In this podcast episode, Joseph Kim, Matej Lancaric, and Summer Liu discuss the profitability of the game Monopoly Go.
They explore the controversy surrounding the game and the lack of a widely accepted definition of profitability in the industry.
The conversation covers data analysis, marketing strategies, and the use of different creatives. The hosts also discuss the importance of understanding CPIs and the impact of scaling up advertising spend.
The conversation delves into the topic of profitability in the mobile games business, exploring the nuances and challenges of defining and achieving profitability. It discusses the importance of maintaining scale and KPIs in order to sustain profitability.
The conversation also highlights the differences between operational profitability and UA modeled payback profitability. Additionally, it touches on the LTV curves and payback periods in different game genres. The conversation concludes with a discussion on the profitability of Monopoly Go and the need for a clear definition of profitability.
Takeaways
The games industry lacks a widely accepted definition of profitability, leading to confusion and conflation of different issues.
Monopoly Go has achieved significant success, with high revenue and a large number of downloads.
The game utilizes various marketing strategies, including video and playable ads, to attract and engage players.
Understanding CPIs and the impact of scaling up advertising spend is crucial for evaluating the profitability of a game. Maintaining scale and KPIs is crucial for sustaining profitability in the mobile games business.
Profitability in the mobile games industry can be defined differently, including operational profitability and UA modeled payback profitability.
LTV curves and payback periods vary across different game genres and can impact profitability.
There are nuances and tricks in game profitability, including accounting practices and adjusting costs.
Chapters
00:00 Introduction and Background
03:00 Defining Profitability in the Games Industry
09:00 Data Analysis and Revenue
23:00 Marketing Analysis
32:00 Creative Strategies and CPIs
43:04 Maintaining Scale and KPIs
44:03 Defining Profitability in the Mobile Games Business
45:57 Operational Profitability vs. UA Modeled Payback Profitability
49:46 LTV Curves and Payback Periods
53:56 Nuances and Tricks in Game Profitability
59:46 Is Monopoly Go Profitable?
