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Mastering Retention Podcast

The Fundamentals of Monetization Part 1

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https://www.youtube.com/watch?v=3_LCrUdi8GU⁠

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🎙️ Mastering Retention Podcast Episode: Interview with Remi Spagnol from Hyper Hippo

Host: Tom Hammond, Co-founder of UserWise

Guest: Remi Spagnol, Managing Director of Games at Hyper Hippo

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🌟 Introduction

In this special episode of the Mastering Retention Podcast, host Tom Hammond welcomes Remi Spagnol from Hyper Hippo. Together, they delve deep into the world of game monetization, discussing its importance, strategies, and how to balance it with player retention.

🚀 Remi's Journey into Gaming

✍️ From Aspiring Writer to Game Designer:

Initially planned to become a writer after college.

Landed a narrative writing position at Kano Apps (referred to as "Clickwire Games") through a Craigslist ad.

🎮 Early Career:

Worked in a small indie environment, gaining experience in various areas like store pages, UA campaigns, and FTUE funnels.

🌐 Professional Experience:

Joined Gameloft as a Social and Retention Specialist, where he learned about game economies and monetization.

Spent approximately three years at Electronic Arts (EA), working on a massive project and honing his skills in system design and economy balancing.

Moved to Hyper Hippo, starting as a Senior Designer, then becoming Creative Director, and eventually the Managing Director of Games.

🤝 Leadership Philosophy:

Emphasizes empowering his team rather than imposing ideas.

Believes in directing creativity by maximizing the strengths of team members.

🛠️ Understanding Monetization

💰 Definition:

Monetization is how players spend money on a game to enhance their experience.

🔑 Importance:

Essential for keeping games operational and successful.

Determines the game's ability to grow and sustain itself, especially in free-to-play models.

🎯 Advice for New Designers:

Don't shy away from monetization; it's a positive sign that players love your game.

Monetization should be integrated into the game design from the beginning, not added later.

After spending, players should feel they're having the best time in the game.

🎮 Balancing Monetization and Player Experience

🌟 Positive Spending Experience:

Spending should enhance enjoyment and not detract from the game.

Example: Early spending in Clash of Clans allowed players to upgrade multiple aspects, enhancing fun.

⚖️ Avoiding Pitfalls:

Be cautious of "pay-to-win" models that can alienate non-spending players.

Understand your target audience and design monetization strategies that suit them.

Ensure that monetization does not negatively impact player retention.

🧠 Designing Monetization Strategies

🔄 Integration is Key:

Monetization mechanics should be a natural part of the gameplay.

Players should encounter logical spending opportunities throughout the game.

🎁 Examples:

Loot Boxes: Should be part of regular gameplay with options to purchase more.

Archero: Players receive equipment during gameplay and can choose to buy better gear.

🛣️ Multiple Progression Tracks:

Design separate experiences for paying and non-paying players to optimize enjoyment for both.

📈 Impact on Retention

⏳ The Balance:

Monetization should not come at the expense of player retention.

Example: In idle games like AdVenture Capitalist, paying to progress can skip enjoyable early experiences.

📊 Data-Driven Adjustments:

Analyze player behavior to understand how monetization affects retention.

Adjust the game economy to ensure spenders continue to have engaging content.

🎉 The Power of Time-Limited Events

⏰ Sense of Urgency:

Limited-time events create urgency, increasing engagement and spending.

🏆 Clear Goals and Rewards:

Events provide specific objectives and exclusive rewards, motivating players to participate.

🧪 Testing Ground:

Events allow developers to introduce new features and monetization strategies without affecting the core game.

Example: Clash Royale introduced 2v2 mode as a limited event before making it permanent.

💡 Designing Effective Events

📊 Analyzing Player Progression:

Use data from past events to optimize reward placement and trigger timely offers.

⚠️ Avoiding Player Frustration:

Ensure events are challenging but achievable without forcing players to spend.

Be cautious not to make events feel impossible without monetization.

🎯 Balancing Engagement:

Design events that cater to both highly engaged players and spenders, providing value to all.

📺 Ad Monetization Strategies

⏩ Complementary to In-App Purchases:

Ads offer a way for non-spending players to support the game and receive benefits.

💎 Clear Value Proposition:

Ads should offer immediate and understandable rewards, like doubling in-game earnings.

🔄 Integration:

Ad placements should be thoughtfully integrated into the gameplay loop to enhance, not disrupt, the experience.

📊 Considerations:

Be cautious of over-reliance on ads due to potential platform policy changes.

Understand that ad placements may not be equally appealing to all player segments.

📝 Final Tips for Boosting Retention

🔍 Focus on the FTUE Funnel:

Analyze the First Time User Experience to identify where players drop off.

🕵️‍♂️ Detective Work:

Use detailed data to understand and fix specific points where players leave the game.

🎯 Precision and Clarity:

Aim for crystal-clear insights into player behavior to make effective improvements.

📝 Conclusion

Remi Spagnol provides deep insights into the intricacies of game monetization, emphasizing the importance of integrating monetization into the core gameplay to enhance player experience. His expertise sheds light on balancing monetization strategies with retention efforts, offering valuable guidance for game developers navigating the free-to-play landscape.

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📞 Connect with Remi Spagnol:

LinkedIn:

Remi's Profile⁠

(Note: Please verify the link as it may not be accurate.)

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