How much is enough? Planning a marketing budget for mobile games

[Music] my name is Dennis and I'm with Poland VC do business development and analytics for the company and thank you for having me here so today i'll be presenting on the exciting topic of budgeting and marketing so let's start with what do we do first so you know more about what our company what our company does so we provide a source of growth capital to developers by unlocking the revenues that are trapped in there in up source or ad agencies or any other sources dealing with mobile services so we also we also provide financing for your marketing and as well as you a advisory and financial planning now let me just chat briefly about the problem we're

solving because you might know if you launch it up on the either up stores there is a lengthy waiting period until you get your money and why that it's a problem well I'll give you a simple example if you have a dollar that you invest at one hundred percent return and you will be receiving it after three periods instead of waiting for this dollar to come in to you in the shape of two dollars by the end of the third period you can take this two dollars out early then reinvent them and get four dollars instead of two so this is why I think our search is very valuable for those who for those developers who are using marketing to drive the driver growth so financing it every stage so we came up with several teeth this case that's why we think are helpful they're based on our conversations numerous conversations first with the devil so for our clients as well as our talks

with developers thought forms and other participants in the mobile industry so they're not necessarily chronological because budgeting is not a straightforward tab but more like advanced please take a left another step right so to speak but let's begin first well as they say my the gap might mind upon the gap in this case and what I me what I mean by that is the first step is like to recover it is realizing so every every developer needs to look at their cash flows and see if they're stuck in the cycle of spending all of their money and then waiting for a lengthy period and if that's the case there is a cash gap issue so what are you do to solve this issue well some use credit cards some have access to bank loan some games can't go back to their equity invests more money some of the solutions our

crew are credible may be maxing out your credit card so much but either either way if you're not thinking about this ahead it's good patiently going forward something that we again you know based on many conversations that we have for uncovered is that aligning aligning your design and monetization with budgeting from the very early stage because as a as you as a developer with know well in advance how you monetize when you will receive most of your money at what stage and so on in this in this in this case I believe that building a custom budget for your game because it's or you're up because it has unique monetization it has unique structure is key so step number 30 your LTV that's what we've been engaged for water with developers who want them to understand their their

ability to generate revenues their ability to and their understanding of for the drivers behind their elevation behind their LTV knowing your knowing your attention both organic paid the relationship between those those two different types of cohorts looking at your profitable cohorts and optimizing your marketing funnel are all very important keys in order for you to be successful now let's neck next step again you as a developer you'll be working with many platforms you'll be monetizing so on different ad networks app stores its own and so they're all be paying you hopefully but at very different stages so it's very crucial when you build your own budget to overlay the payment align them and know where they come in and optimize them so again map map your payment continuing now let's see now you

know when you're going to be getting the money you know how much money will be getting now it's time to optimize the code and come up with the winning marketing formula so how much is goes to acquire user and and how you can you optimize it because we believe in Poland that the reality is that without paid you a most developers who have heart and accelerating the row and it's not to say that if you have shown organics you necessarily always need to use daily way but it's always beneficial to use a supplementary driver or some companies use it as a primary driver so either way it's a comparing competitive environment which we which we think an optimized optimized marketing could be a big differentiator going forward just thinking about your revenue as an asset

so the revenue does show that we're locked in the up payment systems think of them is not your money that will come in later but is a capital that you can use today so instead of going back to credit card your equity providers or somebody else consider using revenue recycling to all of those funds earlier and what are the key benefits I have two groups here one is developers and other one is investors as I mentioned earlier you can do so much more with your money early you can reinvent them in paid user acquisition you can pay your salaries you can take them and go to Monaco or something like that which is the latter option maybe not as responsible but the next point is you keep control your business you don't have to dilute your equity stake you don't have to fund raise additional money if your up motorized as well and generate sufficient revenues and finally if you'd

like there's a lot of talk about self-publishing during this conference even as a lot of talk so if you decide to go the self-publishing route that's another avenue for you to consider get access to your money early optum optimize your capital structure and get rid the benefits now from the investor perspective it's also highly beneficial scheme because first of all your business is going to be more sustainable they're not going to be cast starved so when they have access to their own capital at all times they will be there will be more efficient and that's going to the second point proved capital efficiency is that you will be able to align your cash flows better and you'll be able to avoid record requesting additional funding from venture or other sources and finally you don't get dilution of the the the company's want

adventures the venture initial natural investors won't get dilution or revenue share through a publishing model so more money are left with the company's finally step 7 when you have all these things together you know you know you got your marketing you know your LTV you have you have aligned your payments now it's time to optimize your cash flows you'll understand your payback periods you model your financials now you have your custom-made budget that is done specifically for your app and what we have done to the numerous concession we collected feedback and we have prepared we have created by the financial forecaster so it's our own proprietary calculator that helps developers estimate their LTE and see the various scenarios of using a revenue recycling versus the regular pay and weight model so here is I'm not sure if you can see behind the

bottle but the website for the calculator is calculated of Poland dot V see where you can go and plug in your metrics and it will give you your LTV it will give you a few other insightful things and we hope it will be a useful tools for developers to get and we appreciate your feedback it today is the big day today is a big lunch so hopefully you all enjoyed and now before I go just going to use a moment to give a case output the address at the end as well okay okay starting for 104 104 clients and so it's a very brief for a story but for very effective model here so when X Annika Russian base to do Joe became our client about a year and a half ago the guys were generating good amount money about 20 / loop over 200,000 a month and they decide they've

uncovered an efficient way to and pull live return positive return on their marketing so they had the winning formula yet the dude had access to their money to implement it so they came to us we help them unlock the revenues on own weekly basis they reinvested majority of this monica system play into marketing and their growth is accelerated five times since then so there is a me on the house right now recently acquired by mail but room and one of 14 one of the many success cases of companies that were working with bone so that wraps up our presentation again this is the website touts variable point of vc please feel free to reach out at to offer twitter only see also dennis at polling thought bc and to be happy to answer any questions i think we have for some time for questions cool yeah how about some time by

cleaning for you agree well our landing model is secured lending model so we do not qualify customers based on I guess like what would the typical investor be looking at because we are lending you against what you already made but have not received so for our clients range like a very diverse apps and they range from five style in the month till like noon meal plus among there is there is no really qualification qualification on that level in a way but much more flexible because we you all have to remove all the revenues through our platform you can select how much you want to invest a certain whether it's going to be investment marketing or you want to take cash out so we have our own proprietary dashboards we built in whatever the entire system set up with the debt with

the corresponding debt facility that we have would you ever hear more hash tag well done that would not be the case in the current in the Cure in the current system which we have in place now yeah well that's a great question I think well the point the point here was when you have all those variables we were discussing right you know how much money you expecting you know how much is your profitability you know is also much you have in your bank account right now how much is coming in how much optimization have you done and so when you have all those things over late and put together you can make the right decision so I think how much in this case is for developer to structure to analyze and come up with this answer themselves so I don't think we have the secret to true

that the question but I think it's the idea here is to take to take control of your finances in the May and make sure that everything is connected you [Music]