šĀ Speakers
Host:
Guests:
šĀ Understanding Network Effects
- What are network effects?
- Where increasing numbers of users improve the value of a good or service
- Applies to Animoca Brandsā investment strategy
- As more NFT gaming companies are added to the portfolio, firms provide a wider range of services to facilitate other portfolio firmsā success, strengthening the overall attractiveness and value-add of the investment ecosystem for the next potential portfolio company
- Animoca Brands is leveraging the ārising tide that lifts all boatsā, investing in a broad ecosystem and not just individual companies and services
- Also applies to games where the more players join, the better the game gets e.g. in terms of matchmaking, community dialogue, organic growth, virality etc.
- Take Roblox for example. Growing numbers of users attract more creators to build higher quality content and experiences, which draws even more users to join.
- Distinct from Flywheel Effects, which refers to small steps building on one another to create momentum for continual progress and growth
- How might network effects apply in the Web 3.0 gaming space?
- Could be enhanced within a particular ecosystem due to challenges in interoperability across blockchain ecosystems. Being plugged into the same growing network becomes even more important.
- Many interesting game applications to be observed in 2022, e.g. in Animocaās stable of companies such as Sandbox, Phantom Galaxies, etc. Especially reaching beyond mid-core gamers to touch even casual gamers.
- Yet, could be impeded as a whole due to enduring tech challenges in cross-chain interoperability and composability. Host of solutions currently being developed, suggesting rapid progress.
- With or without blockchain, network effects give early games an advantage. New games in crowded markets need to innovate substantially to attract users - it is no longer viable to ā+1ā
- E.g. Games coming after Axie Infinity in the P2E space, Dream Games being able to break into the Match 3 market with Royal Match through deep genre insight, quality execution, and polish
- Need to develop unique experiences and an independent PoV.
- Need to balance the Lifetime Value (LTV) / Cost per Install (CPI) equation
š ļøĀ User Acquisition Fundamentals
- What is the broader context for UA?
- Critical experience for all CEOs and founders - run own UA campaign
- The initial user acquisition is only the beginning - the work thereafter involves deeply understanding the user journey through data-driven analysis
- Tracking indicators like Returns on Ads Spend (ROAS), LTV and CPI
- So as to inform performance marketing to grow more users across identified segments
- How can gaming studios structure themselves to optimize for UA?
- Close integration with Product and Advertising - ensure teams are not working in silos
- e.g. data pipelines to send insights from UA campaigns to Product Teams to optimize game experience for desired user categories, sharing awareness of active channels and their impact on ongoing A/B tests
- Be relentlessly data- and outcome-driven
- What are common errors in early UA campaigns?
- Paying for data analytics without ensuring the data set-up is sound
- Over-reliance on a single channel
- Prioritizing UA without broader consideration of game quality and CPI/LTV equation
- What are some best practices in running UA?
- Budget: LTV should dictate level of spending (e.g. on Ads) for CPI
- The minimum budget is whatever is required to provide statistically significant data e.g. on conversion and monetization KPIs, LTV, ROAS
- Differentiation: Each UA channel comes with different aspects of optimization and creative possibilities. Depends on the teamās resources and risk appetite.
- Timelines: Manage payback windows carefully
- Esp lag time between the anticipated payback window and when cashflow from users actually becomes available for reinvestment
- Strike a delicate balance between short-term monetization and long-term user experience and longevity
- How does UA operate in the blockchain gaming space?
- More complex given the variation in the target audience segments, e.g. players who spend time in community on Discord, prefer to focus on purchase and trading of NFTs in the marketplace, or on gameplay itself
- Optimize for each groupās experience differently, based on their goals and preferences, yet also finding ways to connect them
- Key challenges:
- Tracking a single user across different platforms and channels
- Less well-defined lines of communication with users
- Understanding user behaviour across external NFT platforms e.g. OpenSea
- Discoverability - likely to see more aggregation platforms crop up
- New tools to explore, e.g. airdropping tokens or NFTs, which could also be seen as a unique form of influencer marketing (e.g. MrBeastās boost for Supercell)
- Come with Blockchain-specific issues e.g. considering marketing return for sending assets to pseudonymous wallets
- How does Mythical Games consider UA?
- Holistically across Growth Marketing and Brand Marketing to understand users deeply
- Building tools in-house as well as buying suitable off-the-shelf services