What Are Web3 Analytics for Game Developers?
Some Web3 analytics game developers should consider include user data, activity data, and revenue data, especially when considering mid-term customer acquisition.
Key Takeaways
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Data tracking objectives for Web3 game developers include user retention and churn, events that indicate high player engagement, and the performance of different monetization strategies.
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User data, activity data, and revenue data are all key to the sustainability of a game, as they indicate users' willingness to invest time, effort and money into a game.
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Web3 game developers can use tools like Footprint Analytics, DeGame, and Galxe to monitor game performance and build their communities.
In the increasingly competitive Web3 gaming landscape, success requires more than just game publishing. It requires a keen ability of game operation to be an anticipation that runs high for the next bull market in crypto.
People are optimistic about the 2024 gaming industry. Doug McCracken, who leads marketing for A16Z GAMES and GAMES FUND ONE, said,
“There has been a lot of commentary lately about Disney getting back into video games, but I believe the next Disney will be a video game company.”
This burgeoning landscape places greater demands on game operations professionals. In order to increase user retention, improve engagement rates, and extend the lifespan of game products, a deep dive into data analytics is imperative.
This article delves into the realm of Web3 game data analytics, offering insights into analysis methodologies, tool exploration, and valuable perspectives for readers navigating in this dynamic space.
Web3 Gaming Analysis for Developers
As the market recovers, the Web3 games sector shows signs of life in December, indicating significant potential.
However, it’s important to recognize that Web3 gaming is still in its infancy, with the number of active participants lagging far behind the larger gaming community in Web2 world. Therefore, each Web3 developer is actively working on development and exploring strategies for sustainability and mass adoption.
In these early stages, it’s essential for developers to analyze different market segments, competitor data, and blockchain statistics. However, the real game-changer is the mid-term customer acquisition, where developers should pay close attention to user-related data, revenue metrics, and stay updated on industry developments.
Data Analysis in Web3 Games
Data analysis is focused on ensuring that every decision is data-driven and evidence-based in order to maximize growth.
In the field of Web3 game development, a careful approach to data analysis is essential to making informed decisions. A common approach for developing games is to start with a creative narrative, attract high-quality early users, and then find ways to analyze user profiles and optimize the game in order to expand the user base. By collecting comprehensive, relevant data and conducting thorough analysis, developers can move beyond subjective judgement and reliance on past experience.
For developers, some suggested data tracking objectives include user retention and churn to facilitate continuous growth, identifying behaviors indicative of high player engagement to inform the design of more engaging systems, evaluating different monetization strategies to optimize revenue generation, and more.
User Data as an Insight Into Market Success
We are a top3 dApp because we have spent a lot of time understanding our customers, figuring out the right acquisition channels and then making sure our customers have a good experience on our app so they stay and return frequently.
— Wali Khan, Co-Founder at Gamifly
User data plays a pivotal role in the Web3 gaming world, and it includes both user acquisition and user profile analysis.
In Web3’s economic ecosystem, users are not only players, but also creators and investors. They are an important source of the game’s economic value. The active participation of players is paramount to the sustainable growth of the game ecosystem.
“Understanding where new users are coming from helps optimize marketing strategies and allocate resources effectively,” said Krish Jagirdar, co-founder of Internet Game.
Game developers can use user data in conjunction with typical user profiles to analyze the behavioral patterns of high-value users.
In addition, by performing re-engagement analysis on inactive users, developers can reduce user churn and further improve the overall health of the gaming ecosystem.
Activity Data as a Foundation to Game Sustainability
A thriving community is often a key factor in the success of Web3 games. Monitoring community metrics helps gauge the health of player interactions beyond the game itself.
— Krish Jagirdar, the co-founder of Internet Game
Beyond user acquisition, active user data also plays a critical role in the sustainability of a game. This importance stems from active user data reflecting the user’s approval of the game’s playability or economic model. It signifies their willingness to invest time, effort, or money into the game in pursuit of enjoyment or rewards.
In the context of Web3 gaming, the user retention rate is also worth noting. Here, where attention is a scarce commodity, acquiring new users comes at a high cost, while retaining existing ones is notably more economical.
“The retention rate is a key indicator in the current market, much like in Web2. A high retention rate signifies that users not only find the game enjoyable but also endorse its economic model, reflecting their acceptance of the game product”
– Hoshino Sasaki, the community ambassador of Outer.gg.
Community engagement is also a key aspect of user engagement in Web3. An active community represents a diverse range of individuals who actively participate in the game ecosystem, including players, analysts who provide analysis, community ambassadors and more. Official game communities serve as the primary hub where players receive official announcements and often serve as the forum of debate for many community members. As a result, analyzing community data such as membership trends and engagement levels is critical for game developers.
Currently, a major challenge is the fragmentation of data between Web2 and Web3, making it difficult to focus on analyzing the entire user funnel in one place. Footprint Growth Analytics can help by connecting Web2 and Web3 data and create a holistic view, ranging from monitoring users and events to analyzing social media interactions for comprehensive analysis.
Revenue Data as a Navigator for Strategic Decision-Making
In this period, Web3 remains a game that requires capital and finance. The extent to which the user community is willing to invest money in the game directly reflects the market share of that game project.
— Hoshino Sasaki, the community ambassador of Outer.gg
The importance of revenue data in Web3 gaming cannot be overstated. Team revenue is the foundation that supports project development, while user revenue is critical to retaining early adopters in an environment where Web3 gaming is still evolving.
At this early stage of Web3 games, most developers are prioritizing the creation of their game’s economic model, as this aligns with the play-and-earn model that attracts Web3 users.
While the foundation of revenue lies in the design of the economic model, continuous monitoring of revenue becomes equally important once a game is in stable operation. This monitoring allows developers to make timely adjustments to the game design to attract more users. The level and growth of revenues directly influence external investors and the market’s perception of the game’s value.
Monitoring the value of blockchain games involves tracking NFT and token prices and their circulation. According to Krish Jagirdar, “In blockchain games, the success of NFTs is a critical aspect. Monitoring ownership, trading, and rarity metrics provides valuable data on the popularity and value of in-game assets.”
In addition, keeping an eye on the top winners and losers provides a nuanced perspective for analyzing the soundness of a game’s economic model design. This data can reveal whether the game’s reward system is aligned with user expectations and motivations. It also serves as a valuable tool for identifying the root causes of user attrition, such as a mismatch between effort and reward, high barriers to profitability for new users, hyperinflation that erodes profits, or speculation that crowds out sustained commitment.
Tools for Web3 Game Developers
It has been observed that many games currently rely on simple web2 software tools such as Google Analytics and SimilarWeb. Some larger companies, such as Gamifly, have taken the initiative to develop in-house analytics solutions at this stage.
“I think Web3 data analysis tools are in their early innings, we’re starting to see them come onto market but I haven’t seen heavy adoption just yet. I’m sure really great firms like Footprint Growth Analytics will become more and more prevelants as time goes on and the market activity returns”,said Krish Jagirdar.
Utilizing Web2 software may provide some foundational data, but it falls short in offering profound insights into the intricate world of Web3 games. Moreover, building in-house analytics proves to be a formidable challenge for startup Web3 games due to the complexity and cost associated with indexing Web3 data.
However, it’s necessary to recognize that data analysis should not be a high-entry barrier. Leveraging effective data analysis tools and strategically capturing key on-chain and off-chain data can yield significant leverage, enabling Web3 games to make informed decisions and thrive in this evolving landscape.
There are several tools that are commonly used by Web3 game developers.
Footprint Growth Analytics
Footprint Growth Analytics is the best analytics tool for Web3 game developers, providing comprehensive blockchain data from more than 30 blockchains and a user-friendly website that simplifies the process of leveraging data for Web3 game growth. With a comprehensive suite of features covering asset performance, revenue analytics, wallet data, user exploration and onboarding, operators can easily access valuable insights to optimize their projects. Footprint empowers games to effectively leverage data, facilitate informed decision-making, and drive the growth and success of Web3 games in this ever-evolving landscape.
DeGame
DeGame is the world’s largest NFT games aggregator. With partnerships with 50+ guilds and chains, DeGame offers a comprehensive platform for NFT gaming enthusiasts and developers. In 2023, DeGame launched the Proof Contribution platform-DeGame community, a one-stop-shop for global Web3 users to discover and play the most exciting new projects and games. Early developers, project ambassadors, KOLs, and community organizers can prove their contributions to projects and earn recognition with identity roles and rewards.
Galxe
Galxe is a mission-based platform that helps games grow and solves the most painful problem of customer acquisition for Web3 games by providing a platform for games to post tasks such as game registration, joining communities, and giving incentives. With over 14 million unique users to date, Galxe has propelled the growth of Optimism, Polygon, Arbitrum, and more than 4,000 partners with reward-based loyalty programs.
Conclusion
Web3 gaming is still in its early stages of development, and data analysis, despite its inherent challenges, is of paramount importance.
Data analysis is not a burden for developers, but a powerful tool that enhances a project’s core competitiveness. Developers should adopt a data-driven mindset and seek professional data analytics services to drive continuous project growth.
In addition, the entire Web3 data industry should seek to break down data barriers and foster better collaboration. Data will play a key role in driving the Web3 game industry to prosperity and development.
Author: lesley@footprint.network
Footprint Analytics is a blockchain data solutions provider. It leverages cutting-edge AI technology to help analysts, builders, and investors turn blockchain data and combine Web2 data into insights with accessible visualization tools and a powerful multi-chain API across 30+ chains for NFTs, GameFi, and DeFi.
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