Matt Tubergen reveals the fascinating and complex world of mobile freemium gaming. Learn how freemium game developers leverage game mechanics, virual goods, social features and analytics to create kick ass profitable games for iOS. Matt Tubergen is a mobile content expert with a decade of experience working with brands that include Disney, NFL and LucasArts. Matt heads up W3i’s wholly owned publishing arm and investment fund, Recharge Studios

1. Mobile St Cloud Inside Freemium Gaming

3. What is a Freemium game?

4. History of Freemium Mobile Games

5. Market Overview

6. Core Fundamentals of Freemium

7. Freemium Game Mechanics (Jimi Van Guilder)

8. Making it Social

9. Post Launch Strategies

10. User Acquisition

11. Monetization

12. Analytics and Measurement

14. Mobile Videos Games (THQ Wireless)

16. What is a Freemium Game? Free to download and play Freemium = + Virtual Goods, In-App Purchases, Virtual Economy, Premium Currency, Cash Transaction, Ad Revenues, Freemium Game Mechanics, Social Interactivity, Etc……..

17. What is a Freemium Game? 50% Game Design 50% Business Intelligence

18. History of Freemium Mobile Games Mobile Games Social Games

19. History of Freemium Mobile Games Mobile Games Social Games 2008 Apple Allows In-App Purchases

20. History of Freemium Mobile Games Social Games Freemium Mobile Games = +

21. Market Overview Mobile app revenue is expected to rise by another 81.5 percent in 2011 to hit $3.9 billion. A key driver of growth is the “freemium” business model As application stores become more and more crowded, studios are opting to release their content for free. Freemium purchases will count for around half of all North American app revenues by 2014, up from 24 percent in 2010. Freemium’s share will be even higher for games. Source: IHS

22. Market Overview Mobile Freemium Content = $10Billion+ Industry by 2014! Yes, That a “B” Source: IHS

23. Market Overview

24. Market Overview Android vs. iOS Freemium Games in Top Grossing

25. Market Overview iTunes Top Grossing 3/31/11

26. Market Overview

27. Market Overview Estimated Monthly Revenues

29. The Compulsion Loop- The Virtual Economy

30. Sources and Sinks Definitions Sink: Investment Source: Value Creation Examples: Sink: Purchase Wheat Seeds to Grow Wheat Source: Waiting 5 minutes to grow 10 Wheat Source Sink Core Fundamentals of Freemium

31. The Compulsion Loop Source Sink Core Fundamentals of Freemium

32. Sample Compulsion Loop Celebrity Publications (journal, news) Players votes, visits, buy $ Ingame money $ Inscription Competitions (massive) Visits Services (many to many) Lignage (one to one) MP Horse customization and training $ Catalog Allow Farm Stum customization Solo Activities Horses + skills Farm services $ Catalog Friends Boost activities $ Catalog

33. The Virtual Economy Is not just the shop….. Core Fundamentals of Freemium

34. The Virtual Economy It involves every transaction in the game… Core Fundamentals of Freemium

35. Top 10 Freemium Mechanics Taken from the Recharge Studios Freemium Playbook Jimi Van Guilder, Mobile Games Producer

36. 1. Tutorials Retention

37. 2. Leveling/Experience Points Retention

38. 3. Daily Reward Retention

39. 4. Decay Retention, Monetization

40. 5. Reward Schedules Retention

41. 6. Local Notifications Retention – do not abuse!

42. 7. Disincentives Retention

43. 8. Leaderboards Retention

44. 9. Achievements Retention

45. 10. Modifiers Monetization

47. Viral Game Mechanics

48. Viral Game Mechanics Interacting Real-time with friends!

49. Viral Game Mechanics Reinforced social sharing - Allowing your users to results will not only drive awareness, it will drive downloads!

50. Viral Game Mechanics Envy – Allow your users to brag!

51. Viral Game Mechanics Gifting – Reinforces user behavior and drives the economy

52. Viral Game Mechanics Companion Gaming – Give reasons for users to play with each other

53. Back to Business

55. Dynamic Content

56. Dynamic Game Balancing

57. Tutorial Optimization

58. The Evolving GDDCore Fundamentals of Freemium

60. Test, Measure, Revise

61. Build Ability to Balance on the Fly

62. Plan for it!Post Launch Strategies

64. New features need to be carefully introduced

65. Carefully calculate level progression

66. New content = more $ from the whalesPost Launch Strategies

68. Let the data speak for itself, don’t assume

69. Focus first on rate of play

70. Be careful of giving away too muchPost Launch Strategies

72. Tutorial can be long tail

73. Effective education vs. fluid gameplayPost Launch Strategies

75. Game depth changes over time

76. Stay focused to strategy and theme

77. Changes in economy structure need special attentionPost Launch Strategies

79. CPC, CPM (Banner Placements)

80. Barter Installs

81. Pre Launch Awareness

82. Blogs, Social Media, Review Sites

83. Apple/Google Feature

85. User Acquisition Its important to build sustainable and scalable means of user acquisition

86. User Acquisition Bursting can help drive down your cost of user acquisition

88. Subscription

89. Ads

90. Typical Banners

91. Interactive Banners

92. Video Pre/Post Roll

93. Incentivized

94. App Installs

97. Consumption Patterns

98. Funnel Tracking

99. Understanding Pitfalls

100. Conversion

101. Tools

103. Questions?

104. Recharge In the News

106. Launched on December 2010

107. Roughly 1,300,000 installs

108. Highest Achieved Top Ranking in Free Apps = 10

109. Days in Top Overall Free Apps = 31

110. Days in Top Overall Free Games = 36

111. Days in Top Overall Free Simulation Games = 84

114. Install IQ: advanced technology, optimized onmore than 500 million installs - 120 million in 2010

115. Founded in 2000, W3i is majority-owned by the founders, and backed by Alta Communications

116. Profitable for 36 consecutive quarters

117. 70 employees, HQ in St. Cloud, MinnesotaInterested In a Partnership? Contact Matt Tubergen Matthew.Tubergen@w3i.com Phone: 612-803-8143