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F2P In-Game Events, How Discounts Affect Revenue, Acquisition vs Retention

Posted by Zach Taiji

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Jul 1, 2015 11:42:30 AM

In-Game Events for F2P Games

Game analytics can let you track and analyze almost any behavior and event within your video game, providing valuable insight and predictions. Unfortunately, it can be difficult to determine which metrics are most important.

If your game is based on an F2P model, you should start by tracking the First Time User Experience (FTUE), which outlines a user’s initial flow of your game - from install, to tutorial to play - to help better understand their behavior.

Other events worth tracking include mission/level completed, virtual currency transactions, achievement completion and linking to social networks. For a detailed explanation of these events, you can read this article on Gamasutra.

Bigger Discounts Lead to Loss in Revenue

Each year, PC game distribution platform Steam holds its Summer Sale, a huge promotion of discounted games that takes place throughout the course of a few weeks. During the Summer Sale, “flash” sales can result in a temporary discount of 50% or more, with many games costing less than $5 - a great way for games to gain traction among a crowded market.

A new study by SteamSpy, a website that analyzes Steam sales, has revealed that games with more than a 50% price cut during this year’s Summer Sale actually experienced a decline in revenue: “The median income for games with 25 per cent, 33 per cent and 50 per cent was $90,000, with no significant difference between games cutting the price by those proportions. Increase that to 66 per cent, however, and median revenue falls to $75,000. At 75 per cent, it drops to $40,000.”

You can learn more about the study on GamesIndustry by clicking here.

Acquisition vs Retention for Mobile

Creating a player base through acquisition is one of the first things mobile developers do after launching their game.

But once your game has a decent user base, it’s important to switch focus to user retention - ensuring that your players come back for more. Why? New user acquisition can be expensive, costing 6 to 7 times more than retention.

Furthermore, user acquisition doesn’t increase conversion rates, as Zach Redler of Appsaholic says “new users driven from mass acquisition campaigns are unlikely to engage with ads or make in-app purchases, and many will uninstall if they don't get value from their experience”.

So what can mobile developers do to increase retention? Take a look at this article on PocketGamer.

 

Topics: Game News

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