Marketing social startup
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The document discusses social gaming and how traditional marketing is less effective than social gaming marketing. It describes Kirill Popov's background in internet marketing and founding a social gaming studio. The funnel for acquiring, activating, and retaining users is outlined. Strategies for acquisition, activation, retention, and monetization through "virtual goods" are presented. Projections show potential for profitability within 5 months of launch and $80 million in profits within 5 years with multiple game releases. Milestones and exits via profitability, acquisition, or IPO are proposed. $500,000 in seed funding is requested.
Marketing social startup
- 2. Kirill Popov 11 Years of Internet Marketing Supported Mom&Pops to Fortune 500s Numerous published industry articles Talks on Email Marketing and Privacy Founder, Izelis.com, social gaming studio
- 3. Traditional Marketing High Volume, Low Relevance Poor tracking Low attribution Long delays for metrics Long optimization times
- 4. Conversion Funnel Acquire 10,000 Activate 5,000 Retain 2,000 200 Revenue Ad Optimization : iterating through ad tests & measuring through the funnel
- 5. Acquisition
- 6. Ads Marketing Google Highly Relevant to Search Targeted Display Facebook Targeted by Demographics and Interests Social Context
- 7. Ads Marketing Key Strengths Direct tracking through the channel Instant tests and optimization against funnel
- 8. Activation
- 9. Lead Nurturing Focus on Activation Dropoff Automated Targeted Efficient Eloqua.com, 2011
- 10. Landing Page Optimization Personalized to Visitor Leverages Known Data Intelligently drives conversion
- 11. Retention
- 12. Engagement Campaigns Highly Relevant Leverage Customer Behavior (or lack thereof) Responsys Email Design Lookbook 2011
- 13. Social Channels Notifications – App Generated Notifications – Friend Generated
- 14. Early Player Growth of Zynga Farmville – 28 Million in 6 months Café World – 10 Million in 3 months Fishville – 7.5 Million in 1 month PetVille – 4.8 million in 1 month Compare to : Industry Record breaking launch 18 million copies sold globally after 9 months InsideSocialGames.com March5th, 2010
- 15. Revenue
- 16. “Virtual” Goods Global Virtual Goods Market = $3.00 US, $2 bn Ultimate Control Asia, $8 bn Rarity Scarcity Exclusivity Durability
- 17. Fantastic Results Unparalleled expansion of testing methodology Automation leads to scale Conversion lift of 500% to 1000% Response rates of 60% to 80% Compare to Traditional Media of %1-%2 to untargeted internet marketing of %12
- 18. Why Jump In?
- 19. Problem Zynga et al Going after the Casual market Not much innovation from competitors 2/3 of the market Global Gaming Market unaddressed $65 bn The rest of the market – “core” gamers not targeted Spend ~14 hours a week playing Purchase retail consoles, games 40% household income of >$75k
- 20. Solution Target “Core” Social gamers Engaging, Competitive Gameplay Social Functions to facilitate growth Deliver Games as a Service Free-2-Play : Minimize cost of acquisition Enhance product with user growth Optimized engagement Optimized revenue
- 21. Target Market - Facebook Over 300m monthly game players on Facebook (Zynga MAU, appdata.com) 45% of FB’s 750+ mm are males age 14 to 25 50% of the monthly players are active daily (Venture Beat, July 2011) 31% of online gamers have purchased virtual content with real money (Visa’s PlaySpan, VG Market study, Aug 2011)
- 22. Key Customer Lifecycle Players: Average players of the game Evangelists: Share content with social graph Optimize on: Players Evangelists Activation Visitor installs game Post to wall Retention Active 4 days out of 7 Play with friends 4 days out of 7 Revenue Purchase K-Factor > 1
- 23. Marketing Strategy Our marketing strategies will rely on multiple vectors for advertising: Viral – Make social growth part of gameplay Social Marketing – FB ads/pages/likes, traffic sharing across apps Internet Marketing – Ad space on FB/Google and other ad networks optimization Search Engine Optimization – Web presence with user feedback forums Email Marketing – Automated lifecycle marketing to drive retention Optimize through the Marketing Funnel
- 24. Projections Short Term Profitable within 5 months from Launch Break even at approx $35,000/month 25k daily active users 2 Years from launch: No profitability due to expansion 5 Years from launch: Revenue $140m, Profits of $80m 6 Titles released
- 25. Projections - Methodology Target Average Revenue Per Conservative Estimates User $ 0.05 • $0.05 Average Revenue Per User vs $2.57 User per Game Growth YoY: 20% seen by Zynga (S1) ARPU Growth YoY: 20% • Slow growth compared to analog games Employee Cost Premium: 50% • 50% higher employee, hosting costs Hosting Cost Premium: 50% • 30% marketing allocation Marketing Allocation: 30%
- 26. Who We Are Kirill Popov Anton Popov Alex Markhovskiy Founder & CEO Co-Founder & COO Co-Founder & Producer 11 years of internet 15 years of large 5 years of production in marketing infrastructure traditional, social Part of successful management @ Siebel gaming industry marketing automation and Oracle Managed QA and startup; acquired. Lead Security, Business Production teams @ Senior management Continuity, Disaster LucasArts, Zynga roles at SaaS Recovery teams @ Oracle BS in Computer Science companies, Facebook MBA from USF from SFSU
- 27. Milestones Two Quarters from launch: Reach 25,000 daily active users Reach $0.05 Average Revenue per User One and a Half Years from launch: Reach 200,000 daily active users per game Reach $300,000 in monthly revenue Two Years from launch: Launch second title Reach $945,000 in monthly revenue Three Years from launch: Launch two additional titles Reach $2.6 million in monthly revenue
- 28. Exits Sustained profitability Continue to release high quality profitable games Expand into mobile, global markets Acquisition of company Izelis acquired for market penetration, high value games, optimized monetization strategy IPO Raising capital for major expansion of business Acquire smaller successful game development studios with complimentary visions Leverage established distribution network and expand into publishing
- 29. Investment Personal Co-Founder Investment: $120,000 100% Team Hired Multiple Prototypes deployed Product Launch: October Seeking $500,000 angel seed round
- 30. Q&A
Editor's Notes
- #5: What is a conversion funnel – how internet ads are now measured