How to Develop a Winning KPI Strategy for Game MarketingTable of ContentsIntroductionWhy KPIs Matter in Game MarketingSteps to Develop a Winning KPI StrategyChallenges and PitfallsBest PracticesConclusionFrequently Asked Questions (FAQ)IntroductionEver wondered why your game marketing efforts aren't yielding the results you expected? You're not alone. In the complex world of game marketing, keeping track of key performance indicators (KPIs) can be a daunting task. Given the myriad marketing channels and multiple platforms for monetizing games, it's easy to feel overwhelmed. However, without a well-defined KPI strategy, navigating this complexity becomes even more challenging. This blog post aims to shed light on how to develop a winning KPI strategy for game marketing. By the end of this article, you'll understand the importance of KPIs, how to select the right ones for your game, and how to analyze them effectively. Our insights come from extensive conversations with industry experts, including those at Gamesight, a company specializing in publishing and marketing tools for video game companies. Why KPIs Matter in Game MarketingThe Core ImportanceKPIs serve as the guiding stars in your game marketing efforts. They help you understand what's working, what's not, and where to focus your efforts. Even if your intuition or ground-level data collection methods are accurate, if your KPIs don't tell a cohesive story, your entire team can quickly become misaligned.The ComplexityGame marketing isn't as straightforward as it used to be. Platforms vary, business models differ, and the range of channels through which games are marketed has exploded. With games now available across multiple platforms—PC, console, mobile—and business models ranging from free-to-play to subscription services, pinpointing what metrics matter most is more challenging than ever.Steps to Develop a Winning KPI Strategy1. Identify Core KPIsStart by identifying a few core KPIs that will serve as your primary indicators of success.a. Cost Per Install (CPI)CPI measures how much it costs to acquire a new user through marketing efforts. This is especially crucial for free-to-play games where the initial barrier to entry is low.b. Revenue MetricsRevenue can be measured in several ways, but it's crucial to standardize your calculations. For premium games, it could be as simple as units sold multiplied by the price. For free-to-play games, metrics like Average Revenue Per User (ARPU) become more relevant.c. Retention RatesRetention rates (D1, D7, D30) help gauge how sticky your game is. Low retention usually indicates a problem with game engagement.2. Balance Cost and RevenueBalancing cost and revenue is essential. It's not just about how many players you acquire but how valuable they are. Average Lifetime Value (LTV) is a great metric that balances cost and revenue.a. Short-Term vs. Long-Term ValueWhile short-term metrics like CPI can be easily calculated, long-term metrics like LTV require historical data. For new games, you'll need to develop estimates based on similar games or past performance.3. Monitor Engagement MetricsWhile cost and revenue are vital, engagement metrics help you understand player behavior. Key engagement metrics include:a. Time SpentThe amount of time a player spends in your game is a good indicator of engagement. b. Feature UsageTracking how often players use specific features can help you understand what parts of your game are most appealing.c. Social EngagementMetrics like the number of friends added, clan participation, and social sharing can offer insights into how socially sticky your game is.4. Utilize Diagnostic MetricsDiagnostic metrics help you dig deeper when core KPIs indicate an issue. For example, if your CPI is increasing, diagnostic metrics like the cost of marketing channels or ad spend efficiency might help you find the root cause.a. Attribution and Channel EfficiencyAttribution models can help you understand which marketing channels are most effective. With this, you can optimize your spending accordingly.5. Adapt and IterateThe gaming landscape is continually evolving, and so should your KPIs. Regularly review and adapt your metrics to align with the current state of your game and its market.Challenges and PitfallsComplexity in Data CollectionDifferent platforms report data differently, making it difficult to standardize metrics. For example, some platforms report figures net of refunds, while others do not.Over-reliance on AveragesAverages can often mask important details. Instead, consider segmenting your data into cohorts for more nuanced insights.Misalignment within the TeamKPIs must be universally understood within your team. If different team members interpret metrics differently, your strategy can quickly become fragmented.Best PracticesUse Understandable MetricsOnly use metrics that can be easily understood by everyone on the team. Complex metrics requiring multiple caveats or deep dives into SQL queries can create confusion.Regular UpdatesYour game and its market are dynamic; so should be your KPI strategy. Regular updates and reviews ensure that you're measuring what's most important at any given time.Cross-functional CollaborationEnsure that all functions—development, marketing, sales—understand and align with your KPIs. This fosters a cohesive strategy and smooth execution.ConclusionDeveloping a winning KPI strategy for game marketing isn't a one-size-fits-all venture. It involves understanding the unique aspects of your game, selecting the right metrics, and continually adapting your strategy. By focusing on cost, revenue, and engagement metrics, backed by diagnostic tools, you'll be better equipped to navigate the complexities of game marketing.Frequently Asked Questions (FAQ)What are the core KPIs to start with?For most games, start with Cost Per Install (CPI), Average Revenue Per User (ARPU), and Retention Rates. These provide a solid foundation.How do I balance short-term and long-term metrics?Short-term metrics are easier to calculate and useful for immediate adjustments. Long-term metrics like Lifetime Value (LTV) offer more profound insights but require historical data for accurate estimates.Why are retention rates important?Retention rates indicate how engaging your game is. Low retention can signal issues with the game's core loop or initial user experience.How often should KPIs be reviewed?Ideally, KPIs should be reviewed at least monthly. However, during key phases like game launch or new content releases, more frequent reviews are advisable.What should I do if KPIs indicate a problem?Use diagnostic metrics to delve deeper and identify the root cause. Adjust your strategy based on these insights.By implementing these strategies, you'll be able to navigate the complexities of game marketing more effectively and achieve sustained success.