Marketecture Podcast Summary: "Overwolf: PC Gaming Add-Ons and Monetization"

Release Date: February 3, 2025
Host: Ari Paparo
Guest: Nathan Lindbergh, Head of Brand Partnerships at Overwolf

Introduction

In this episode of the Marketecture Podcast, hosts Ari Paparo and Eric Franchi delve into the world of PC gaming add-ons and monetization with Nathan Lindbergh, the Head of Brand Partnerships at Overwolf. Overwolf is described as a platform that bridges game developers and content creators, enhancing the gaming experience through user-generated content (UGC).

Overview of Overwolf

Ari Paparo begins by introducing Nathan Lindbergh and expressing his curiosity about Overwolf:

[00:34] Ari Paparo: "I'm not very familiar with Overwolf, so I'm going to learn something as well today."

Nathan Lindbergh explains Overwolf's mission:

[00:53] Nathan Lindbergh: "We're in the business of empowering creativity and making the games the best they are through UGC."

Overwolf positions itself as a guild for in-game creators, supporting approximately 187,000 creators across over 1,500 video games, engaging around 100 million monthly active users.

Company Size and Funding

When questioned about Overwolf's scale:

[01:31] Nathan Lindbergh: "Overwolf is headquartered in Tel Aviv. We have a US team here that I handle and we've raised about $150 million to date through Jason Horowitz, Griffin Gaming Partners, Insight Partners, and more."

This highlights Overwolf's substantial backing and international presence.

Product and Services

Ari seeks clarification on Overwolf's offerings:

[02:23] Ari Paparo: "So these are like plugins... I'm a developer, I want to make my game better... This is a B2B podcast."

Nathan Lindbergh elaborates:

[05:03] Nathan Lindbergh: "Overwolf is creating an app store for PC gaming. We have a platform that allows users, third-party users to create apps that overlay on top of game publisher games, enhancing the user experience."

Overwolf provides tools for developers and creators to build, distribute, and monetize in-game applications, mods, and private game servers without burdening the original game developers.

Monetization Strategy

Ari probes into how Overwolf and its partners earn revenue:

[07:41] Ari Paparo: "So I'm playing League of Legends and now I have also this app... there are ads in the app."

Nathan Lindbergh confirms the ad-based revenue model:

[07:41] Nathan Lindbergh: "Yes... the developer of that app... they're getting a percentage of the deal, typically 50%."

Overwolf employs IAB-standard advertising within its apps, facilitating a revenue-sharing model where creators receive 50% of the ad revenue, promoting a symbiotic relationship between Overwolf and content creators.

Advertising Details

The discussion delves into the nuances of Overwolf's advertising approach:

[09:18] Nathan Lindbergh: "All of these IAB standard ads are sold through the private marketplace as well as the Open Exchange... unique transactional opportunities when it comes to targeting around ISP usage, PC makeups..."

Overwolf offers targeted advertising based on granular data such as hardware specifications and user behavior, enhancing the relevance and effectiveness of ads.

Ari inquires about the balance between game-related (endemic) and general (non-endemic) ads:

[10:04] Nathan Lindbergh: "From a direct partnership perspective, it's probably closer to 50/50. From an overall perspective, it's probably 20% endemic and 80% non-endemic."

This indicates a diverse advertising portfolio catering to both gaming-specific and broader audiences.

Future Roadmap

Looking ahead, Nathan shares exciting developments:

[12:41] Nathan Lindbergh: "We're working on Moments Triggered Ads... trigger advertising when specific moments happen in a game... use AI to serve contextually relevant advertising."

An example includes serving a Pringles snack break ad after an hour of gameplay, showcasing Overwolf's innovative approach to contextual and timely advertising.

Lightning Round Insights

In the rapid-fire segment, Nathan highlights key aspects of Overwolf:

• Competitive Advantage:

  [14:00] Nathan Lindbergh: "Our unique selling proposition is the in-play nature of our ads... it overlays on top of the game."

• Biggest Challenge:

  [14:18] Nathan Lindbergh: "A lot of people say Overwolf, not Overwolf. There's a learning process... gamers are a huge spender with high disposable income."

• Company Animal:

  Reflecting the company's name and values, Nathan chooses the wolf, emphasizing community, cooperation, and defense of underrepresented groups in marketing.

Conclusion

The episode wraps up with Ari thanking Nathan for his insights and encouraging listeners to explore more through Marketecture's platforms. Nathan reiterates Overwolf's commitment to enhancing the gaming experience and supporting creators.

Key Takeaways:

• Overwolf serves as a bridge between game developers and content creators, fostering a robust ecosystem for in-game enhancements.

• The platform supports a vast network of creators and games, emphasizing user-generated content to prolong player engagement and game longevity.

• Monetization is primarily ad-driven, with a favorable revenue-sharing model encouraging high-quality app development.

• Advertising on Overwolf is highly targeted and contextually relevant, leveraging unique data points to deliver effective ad experiences.

• Future initiatives like Moments Triggered Ads demonstrate Overwolf's innovative use of AI to create seamless and meaningful advertising interactions within games.

This episode provides a comprehensive overview of Overwolf's role in the gaming industry, its business model, and its forward-thinking approach to in-game monetization and advertising.