Video Game Whales have been discussed frequently but with little insight to the financial nature of the “beast”. A whale is a user who is spending a significant higher amount on your game through microtransactions (MTX). The time old tale of “95% of your revenue comes from 5% of your users” is exactly what we’re talking about.
If you’re new to marketing or to video game specific marketing I’d recommend you start here. Covered in this series are all the primary metrics that video game marketing acts on. There isn’t a sequential order but I’d recommend following the order below. (more…)
There are two metrics when looking at Active Users that you will want to understand.
CPA is a classic metric metric every marketer should know for their product. The Cost per Acquisition details the direct marketing costs to create a new user. The objective is obviously to have a CPA lower than your LTV in order to operate at a profit. (more…)
K factor can be complicated if you let it. We want to keep this metric very simple in this discussion but we will expand on it later. To define the concept of k factor - it’s the viral growth rate of users converting other non users into users. A k factor of .5 means every 2 users will convert another 1 user. (more…)