Nick Bogovich discussing GSN Games business model

1. Monetizing in Social Casino
& Skill Games
MassTLC2014MobileSummit
Nick Bogovich (@nbogovich)
Executive Director, Mobile
July 22, 2014

2. o Two Models
o Social Casino
o Skill Games
o Making The Most Of Your Opportunities
Agenda
2

3. 3
Two Models: Social Casino & Skill Games
MassTLC 2014 Mobile Summit

4. 4
GSN Games is a leadingproviderof socialcasinoand cash
games
2013: Top 10 Grossing iPad
app
2013: #2 skill gaming site

5. GSN Casino
5
GSN Casino on iPad
• Games: Slots, Video
Bingo, Video Poker,
Blackjack
• Players buy and earn
virtual currency to place
bets in games of choice
• Available on mobile,
social and gsn.com
Product
Overview

6. GSN Cash Games
6
WorldWinner.com
• Games: Card, Arcade,
Strategy, Word, Game
Shows
• Players compete in
practice & cash
tournaments
• Available on web and
mobile web
Product
Overview

7. Socialcasino,skillgames and gamblingare not the same
7
CONSIDERATION
(entry fee)
PRIZECHANCE Sweeps
Gambling
How to make sense of it all:
o No prize = Social casino
o Little or no chance = Skill games
o Entry fee, chance & prize =
Gambling

8. 8
Making The Most Of Your Opportunities
MassTLC 2014 Mobile Summit

9. o The mobile landscape is crowded
o There are over 1 million apps on iOS and Google Play
o The odds of success are against you
o 80% of apps don’t generate enough revenue to support a
standalone business. 59% don’t even cover development costs.
o If success is defined as your app’s profitability, how do you succeed?
9
How Do YouMake The Most Of YourOpportunities?

10. o Before anything else, do your homework! Identify your
vision, mission and corresponding strategies
o Validate the business model – if you can’t figure it out
on paper, you won’t figure it out after launch
10
Tip#1: Form an EffectiveProductStrategy

11. o Spend ample time planning a UX
that supports your app’s mission
and strategies
o Focus on the MVP:
Minimum
Viable
Product
11
Tip#2: CarefullyManage BuildCosts

12. o Be mindful of how your product will evolve
o Prototype and test, early and often
o “Look through the turn” – don’t be too short-sighted
o Listen to your users!
o Know what you know and what you don’t know
o Play to your strengths; everything else can be outsourced
o There’s a fine line between leading edge and bleeding edge
o Keep 3rd parties honest
12
Tip#2: CarefullyManage BuildCosts

13. o Cost-per-acquisition (CPA) is just as important
as lifetime value (LTV)
o LTV helps you measure the quality
of your acquisition channels
o The sooner you optimize your
acquisition funnel, the quicker your
business will grow
13
Tip #3: Understand your useracquisitionfunnel

14. o “You never get a second chance to make a first impression.”
o 26% of app downloads are used 1 time
o 3 ways to keep users coming back
1. Optimize your acquisition spend
2. Effectively onboard users
3. Measure and improve your retention rates
o Remove unnecessary transactional friction
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Tip #4: Make a good firstimpression

15. o Before launch, identify KPIs that represent success
o How many DAUs do you expect?
o What % of DAUs represent paying users?
o What’s your target ARPPU?
o Establish target values ahead of launch to
better identify where to improve your product
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Tip #5: Identify KPIs that representsuccess

16. o Boost revenues or lower cost of sales or operating expenses to
increase your profitability.
o Be careful! Keeping costs low because you made the right decisions
along the way is not the same as artificially cutting costs to maximize
profitability.
o Making the most of your opportunities involves more than just what
drops to the bottom line. It requires proper planning.
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The Bottom Line:How Does It AllAdd Up?

17. Thanks for listening!
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Contact
Nick Bogovich | Executive Director, Mobile
nbogovich@gsn.com | @nbogovich
http://careers.gsn.com/