Joseph Kim, Matej Lancaric, and Summer Liu discuss the profitability of Monopoly Go, exploring the controversy and lack of a widely accepted definition. The conversation covers data analysis, marketing strategies, CPIs, and achieving profitability in the mobile games business. They also touch on LTV curves, payback periods, and the need for a clear definition of profitability.
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No Single Definition Of Profitability
The industry lacks a single accepted definition of "profitability," causing heated, confused debates.
Conversations often conflate different profitability concepts and miss crucial nuances.
question_answer ANECDOTE
Backlash From Public CPI Estimates
Matej recounted publishing estimates from external UA tools and triggering strong backlash.
He emphasized his CPI estimates were conservative and based on third-party data, not internal visibility.
insights INSIGHT
CPIs Increase Significantly With Scale
CPI rises with scale: spending millions daily drives much higher CPIs than small campaigns.
Large US-heavy scale especially inflates blended CPI compared with low-volume rates.
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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.
Discussing 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, they touch 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.
Agenda
00:00 Introduction and Background03:00 Defining Profitability in the Games Industry09:00 Data Analysis and Revenue23:00 Marketing Analysis32:00 Creative Strategies and CPIs43:04 Maintaining Scale and KPIs44:03 Defining Profitability in the Mobile Games Business45:57 Operational Profitability vs. UA Modeled Payback Profitability49:46 LTV Curves and Payback Periods53:56 Nuances and Tricks in Game Profitability59:46 Is Monopoly Go Profitable?
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