1 THE RISK OF BUILDING A GAME The gaming business is a lot like baseball: You want to get a hit every time Whether it’s a single or a homerun depends on how you approach the game Understanding the risk and inputs of every game you build keeps you in business for a long time

2 A primary goal is to create evergreen games Add new features and content to increase user base and monetize over a long period of time Eliminate the decay curve: SGN’s top 2 games are at their highest monetization rates after 1 year Monitor KPIs through deep analysis of data Understand who you are trying to target: region and demographics Choose a game that’s easily cross-promotable -If you have users in one genre, easier to choose a game in the same genre -Move users around in your own network Chose proven game and monetization mechanics as opposed to trying to re- invent the wheel INGREDIENTS FOR ELIMINATING RISK

3 DEEP ANALYTICS At a minimum: understand and monitor your basic KPIs Determine your metrics are for success: ARPDAUs, LTVs, retention rates To succeed: -Experimentation platform -All KPIs broken out by cohort (demographic & region) -Monetization trends within the game -Every piece of data should be logged for later use

4 EFFECTIVE MARKETING Most important marketing channel: your cross-promotion network -These are your most valuable users and they are free Effective user acquisition requires strong knowledge of the industry and data Every marketing campaign needs to be tracked by cohort, creative, advertiser, platform, and end-user Aggregate CPI’s & LTV’s only tell part of the story Important to drill down to cohort by source We know how much a user costs to acquire by source, by device by day -Ensures that all marketing dollars and opportunities are optimized -This is difficult because there is no perfect platform and “heat map” -Find the “whales” that are worth $10 rather than users that are worth $0.10

5 CROSS PLATFORM DEVELOPMENT How does the movie industry do it? -You don’t shoot a movie multiple times for DVD, TV, Theatrical, Airplanes Don’t build a game multiple times Users now expect to be able to play on the desktop and mobile devices and get similar gameplay experiences Make money in 4 places instead of one Result: For users that are playing cross-platform, you get improved engagement and monetization

6 CROSS PLATFORM EXAMPLE: BINGO BLINGO SGN cross-platform game with presence on the following platforms: -Web -Facebook -iOS -Android (Google Play & Amazon) Single sign on for all platforms

7 CROSS PLATFORM TECHNOLOGY Unified code base for all platforms Uses extensions unique to features of each platform

8 SUMMARY All of us in the industry strive to build the most innovative and fun games as possible Increasingly those that are successful in the business need to be able to sift through "big data", analyze KPI's daily, and make adjustments The gaming business also requires those of us that are successful to be master direct marketers All games must be cross-platform By being great at game portfolio choice, game design, analytics, and media buying, you can take a lot of the "hits nature" out of the business.

9 Q&A