Key platforms in games today• Social games• MMORPGs (massively multiplayer online role- playing games)• Consoles• Mobile games
Platform Social Games on FacebookTop performers Zynga’s CityVille and FarmVilleCore audiences Mostly ~48 years old (46% >50) Women (55%) 2010 ISGReach CityVille: 90.6 MM players Farmville: 45.8 MM players Total number of players est. in 250 MMBusiness Freemium: ~5% of the players pay for Zcoins to exchange formodel in-game virtual goods In 2010, $ 510 MM were spent in virtual goodsOpportunities In-game product placementfor brands In-game advertising Promotions with Zcoins Branded social games (ex.: NY Jets Ultimate Fan on Facebook)
Platform MMORPGTop performers World of Warcraft (more than 50% mkt share)Core audiences Mostly Men (84%) ~30 years old 2010 dedalus/xeroxParcReach 10.3 MM subscribers (WoW - nov. 2011)Business Prepaid limited game timemodel Subscription (credit/debit cards monthly fees) (free starter edition – up to level 20)Opportunities In-game advertisingfor brands Mainstream games like WoW don’t place in-game ads, but other less popular games do (ex: Anarchy)
Platform Console gamesTop performers Nintendo Wii Microsoft XBOX Sony PS3 Sony PSP Nintendo DSCore audiences Mostly Men (58%) ~37 years old (29% 50+) 2011 Entertainment Software AssociationReach Wii: 89.5 MM XBOX: 57.9 MM(hardware sold) PS3: 55.4 MM PSP: 70.9 MM DS: 149.3 MMBusiness Selling:model Consoles ($249-499) Accessories ($9.99-$269.99) Games ($49.99-149.99) On demand games, movies, music – through services like XBOX Live, PS Network or Wii ChannelsOpportunities In-game advertisingfor brands Branded Games (Burger King)
Platform Mobile GamesTop performers AppStore Android MarketCore audiences Mostly Women (53%) ~28 years old Juniper researchReach 37% of Iphone owners game daily 70%-80% of all downloads are games Angry birds has been downloaded 140 MM timesBusiness Game selling ($0,99-4.99)model In-app purchase (new levels, skills, etc) ~$ 0.99 (Free lite versions)Opportunities In-game product placementfor brands In-game advertising Branded games
Relevance from brands perspective• Social and Mobile are growing more relevant as marketing/branding tools• Ad spending in social games is expected to hit $ 293 MM in 2011 compared to $ 183 MM in 2009, a 60% growth.• In 2010, mobile game developer made $ 87 MM off advertising revenue. By 2015, this figure is expected to be 10 times that amount: $ 894 MM
Why not console and MMORPG?• Fact 1: console games are better designed and value-added products compared to social and mobile games (2010’s Grand Theft Auto 4 cost $ 100 million)• Fact 2: console and MMORPG gamers are more critical than others, assigning great value to elaborate graphics and storylines, and are in general less tolerant to in-game advertsing when it is clearly out of the context.• This drives the industry focus increasingly on the player and less on the advertiser (Last year, Microsoft shut down its dynamic in-game advertising division called Massive).• Now, big producers like Eletronic Arts control the dynamic in-game advertising display for their games. The trend is that only games where advertising is a natural part of the storyline (like Fifa Soccer and NBA Live) will carry in-game advertising.