Your SlideShare is downloading. ×
[2010] Social Gaming Overview for Brand Advertisers
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

[2010] Social Gaming Overview for Brand Advertisers

447
views

Published on

Published in: Business

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
447
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Social Gaming Overview for Brand Advertisers As of September 2010 By Brian Groth Twitter: @BrianGroth http://BrianGroth.wordpress.com
  • 2. What Is Social Gaming • Any online game (PC, game console, web-based, mobile) with one of the following capabilities: – Invite a friend to play the game with or without you – Entice your friends to play the game by sharing your achievements – Multi-player (synchronously or asynchronously) – Purchase game items for a friend within the game • Plus related to a social media service – Some social games are on social networks, such as Facebook – Some social games have added social networking to an existing casual game – Some game environments encourage friends to play the same game by sharing achievements, such as on Xbox Live
  • 3. Social Media Friends Social Games Credits Virtual Gifts But It’s More Than Just Games Purchase virtual items for yourself within a game to enhance your game play Purchase virtual items and gifts for a friend in the game Play games with friends and discover others to play with Purchase Facebook Credits or similar “currency” to be used in games
  • 4. Facebook Credits • Facebook is the biggest platform for social games, so Facebook Credits are an important part of the social gaming market • You can buy Facebook Credits via credit cards, PayPal, Facebook Credits gift cards (purchased in a retail store) or mobile phone payments. You can also earn credits through special promotions. • Facebook CEO Mark Zuckerberg spoke earlier this year about wanting to create a “level playing field” for social game developers on Facebook “Making it so that there is one currency that people can take everywhere levels the playing field a bit, which is good” Zuckerberg said. http://www.facebook.com/credits/ http://www.insidefacebook.com/2010/09/19/what-zyngas-switch-to-credits-means-for-the-facebook-ecosystem/ http://www.insidefacebook.com/2010/06/22/exclusive-discussing-the-future-of-facebook-and-the-facebook-ecosystem-with-ceo-mark-zuckerberg/
  • 5. A Few Social Game Studios & Players • Zynga is the biggest and pulls in $37M - $60M of revenue every month • Mergers, Acquisitions & Investments: Each had monthly revenue of $1M each – Disney acquired Playdom (up to $763M) – August 2010 – Google acquired Slide ($182M) – August 2010, while Google also recently invested in Zynga ($100-200M investment) – Zynga is by far the biggest social game studio – In late 2009, EA acquired Playfish (up to $400M) – RealNetworks acquired Backstage Technologies • Game Platforms / Social Platforms / Marketplaces: – Microsoft’s Xbox Live (a social network), on Xbox 360 & launching on Windows Phone 7 this fall – Apple’s Game Center, launching on iPad this fall – Ngmoco Plus+, OpenFeint – Facebook, MySpace – Nintendo, Sony http://mashable.com/2010/08/17/social-games-business/ http://mashable.com/2010/04/08/apple-game-center/ http://www.internetretailer.com/2010/09/15/realnetworks-buys-canadian-social-gaming-firm
  • 6. Where Are Social Games Being Played? http://mashable.com/2010/08/11/social-gaming-business/
  • 7. Facebook & Messenger Levels of Engagement • 45-minutes+ average engagement time across social games • Social Gaming earns 10% of all internet time spent online • Nielsen indicates that more people are playing online games than using email • Farmville: 70M hrs/week http://marksilva.wordpress.com/2010/09/10/playdom-enters-the-magic-kingdom-part-2/ http://mashable.com/2010/09/10/farmville-vs-real-farms-infographic/ http://socialgame7.wordpress.com/2010/08/03/social-games-surpass-e-mail-as-second-most-popular-activity-on-the-internet/
  • 8. TV Sized Audiences • 100m US and UK social game players (over 200mm worldwide) • Zynga’s recent hit, Frontierville, reached 5mm users in just 13 days • Farmville has over 17.5M daily average users, 70M hours/week http://marksilva.wordpress.com/2010/09/10/playdom-enters-the-magic-kingdom-part-2/ http://mashable.com/2010/09/10/farmville-vs-real-farms-infographic/
  • 9. Hollywood Movie Sized Revenues • Zynga is the biggest and pulls in $37M - $60M of revenue every month • Monthly revenue of $1M+: Rockyou, Crowdstar, Watercooler, Playdom (now Disney), Slide (now Google) • Zynga raised $1M+ million in 5 days in FarmVille for the Earthquake Relief Campaign & $500k in 2 days for Schools in Haiti – all from 1 virtual good: Sweet Seeds • Early evidence that Social Gaming dynamics can change offline behaviors (Foursquare, Facebook Places, etc.) and drive purchases http://www.freshnetworks.com/blog/2010/09/the-benefits-social-gaming-for-brands/ http://techcrunch.com/2010/01/08/farmville-zynga-charity-virtual-goods/ http://techcrunch.com/2010/09/21/sweet-seeds-zynga-raises-500k-in-two-days-to-build-school-in-haiti/ http://marksilva.wordpress.com/2010/09/10/playdom-enters-the-magic-kingdom-part-2/ http://mashable.com/2010/09/10/farmville-vs-real-farms-infographic/
  • 10. http://mashable.com/2010/09/10/farmville-vs-real-farms-infographic/
  • 11. http://www.onlineschools.org/blog/social-gaming/
  • 12. Winning at Social Gaming • Keys to Success: Social games require a platform, content and distribution just like any other successful game. Today, most social games are not successful, but moving forward, almost all games will have a social hook • Revenue Model for the game publisher: Despite isolated deals, the revenue engine for casual gaming isn't brand advertising but virtual goods: – Game studios fear bringing in brand advertising could destroy the game experience – The main hurdle for brand advertisers is that the biggest publishers are scaling just fine without ad revenue • Brands & Social Gaming: Still very early days, but options include: – In-game advertising – Custom branded games – Sponsoring existing games http://mashable.com/2010/08/11/social-gaming-business/
  • 13. Winning at Social Gaming • Keys to Success: Social games require a platform, content and distribution just like any other successful game. Today, most social games are not successful, but moving forward, almost all games will have a social hook • Revenue Model for the game publisher: Despite isolated deals, the revenue engine for casual gaming isn't brand advertising but virtual goods: – Game studios fear bringing in brand advertising could destroy the game experience – The main hurdle for brand advertisers is that the biggest publishers are scaling just fine without ad revenue • Brands & Social Gaming: Still very early days, but options include: – In-game advertising – Custom branded games – Sponsoring existing games http://mashable.com/2010/08/11/social-gaming-business/ moving forward, almost all games will have a social hook
  • 14. Top Facebook Applications Are Games & Top Facebook Pages Are For Games http://www.appdata.com/ http://pagedata.insidefacebook.com/
  • 15. Top 25 Facebook Games for August 2010 http://www.insidefacebook.com/2010/08/02/top-25-facebook-games-for-august-2010/
  • 16. Brands & Social Games
  • 17. Examples of Social Branded Games Branded games offer more engagement with the brand compared to simply following the brand on Facebook or Twitter • Examples of Custom Branded Games – Hello Kitty (by Sanrio): A mass multiplayer game – Battle of the Cheetos: Options to connect to Facebook, but not required – Sony Pictures “Day X Exists” game based on the movie Salt, has multiple connection points into social networking sites (primarily Facebook) • Examples of Branded Games on Facebook – NY Jets football with the “Ultimate Fan” game – Golden Nugget Las Vegas Casino, with casino games – Harrah’s with their World Series of Poker game – Honda is part of the Car Town game http://www.dayxexists.com/site/ http://www.forbes.com/2010/09/13/social-games-sanrio-technology-brands.html http://www.clickz.com/clickz/column/1724704/its-all-fun-games-brand-marketers
  • 18. Examples of Brands in Social Gaming • Women's blog network Sugar has built its own social game, Retail Therapy, with a number of marquee fashion brands. In the game, users design their own virtual boutiques and stock them with virtual clothes from Banana Republic, Barneys New York, Diane von Furstenberg, Gap, Juicy Couture, Topshop and Tory Burch – Users have to come back at certain intervals to achieve tasks and can pay real money to speed up the process. – Players pay up for virtual clothes: $1 to dress an avatar to $100 for stocking an entire store FarmVille recently launch its first branded crop, Cascadian Farm organic blueberries. In less than four days, more than 310 million blueberry crops were planted in the game and more than 1 million people purchased it during the campaign from July 19-26, 2010 http://adage.com/digital/article?article_id=145147 http://mashable.com/2010/07/22/farmville-organic-blueberries/
  • 19. Recommendations for Brands Interested in Social Gaming Games in general, social or not, have a large and engaged audience that will continue to get more and more social. Brands should be part of this. 1. Alignment: Align your social gaming plans with your overall brand strategy and goals. The social game plans may simply be part of your overall social plans too 2. Test the Social Networks: Test a branded game in your Facebook or MySpace page or as a connection point from a branded game to these networks 3. Test the Social Games: Look into the options for advertising within social games, such as FarmVille and others 4. Advertise (Paid Media): 1. Leverage existing in-game advertising to get your brand seen during game-play 2. Leverage online banner and search advertising to drive a large audience to your social game efforts 5. Measure, analyze and improve your advertising efforts in social games
  • 20. Appendix
  • 21. Game Dynamics / Mechanics A list of 47 of the game mechanics SCVNGR draws upon when creating games – many of which are social – a useful resource when building your own game 1. Achievement 2. Appointment 3. Avoidance 4. Behavioral Contrast 5. Behavioral Momentum 6. Blissful Productivity 7. Cascading Information Theory 8. Chain Schedules 9. Communal Discovery 10. Companion Gaming 11. Contingency 12. Countdown 13. Cross Situational Leader-Boards 14. Disincentives 15. Endless Games 16. Envy 17. Epic Meaning 18. Extinction 19. Fixed Interval Reward Schedules 20. Fixed Ratio Reward Schedule 21. Free Lunch 22. Fun Once, Fun Always 23. Interval Reward Schedules 24. Lottery 25. Loyalty 26. Meta game 27. Micro Leader-Boards 28. Modifiers 29. Moral Hazard 30. Ownership 31. Pride 32. Privacy 33. Progression Dynamic 34. Ratio Reward Schedules 35. Real-Time v. Delayed 36. Reinforcer 37. Response 38. Resard Schedules 39. Rolling Physical Goods 40. Shell Game 41. Social Fabric 42. Status 43. Urgent Optimism 44. Variable Interval Reward Schedule 45. Variable Ratio Reward Schedule 46. Viral Game Mechanics 47. Virtual Items http://techcrunch.com/2010/08/25/scvngr-game-mechanics/
  • 22. Sources for Social Gaming Info • http://www.insidesocialgames.com/ • http://mashable.com/tag/social-games/ • http://en.wordpress.com/tag/social-gaming/ • http://www.appdata.com/ • http://pagedata.insidefacebook.com/ • http://search.twitter.com/search?q=%23socialgames Twitter: @BrianGroth Blog: http://BrianGroth.wordpress.com