gsn games business model
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Nick Bogovich discussing GSN Games business modelTRANSCRIPT
Monetizing in Social Casino & Skill GamesMassTLC 2014 Mobile Summit
Nick Bogovich (@nbogovich)Executive Director, MobileJuly 22, 2014
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o Two Modelso Social Casinoo Skill Games
o Making The Most Of Your Opportunities
Agenda
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Two Models: Social Casino & Skill GamesMassTLC 2014 Mobile Summit
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GSN Games is a leading provider of social casino and cash games
2013: Top 10 Grossing iPad app
2013: #2 skill gaming site
GSN Casino
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GSN Casino on iPad
• Games: Slots, Video Bingo, Video Poker, Blackjack
• Players buy and earn virtual currency to place bets in games of choice
• Available on mobile, social and gsn.com
Product Overview
GSN Cash Games
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WorldWinner.com
• Games: Card, Arcade,
Strategy, Word, Game
Shows• Players compete in practice & cash tournaments
• Available on web and mobile web
ProductOverview
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Social casino, skill games and gambling are not the same
CONSIDERATION(entry fee)
PRIZECHANCE
Skill
Games
Sweeps
Gambling
How to make sense of it all:
o No prize = Social casino
o Little or no chance = Skill games
o Entry fee, chance & prize = Gambling
SocialCasino
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Making The Most Of Your OpportunitiesMassTLC 2014 Mobile Summit
o The mobile landscape is crowdedo There are over 1 million apps on iOS and Google Play
o The odds of success are against youo 80% of apps don’t generate enough revenue to support a
standalone business. 59% don’t even cover development costs.
o If success is defined as your app’s profitability, how do you succeed?
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How Do You Make The Most Of Your Opportunities?
o Before anything else, do your homework! Identify your vision, mission and corresponding strategies
o Validate the business model – if you can’t figure it outon paper, you won’t figure it out after launch
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Tip #1: Form an Effective Product Strategy
o Spend ample time planning a UX that supports your app’s mission and strategies
o Focus on the MVP: Minimum Viable Product
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Tip #2: Carefully Manage Build Costs
o Be mindful of how your product will evolveo Prototype and test, early and ofteno “Look through the turn” – don’t be too short-sightedo Listen to your users!
o Know what you know and what you don’t knowo Play to your strengths; everything else can be outsourcedo There’s a fine line between leading edge and bleeding edgeo Keep 3rd parties honest
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Tip #2: Carefully Manage Build Costs
o Cost-per-acquisition (CPA) is just as important as lifetime value (LTV)
o LTV helps you measure the quality of your acquisition channels
o The sooner you optimize your acquisition funnel, the quicker yourbusiness will grow
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Tip #3: Understand your user acquisition funnel
(A) LTV: $4
- CPA: $3
Profit: $1(B) LTV: $1
- CPA: $2
Loss: $1
GOOD!
BAD!
o “You never get a second chance to make a first impression.”o 26% of app downloads are used 1 time
o 3 ways to keep users coming back1. Optimize your acquisition spend2. Effectively onboard users3. Measure and improve your retention rates
o Remove unnecessary transactional friction
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Tip #4: Make a good first impression
o Before launch, identify KPIs that represent successo How many DAUs do you expect?o What % of DAUs represent paying users?o What’s your target ARPPU?
o Establish target values ahead of launch to better identify where to improve your product
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Tip #5: Identify KPIs that represent success
Month 1 Goals
DAU: 5,000
% Payers: 2.0%
ARPPU: $12.50
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$1,250/day
o Boost revenues or lower cost of sales or operating expenses to increase your profitability.
o Be careful! Keeping costs low because you made the right decisions along the way is not the same as artificially cutting costs to maximize profitability.
o Making the most of your opportunities involves more than just what drops to the bottom line. It requires proper planning.
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The Bottom Line: How Does It All Add Up?
Thanks for listening!
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ContactNick Bogovich | Executive Director,
[email protected] | @nbogovich
http://careers.gsn.com/