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2 Years on the iPhone platform:

                         Lessons learned building mobile social apps.




Friday, July 2, 2010
ngmoco:) Company History



                                          Dec 08                                June 09                                Nov 09




                       June 08                              March 09                                Sept 09
                                                                                                                                     Feb 10




                                 Oct 08                                May 09                                 Oct 09                     March 10




                                                   Feb 09                                 July 09                           Dec 09




Friday, July 2, 2010
Godfinger




Friday, July 2, 2010
Godfinger




Friday, July 2, 2010
Along the way...

                       • Our apps weren’t super social
                       • We charged the wrong price points
                       • We struggled to scale in high growth modes



Friday, July 2, 2010
What Have We Learned?




Friday, July 2, 2010
Free apps deliver more revenue
                               than paid apps.



Friday, July 2, 2010
Daily Active Users (DAUs) are
                       your fuel for success, enabling
                         you to monetize use not
                                 downloads.


Friday, July 2, 2010
The more you grow DAUs, the
                       more ways you have to monetize
                          every single one of them.



Friday, July 2, 2010
Paid vs. Free to Play:
                                                                 A story of 2 apps


                                      2,000,000



                                      1,500,000



                                      1,000,000



                                       500,000



                                             0
                                                  Day 1                   Day 30                       Day 60

                                                          Topple (paid)            MazeFinger (free)



                       10x the volume of free downloads gives you 10x the number of customer
                                            relationships to grow around.
Friday, July 2, 2010
Eliminate and Touch Pets Dogs: What We Learned




                                   Virtual Goods Work!
Friday, July 2, 2010
Layering Revenue Streams




Friday, July 2, 2010
$’s / DAU by Plus+ Layer




                                                      95-98% give you indirect value




                                                      2-5% pay you directly



                            Conversion to Paid
                            Performance Advertising
                            Brand Advertising
                            Virtual Goods

Friday, July 2, 2010
What does free to play success look like?
                          Free to Play creates a much better monetization model with layered, diverse revenue streams and far greater dollars per
                          DAU.



                               Daily Revenue Curve: Top 25 Paid App                                      Daily Revenue Curve: Free to Play App




                       Day 1                   Day 35                  Day 70                   Day 1                     Day 35                    Day 70

                                             Paid App Rev                                                              Conversion to Paid
                                                                                                                       CPI Advertising
                                                                                                                       Brand Advertising
                                                                                                                       Virtual Goods



Friday, July 2, 2010
Chart position is critical- how do you get there?




Friday, July 2, 2010
Current Landscape


                       • Good news: 3 million iPads sold in 80 days
                       • Bad news: 11k iPad apps now live, ~2k new apps
                         added each week.


                       • 225k iPhone apps now available
                       • Discovery in the app store remains a big challenge

Friday, July 2, 2010
Playing with friends is better than playing alone


                       Sessions / Day   20



                                        15



                                        10



                                         5



                                         0
                                             0   2   4   6   8   10 12 14 16 18 20 22 24 26 28 30 32 34
                                                                                                 # of Friends


Friday, July 2, 2010
Virtual Goods and Free to Play Apps:
                                             Key Success Criteria


                       • Success is about balancing and maximizing three often competing components
                         deep within game design:



                                       Reach                                     Retention
                                   new user acquisition                        increasing repeat visits,
                                                                                   reducing churn




                                                          Revenue
                                                          dollars per DAU


Friday, July 2, 2010
Plus+ Features
                                                    Vibrant Social Graph     User Reputation
                                                     • Facebook & Twitter        System
                             Social Gaming           Integration                                   Developer Analytics
                                                                            • Point Accrual
                               Features              • iPhone Contact
                                                       Integration          • Leaderboards         • Dashboard for
                        • Push Notifications                                 • Awards                 Developer Analytics
                                                     • Organic Friending
                                     • User                                 • Unified Across Apps   • Real Time
                Virtual Economy                      • Cross Game Offers                             Tuning
                                       to User                                                                       Ads
                                                                                                                       & Offer
                  Management           Challenges                                                                  Management
        • Virtual Goods                                                                                        • Incented Cost Per
        • Virtual Currency                                                                                       Install Offers
          Management                                                                                           • 3rd Party Ad Network
        • Storefronts                                                                                            Integration




Friday, July 2, 2010
Q&A



Friday, July 2, 2010

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J. Oberfest ngmoco @ Social Developers Summit

  • 1. 2 Years on the iPhone platform: Lessons learned building mobile social apps. Friday, July 2, 2010
  • 2. ngmoco:) Company History Dec 08 June 09 Nov 09 June 08 March 09 Sept 09 Feb 10 Oct 08 May 09 Oct 09 March 10 Feb 09 July 09 Dec 09 Friday, July 2, 2010
  • 5. Along the way... • Our apps weren’t super social • We charged the wrong price points • We struggled to scale in high growth modes Friday, July 2, 2010
  • 6. What Have We Learned? Friday, July 2, 2010
  • 7. Free apps deliver more revenue than paid apps. Friday, July 2, 2010
  • 8. Daily Active Users (DAUs) are your fuel for success, enabling you to monetize use not downloads. Friday, July 2, 2010
  • 9. The more you grow DAUs, the more ways you have to monetize every single one of them. Friday, July 2, 2010
  • 10. Paid vs. Free to Play: A story of 2 apps 2,000,000 1,500,000 1,000,000 500,000 0 Day 1 Day 30 Day 60 Topple (paid) MazeFinger (free) 10x the volume of free downloads gives you 10x the number of customer relationships to grow around. Friday, July 2, 2010
  • 11. Eliminate and Touch Pets Dogs: What We Learned Virtual Goods Work! Friday, July 2, 2010
  • 13. $’s / DAU by Plus+ Layer 95-98% give you indirect value 2-5% pay you directly Conversion to Paid Performance Advertising Brand Advertising Virtual Goods Friday, July 2, 2010
  • 14. What does free to play success look like? Free to Play creates a much better monetization model with layered, diverse revenue streams and far greater dollars per DAU. Daily Revenue Curve: Top 25 Paid App Daily Revenue Curve: Free to Play App Day 1 Day 35 Day 70 Day 1 Day 35 Day 70 Paid App Rev Conversion to Paid CPI Advertising Brand Advertising Virtual Goods Friday, July 2, 2010
  • 15. Chart position is critical- how do you get there? Friday, July 2, 2010
  • 16. Current Landscape • Good news: 3 million iPads sold in 80 days • Bad news: 11k iPad apps now live, ~2k new apps added each week. • 225k iPhone apps now available • Discovery in the app store remains a big challenge Friday, July 2, 2010
  • 17. Playing with friends is better than playing alone Sessions / Day 20 15 10 5 0 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 # of Friends Friday, July 2, 2010
  • 18. Virtual Goods and Free to Play Apps: Key Success Criteria • Success is about balancing and maximizing three often competing components deep within game design: Reach Retention new user acquisition increasing repeat visits, reducing churn Revenue dollars per DAU Friday, July 2, 2010
  • 19. Plus+ Features Vibrant Social Graph User Reputation • Facebook & Twitter System Social Gaming Integration Developer Analytics • Point Accrual Features • iPhone Contact Integration • Leaderboards • Dashboard for • Push Notifications • Awards Developer Analytics • Organic Friending • User • Unified Across Apps • Real Time Virtual Economy • Cross Game Offers Tuning to User Ads & Offer Management Challenges Management • Virtual Goods • Incented Cost Per • Virtual Currency Install Offers Management • 3rd Party Ad Network • Storefronts Integration Friday, July 2, 2010