Are you currently enrolled in a University? Avail Student Discount 

Product Management Trade-off Question: Balancing user growth and revenue in mobile gaming
Image of author vinay

Vinay

Updated Nov 29, 2024

Submit Answer

Asked at King

15 mins

Should King prioritize daily active user growth or increase average revenue per user?

Product Trade-Off Hard Member-only
Strategic Thinking Data Analysis Monetization Strategy Mobile Gaming Free-to-Play Entertainment
Product Strategy Monetization Gaming User Growth Trade-Offs

Introduction

The trade-off between prioritizing daily active user growth and increasing average revenue per user is a critical decision for King's product strategy. This scenario involves balancing user acquisition and monetization, which are both essential for sustainable business growth. I'll analyze this trade-off by examining the product ecosystem, potential impacts, key metrics, and experimental approaches to inform a data-driven recommendation.

Analysis Approach

I'd like to outline my approach to ensure we're aligned on the key areas I'll be covering in my analysis.

Step 1

Clarifying Questions (3 minutes)

  • Context: I'm assuming we're discussing King's flagship game, Candy Crush Saga. Is this correct, or are we considering King's entire portfolio?

Why it matters: Different games may have different user bases and monetization strategies. Expected answer: Focus on Candy Crush Saga. Impact: Would tailor analysis to specific game mechanics and user behaviors.

  • Business Context: Based on recent market trends, I'm thinking our revenue growth might be slowing. How urgent is the need to increase revenue in the short term?

Why it matters: Helps balance short-term revenue needs with long-term user growth. Expected answer: Moderate urgency, aiming for sustainable growth. Impact: Would influence the weight given to immediate monetization vs. user acquisition.

  • User Impact: I'm considering the different player segments we have. Can you share any insights on which user segments are currently driving the most revenue?

Why it matters: Helps identify potential targets for increased monetization or growth. Expected answer: Power users generate most revenue, but casual players are the majority. Impact: Would inform strategies to either convert more casual players or focus on retaining power users.

  • Technical: Thinking about our current infrastructure, how easily can we implement personalized experiences for different user segments?

Why it matters: Affects our ability to tailor strategies for user growth and monetization. Expected answer: Moderate capability, with some limitations. Impact: Would influence the complexity and scope of potential solutions.

  • Resources: Considering our current team structure, do we have dedicated resources for both user acquisition and monetization optimization?

Why it matters: Affects our ability to execute on both fronts simultaneously. Expected answer: Limited resources, need to prioritize. Impact: Would inform the feasibility of pursuing both strategies concurrently or sequentially.

Subscribe to access the full answer

Monthly Plan

The perfect plan for PMs who are in the final leg of their interview preparation

$66.00 /month

(Billed monthly)
  • Access to 8,000+ PM Questions
  • 10 AI resume reviews credits
  • Access to company guides
  • Basic email support
  • Access to community Q&A
Most Popular - 62% Off

Yearly Plan

The ultimate plan for aspiring PMs, SPMs and those preparing for big-tech

$66.00
$25.00 /month
(Billed annually)
  • Everything in monthly plan
  • Priority queue for AI resume review
  • Monthly/Weekly newsletters
  • Access to premium features
  • Priority response to requested question
Comments


Please login to comment !