BUSINESS OF
BRANDED MOBILE
GAMES
an aurnhammer whitepaper

Friday, September 27, 2013
www.aurnhammer.com
@aurnhammer

Confi...
Contents
Industry Overview

3

Gaming Leads Mobile

5

Case Studies

8

Aurnhammer

10

5 Key Questions

15

About Aurnham...
Industry Overview
Evolving technology has brought mobile to the spotlight of business trends. A major game-changer,
the sm...
US Mobile Advertising Spending, In Billions
2012 - 2017

$30.0
$22.5
$15.0
$7.5
$0

2012

2013

2014

2015

2016

2017

So...
Gaming Leads Mobile
It’s no surprise that gaming stands out as a star player in the rising mobile industry. Smartphone’s
p...
The freemium app pricing model is also testing well on games. In Q2 2013, 43% of US gamers have
made at least one in-game ...
US Mobile Gaming Revenues, by Type, 2011 - 2017
in millions
2011

2012

2013

2014

2015

2016

2017

Download

$260

$587...
Case Studies
There is no doubt consumers are turning to mobile games. Advertising within mobile games allows
brands to dev...
Red Bull: “Red Bull X-Fighters”

The mobile game is adapted from the Red Bull X-Fighters motorbike stunt competition, one ...
Aurnhammer
The Aurnhammer team has spotted the jewel of mobile gaming since a long time ago. Following our
clients’ broade...
Hotel & Casino: Foxwoods
Aurnhammer created a realistic slot machine app for Foxwoods, North America’s largest resort casi...
Financial Insurance: Mass Mutual,
“Save The Game”
Developed as an entertaining branded application, “Save! The Game” from ...
Sports & Leisure: Bass Pro Shops,
“Bass Pro Snowball Bonanza”
Bass Pro Shops, America’s premier outdoor retailer, teamed u...
Health & Fitness: Planet Fitness
As America’s fastest growing gym, Planet Fitness encourages their customers to not take t...
5 Key Questions
Thinking about marketing your brand within an addictive game? Here are 5 questions to ask for your
branded...
About Aurnhammer
Aurnhammer LLC, headquartered in New York City, is a creative media, custom design and
development compan...
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Business of Branded Mobile Gaming

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The white paper addresses the uprising trend in mobile gaming industry and offers some advice for branded mobile gaming strategy.

Feel free to contact yichan@aurnh.com or (212)-480-2100

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Business of Branded Mobile Gaming

  1. 1. BUSINESS OF BRANDED MOBILE GAMES an aurnhammer whitepaper Friday, September 27, 2013 www.aurnhammer.com @aurnhammer Confidential: Property of Aurnhammer, 55 Broad Street, 13th Floor, New York, NY 10004 1
  2. 2. Contents Industry Overview 3 Gaming Leads Mobile 5 Case Studies 8 Aurnhammer 10 5 Key Questions 15 About Aurnhammer 16 Confidential: Property of Aurnhammer, 55 Broad Street, 13th Floor, New York, NY 10004 2
  3. 3. Industry Overview Evolving technology has brought mobile to the spotlight of business trends. A major game-changer, the smartphone has simplified traditional phones and achieved a broader appeal. Through tapping and swiping, users get to enhance their quality of life without investing a lot of energy in understanding the device. The number of US smartphone owners in 2012 landed at 121.4 million, a little more than 38% of the population. This number is projected to grow another 1/3 by 2015 and reach 160 million. 1 Smartphone’s success has won marketers’ attention since mobile is where consumers are. In a 2012 survey, 74% of US marketers indicate they currently use a mobile platform for their business, compared with only 32% of respondents in 2009. Mobile becomes an indispensable gadget for everyday life, and a new growth area to engage consumers. Digital Marketing Budgets by Percentage Digital or Online Advertising Content Creation and Management Search Marketing (including Paid Search) Design, Development & Maintenance of the Corporate Website Email Marketing Analytics Marketing on Social Networks (Ex: Facebook, LinkedIn, Twitter) Mobile Marketing Commerce Experiences (Marketing-Led) Video Production Company Blog Others 0% 3% 6% 9% 12% 15% Source: Gartner for Marketing Leaders 1 eMarketer.com Confidential: Property of Aurnhammer, 55 Broad Street, 13th Floor, New York, NY 10004 3
  4. 4. US Mobile Advertising Spending, In Billions 2012 - 2017 $30.0 $22.5 $15.0 $7.5 $0 2012 2013 2014 2015 2016 2017 Source: eMarketer.com Confidential: Property of Aurnhammer, 55 Broad Street, 13th Floor, New York, NY 10004 4
  5. 5. Gaming Leads Mobile It’s no surprise that gaming stands out as a star player in the rising mobile industry. Smartphone’s portability and technological features set up a powerful gaming platform, while the application markets open up a direct distribution channel for innovative designers to provide beautiful gaming apps in big quantity and great quality. Let’s take a look at how games dominate the market. Estimated in 2013, nearly 126 million people in the US will play a game on their mobile phone at least once a month.2 81% of iOS users have downloaded free games on their phones, which is 11% higher than the runner-up, social networking apps.3 The upper hand in paid apps is even bigger: the number of respondents who have purchased games (72%) is four times of those who have purchased music (18%).4 The large market share ensures investment value in mobile gaming. US Smartphone Gamers 2011 - 2017, in Millions 200 150 100 50 0 2011 2012 2013 2014 2015 2016 2017 Source: eMarketer.com 2 http://www.emarketer.com/Article/Gaming-on-Mobile-Leads-All-Other-Online-Platforms/1010125 3 eMarketer.com 4 eMarketer.com Confidential: Property of Aurnhammer, 55 Broad Street, 13th Floor, New York, NY 10004 5
  6. 6. The freemium app pricing model is also testing well on games. In Q2 2013, 43% of US gamers have made at least one in-game purchase in a mobile game. 5 Players are incentivized to pay for the powerups to push forward their game progress. The financial result is impressive: from 2011 to 2012, US mobile gaming revenues went up by nearly 140% from $572 million to $1,363 million. 6 Revenues from initial downloading, in-gaming purchases, and ad-supported options have all boosted up significantly. Most Popular Free v. Paid Mobile App Downloads According to US iOS Users, by Type, 2013 (% of respondents) Free Games Social Networks Utilities Music 0% 30% 60% 90% Paid Games Music Health & Fitness 0% 20% 40% 60% 80% Source: eMarketer.com 5 eMarketer.com 6 eMarketer.com Confidential: Property of Aurnhammer, 55 Broad Street, 13th Floor, New York, NY 10004 6
  7. 7. US Mobile Gaming Revenues, by Type, 2011 - 2017 in millions 2011 2012 2013 2014 2015 2016 2017 Download $260 $587 $746 $907 $1076 $1202 $1326 In-game $232 $559 $737 $960 $1205 $1561 $1791 Ad-supported $79 $218 $297 $373 $478 $580 $655 Total $572 $1363 $1780 $2240 $2753 $3344 $3771 Note: numbers may not add up to total due to rounding: includes tablets Source: eMarketer, April 2013; confirmed and republished, October 2013 US Mobile Gaming Revenue Growth, by Type, 2011 - 2017 % change 2011 2012 2013 2014 2015 2016 2017 Ad-supported 93.2% 176% 36.3% 25.9% 28.0% 21.5% 12.8% In-game 81.1% 140.4% 31.9% 30.2% 25.5% 29.6% 14.7% Download 81.2% 125.3% 27.2% 21.5% 18.1% 12.3% 10.3% Total 82.7% 138.4% 30.6% 25.9% 22.9% 21.5% 12.8% Note: numbers may not add up to total due to rounding: includes tablets Source: eMarketer, April 2013; confirmed and republished, October 2013 Confidential: Property of Aurnhammer, 55 Broad Street, 13th Floor, New York, NY 10004 7
  8. 8. Case Studies There is no doubt consumers are turning to mobile games. Advertising within mobile games allows brands to develop their own forms of entertainment and drive engagement. It is a whole new way to encourage consumers to interact with the brand and build a community. Snapple: “Spiny Lobsters in Snaplantis” The game is part of the “Re-enFACTments” campaign and Snapple’s No.1 digital initiative for the year.7 The concept is based on Snapple “Real Fact” #694: Spiny lobsters migrate in groups of 50 or more, forming a conga line on the ocean floor.  “The way consumers interact with brands today is a lot different. Everyone has a phone with them at all times. Everyone has a multiscreen life that they live. We are putting the brand where consumers are—and that’s on these multiple screens.” -Dave Fleming, Director of Brand Marketing, Snapple 7 eMarketer.com Confidential: Property of Aurnhammer, 55 Broad Street, 13th Floor, New York, NY 10004 8
  9. 9. Red Bull: “Red Bull X-Fighters” The mobile game is adapted from the Red Bull X-Fighters motorbike stunt competition, one of the most prestigious and most challenging freestyle motocross competitions. “On mobile devices, consumers are just one click away from our online and social platforms, and mobile offers a great opportunity to engage consumers throughout the day, wherever they happen to be.” --Wolfgang Schmirl, Head of Digital Media, Red Bull Confidential: Property of Aurnhammer, 55 Broad Street, 13th Floor, New York, NY 10004 9
  10. 10. Aurnhammer The Aurnhammer team has spotted the jewel of mobile gaming since a long time ago. Following our clients’ broader marketing aim, we have created branded mobile gaming apps for various industries. We are always dedicated to provide brands with leading products by incorporating our tech expertise and fun personality. Education: ThinkSmart Games: “The Animal Alphabet Singers” To be released soon! The Animal Alphabet Singers is a cute and charming educational game app. Children can learn alphabetics from the animal characters singing the letters they each stand for. In collaboration with ThinkSmart, Aurnhammer pushes forward mobile education from ABC. Confidential: Property of Aurnhammer, 55 Broad Street, 13th Floor, New York, NY 10004 10
  11. 11. Hotel & Casino: Foxwoods Aurnhammer created a realistic slot machine app for Foxwoods, North America’s largest resort casino. As users spin the reels on their iOS based devices, they can tap on information about gaming, dining, nightlife and accommodations at Foxwoods. The app allows customers to interact with Foxwoods in a new and exciting context. “The Foxwoods brand is constantly evolving in a way that speaks to today’s audience, and this exciting application is just the latest example of that. We have a strong commitment to staying current, while at the same time maintaining a focus on our loyal consumer base, and we’re proud to be on the forefront of consumer trends yet again with the launch of the world’s first-ever casino-branded iPhone application.” --Robert Victoria, Senior Vice President of Consumer Marketing, Foxwoods Confidential: Property of Aurnhammer, 55 Broad Street, 13th Floor, New York, NY 10004 11
  12. 12. Financial Insurance: Mass Mutual, “Save The Game” Developed as an entertaining branded application, “Save! The Game” from Mass Mutual is also an instructional tool to teach children the value of saving money. Players can run, jump and dodge their way through a fantastic world collecting all the virtual money they can find before time runs out. Explore a fantastic world, earn some gold, and learn about the value of saving along the way. “Interactive games can be a powerful educational platform for engaging kids on serious topics, and Save! The Game harnesses that potential to bring the concept of wants versus needs to life. MassMutual is proud to offer this app as part of our longtime commitment to education. We encourage parents to share it with their children to help teach them about the value of making good decisions about money.” --Nick Fyntrilakis, Assistant Vice President, Corporate Responsibility, Mass Mutual Confidential: Property of Aurnhammer, 55 Broad Street, 13th Floor, New York, NY 10004 12
  13. 13. Sports & Leisure: Bass Pro Shops, “Bass Pro Snowball Bonanza” Bass Pro Shops, America’s premier outdoor retailer, teamed up with Aurnhammer to create the Bass Pro Snowball Bonanza–a realistic arcade style snowball shooting game for iOS. The app provides a playful and addictive fast-paced snowball fight game. It brings fun to the whole family while encouraging Bass Pro’s brand recognition. Confidential: Property of Aurnhammer, 55 Broad Street, 13th Floor, New York, NY 10004 13
  14. 14. Health & Fitness: Planet Fitness As America’s fastest growing gym, Planet Fitness encourages their customers to not take themselves too seriously. To help PF enter the mobile place in a humorous way, we created a playful app to keep Planet Fitness members connected and entertained. Confidential: Property of Aurnhammer, 55 Broad Street, 13th Floor, New York, NY 10004 14
  15. 15. 5 Key Questions Thinking about marketing your brand within an addictive game? Here are 5 questions to ask for your branded game: 1. Who’s your game’s audience? 2. What games are trending in the AppStore? 3. What’s the depth of your game play? 4. What’s your distribution plan (iOS, Android, HTML5)? 5. Last but not least - be creative and have fun! Confidential: Property of Aurnhammer, 55 Broad Street, 13th Floor, New York, NY 10004 15
  16. 16. About Aurnhammer Aurnhammer LLC, headquartered in New York City, is a creative media, custom design and development company specializing in branded smart applications for mobile. Aurnhammer has provided creative solutions for clients such as: Sony Music Entertainment, Showtime Networks, Kohler, Foxwoods Resort Casino, Lumber Liquidators, Bass Pro Shops, Mass Mutual, Bowers & Wilkins, Extra Innings, Stanley Hand Tools, Russian Standard Vodka, Century 21 Real Estate, Planet Fitness, Mentor Interactive and ClosetMaid. Besides technological skill in coding and programming, Aurnhammer team players bring experience in the fields of film and television production, digital arts, and graphic design. At the company’s core is a solid team of strategists, designers and programmers who work in a variety technologies and platforms to flawlessly bring these ideas to life. Visit http:// www.aurnhammer.com and follow @AurnhammerLLC on Twitter to learn more about the company. Aurnhammer 55 Broad Street, 13th Floor New York, NY 10004 212.480.2100 Bill Aurnhammer: bill@aurnh.com Donn Gobin: donn@aurnh.com @aurnhammerllc facebook.com/aurnhammerllc linkedin.com/aurnhammerllc Confidential: Property of Aurnhammer, 55 Broad Street, 13th Floor, New York, NY 10004 16

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