By: Albert Lai, Co-Founder/President, Kontagent A.R.M Metrics Framework SE7EN Deadly Social Game Metrics By: Albert Lai, Co-Founder/President, Kontagent

INTRO: Select Customer List And Hundreds More…

Jan. 2009 Jan-2010 Jan-2011

Most Broadly Used Social Analytics by Developers INTRO: Most Broadly Used Social Analytics by Developers Facebook Funded & Leading App Analytics Platform Social Gaming Focused End-to-End Analytics Suite Ad Tracker, Viral Testing, Events, Funnels, V.Currency Used by Majority the World’s Largest Game Publishers

People Not Pages “WEB ANALYTICS” = PAGES “SOCIAL ANALYTICS” = PEOPLE INTRO: People Not Pages OLD SCHOOL: “WEB ANALYTICS” = PAGES NEW SCHOOL: “SOCIAL ANALYTICS” = PEOPLE PAGE VIEWS EVENTS FRIEND GRAPH & INFLUENCE MAP AGE & GENDER & LOCATION COOKIE/IP ADDRESS EMAIL ADDRESS SESSION TIME VIRAL PROFILE

Kontagent Analytics Suite ABOUT US: End to End Social Analytics Platform Kontagent Analytics Suite Increase Testing Velocity -> Faster Iterations -> Faster User Growth -> Improved Profits

The Social Web

“Web 2.0.11” ABOUT US: WEB 2.0 SOCIAL WEB WEB 2.0 SOCIAL WEB Sign In: Single Sign-On (MS Passport) Social Sign-In (FB Connect) Discovery: Search Shared Distribution: Aggregation Viral Analytics: Pages Users Optimization: Data-Sampling OK Need Per User Data Single Sign-On (MS Passport) Social Sign-In (FB Connect) Sign-In Discovery: Search Shared Distribution: Aggregation Viral Analytics: Pages Users z Optimization: Data-Sampling OK Need Per User Data

Future of Discovery and Distribution ABOUT US: Future of Discovery and Distribution VIRALITY: DRIVES DISCOVERY + ADOPTION PHISICAL PHYSICAL DIGITAL DIGITAL SOCIAL SOCIAL Buy: Shelf Space (Best Buy) Sell: Shrink Wrap Software Dev. Cycles: Yearly Methods: Pre-Planned Competitive Advantages: Scale Buy: Shelf Space (Best Buy) Sell: Shrink Wrap (Flight Simulator) Dev. Cycles: Yearly Methodes: Pre-Planned Primary Competitive Advantages: Scale Buy: Traffic/Portal (Yahoo) Sell: Ads, Downloads, Subs Dev. Cycles: Months Methods: Agile/Iterative Competitive Advantages: Aggregation Buy: Traffic/Portal (Yahoo) Sell: Ads, Downloads, Subs Dev. Cycles: Months Methodes: Agile/Iterative Primary Competitive Advantages: Aggregation Buy: Viral Tools & Installs Sell: Virtual Goods Dev. Cycles: Hours Methods: Data-Driven Competitive Advantages: Viral Data Insights Buy: Viral Tools & Installs Sell: Virtual Goods Dev. Cycles: Hours Methodes: Data-Driven Primary Competitive Advantages: Viral Data Insights

Viral Loops vs. Engagement Loops INTRO: Viral Loops vs. Engagement Loops Viral Loop Engagement Loop Existing User New User Existing User Existing User

The ARM Funnel

Acquisition, Retention & Monetization ARM Model: Acquisition, Retention & Monetization ACQUISITION RETENTION MONETIZATION

Mature Game Development Framework: Lifecycle Metrics and the ARM Funnel SOCIAL GAME LIFECYCLE Early Game Development Mid Game Development Mature Game Development USER LIFECYCLE WEB 2.0 SOCIAL WEB Single Sign-On (MS Passport) Social Sign-In (FB Connect) ACQUISITION x Search Shared RETENTION Aggregation MONETIZATION z

A R M 7 Deadly Metrics of the ARM Funnel Framework: SOCIAL GAME LIFECYCLE Early Game Development Mid Game Development Mature Game Development WEB 2.0 SOCIAL WEB Single Sign-On (MS Passport) Social Sign-In (FB Connect) Traffic Virality Engagement Retention Revenue / LTV x -----------------------METRICS----------------------- A Search Shared R Aggregation M 1 Day/Wk Cohort Retention CAC ARPU & ARPPU 1 2 K-Factor 3 Sessions/User & Avg. Session Length 4 6 Avg. LT of a User 5 7 % Paying Users K-LTV

The 7 Deadly Social Metrics

1 ACQUISITION > CAC (Customer Acquisition Cost) ARM Metric #1 Trending: Up Typical: $1- $3 Measure: Traffic K-Factor Traffic X-Day Retention Traffic ARPU CPM/CPC/CPI Action: A/B Test: Creative, Targeting, Source Leverage X-Promotion - Display / Big Brand ads pushing up cost of inventory - CPIs moving to multi-$ - cross promotion becomes more powerful - IP/licence becomes more important

2 ACQUISITION > k-factor ARM Metric #2 Trending: Flat to down Typical: Overall K-Factor 0.05-0.20 Invite CTR: 10-20% Measure: AKA: Viral Loop Avg. Branching Factor Msg/User * CTR Action: A/B Test Content A/B Test Flow/Timing - Display / Big Brand ads pushing up cost of inventory - CPIs moving to multi-$ - cross promotion becomes more powerful - IP/licence becomes more important

3 RETENTION > Sessions/User & Avg. session length ARM Metric #3 TRENDING: Flat to Up TYPICAL: Mins: 10+ Sessions/User: 1.7-2.2 Day 1 Retention: 10-35% MEASURE: “User Activation” Visits / User / Day Time Spent Per Visit ACTIONS: Funnel Test Activation Test Visit Freq. Vs. Time Spent - Display / Big Brand ads pushing up cost of inventory - CPIs moving to multi-$ - cross promotion becomes more powerful - IP/licence becomes more important

4 RETENTION > 1 Day + 1 Week Retention ARM Metric #4 Trending: Up Typical: D1: 25-30% W1: 10-15% Measure: Ideally Cohorted Careful Mixing New & Old Users Action: A/B Test Game Mechanics A/B Test Flow / Funnels - Display / Big Brand ads pushing up cost of inventory - CPIs moving to multi-$ - cross promotion becomes more powerful - IP/licence becomes more important

5 RETENTION > avg. lifetime per user ARM Metric #5 Trending: Up Typical: Depends Measure: Engagement Loop Decay Rate / Half Life Action: Test Game Dynamic as it Relates to The - Display / Big Brand ads pushing up cost of inventory - CPIs moving to multi-$ - cross promotion becomes more powerful - IP/licence becomes more important

6 Monetization > ARPU, ARPPU ARM Metric #6 Trending: Up Typical: Measure: Revenue / DAU # Transactions /DAU $ Transactions Action: A/B Test Item Pricing A/B Test Flow/Timing Track Sources/Sinks - Display / Big Brand ads pushing up cost of inventory - CPIs moving to multi-$ - cross promotion becomes more powerful - IP/licence becomes more important

7 Monetization > % Paying Users ARM Metric #7 Trending: Up Typical: 1-3% Measure: Demographics of Paying Users Action: Watch Demo & Traffic Source Loop Data back to Ad Targeting - Display / Big Brand ads pushing up cost of inventory - CPIs moving to multi-$ - cross promotion becomes more powerful - IP/licence becomes more important

KLTV KLTV > Viral Life Time Value ARM Metric Virality (branching Factor): [1/(1-k)] X arpu: [ARPU per Day] retention: [Avg. # of Days Engaged] - Display / Big Brand ads pushing up cost of inventory - CPIs moving to multi-$ - cross promotion becomes more powerful - IP/licence becomes more important

A R M 7 Deadly Metrics of the ARM Funnel Framework: SOCIAL GAME LIFECYCLE Early Game Development Mid Game Development Mature Game Development WEB 2.0 SOCIAL WEB Single Sign-On (MS Passport) Social Sign-In (FB Connect) Traffic Virality Engagement Retention Revenue / LTV x -----------------------METRICS----------------------- A Search Shared R Aggregation M 1 Day/Wk Cohort Retention CAC ARPU & ARPPU 1 2 K-Factor 3 Sessions/User & Avg. Session Length 4 6 Avg. LT of a User 5 7 % Paying Users K-LTV

See the 7 Deadly Social Metrics in Action Follow us on Twitter @Kontagent! www.kontagent.com

Contacts Kontagent 55 Hawthorne Street Suite 610 San Francisco, CA 94105 Tel:  1 (415) 766-6500 E-mail:  albert @ kontagent.com Support:  support @ kontagent.com