Palringo’s Balloony Land slashes cost of mobile user acquisition

balloony landBalloony Land, the latest published game from Palringo, the social platform to find games and fellow gamers, has reached the top 10 in the App Store across nine countries by using its 45 million-strong community to drive the launch.

The UK-based company said that its community gaming business model meant the global CPI (cost per install) for Balloony Land was $0.72 compared to the industry average of mobile games of $1.67 in the month following its release, and fell to a further $0.44 by leveraging the Palringo community of 45 million users.

Palringo’s model allows it to be less dependent on traditional ad networks and to beat current average CPIs by marketing to its existing community and carefully managing external spend.

The company incentivises the community to engage with new games using tools within the Palringo app. These initial downloads cause a surge in app store rankings helping chart discovery and ultimate downloads. This is carried out in a controlled manner to ensure a sustainable number of downloads over a period of time, based on download estimates for each country’s app store.

The integration of native games into the Palringo social platform shows how a casual single player game, such as Balloony Land, can be given a multiplayer dimension, while increasing engagement. Global day one retention rates for gamers coming from Palringo were twice as high than players acquired from other sources and 30-day retention rates were three times higher.

“We decided some time ago to move away from being a messaging business and focus instead on offering a messaging-based service where the core messaging and community element would be used to strengthen the gaming experience.

“By developing and publishing our own games we’ve been able to build a better understanding of how messaging, communities and games can converge to offer a sustainable business proposition,” said Tim Rea, Palringo CEO.

Palringo doubles revenues to $14 million through games

palringoRapidly growing chat-based games company Palringo said it has 2014 annual revenues of $14 million, up 100% from 2013 revenues of $7 million.

Based in London’s Shoreditch, Palringo has more than 35 million global customers, a figure that is rising one million per month as the business model of playing games within messaging platforms takes hold. Out of that $14 million revenue, 85% was from games, of which the profit margin was 50%.

Palringo offers a range of games along with more than 350,000 groups, some of which have up to 2,000 members. The business model is based around selling virtual products such as rich media sticker packs, Bots and functional utilities within the messaging platform.

The company’s move into games came in Q2 2013 when it acquired Swedish social and mobile games developer Free Lunch Games when internal data revealed that the most popular groups across Palringo’s communities were based around game titles such as Clash of Clans. It was also a neat strategy to differentiate itself from the better-known messaging platforms of SnapChat and WhatsApp.

“Gaming has always been a dominant theme within Palringo communities. Over the past couple of years, we have developed that trend by creating games that work within the community directly and more recently by building an innovative gaming capability that allows us to further develop our model of bringing together community and gaming on mobile,” said Tim Rea, Palringo CEO.

A typical example of a game inside Palringo would be the traditional game of Hangman. Customers buy the Hangman bot, and launch it in a chatroom of their choice. The company sells packs of ‘coins’, (for example, 300 for $3) and this currency is used to play the game with their chatroom friends.