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A Case for Predictive Analytics 28 September 2012

A Case for Predictive Analytics - Aren Arakelyan - Fiveonenine games

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Page 1: A Case for Predictive Analytics - Aren Arakelyan - Fiveonenine games

A Case for Predictive Analytics

28 September 2012

Page 2: A Case for Predictive Analytics - Aren Arakelyan - Fiveonenine games

AgendaBackground

Current state of analytics

Analytics 2.0

Summary

Page 3: A Case for Predictive Analytics - Aren Arakelyan - Fiveonenine games

Background

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Lloyd Melnick

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fiveonenine games

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Publishing and Developing

Launched publishing program in August

Campaign Story launched & Several projects in the pipeline

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More stars than the Miami HeatEx-Studio Head of EA’s

North Carolina officeMember founding

management team at Motricity and Appia

Team lead at RIM’s NC studio

20 year veteran of IBM/Microsoft/Citrix

GM Europe and LATAM at Disney/Playdom

Gardens of TimeShutter IslandCity of WonderMortimer BeckettBig City AdventureMadden 3DSNascar Kart Racing

WiiWoodland Heroes

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Current State

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Analytics and gaming

In-Game Analytics Tools

Statistical ToolsPredictive ModelsData Mining

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Standard DashboardWhere your game currently isKontagent, Mixpanel, Honeytracks, Flurry,

Apsalar, CollectTM & MeasureTM (by GamesAnalytics)

SWRVE & other A/B testing solutions

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Ad hoc reportsAddresses immediate concerns and issuesKontagent, Mixpanel, Honeytracks

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Query/drill downWhere exactly is the problem?Kontagent, Mixpanel, Honeytracks, CollectTM

& MeasureTM (by GamesAnalytics)

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AlertsWhat actions are needed

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Analytics 2.0

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STATISTICAL Analysis Correlations & CHI SQAre there statistically significant associations among factors T-tests & ANOVAAre there statistically significant differences among groups in usage or monetization Regression AnalysisWhat are the factors (i.e.: gender, age) “significantly” impact revenue and by how much? Outlier AnalysisAre there users playing or monetizing far differently than the most? Excel, R, SAS, SPSS, STATA, SWRVE, PredictTM

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Forecasting• Time Series Analysis• How much revenue will we bring in next quarter?• How many users will we have in the future (near

term)?• What will the load on the servers be?

• Excel, R, SAS, SPSS, STATA

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Predictive ModelingLogistic Regressions, Decision Trees, etc. • Who is more likely to monetize? • Who is more likely to react to in game messaging?

Survival Analysis• What will be the lifetime of a user?• How long will it take for users to monetize? (time to

first purchase)• What factors impact the retention of the users

R, SAS, SPSS, STATA, PredictTM

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Data mining• Clustering (Segmentation) Analysis• Are there clear “segments” among our users that

could be approached differently?

• Association Analysis• Are there items that sell “together”?

• SAS Enterprise Miner, SPSS Modeler, Weka, Playnomics, HoneyLizer, PredictTM

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Simulation • Monte–Carlo Simulation • How long does our game take on average?• How many turns on average will the players need to

finish?• What happens if we tweak the rules of the game?

• Excel, R, Risk Solver, SAS, SPSS, STATA

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Optimization • Price Optimization• What is the optimal price for the virtual goods?

• Linear Programing• What is the optimal allocation of recourses for

supporting the game?

• R, Risk Solver, Oracle Cristal Ball, SAS

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Analytics design – most important metric

CUSTOMER

LIFETIME

VALUE

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Case Study- ResultsOur partner GamesAnalytics for BBC Worldwide

Retention rate improved by 95%Revenues increased by 40%Over 2m registrationsRanked 2nd in App Store

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Summary

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SummaryAnalytics give you a great picture of where your game is

They help make production and marketing decision

They can help to shape up fact based strategy