2. About PlayHaven PlayHaven 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:
Talking Points:
1. Background on experience and role at PlayHaven
2. Overview of PlayHaven
PlayHaven is a lifetime value maximization platform designed to help game developers transform data into valuable action. PlayHaven helps game developers maximize the lifetime value of their games through its global ad network and robust suite of lifetime value maximization tools.
Global ad network - monetize games using in-app advertising and tap into the 4,000 mobile games in PlayHaven’s network, which reaches 100 million monthly unique users and runs over 2 billion monthly games sessions.
LTV maximization tools – Identify and define user segments and determine which tools will generate maximum revenue with each audience; tools include internal cross-promotion, in-app purchases, rewards, opt-in data collection and announcements

3. Science aspects not art -> maximize your opportunity
Focus of Presentation
Freemium games
Science aspects not art -> maximize your opportunity
More specifically LTV * Users – eCPI * Users
Lifetime value is a combination of the revenue and retention you see throughout a players lifecycle.
Steps to maximizing LTV include acquisition, engagement, monetization and retention.

4. Agenda Talking Points: Here is what we’ll be addressing today.
Mobile Industry Outlook – key stats on industry predictions and what this looks like at a global level
What is Lifetime Value – what does it mean and how to you achieve it?
Why it important to understand their players and act on that knowledge –lifecycles differ for each player and its important to understand these behaviors
LTV in Action– we’ll dive into specific example for how to engage players and maximize LTV based on key players characteristics

5. 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
Talking Points:
The mobile industry us taking off. Looking at this holistically, revenues from mobile games alone is projected to be higher than most of the world’s GDPs by country.
[Animate stat]
AT $11B, mobile games as an industry is bigger than
The entire GDP of The Bahamas ($10.6B)
And all of these countries combined!
Monaco ($5.5B)
Belize ($2.7B)
Greenland ($2.1B)
[Animate next stat]
In addition, the mobile industry is taking off so fast that by 2015, the global market for all virtual goods will surpass $20 billion which is more than the entire GDP for Armenia ($19B)
Stat Resources:
Mobile games revenues are set to surpass $11 billion in 2015 as in-game purchases overtake those pay-per-download
- Juniper Research
By 2015, the global market for virtual goods will surpass $20 billion
- Super Data Research
Country GDP here:
*Mobile games revenues are set to surpass $11 billion in Juniper Research report / *By 2015, the global market for virtual goods will surpass $20 billion – Super Data Research report / *Global GDP by Country report

6. 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
Lifetime value is a combination of the revenue and retention you see throughout a players lifecycle.
Steps to maximizing LTV include acquisition, engagement, monetization and retention.

7. Understanding Your Players
Talking Points:
Without understanding how your player are behaving, you’re blindly targeting your users with ads, virtual goods, rewards without really understanding the most effective form of monetization
Understand: Identify key characteristics and segment users by app purchases level of time in game, level completion, geography
Take action: After segmenting players based on characteristics unique to your game, target them with custom content. Maximize LTV with targeted actions, for example:
Increase monetization with virtual good sales
Create a better experience by holding ads for new users
Customize language and content for users in different geographies
Help convert highly engaged non-spenders by offering discounts on tools to help them reach the next level or phase in the game

8. Segment and Target Whales Dolphins Minnows Talking Points:
Engaging players in your games is very similar to the approach Las Vegas casino owners take with their customers – give free perks to top patrons so they’ll spend big at the card tables.
Like players in a casino, each player in your game has a different value based on their inclination to spend, fans are divided into segments – whales (big spenders), dolphins (casual spenders), and minnows (casual players and fans who will never spend).
[Animate Whale Reward]
Whales – make up the majority of the profits but are a smaller audience. These are the people willing to pay more for an elite experience. Whales get a premium experience since they are inclined to spend substantially more than dolphins or minnows. They get hotels, flights, shopping sprees, ect all to keep them engaged and spending in the casino.
[Animate Dolphin Reward]
Dolphins – while still in the casual player realm, dolphins are inherently stronger than Minnows. They spend more time in the game, get to higher levels, etc. For this audience you still want to treat them exclusively but not the same as a whale. They’ll get something along the lines of show tickets, and buffets
[Animate Minnows Reward]
Minnows – minnows are your casual players that likely will not invest heavily throughout their lifetime in your game, but they are none the less important to the game ecosystem. They are fans and attract other players and based on their sheer numbers, they are valuable based on their overall influence. You want to keep them happy, so you give them freebies that are not a major investment for you like free drinks or small rewards.

9. Whales: User Lifecycle Focus on IAP’s Cross- Promotion
Re-engagement
Cross-
Promotion
Retention / Info
Monetize w/
Ads
Talking Points:
When launching a game, most people are focused on downloads and revenue.
We think this misunderstands the problem games face because in reality there are many different types of users and they all generate revenue for you differently.
In fact, revenue is a proxy for value and what is is actually important is the overall lifetime value of your user.
Optimizing for revenue is extremely expensive unless you know something about your users. Ultimately, what you want to achieve in your game is sustained growth and retention and monetization post acquisition.
(reset the LTV curve
in new game)
Day 1
User Churn
TIME

10. IAP vs Ads Revenue Distribution
Lifetime value is a combination of the revenue and retention you see throughout a players lifecycle.
Steps to maximizing LTV include acquisition, engagement, monetization and retention.

11. IAP vs Ads Revenue Distribution by Customer
Lifetime value is a combination of the revenue and retention you see throughout a players lifecycle.
Steps to maximizing LTV include acquisition, engagement, monetization and retention.

12. Unpredictable and Unreliable A select few make it work
Acquisition Challenge
15 Mins of fame
Your Traffic:
Unpredictable and Unreliable
Rollercoaster
A select few make it work
Talking Points:
When launching a game, most people are focused on downloads and revenue.
We think this misunderstands the problem games face because in reality there are many different types of users and they all generate revenue for you differently.
In fact, revenue is a proxy for value and what is is actually important is the overall lifetime value of your user.
Optimizing for revenue is extremely expensive unless you know something about your users. Ultimately, what you want to achieve in your game is sustained growth and retention and monetization post acquisition.

13. Acquisition 101 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

14. Acquisition Pitfalls 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

15. Process for Lifetime Value
Current Process
Traffic Source
LTV Maximization
Management
User Lifecycle
Management
Output
Ad Networks
Organic
Viral
Talking Points:
Right now, here is the type of insight you’re getting from your games….downloads and the fact that your game is generating revenue - that’s all you know. You have insight into your traffic sources, how they are performing and the general knowledge that your game is making some form of revenue.
[Animate LTV Max MGMT]
But in reality, all your users are not the same and should not be treated the same. Each player will have a different impact on the revenue your game generates. For you to be able to maximize your games revenue, you need to be able to understand how your individual users generate revenue.
In order to maximize the lifetime value of your players, you need to set a platform in place that will help you understand your users and consistently target them at the most effective point in their lifecycle in your game.
Internal Cross
Promo

16. The Math Platform Channel Geo Device 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
Lifetime value is a combination of the revenue and retention you see throughout a players lifecycle.
Steps to maximizing LTV include acquisition, engagement, monetization and retention.

17. Tips and Hints
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

18. What You Can Do With PlayHaven
PlayHaven provides tools to help developers acquire, understand, engage and retain at every point in a user’s lifecycle.
Acquire new users with interstitial ads and cross promotion
Understand how your users are behaving with PlayHaven user segmentation tools that will allow you to break down and target your player base with the most effective content for monetization.
Engage and Retain your users with rewards, virtual goods, announcement, opt-in data collection