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	<title>giffconstable.com &#187; ARPU</title>
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		<title>Virtual world and social game ARPUs</title>
		<link>http://giffconstable.com/2009/07/virtual-world-and-social-game-arpus/</link>
		<comments>http://giffconstable.com/2009/07/virtual-world-and-social-game-arpus/#comments</comments>
		<pubDate>Sun, 05 Jul 2009 20:02:51 +0000</pubDate>
		<dc:creator>Giff</dc:creator>
				<category><![CDATA[metrics]]></category>
		<category><![CDATA[social games]]></category>
		<category><![CDATA[virtual worlds]]></category>
		<category><![CDATA[ARPU]]></category>

		<guid isPermaLink="false">http://giffconstable.com/?p=21</guid>
		<description><![CDATA[Justin Smith had an interesting slide deck at the Social Games Summit where he shared his estimates for monthly ARPUs (average revenue per user):

&#8220;good Facebook&#8221; &#8211; $0.30 &#8211; $0.40
&#8220;good MySpace&#8221; &#8211; $0.60 &#8211; $0.70

Some games can do much better. The Facebook game Battlestations shared some data in late 2008 where they appeared to have around [...]]]></description>
			<content:encoded><![CDATA[<p></p><p><a href="http://giffconstable.com/wp-content/uploads/coins.jpg"><img class="size-full wp-image-25 alignright" title="coins" src="http://giffconstable.com/wp-content/uploads/coins.jpg" alt="coins" width="200" height="150" /></a><a href="http://www.insidefacebook.com/">Justin</a> <a href="http://www.insidesocialgames.com/">Smith</a> had an <a href="http://www.slideshare.net/justinsmith/justin-smith-inside-social-games-social-gaming-summit-talk-slides?type=presentation">interesting slide deck</a> at the Social Games Summit where he shared his estimates for monthly ARPUs (average revenue per user):</p>
<ul>
<li>&#8220;good Facebook&#8221; &#8211; $0.30 &#8211; $0.40</li>
<li>&#8220;good MySpace&#8221; &#8211; $0.60 &#8211; $0.70</li>
</ul>
<p>Some games can do much better. The Facebook game Battlestations shared some data in late 2008 where they appeared to have around a $1.00 ARPU, although their total user base was much smaller than the active player counts of the big Zynga or Playfish games.  Three Rings Puzzle Pirates, a virtual goods-based game outside of the socnet platforms, has reported getting a monthly ARPU of around $1.50.</p>
<p>I had been guess-timating an average social game figure of around $0.25, so was glad to see that the industry is hitting better numbers.</p>
<p>Within the virtual worlds space, there is quite a range.  My guess for Habbo Hotel gives them an ARPU of around $0.65 (<em>based on a few data points: 2008 revenue of $74M, growth of registered users from 86M to 126M, and a guess that their monthly uniques grew from about 8M to 11.5M over the year</em>).  Smallworlds <a href="http://www.virtualworldsnews.com/2009/02/smallworlds-launching-on-facebook-and-bebo.html">disclosed</a> that they were on track to hit a $1.40 ARPU. For IMVU, I estimate an ARPU of $1.62 (<em>based on registered users of 35M, an active-to-registered ratio of 3%, and $1.7M monthly revenues from virtual goods</em>).    Second Life (<em>which <a href="http://lsvp.wordpress.com/2008/06/10/second-life-monetizing-at-5x-higher-than-other-casual-mmogs/">Jeremy Liew estimated at $9.30</a></em>) and the more &#8220;hardcore&#8221; free-to-play MMOGs tend to range between $5.00 and $10.00.</p>
<p>I should note that there is no definitive standard for what &#8220;ARPU&#8221; really means.  When I am working on P&amp;L forecasts for ESC clients, I focus on a notion of &#8220;unique active players&#8221; who engage with the game/world at least once that month.  While I focus on conversion rates and average-spend-per-paying-player (or types of player), these ARPU guesses provide a useful sanity check.</p>
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