Virtual Worlds & Business: What's The ROI?

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Virtual Worlds & Business: What's The ROI?

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  • Virtual Worlds & Business: What's The ROI?

    1. 1. tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? Moderator | Gary Hayes Presenters Gary Hayes | Director LAMP@AFTRS & CEO MUVEDesign Jeff Brookes | Regional Director - Asia Pacific, Sulake Corporation Mitch Olsen | Co-Founder, SmallWorlds
    2. 2. tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? Gary Hayes | LAMP@AFTRS & CEO MUVEDesign (lamp.edu.au & muvedesign.com)
    3. 3. ABC Island Deakin Arts Island Thursday’s Fictions BigPond Telstra US Fortune 100s Melbourne/Cog/AFTRS etc: Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    4. 4. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    5. 5. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? 1. Layered Worlds © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    6. 6. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? 2. Browser Worlds © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    7. 7. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? 3. Client Worlds © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    8. 8. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? 4. Console Worlds © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    9. 9. Press hyperbole or myths? Virtual Worlds are on the decline? There’s no one in them? & people don’t spend long there? They are for kids or social ‘games’ not business? There are no marketing models? Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    10. 10. Virtual Worlds are on the decline? Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    11. 11. <ul><li>Investment in Virtual Worlds </li></ul><ul><li>Oct 06 - Oct 07 - US $1 billion US </li></ul><ul><li>Oct 07 to the present day - US $918 million </li></ul><ul><ul><ul><li>This breaks down roughly as: </li></ul></ul></ul><ul><ul><ul><li>Q3 08 - $148.5 million invested in 12 VW companies </li></ul></ul></ul><ul><ul><ul><li>Q2 08 - $161 million in 16 VW companies </li></ul></ul></ul><ul><ul><ul><li>Q1 08 - $184 million in 23 VW companies </li></ul></ul></ul><ul><ul><ul><li>Q4 07 - $425 million in 15 VW companies </li></ul></ul></ul><ul><li>Source: Virtual Worlds Management Reports </li></ul>Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? Virtual Worlds are on the decline? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    12. 13. There’s no one in them? Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    13. 14. Habbo Hotel 12m Stardoll 13m Nicktropolis 5.5m Webkinz 5.5m Club Penguin 6m 300 million globally in social virtual worlds Habbo & WoW - 100 mill registered Runescape - 7 mill active, 140k at once Entropia - 700k reg, plan 15m concurrent! Second Life - regularly at record breaking concurrency of 70k 60% of American’s play video games - 40% are women Neopets 6m Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There’s no one in them? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    14. 15. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There’s no one in them? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    15. 16. Government Communications Headquarters InGame Recruitment <ul><li>Tom Clancy’s Splinter Cell: Double Agent and high-octane racer Need for Speed Carbon. By Massive </li></ul><ul><li>Increased traffic to the Careers in British Intelligence website by 1,000 percent, from an average 550 unique visitors a day to an average 5,500 </li></ul><ul><li>Won the “Innovation” category at the 2008 Recruitment Advertising Awards, and received nominations for several other industry awards </li></ul><ul><li>Generated extensive coverage in the national media </li></ul><ul><li>http://advertising. microsoft . com/europe/ResearchLibrary/ResearchLibrary . aspx ? Adv_CaseStudyID=1664 </li></ul>Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There’s no one in them? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    16. 17. & people don’t spend long there? Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    17. 18. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? & people don’t spend long there? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    18. 19. They are for kids or social ‘games’ not business? Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    19. 20. They are for kids or social ‘games’ not business? Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? Virtual Worlds are partly about Lifestyle Marketing but… © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    20. 21. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? They are for kids or social ‘games’ not business? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    21. 22. <ul><li>“ The centralized investment in the Second Life island paid for itself after 5-6 events - recruitment at Accenture taking place in 49 countries, and each of these countries using the Accenture Careers island rather than building its own, the cost savings really start to stack up. </li></ul><ul><li>So Global Recruitment Marketing put a lot of effort into making it easy for recruiters to use Second Life. The team holds meetings, calls, and tours with recruiters and created a guide on how to sign up in Second Life, create an avatar, walk, sit, chat, etc. “ </li></ul>Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? They are for kids or social ‘games’ not business? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    22. 23. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? They are for kids or social ‘games’ not business? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    23. 24. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? They are for kids or social ‘games’ not business? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    24. 25. Videogame advertising, both in and around game, is effective in driving attention and recall * Three-quarters of gamers notice ads while playing video games * 75% of gamers engage with at least one ad per minute * 81% of gamers engage at least every other minute * ½ second ad exposure is sufficient for a gamer to notice an in-game ad Most gamers believe that ads in games add to the realism and overall experience of playing video games and can have a positive impact. * &quot;It's fun to see things in games that are real.&quot; * &quot;Like in Ghost Recon, you have the Dodge billboards in the urban areas, and I think that is pretty effective... it adds realism because, you know, you see ads in the real world&quot; * &quot;I think being in a game is way better because in TV it can sometimes annoy you and stuff and can have a negative effect on a product. But in a game, I think it has a positive effect.&quot; Source: Videogame Advertising Engagement Study, July 2007 Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There are no marketing or ad models? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    25. 26. <ul><li>Static Advertising </li></ul><ul><li>Promotions & Sponsored events </li></ul><ul><li>Virtual Goods & Product Placement </li></ul><ul><li>Dynamic InWorld Advertising </li></ul><ul><li>Branded Spaces </li></ul><ul><li>AdverWorlds & AdverGames </li></ul>Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There are no marketing or ad models? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    26. 27. Static Advertising PriceWaterhouseCoopers estimates total spending on in-game advertising to reach $1 billion by 2010. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? <ul><li>US $295 million will be spent on in-game advertising </li></ul><ul><li>$207 million advergaming (the creation of games to promote a brand) </li></ul><ul><li>Advergaming will climb to $344 million in 2011, in-game advertising will reach $625 million that year.&quot; eMarketer </li></ul>There are no marketing or ad models? 1. Static Advertising © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    27. 28. 2. Promotions & Sponsored events Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There are no marketing or ad models? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    28. 29. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? Source: Betsy Book AAAS There are no marketing or ad models? 3. Virtual Goods and Product Placement © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    29. 30. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There are no marketing or ad models? Dynamic InWorld, InGame Advertising © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    30. 31. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There are no marketing or ad models? 5. Branded Spaces © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    31. 32. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There are no marketing or ad models? 5. Branded Spaces © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    32. 33. 6. AdverWorlds & AdverGames Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There are no marketing or ad models? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    33. 34. &quot;Now our audience can 'live' Laguna Beach: The Real OC by immersing themselves in a next generation hybrid of TV show and virtual community &quot; says Matt Bostwick, SVP Franchise Development MTV Music Group. &quot;The virtual world will expand and grow with the show in real time. This will enable the audience to take our content as a starting point and create their own drama. In effect, the audience becomes the content. We created a first class 'virtual team' to implement this consisting of Makena Technologies, Imaginary Forces, The Electric Sheep Company, Analog Protocol and Extra Large Technology to make it happen in record time.&quot; Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There are no marketing or ad models? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    34. 35. Football Superstars is the world's first Virtual Football World. An entire online virtual world designed by football fans exclusively for football fans, where you can enjoy a massively multiplayer experience on your PC. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There are no marketing or ad models? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    35. 36. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There are no marketing or ad models? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    36. 37. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There are no marketing or ad models? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    37. 38. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There are no marketing or ad models? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com
    38. 39. tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? THANKS
    39. 40. tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? Jeff Brookes | Regional Director - Asia Pacific, Sulake Corporation (habbo.com.au)
    40. 41. Sulake Corporation | Strictly confidential - legally protected and privileged information
    41. 42. Don’t Interupt - Add Value Sulake Corporation | Strictly confidential - legally protected and privileged information
    42. 43. Add Value. Make Something Fun – Coca-Cola Pool Party Sulake Corporation | Strictly confidential - legally protected and privileged information
    43. 44. Shared Experiences Sulake Corporation | Strictly confidential - legally protected and privileged information
    44. 45. Enhance the Experience Sulake Corporation | Strictly confidential - legally protected and privileged information
    45. 46. Sulake Corporation | Strictly confidential - legally protected and privileged information
    46. 47. Feedback, Repeat & Amplify www.habbotiles.net www.habbalot.net Sulake Corporation | Strictly confidential - legally protected and privileged information
    47. 48. branded content distribution brand amplification brand interaction Feedback & repeat Adds value Seek, acquire & enhance experience Shared experience Sulake Corporation | Strictly confidential - legally protected and privileged information
    48. 49. Measuring Success When user buys virtual form of your brand When user shares that item with others Time spent interacting with brand Amount of talk around the brand Number of consumer initiated associations Sulake Corporation | Strictly confidential - legally protected and privileged information
    49. 50. tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? Mitch Olsen | Co-Founder, SmallWorlds (smallworlds.com)
    50. 51. Hi I’m Mitch Olson
    51. 52. A society born in gaming
    52. 55. Avatar Examples (Guys)
    53. 60. A social entertainment platform <ul><li>Entertainment & Engagement </li></ul><ul><li>Social connection </li></ul><ul><li>Self-Expression & Play </li></ul><ul><li>+ Accessibility </li></ul>
    54. 61. The internet is changing our world The power to define & control a brand is shifting from corporations to individuals & communities
    55. 62. My core premise Engagement & Interaction Loyal customers
    56. 63. <ul><li>Engagement </li></ul><ul><li>Interest (via relevancy) </li></ul><ul><li>Satisfaction </li></ul><ul><li>Loyalty </li></ul>
    57. 64. Participation is key Make the consumer a meaningful participant in an experience of your brand
    58. 65. Employ Game Mechanics The systems & features that make games fun, compelling & addictive
    59. 66. Different types of game mechanics <ul><li>Points, Ranks & Levels </li></ul><ul><li>Rewards & Goals </li></ul><ul><li>Rating things </li></ul><ul><li>Competition (& Cooperation) </li></ul><ul><li>Customisation & UGC </li></ul><ul><li>Exchanges </li></ul><ul><li>Collecting stuff </li></ul><ul><li>Its all about social & psychological participation </li></ul>
    60. 67. Bartle personality types <ul><li>Achiever </li></ul><ul><ul><li>Setting goals & building things to achieve them </li></ul></ul><ul><li>Socialiser </li></ul><ul><ul><li>Role playing & general interpersonal interaction </li></ul></ul><ul><li>Explorer </li></ul><ul><ul><li>Love to find out as much as possible </li></ul></ul><ul><li>Killer </li></ul><ul><ul><li>Imposing their will over others </li></ul></ul>
    61. 68. What are game mechanics
    62. 74. 4 take away messages <ul><li>Engage your audience by encouraging participation </li></ul><ul><li>Make use of game mechanics </li></ul><ul><li>Execution is everything </li></ul><ul><li>Measure measure measure </li></ul>
    63. 75. <ul><li>Mitch Olson </li></ul><ul><li>twitter.com/mitch_olson </li></ul><ul><li>Email: [email_address] </li></ul><ul><li>Web: www.smallworlds.com </li></ul>thanks

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