facebook, smartphones and customer data
DESCRIPTION
Presented by Harry Holmwood, Heldhand, in Cambridge Wireless Connected Devices SIG on 16/02/12TRANSCRIPT
Facebook, Smartphones and
Customer DataHarry HolmwoodHeldhand Consulting
Who am I?A few seconds only, I promise
All aboutme
GamersWho is the average gamer?
All aboutgamers
All aboutgamers
All aboutgamers
All aboutgamers
What’s changed?There is no average gamer
All aboutgamers
1977– Apple II
4 million sold
1977 - Atari 2600
1983 – Nintendo NES
1994 – Sony PlayStation
2000 – Sony PlayStation 2
Current Generation
• Sony PlayStation 3
• Microsoft Xbox 360
• Nintendo Wii
Games vs Movies
$775m $203m
* First five day gross
25 million copiesBiggest ever launch of a media product
Hugesuccess
But hang on…
Hugesuccess?
7 billion
The Worldis big
6,975,000,000people didn’t buy it
Hugesuccess?
These guys did
Hugesuccess?
Hardcoregamers
Too Youngbut they played it
Who didn’t?Where is everyone else playing?
Everyone else
800 millionpeople on Facebook
Facebookis big
100 million monthly average users (MAU)
Facebookgames
• Founded in 2007• Contributes 12% of Facebook’s
revenue• IPO 2011• Market cap > $10bn
$370m revenue last quarter
What’s biggerthan Facebook?
Facebookis big
2 billionsmartphones by 2015
Mobileis even bigger
Apple App Store
• 20bn + apps downloaded
• Over 1m apps available
• Angry Birds – 30 million DAILY users
Most games are free to play
Business Models
Free to play games make more money than
paid ones
Business Models
‘Freemium’ Model
• Free to start playing
• No barriers to entry
• Everyone can play
• Some people will pay
1-3% of People Pay
Analyticsis critical
Whales
• 1-3% of users pay
• 10% of those pay a lot
Whalesthe highest spenders on social games
Whalestudy
New Data Points
• Cost Per Acquisition (CPA)
• Average Revenue Per User (ARPU)
• ARPPU
• Retention
• Virality
• Engagement
Who Are The Whales?
• Whales drive more 50% of the revenues
Who Are The Whales?
69% of whales are women*
*Papaya
Making the Games
• Develop quickly and cheaply• $300k for a game vs $30m+ for console game
• Launch Small• Test launches in smaller territories
• Iterate rapidly• Launching with only 20% of ‘game vision’
• Your ideas are all wrong• Learn from your customers’ behaviour
Lessons so Far
• We were making games for ourselves
• Digital allowed us to be free to start
• Data lets us refine the experience
• Danger of identikit games
• Data + creativity is starting to emerge
