Free To Play Mobile Monetization 2.0

Brian SappDirector, Developer Partnerships

• Introduction To Tapjoy• Monetization 2.0 -

1. Premium Currency Exchange Rates2. Currency Sales3. Localization4. Limited Time Events5. Understanding Advertising Solutions and Player Segmentation6. How UI Impacts Monetization

Overview

Tapjoy by the Numbers

6,800+Active Apps

1.3 MMDaily AdEngagements

$200 MMRevenue Earned by Publishers

435 MMMobile Users

Tapjoy’s Mobile Value Exchange

I can earn Coins by engaging with ads via Tapjoy.

How it WorksI need more Coins to gear up in Triple Town.

I can buy Coins with real money.1 2

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Monetization 2.0

What Does It Take To Make Money?

A great game!

Premium Currency Exchange Rate

• Take full advantage of alternative payment platforms, especially useful for low friction, low payout advertisements (Video ads, Facebook likes, etc)

Setting a higher conversion rate for premium currency allows for more flexibility

• Boost user engagement (Facebook, Twitter, Inviting Friends, Creating an Account, etc)

• Recommended minimum:100 Coins/Gems/Bucks, etc = $1

Increasing the exchange rate enabled more video inventory

Unique Monetizing

Case Study: Increasing Currency Exchange Rate

• Revenue performance increased by 54% even though DAU was decreasing• Tapjoy Video revenue increased from $15 - $20 per day to an average $275 per day

Currency Rate Changed

Currency SalesGoal is to drive more revenue and first time purchasers during the limited time sale.

• Optimize the amount by targeting a small % of your users before targeting your entire user base. Better yet, target only non-paying users.

• You can fight normal revenue dips with a well timed currency sale – revenue typically spikes 1.5x.

• Timing: Shoot for weekends, holidays, but don’t over do it or you may cannibalize revenue over the long run.

“We found that increasing our virtual currency exchange rate for a long weekend boosted our Tapjoy attached revenue but did not materially affect our IAP sales.”

– Ryan Chesley, Product Manager at Smule

Tapjoy Currency Promotion Doubles Magic Piano’s Revenue & Sustains Growth

Unique Monetizing

Case Study: Magic Piano

The Japanese ‘Secret Sauce’ – Limited Time Events

• Goal - offer users the ‘new/unique’ content during limited timeLimited time events can boost ARPDAU by 3x to 5x the norm and boost engagement

• While especially useful in collection games, this mechanic can be applied creatively across other F2P games

• Players must grind until the end of an event to earn the ‘rare’ rewards, however, all users are rewarded and purchasing content improves your chances

Localization - Conquering the World

• Significantly improves your chances of getting featured in foreign territories

Boost revenue and distribution upon app launch

• Distimo compared apps performances week over week after localizing: Results - 128% growth in downloads and 26% increase in revenue

• Asia is growing at an incredible rate – this is a market that can’t be ignored

*App Annie Report - 11/29/12

Localization Case: Supercell’s Clash of Clans

• June 17th Clash of Clans localized to Japanese

The rich get richer…Clash of Clans became the top global monetizing app in June

• Japanese revenue more then tripled in June• June 24th the game was cross promoted with GungHo’s Puzzle & Dragons

Distimo Top Global Apps Report July 8th – 2013

Rewarded Offerwall/Value ExchangeNon-rewarded Offerwall

Featured Ads

Banner Ads

Mobile Revenue: Ad Types

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Which Ad Units Are Right For My Game?

HARDCORE

Usage: Highly Engaged User/Smaller User

Base

Monetization: High ARPDAU ($.15-$1.00)

Ad Solution:Alternative Payment Platform

COREUsage:

Engaged User/Large User Base

Monetization: Mid Level ARPDAU ($.04-$.15)

Ad Solution:Alternative Payment Platform

Featured Ads/Video Ads

CASUALUsage:

Low Engaged User/Massive User Base

Monetization: Low ARPDAU ($.01-$.04)

Ad Solution:Alt Pay/Featured Ads/Video AdsBanner Ads/Cross Promo Wall

Are you leaving revenue on the table? Are you balancing user engagement with monetization?

Currency Store Design (The Bad) R

• Text is too small

• Nothing grabs the user, no calls to action• Unimaginative icons

• How much does each package cost? Put most popular purchase first.

Currency Store Design (The Good) R

• Use icons over text when possible

• Let users know they’re getting a deal• A well designed, clean store = happy customer

• Design for the phone, not tablet, use all your real estate

© 2013 Tapjoy, Inc. All Rights Reserved. Tapjoy, Inc. Confidential and Proprietary - Please Do Not Copy or Distribute Without Tapjoy, Inc.’s Prior Written Consent. The data provided herein is for information purposes only and while all efforts are made to ensure accuracy, errors may arise. Tapjoy and the Tapjoy logo are trademarks or registered trademarks of Tapjoy, Inc. All third party logos and trademarks mentioned are the property of their respective owners.

Tapjoy is hiring!

For more info or the deck email me, thanks!

Brian.Sapp@tapjoy.com

@sappalicious