to themselves, but also enriching their guild, when they spend money on IAP.
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JUAN: Find a better example than Fire Emblem
[left] summon portal marketing in Fire Emblem Heroes
[middle] FEH advertises the drop rates of heroes in their packs. 5* focus (3%) are the advertised heroes in this pack
[right] article from launch of FEH, player spends $1k in packs in pursuit of a specific character
A common tactic of F2P games is to feature a wide array of heroes and release more over time, selling them through gacha packs
Some players enjoy the thrill of collection for collectionâs sake (or in combination with other motivations like power & competition). Or another way to think about it is that they are pursuing that competitive edge we talked about, but the hunt to complete the collection adds another layer of joy to the purchase.
On the right, an article from the launch of Fire Emblem Heroes about a redditor upset they didnât get a specific, beloved character after opening $1k worth of packs. In our experience, top paying players will spend more than that in pursuit of a specific character given the right circumstances and motivation
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JUAN: Add one more example
[image] Skins in honor of kings
Many players enjoy the personalization and vanity elements, especially in those games where other players can see the thing you spent money on to personalize
Famous in League of Legends, Overwatch, Honor of Kings and many others
My word of caution is that cosmetic vanity items are generally low arpdau items. They do not make a large amount of revenue per player. Therefore if you want to run your business primarily on skins, you must have a massive audience (like Honor Of Kings, one of the worldâs biggest games at the moment)
If you donât have a massive audience(or conversely, low operations costs) you are likely to go out of business if you try and sell vanity items alone because âyou hate all that free-to-play crapâ
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JUAN: Replace with HS pack opening video + 1 more game (Clash Royale)?
[image] card pack opening in hearthstone
Thereâs a reason they call it retail therapy. For some of your players, spending money feels good. You donât have to like it, but those are your customers.
This feeling is enhanced in many instances by attaching pleasing audio/visual feedback to those moments of spending, such as elaborate card pack opening and reveal sequences
Opening a collectible card pack (also known as gacha) inherently contains a pleasing tension and release of getting random rewards and occasionally getting something amazing
For those unfamiliar with the word, Gacha just refers to opening a pack or box that contains variable rewards of different rarities. Depending on where you grew up, this may be most familiar to you as a card pack or as a capsule machine
Gacha, card pack, loot crates are all interchangable terms
Just think of it as a box that gives you some number of variable rewards
Thereâs a reason Gacha (card pack/loot crate) games are so well represented in the top grossing charts. The act of spending can be rewarding, especially when you get a rare drop
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