Monetizing Younger Users: Facebook Social Gaming Revenue Secrets

This article delves into the world of Facebook social gaming and reveals a surprising truth: while older users might have higher ARPPUs (average revenue per paying user), it's actually younger users who drive the majority of revenue in the virtual goods industry.

• Teenagers and users in their twenties make up over 90% of the total user base for virtual goods.
• Despite lower ARPPUs compared to older users, younger users contribute over 93% of the total revenue generated by all developers in the sample.

Why Focus on Younger Users?

It's simple: the massive transaction volume of younger users more than compensates for their lower individual spending. This trend is further emphasized by the rapid growth of Facebook outside the U.S., opening up new markets teeming with potential users.

3 Tips for Monetizing Younger Facebook Users

This article highlights three key strategies for game developers seeking to maximize their revenue from younger Facebook users.

1. Think Volume

The first tip emphasizes the importance of understanding and maximizing user volume. This means focusing on:

• Game Quality: A strong game will naturally attract a larger player base and generate greater revenue.
• Virality: Make the game social and addictive, encouraging players to share their experiences and invite friends.
• Offer Completion: Incentivize players to complete offers, as this significantly increases the likelihood of additional purchases.

2. User Retention

Retaining users is critical for sustained revenue. This involves addressing factors that can lead to churn, such as poor user experience or unsatisfactory offers.

• Offer Optimization: Identify and remove underperforming offers that can cause frustration or dissatisfaction.
• Game Diversification: Offer a suite of complementary games to keep users engaged and prevent them from switching to competitors.

3. Seek Empty Spaces

While established Facebook platforms like Zynga dominate the market, significant opportunities exist for developers who can identify and exploit untapped niches.

• Look for Under-Monetized User Groups: Explore demographics that are less targeted by competitors, such as young males, and develop strategies to attract and monetize them.
• Don't Just Follow the Crowd: Instead of chasing after the same users everyone else is targeting, be innovative and identify new opportunities.

Growth Potential: Facebook and Beyond

Despite the significant user base already active on Facebook, there is still immense potential for growth in social gaming. This growth is further amplified by Facebook's expansion into new markets and the continuous influx of new users.

• Facebook's global reach, particularly in emerging economies, presents a vast untapped market.
• User churn creates opportunities for new developers to attract players who are looking for fresh experiences.

Changing ARPPUs: The Lifespan of a Facebook User

ARPPUs may increase as users grow older, suggesting that nurturing young users could yield greater long-term revenue. However, the article cautions against solely relying on this assumption, as other factors can influence user behavior and spending habits.

Older Users: A Growing Demographic

While the focus should be on younger users, the article acknowledges the increasing presence of older demographics on Facebook. While it's not advisable to actively target older users at the expense of younger users, it's important to remain aware of this evolving landscape and adjust strategies accordingly.

Conclusion: The Value of Younger Facebook Users

This article provides valuable insights for game developers seeking to optimize their monetization strategies on Facebook. Despite the allure of targeting older users with higher ARPPUs, the sheer volume and spending power of younger users cannot be ignored. By focusing on attracting and retaining these users, developers can achieve substantial and sustainable growth in their Facebook social gaming ventures.

The article highlights the importance of understanding user demographics, optimizing offers, and diversifying game offerings. It encourages developers to be innovative, embrace growth opportunities, and capitalize on the vast potential of the younger generation in the ever-evolving world of Facebook social gaming.