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Peter Farago VP Marketing Flurry, Inc. December 1, 2010 Turn iOS Virtual Currency into Real Revenue

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Page 1: Flurry Presentation

Peter Farago VP Marketing

Flurry, Inc.

December 1, 2010

Turn iOS Virtual Currency into Real Revenue

Page 2: Flurry Presentation

• Improve Your App• Retain Your Users

• Promote Your App• Monetize Your App

Page 3: Flurry Presentation

Flurry Snapshot

35,000

55,000

App Developers:

Live Applications:

Flurry Analytics

170 MTotal Devices Covered:

103 MMonthly Active Devices:

30 MDaily Active Devices:

4.4 BMonthly Sessions:

Flurry AppCircle

1,200App Developers:

50 MDevices Reached:

Selected Customers

45 BMonthly Events:

Page 4: Flurry Presentation

iTunes Downloads

App Store vs. iTunes Downloads

Source: Apple, Inc.

-

500

1,000

1,500

2,000

2,500

1 2 4 8 11 15 20 27 34 45

downloads (billions)

1 2 3 4 5 6 7 8 10 12 15 18 21 22 23 26 -

1

2

3

4

5

6

7

iTunes App Storemonths since launch

1B

2B

3B

4B

5B

6B

10 months

15 months

18 months

23 months

26 months

• iTunes reached 6B in ~ 6 years; App Store reached ~ 1/3 time

• App Store 6.5B in just over 2 Yrs; Tunes 370M over same time

• App Store downloads 18X versus iTunes over same period of time

iPhone App Store Dwarfing iTunes Success“I’ve never seen anything like this in my career” – Steve Jobs

Page 5: Flurry Presentation

Consumer Usage by Category, iOSGa

mes

Socia

l Net

workin

gEn

terta

inm

ent

Spor

tsGa

mes

- Ac

tion

Utiliti

esPr

oduc

tivity

News

Lifes

tyle

Mus

icGa

mes

- Bo

ard

Gam

es -

Arca

de

Trav

elRe

fere

nce

Gam

es -

Card

Phot

ogra

phy

Gam

es -

Puzz

leFin

ance

Navig

ation

Gam

es -

Kids

Healt

hcar

e &am

p; Fi

tnes

s

Book

sBu

sines

s

0%

5%

10%

15%

20%

25%

30%

35%

40%

Health

care

& Fi

tnes

s

Tota

l Ses

sion

s by

Cat

egor

y, P

erce

nt

Page 6: Flurry Presentation

Console71%

Portable25%

iPhone5%

Source: Flurry Analytics

U.S. Video Game Software by Revenue

Console79%

Portable20%

iPhone OS1%

2008 2009

iPhone Takes Share from Traditional Gaming

Page 7: Flurry Presentation

Nintendo DS70%

PlayStation Portable

11%

iPhone OS19%

Source: Flurry Analytics

U.S. Portable Game Software by Revenue

2008 2009

Nintendo DS75%

PlayStation Portable

20%

iPhone OS5%

iPhone Takes Share Handheld Gaming

Page 8: Flurry Presentation

Social Gaming on MobileMostly Games• RPG , Simulation, Poke• Some Puzzle, Word

Tuned for Mobile Experience• Typically casual game-mechanic• Design delivers quick fun, but supports for longer game sessions• Leverage social components, from MMO to MSP

Platforms

Page 9: Flurry Presentation

Jun 09

Jul 0

9

Aug 09

Sep 09

Oct 09

Nov 09

Dec 09

Jan 10

Feb 10

Mar 1

0

Apr 10

May 1

0

Jun 10

Jul 1

0

Aug 10

Sep 10

Oct 10

-

50,000

100,000

150,000

200,000

250,000

Source: Flurry Analytics

Uni

que

Dev

ices

Det

ecte

d pe

r Day

iOS vs. Android Installed Base

Page 10: Flurry Presentation
Page 11: Flurry Presentation

Great Device & Operating System

Game Developers Want a Business Not an OS

DeveloperInnovation

Broadband Connectivity

Large, Paying Customer Base

One-clickPurchase

Page 12: Flurry Presentation

Free in Top Grossing:

• 2 of the top 5

• 5 of the top 10

• 10 of the top 25

• 19 of the top 50

Page 13: Flurry Presentation

$-

$2

$4

$6

$8

$10

$12

$14

$16

$18

$20

Sources: Flurry Analytics, comScore, and ADOstrategies

Free-to-Play Business Model Works on iOS

Reve

nue

per U

ser p

er Y

ear (

aka

ARPU

)

*

* Example of ARPU from successful social gaming apps category

Ka-ching!

Page 14: Flurry Presentation

Some Free-to-Play ExamplesHard Core

RPGCasual

RPG Poker Simulation

Session Length 2.3 mins 2.1 mins 5.3 mins 2.6 mins

Sessions / Day 2.7 3.5 2.2 3.0

Engagement 6.2 mins 7.4 mins 11.6 mins 7.8

DAUs 45,000 30,000 150,000 325,000

Retention 14% 12% 7% 13%

% of AUsPurchasing 5.4% 1.5%

Page 15: Flurry Presentation

Underlying Drivers of KPIs

Acquisition Retention Monetization

PromotionCross-sellingAdvertisingSocial ChannelsViral Loops

Concept / QualityPayout CurveSocial StatusAchievementsCompetitionContent Updates

FreemiumMicro-transactionsAffiliateAdvertising

Free-to-play Business Model Revenue per DAU

Page 16: Flurry Presentation

Box Office

Home Video

Direct Video Sequel

Licensing / Merchandising

Video GamesOther

Lessons from the Lion King

Page 17: Flurry Presentation

You Have More Potential

In-App Purchases

Page 18: Flurry Presentation

97%non-purchasers*

3% Virtual Goods

Purchasers

AppCircle Monetizes Non-Purchasing Consumers

DAUs Low Average High50,000 $ 1,500 $ 2,500 $ 4,150

100,000 $ 3,000 $ 5,000 $ 8,300 200,000 $ 6,000 $ 10,000 $ 16,600

Daily Revenue Range by Implementation Quality

Period Low Average High

Month 99,600 $ 174,300 $ 249,000 Quarter $ 298,800 $ 522,000 $ 747,000

Year $ 1,198,000 $ 2,088,000 $ 2,988,000

Revenue Projection by Month, Quarter, Year (100k DAU)

Source: Flurry Analytics

Page 19: Flurry Presentation

1 2 3 4 5 6$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

AppCircle Affiliate Revenue Boost

69%

31%

Page 20: Flurry Presentation

Targeted AppCircle Recommendations Solve Discovery

Secondary App Recommendations

Populated by Flurry Engine

User Rewards

Leverages publisher virtual currency to

increase CTRs

Primary App Recommendation

Populated by Flurry Engine

InterstitialRoadblock

Highly Targeted Recommendation

Click takes user to App Store

App Store

Page 21: Flurry Presentation

Chance Based Reward

Page 22: Flurry Presentation

$5 000Download and try this recommended app

The Moron TestDistinctivDev FREE

Earn in-game cash!x

Have User Complete Task

Page 23: Flurry Presentation

Thank [email protected]