Playcrafting - Mastering The Art Of Scaling Your Mobile Game

MASTERING THE ART OF SCALING YOUR MOBILE GAME
For More Information About Launching or Scaling Your Mobile Game, Follow @pollenvc on Twitter
PART 2 OF THE POLLEN/PLAYCRAFTING SERIES

Mastering the Art of Scaling your Mobile Game 2
KENNETH LUI
• Business Development
• Competitive Dota 2 and Smash (Melee & 4)
player
• Previously addicted to Clash Royale,
Pokemon GO, Summoner’sWar, and Non-
stop Knight

BUILD A GREAT GAME

WHAT IS SUCCESS?

PRE- SOFT LAUNCH

How To Launch Your Mobile Game
MEASUREMENT
• Bug Tracking
• Analytics
• Chart Tracking
• Attribution/Campaign Performance
WHAT ARE OTHER STUDIOS USING?

Apple Releases
your cash
• Average Revenue Per Daily
Active User
• 1, 3 & 30 Day Retention
• Benchmarks
ARPDAU AND RETENTION

How to Launch Your Mobile Game 8
ALPHA/BETA TESTS

SOFT LAUNCH

PURPOSE
• Competition is fierce, and getting your
game right for the first time is
essential!
• Testing the user experience/behavior
in the game
• Testing that analytics is working
(Marketing -> In-Game)
• Get an understanding of UAC and LTV

11How To Launch Your Mobile Game
PLATFORM

• ~ 3-4 months
• ~ $15-20k USD
• ~ 2,000 DAU
DURATION, BUDGET & SAMPLE

AALTO EE / GAME EXECUTIVE 2016 13
Apple Releases
your cash
• Bugs/Events
• Downloads - by channel
• Monetization ARPDAU - over $.
20
• Retention
• D1 ∼ 40%
• D7 ∼ 20%
• D30 ∼ 10%
• Organic Growth /Virality (k-
factor)
WHAT TO MEASURE?
Source: Fiksu

Apple Releases
your cash
Overspend Even Underspend
Large English Speaking Population
COUNTRIES

15How To Launch Your Mobile Game
Examples of Great Icons:
ASO AND APP ICON
*Tune study 2015

UA CAMPAIGN MEASUREMENT

IN-GAME ANALYTICS

Mastering the Art of Scaling your Mobile Game
YOUR PLATFORM RELATIONSHIPS
18
• No substitute for making a quality game that’s fun.
• Pitching platforms early on
• Meet reps at events
• Ask someone if they’ll share your game
• Submit through App Support

TRACKING APP STORE POSITION

LAUNCH

21
TYPICAL LAUNCH SCENARIO
LAUNCH
Fail to get
credit with
ad networks
Can’t
reinvest to
acq more
users
You get
paid by
Apple
DOWNLOADS REVENUE
Revenue/Downloads
AALTO EE / GAME EXECUTIVE 2016

22
LOWER YOUR EFFECTIVE CPI
BY REINVESTING WHEN
YOU ARE RIDING HIGH…
How To Launch Your Mobile Game

HOW TO SCALE YOUR MOBILE GAME
MARTIN MACMILLAN, CEO

How to Finance Your Growth: A Metrics Based Approach 25
ABOUT POLLEN VC
MARTIN MACMILLAN, CEO & FOUNDER
Pollen VC provides a new type of growth capital for
app developers who are ready to scale
We enable developers to fund advertising by
unlocking the value in app store revenues early
Our model is a flexible and non-dilutive alternative to
equity financing, allowing developers to retail control
while growing their business
Our mission is to get start-ups to think about capital
efficiency, using the right type of funding for the
right purpose

AGENDA
PREPARE TO SCALE
ALL ABOUT THE METRICS/UNIT ECONOMICS
FINANCIALS
WHAT DOES YOUR ORGANIZATION LOOK LIKE?

ARE YOU READY?
WHAT DOES YOUR BUSINESS LOOK LIKE?
MOTIVATIONS
WHAT’S THE END GAME?

28
Everyone knows the stories about a few apps that go
viral with no promotion.
For the 99.9% of all other apps launched, it’s necessary
to spend to acquire users.
THE REALITY IS THAT YOU
NEED TO SUPPORT YOUR
APP WITH PAID UA
How to Finance Your Growth: A Metrics Based Approach

29
Let’s start with the basics…
UNIT ECONOMICS OF PAID UA
LTV - Lifetime Value
• Expected value of that customer
over it’s lifetime, i.e. total
amount earned
• What does it mean for app
developers?
• How long is a lifetime?
CPI - Cost Per Install
• How much does it cost to acquire a
user?
• Where do I ﬁnd these users?
• How do I target these users?
• When do I pay for these users?

30
UA HAPPINESS
$2$1

31
50c$1
UA MISERY

32
THE USER ACQUISITION REALITY
Unless you have worked out an ROI positive way to spend money
on paid UA, no amount of VC or external investment will get you
the result you need.
FACT
Prepare to Join the App Millionaires Club

33
CONSTANTLY TRACK
METRICS - DOWNLOADS, CONVERSIONS, RETENTION,
ARPDAU, CPI etc.
ATTRIBUTION - WHICH NETWORKS ARE WORKING OR NOT
WORKING - NB THIS CAN CHANGE DAILY

34
CONSTANTLY TRACK
UNDERSTAND WHAT THEY MEAN,
NOT WHAT THEN STAND FOR!

35
RECIPE FOR SUCCESS
Understand what
it costs to acquire
a user
How long before
you receive the
revenue?
The revenue
they will
generate
VS
+

$1.60
$1.40
$1.20
$1.00
$0.80
$0.60
$0.40
$0.20
$0.00
1
11
21
31
41
51
61
71
81
91
101
111
121
131
141
151
161
171
181
191
201
211
221
231
241
251
261
271
281
291
301
311
321
331
341
351
361
PROFIT & LOSS DOES NOT
EQUAL CASH-FLOW
Days from launch

37
THE PROBLEM: PLATFORMS
ONLY PAY OUT REVENUE UP
TO 60+ DAYS AFTER YOU’VE
EARNED IT.
LAUNCH
You’re earning money from day 1
This is your money
trapped in the payment system
Platforms release
your cash…

38
HOW TO USE THIS TO YOUR ADVANTAGE
Unlock the value of your earnings
rather than using venture capital to
fund growth
Think of your accrued
app store earnings as an
untapped asset

39
LTV CALCULATION ASSUMPTIONS
$1.50
LTV

40
$1.50
LTV
365
Day max.

41
$1.50
LTV
365
Day max.
$1.00
CPI

42
$1.50
LTV
365
Day max.
$1.00
CPI
1,000
Installs daily

$1.60
$1.40
$1.20
$1.00
$0.80
$0.60
$0.40
$0.20
$0.00
1
11
21
31
41
51
61
71
81
91
101
111
121
131
141
151
161
171
181
191
201
211
221
231
241
251
261
271
281
291
301
311
321
331
341
351
361
LET’S GET BACK TO LTV
Days from launch

-$100,000
-$80,000
-$60,000
-$40,000
-$20,000
$0
$20,000
$40,000
$60,000
$80,000
$100,000
Sep-15
Oct-15
Nov-15
Dec-15
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
44
NET CASH POSITION
Net Cash Position
ﬁrst becomes
Positive
First App Store
payment hits bank
account
Spending $1,000/
day on ads

USING REVENUE RECYCLING
NetCashPosition
-$400,000
-$320,000
-$240,000
-$160,000
-$80,000
$0
$80,000
$160,000
$240,000
$320,000
$400,000
Weeks After Launch
0 4 8 12 16 20 24 28 32 36 40 44 48 52
Net Position w Revenue Recycling Net Position
-$100,000
-$80,000
-$60,000
-$40,000
-$20,000
$0
$20,000
$40,000
$60,000
$80,000
$100,000
Sep-15
Oct-15
Nov-15
Dec-15
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16

USING REVENUE RECYCLING
NetCashPosition
-$400,000
-$320,000
-$240,000
-$160,000
-$80,000
$0
$80,000
$160,000
$240,000
$320,000
$400,000
Weeks After Launch
0 4 8 12 16 20 24 28 32 36 40 44 48 52
Net Position w Revenue Recycling Net Position
-$100,000
-$80,000
-$60,000
-$40,000
-$20,000
$0
$20,000
$40,000
$60,000
$80,000
$100,000
Sep-15
Oct-15
Nov-15
Dec-15
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Recycling
revenue allows
you to achieve
same UA
spend on 20%
of your
starting
budget or
spend 4x more
on paid UA
with same
budget
c.$20,000 required
c.$80,000 required

Reinvest earned LTV
directly into advertising
Acquire more
users faster
Extract LTV
on a daily basis
A NEW WAY…
Extract your LTV
as you earn it, to fund
your advertising spend
and fuel your growth.
Keep your VC money
in the bank!

FINANCES
WHO IS THE CFO?
WHERE ARE THE GAPS IN KNOWLEDGE?
PROCESSES AND SYSTEMS

49
FINANCING OPTIONS
VENTURE FUNDING
Product
Team
Acquisitions
DEBT FUNDING
Marketing/Paid User
Acquisition
Financing projected
cash ﬂow

LONG TERM GOALS
WHO WILL BUY YOUR COMPANY AND WHY?
BUILD YOUR BRAND!
PUBLISHER OR SELF PUBLISH?
RAISING VC/ANGEL FUNDING

IF YOU WANT US TO MODEL YOUR LTV
AND CASHFLOW PLS EMAIL US!
martin@pollen.vc
@PollenVC

Playcrafting - Mastering The Art Of Scaling Your Mobile Game

Playcrafting - Mastering The Art Of Scaling Your Mobile Game

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