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06 Oct 09

Follow the Money: 3 social gaming tips for monetizing younger users | Andrew Chen (@andrew_chen)

Forget usual GenY theory crap - 14 -29 yr olds make up 91.5% total rev virtual goods in Social Gaming

andrewchenblog.com/...s-for-monetizing-younger-users - Preview

games development stats GenY

  • The massive transaction volumes associated with teens and 20-somethings aligns directly with this group’s share of total revenue across a sample of nearly 2 million virtual goods users. How massive? Over 93%. That is, users in their teens and twenties bring in over 93% of all revenue seen across all games, for all developers in the sample. Even though ARPPUs are consistently modest, transaction volume – and with it, total revenues – are jaw-dropping.


    Younger users are cheap, plentiful, and worth your attention.

    • Get Them Young: 3 tips to monetize younger users


      1. Think volume. Look for the users who are transacting the most, and then make sure you understand exactly who they are (and how they might be changing). For example, today your revenue may be driven by a massive group of teenagers, but what will happen when those teens become 20-somethings? In this series, we explored this question by age, but you’ll also want to think about geography, language, and gender. ‘Think volume’ means:


      • Mind your game. If your product is subpar, you shouldn’t expect amazing volumes or revenues, no matter how much you…
      • Focus on growing traffic through virality. How can you make your game even more social, more addictive, and more spreadable?
      • Get users to complete. Users are 3 times as likely to make additonal payments if they’ve completed at least one offer.
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