Boosting Revenue: Monetization Practices for Digital Merchants

Mark RoseVP Product ManagementPlaySpan

Dave GlaserVP Global ServicesCyberSource

Models

Free to Play

Fixed Price

Subscriptions

Micro-Transactions

Hybrid

Content

Games Apps Video Education Online / Social Media

PCSocial

Networks Mobile Console Connected TV

Platforms

Future

The Digital Goods Environment

Make a great user experience

Have the right support tools

Case Study

Next Steps

Make a great user experience

Create an in-app 1-click experience

Present Options Relevant to CustomerDynamic Currency

ConversionLocal

Language

Auto Display Relevant Payment

Types

Reduces PCI DSS Scope

Make the payment process seem like part of the game

In-app Subscriptions

Virtual currency ewallet

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2

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5

One-click purchases

In-game storefront maximizes immersion

Recommendation engine & contextual commerce

Catalog management

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2

3

4

5

Conversion uplift, higher ARPU, increased retention

In-app Wallets and Store Fronts

Support Tools

Smart Analytics

Increase conversion through roles-based immediate data insight

Smart Analytics

Increase Revenue

Analytics Insight Example

Increase Revenue

Mexico City

Increase Revenue

Dubai

Increase Revenue

Mexico City$20 average payment

Increase Revenue

Dubai$40 average payment

Smart Analytics

Manage Subscriptions

Create & Manage Private Virtual Currencies

Manage Catalogues, Items and Pricing

• In-house expertise (24x7)

• Rapid response

• Spot sampling & review

• Refund users preemptively

• Detailed investigation reports

• Represent and challenge

chargebacks

Fraud Management

CyberSource Decision Manager + Digital Add-ons

Constant Review

Case Study

Dungeons & Dragons Online Relaunch

Based on original D&D RPG First AAA MMO to embrace free to play

In depth e-commerce system

Scaled for large population gains

Hybrid model with premium subscriptions

Premium Subscription MMO Next-Generation Business Model

Principles

• Give Customers Choices – Time vs. money– Unlimited access vs. a la carte

• Build the Right Model– Don’t sell end-game loot– Preserve value of new content

• More Toll-Gates vs. Too Few

Model Impact

Subscription Model F2P w/Microtransactions

Pro

duct

App

eal

Market Size

Subscription Price

Pro

duct

App

eal

Market Size

Common Myths• “Hybrid Models Don’t Work”• “Subscription and MTX can’t co-exist”• “You’ll lose your subscribers”

Reality• Concurrencies up 10X• Revenues 3X in Asia

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Results• Reduced acquisition costs

– 3x ad banner click-through rates vs. previous

• Subscriptions up– Subscriber acquisition up 15%– Reacquisition up 40% since F2P announcement

• > 5x concurrencies since launch

• 22% of players transacting in store

• 70% cart to checkout rate – Customers not afraid to spend money

• 500% increase in revenues

Constant Fine Tuning Post-Launch

• Free vs. Premium

• Adjust Store Pricing

• New Store Items / Services– Re-spec Options– Character Transfer

• Price Plans & Service Levels– Tiered VIP Plans?– Product Bundles?

Application Investigation/Sign-up: CyberSource Account Manager

Integration Assistance: CyberSource Global Services

Subscription/Billing Optimization: Solution Assessment

Merged