Presentation by Anu Shukla at the MySpace devJam on February 5th, 2009

1. Slide title goes here…
MySpace devJam
Anu Shukla
Founder & CEO, Offerpal Media, Inc.
Offerpal Media Inc. Confidential

2. Agenda
I. Workshop: Building a Virtual Economy
II. Panel Discussion: Best Practices for Virtual Currency
Monetization
III. Apps Review: Real World Apps Critiqued
IV. Updates: What’s New with the MySpace Platform?
V. Networking: Open Bar

3. Offerpal Background
The first social advertising platform: launched October 2007
•
800+ publishers across multiple platforms
•
2,000+ advertising offers in 54 countries
•
2.5+ million offers conducted every month
•
Platforms
Applications
Games
Worlds

4. Offerpal Payouts
Network‐wide eCPM: $150 – 200
•
Average publisher payout: $75/day/1,000 users
•
Conversion rate: >5% (40x better than traditional CPA)
•
Revenues per completion: >$5.00
•
>$150 eCPM $400
Card Games
$225
MMORPGs
Tamagotchi Games $200
<$1 eCPM
Racing $175
<10¢ eCPM
$150
Owning
Monetization
Pets
for Virtual $100
Category
Currency and
Digital
Monetization CPM Green $75
CPC Adsense Products
Banners
User eCPM
Engagement

5. Building a Virtual Economy:
A Step-by-Step Guide

6. Step 1: Define Your Currency
Give it a name:
“Wishes”
•
“Baby Bucks”
•
“WeePoints”
•
“Favor Points”
•
“Moola”
•
“Chips”
•
“Munny”
•
“Green Bucks”
•
“Rewards”
•
“Coins”
•
“Vouchers”
•
“Tokens”
•
“Boosts”
•
“Jewels”
•
“Credits”
•
“Treats”
•

7. Step 2: Define Your “Sources”
Let users earn
currency by:
Logging in
•
Inviting friends
•
Completing tasks
•
Completing offers
•

8. Step 3: Define Your “Sinks”
Let users redeem
currency by
purchasing:
• Decorative Goods
• Virtual Gifts
• Functional
Goods/Services

9. Step 3: Define Your “Sinks”
Decorative goods:
• Geared toward self‐
expression
• Virtual clothes,
accessories,
backgrounds, toys, etc.
• Prevalent in virtual
worlds and social
communities

10. Step 3: Define Your “Sinks”
Virtual Gifts:
• A form of social expression
• Leads to reciprocity and viral
growth
• Popular on social networks,
especially “social utility” apps

11. Step 3: Define Your “Sinks”
Functional Goods:
• Meaningfully alters the
user experience
• Virtual weapons,
protection, more turns,
more time, etc.
• Found mostly in
MMOGs, RPGs and
other social games

12. Step 4: Onboard With Offerpal
On‐board in
4 Simple Steps:
1. Sign up
2. Add new app
3. Configure & test
4. Go live
(Total time: 10 – 15 min.)

13. Step 4: Onboard With Offerpal
On‐board in
4 Simple Steps:
1. Sign up
2. Add new app
3. Configure & test
4. Go live

14. Step 4: Onboard With Offerpal
On‐board in
4 Simple Steps:
1. Sign up
2. Add new app
3. Configure & test
4. Go live

15. Step 4: Onboard With Offerpal
On‐board in
4 Simple Steps:
1. Sign up
2. Add new app
3. Configure & test
4. Go live

16. Step 5: Integrate Currency Into User Experience
• Build currency into the
game mechanics of your app
• Place currency where it
makes sense contextually

17. Step 6: Make it Easy to Find
Promotion =
Monetization
• Add a tab to “Earn
Currency”
• Include balance in
a status bar
• Use newsfeeds,
notifications and
other messaging
opportunities

18. Step 7: Use Ad Inventory
Promotion =
Monetization
• Use banners, prestitials,
reg‐path offers or other
forms of display ads
• Currency‐driven
banners generate 10x
click‐through rates of
non‐incentivized
banners

19. Step 8: Introduce New Goods/Services
Keep your economy
fresh:
• Add new virtual
goods/services regularly –
monthly if not weekly
• Come up with innovative
new goods/services
• Think like a traditional
merchant and
“merchandise” your
products for easy
browsing

20. Step 9: Maintain a Balanced Economy
Tips for a healthy economy:
• Don’t issue too much currency
• Balance sources and sinks
• Keep an eye out for “gold farming”
and fraud
• Adjust the exchange rate
• Manage inflation
• Monitor trades or exchanges, if
allowed

21. Step 10: Optimize, Optimize, Optimize
Publishers should measure, test and analyze:
• What are your most popular
“sources” and “sinks”?
• Which audience segments are most
active in your virtual economy?
• Which promotions are most
effective?
• At what levels are users most
engaged in your virtual economy?
• When are users most likely to
complete ad offers?
• Etc.

22. Step 10: Optimize, Optimize, Optimize
Offerpal maximizes revenues on your behalf …
Measurable success metrics include:
Our platform engine automatically
maximizes performance based on: • Revenues
• eCPM
Profile data
• • Click-Through Rates
• Take Rates
Behavioral targeting
• • Exchange Rates
Proprietary algorithms
• • Conversions
• Revenue/Click
• Revenue/Completion
Our integrated testing framework allows
Revenue Per UI
us to conduct:
400
• A/B split testing R
300
e
• Exchange rate testing v
200
e
• User interface testing n
100
• Offer rotation testing u
e
0
Old UI New UI: Most New UI: All
Popular Offers Offers

23. What’s Next: Mobile Applications
iPhone Integration:
Social websites
MMOGs
Digital merchants…
• First advertising platform
on the iPhone
• Reaches 10+ million iPhone
users
• More than 15,000
applications already on the
iPhone platform
• Free‐to‐play, ad‐supported
apps are most popular

24. Questions?