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Andy Yang•CEO of PlayHaven since April 2011

•10+ years building web, social and mobile businesses

•Grew PlayHaven's business by over 900% since 2011

PlayHaven•Lifetime value maximization platform for user acquisition, engagement, and retention

•Key Metrics

• 4,000+ mobile games

• 2.5 billion monthly games sessions,

• 100 million monthly unique users

•Partners include:

About PlayHaven

Focus of Presentation

• Freemium games

• Science aspects not art -> maximize your opportunity

• More specifically LTV * Users – eCPI * Users

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Agenda

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Mobile Revenue Outlook

That’s more than the GDP of the Bahamas $10.6B

And all of these countries combined!•Monaco $5.5B•Belize $2.7B•Greenland $2.1B

By 2015, the global market for virtual goods will surpass $20 billion which is more than the entire GDP for Armenia $19B

*Mobile games revenues are set to surpass $11 billion in 2015 - Juniper Research report / *By 2015, the global market for virtual goods will surpass $20 billion – Super Data Research report / *Global GDP by Country report

What is Lifetime Value

• LTV = Lifetime Value– Average dollar value per new user over a period of time

• Your LTV can vary wildly based on:– Who the player is

– Traffic source

– Region of world

– Platform

– Device: iPad > iPhone > iPod

• Not all users users are worth the same– Less than 1% of your users may generate 80%+ of your

IAP revenue

– Including IAP + Ads in the calculation is important

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Understanding Your Players

Segment and Target

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Dolphins

Whales

Minnows

User Lifecycle

Retention / Info Fo

cus on

IAP’

s Cross-

Promotion Monetize w/Ads(reset the LTV curve

in new game)

Whales:

TIMEDay 1 User Churn

Re-engagement

IAP vs Ads Revenue Distribution

IAP vs Ads Revenue Distribution by Customer

Rollercoaster A select few make it work

15 Mins of fame Your Traffic:Unpredictable and Unreliable

Acquisition Challenge

• Think margin not CPI

• Understand the difference between burst and sustain

• Don’t blindly spend. Understand audience by traffic source, country, device, or any other targeting parameter supported.

• Don’t rely on any one source…diversify your risk.

• Get as fast of a sense of user LTV by source and targeting parameter and manage your bids closely

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Acquisition 101

• Watch out for snake oil

• Directly track every action you can and keep your partners honest.

• Network attribution – Many if not most advertisers likely paying for the same user multiple times. Don’t let this happen.

• Data integrity and Ops – requires constant attention.

• ID Systems – It’s a mess

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Acquisition Pitfalls

Traffic Source User LifecycleManagement

Output

Ad Networks

Organic

Viral

Internal CrossPromo

LTV MaximizationManagement

Current Process

Process for Lifetime Value

The Math

• eCPI (c)• App store rank achieved (a)• Organic from app store rank (o)• k factor (k)• LTV (l)• Revenue Share (r)• Margin (m)

m = l*(1-r)*a(o)*k – c

The more titles you can then cross-promote them to the better. Think about user LTV across your portfolio not just in a single game.

• Measure the above and setup tiered bids by:– Platform– Channel– Geo– Device

• Make sure you have a solid data infrastructure and understand every metric

• Keep asking yourself questions and test

• Don’t get into a rabbit hole – 80/20 rule

• Take calculated risks, but make sure you learn from failures

• Keep your partners honest

• LTV > customer acquisition

• Be creative and scrappy

• Be agile

• Be patient

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Tips and Hints

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What You Can Do With PlayHaven