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The Business of Social Games and Casino

How to succeed in the mobile game space by Lloyd Melnick

Tag: marketing

Why your Facebook fanpage is less effective

Many social game companies use Facebook as the central point of their community strategy but changes to Facebook’s surfacing algorithm suggest you may want to focus elsewhere. A social game’s Facebook fan page has been a great medium to increase retention, virality and even monetization. Keeping the community engaged through dialogue and promotional offers, so they are regularly on the fan page, is a relatively low-cost, low-effort way of getting your players back in the game (and thus increasing retention). Running promotions that encourage your Facebook fans to share links and other information increases the virality of your app. You can even use your Facebook fan page to improve monetization, by running sales directly from the page that cater to the community.

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A recent article on Business Insider, however, points to the lower reach these pages are now experiencing, and thus reduced effectiveness. According to the article, at the beginning of December, Facebook changed the algorithm it uses to select the stories that appear in users’ News Feeds. The effect of the change was to reduce the reach of Facebook posts, which some companies feel declined by as much as 80 percent. Although Facebook’s motivation for the change is uncertain (Facebook claims it is trying to surface more relevant posts, while companies feel they are trying to force them to advertise more), the impact is very clear: Less surfacing equals less effectiveness. Continue reading “Why your Facebook fanpage is less effective”

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Unknown's avatarAuthor Lloyd MelnickPosted on January 23, 2014February 6, 2014Categories General Social Games Business, Growth, Social Games MarketingTags advertising, Facebook, jim tobin, marketing, shares, Virality3 Comments on Why your Facebook fanpage is less effective

Recommended Holiday Reading

Contagious: Why Things Catch OnLast year I recommended the ten professional books that I had found most valuable. I recently finished reading Contagious: Why Things Catch On and found it incredibly enlightening. The author, Jonah Berger, is a Wharton professor who is probably the leading expert on generating word of mouth.

Word of mouth is one of those black boxes that many growth or marketing professionals resignedly claim is a matter of luck. Berger, who has spoken to Google and Facebook among others, shows the fundamentals of creating a product that will generate word of mouth (the growth of which is not necessarily marketing, but rather integrated with building your game the right way). I will write more about Berger’s work in the future but you should put it at the top of your holiday reading list.

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Unknown's avatarAuthor Lloyd MelnickPosted on November 25, 2013November 20, 2013Categories General Social Games Business, Growth, Social Games MarketingTags Contagious, Growth, Jonah Berger, marketing, Word of Mouth2 Comments on Recommended Holiday Reading

Growth tactics for mobile game and social media companies

Growth Hacking ConferenceThe big buzz phrase in the Bay Area the last year or so has been “growth hacking,” and the ideas behind it can help significantly game companies. The underlying principle in the phrase is that modern start-ups should be focused on using the new tools available via technology to grow rapidly their user base rather than relying on older, sometimes outdated, marketing techniques. Growth—unlike marketing—usually encompasses multiple aspects of an organization, with the growth team not only bringing in users but also working with the product team to optimize the product for growth. It stresses the importance of product to growth and how the two should work together rather than having marketing set aside in a corner. The phrase itself was coined by Sean Ellis, CEO of Qualaroo and the first marketer at many great tech companies including Dropbox and LogMeIn.

What is a growth team?

A quora post from Andy Johns (currently on Quora’s growth team and one of the early members of Facebook’s growth team) described the typical people an early stage company would put on its growth team: Continue reading “Growth tactics for mobile game and social media companies”

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Unknown's avatarAuthor Lloyd MelnickPosted on February 25, 2013February 26, 2013Categories Analytics, General Social Games Business, Growth, International Issues with Social Games, Social Games MarketingTags Chamath Palihapitiya, Elliot Shmukler, Growth, iteration, marketing, Sean Ellis, testing, user acquisition3 Comments on Growth tactics for mobile game and social media companies

How to waste good marketing

Over the past year, I have blogged several times on the importance of creating a robust go-to-market strategy and marketing plan for social games. A recent experience with some great advertising reminded me of a key ingredient necessary for an effective advertising program: a good product that delivers what you are advertising.

Google vs Bing

Continue reading “How to waste good marketing”

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Unknown's avatarAuthor Lloyd MelnickPosted on November 1, 2012November 12, 2012Categories General Social Games Business, Social Games MarketingTags bing, google, marketingLeave a comment on How to waste good marketing

The Bot Controversy

It seems that the talk of the social gaming space is about Bots and using them to manipulate the iOS charts. It started with rumors that several companies were working with a “marketing” firm that actually just used bots to create fake downloads to move games up the free charts, to more rumors that this manipulation was being done by low-wage labor to even more rumors that it was Chinese slave labor. My guess is the truth is somewhere in between but what I find humorous is the high and mighty attitude some in the industry have taken. There may be some companies that knew what was going and decided not to partake, though why they did not report it to Apple or the press confounds me (and is bad business, as it put them at a competitive disadvantage). There are probably more companies that just did not know how to move up the charts in this manner. For the record, fiveonenine’s first iOS title will come out a few weeks so we do not have to make this “choice.”

What I actually find more interesting is that Apple did not stop this practice sooner. Given how widespread everyone in the industry knows it is and more importantly how even basic analysis of the traffic (i.e. tons of downloads with zero retention), Apple had to have known what was going on. Thus, they apparently decided not to stop it until the press made an issue of the manipulation. Furthermore, given how beautifully Amazon polices its customer ratings (they very diligent about eliminating fraudulent comments or those made by people even remotely tied to a product), Apple could stop the manipulation of its charts anytime it wants to.

All that said, what really matters to mobile social game companies is that this development reinforces the need to have a robust marketing strategy (and yes, insert here the trite comment that they just need to make good games that will naturally go high in the charts). Those companies (even if they are tiny) that relied on this “marketing tool” for their installs are now left dry, they need to find quickly a way to replace the installs generated by being artificially moved to the top of the charts. Companies, however, that have multiple marketing channels (performance marketing, web advertising, PR, social media marketing, etc.) can now just alter their marketing mix and maintain their business. This latest little controversy is just the most recent piece of evidence why it is necessary for social game companies to create full and robust marketing strategies for their games rather than rely on one tool.

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Unknown's avatarAuthor Lloyd MelnickPosted on February 16, 2012Categories General Social Games Business, Mobile Platforms, Social Games MarketingTags Apple, Bot Farming, iOS, marketing, social game, social gamesLeave a comment on The Bot Controversy

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Get my book on LTV

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Lloyd Melnick

This is Lloyd Melnick’s personal blog.  All views and opinions expressed on this website are mine alone and do not represent those of people, institutions or organizations that I may or may not be associated with in professional or personal capacity.

I am a serial builder of businesses (senior leadership on three exits worth over $700 million), successful in big (Disney, Stars Group/PokerStars, Zynga) and small companies (Merscom, Spooky Cool Labs) with over 20 years experience in the gaming and casino space.  Currently, I am the GM of VGW’s Chumba Casino and on the Board of Directors of Murka Games and Luckbox.

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