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Games

Advanced Social Media Marketing
Key platforms in games today
β€’ Social games
β€’ MMORPGs (massively multiplayer online role-
  playing games)
β€’ Consoles
β€’ Mobile games
Platform        Social Games on Facebook
Top performers Zynga’s CityVille and FarmVille
Core audiences Mostly ~48 years old (46% >50) Women (55%)

                2010 ISG

Reach           CityVille: 90.6 MM players
                Farmville: 45.8 MM players
                Total number of players est. in 250 MM

Business        Freemium: ~5% of the players pay for Zcoins to exchange for
model           in-game virtual goods
                In 2010, $ 510 MM were spent in virtual goods

Opportunities   In-game product placement
for brands      In-game advertising
                Promotions with Zcoins
                Branded social games (ex.: NY Jets Ultimate Fan on
                Facebook)
Cascadian Farm Farmville Organic
          Blueberries
Capital One Farmville Goat
Bing FarmCash Promotion
NY Jets Facebook Social Game
Platform        MMORPG
Top performers World of Warcraft (more than 50% mkt share)
Core audiences Mostly Men (84%) ~30 years old
                2010 dedalus/xeroxParc


Reach           10.3 MM subscribers (WoW - nov. 2011)


Business        Prepaid limited game time
model           Subscription (credit/debit cards monthly fees)
                (free starter edition – up to level 20)

Opportunities   In-game advertising
for brands      Mainstream games like WoW don’t place in-game ads, but
                other less popular games do (ex: Anarchy)
MMORPG Anarchy in-game ad
Platform          Console games
Top performers Nintendo Wii                                 Microsoft XBOX
               Sony PS3                                     Sony PSP
               Nintendo DS
Core audiences Mostly Men (58%) ~37 years old (29% 50+)
                  2011 Entertainment Software Association

Reach             Wii: 89.5 MM                              XBOX: 57.9 MM
(hardware sold)   PS3: 55.4 MM                              PSP: 70.9 MM
                  DS: 149.3 MM

Business          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 Channels
Opportunities     In-game advertising
for brands        Branded Games (Burger King)
Burger King XBOX 360 games (2006)
            $ 3,99/each
NBA Live in-game ad
Need for speed in-game ad
Madden in-game ad
Platform        Mobile Games
Top performers AppStore
               Android Market
Core audiences Mostly Women (53%) ~28 years old
                Juniper research


Reach           37% of Iphone owners game daily
                70%-80% of all downloads are games
                Angry birds has been downloaded 140 MM times

Business        Game selling ($0,99-4.99)
model           In-app purchase (new levels, skills, etc) ~$ 0.99
                (Free lite versions)

Opportunities   In-game product placement
for brands      In-game advertising
                Branded games
Angry Birds in-app banner
Angry birds Rio special edition
Relevance from brands perspective
β€’ Social and Mobile are growing more relevant as
  marketing/branding tools

β€’ Ad spending in social games is expected to hit $
  293 MM in 2011 compared to $ 183 MM in 2009,
  a 60% growth.

β€’ 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?
β€’ 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)
β€’ 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.
β€’ 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).
β€’ 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.

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Game's key platforms

  • 2. Key platforms in games today β€’ Social games β€’ MMORPGs (massively multiplayer online role- playing games) β€’ Consoles β€’ Mobile games
  • 3. Platform Social Games on Facebook Top performers Zynga’s CityVille and FarmVille Core audiences Mostly ~48 years old (46% >50) Women (55%) 2010 ISG Reach CityVille: 90.6 MM players Farmville: 45.8 MM players Total number of players est. in 250 MM Business Freemium: ~5% of the players pay for Zcoins to exchange for model in-game virtual goods In 2010, $ 510 MM were spent in virtual goods Opportunities In-game product placement for brands In-game advertising Promotions with Zcoins Branded social games (ex.: NY Jets Ultimate Fan on Facebook)
  • 4. Cascadian Farm Farmville Organic Blueberries
  • 7. NY Jets Facebook Social Game
  • 8. Platform MMORPG Top performers World of Warcraft (more than 50% mkt share) Core audiences Mostly Men (84%) ~30 years old 2010 dedalus/xeroxParc Reach 10.3 MM subscribers (WoW - nov. 2011) Business Prepaid limited game time model Subscription (credit/debit cards monthly fees) (free starter edition – up to level 20) Opportunities In-game advertising for brands Mainstream games like WoW don’t place in-game ads, but other less popular games do (ex: Anarchy)
  • 10. Platform Console games Top performers Nintendo Wii Microsoft XBOX Sony PS3 Sony PSP Nintendo DS Core audiences Mostly Men (58%) ~37 years old (29% 50+) 2011 Entertainment Software Association Reach Wii: 89.5 MM XBOX: 57.9 MM (hardware sold) PS3: 55.4 MM PSP: 70.9 MM DS: 149.3 MM Business 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 Channels Opportunities In-game advertising for brands Branded Games (Burger King)
  • 11. Burger King XBOX 360 games (2006) $ 3,99/each
  • 13. Need for speed in-game ad
  • 15. Platform Mobile Games Top performers AppStore Android Market Core audiences Mostly Women (53%) ~28 years old Juniper research Reach 37% of Iphone owners game daily 70%-80% of all downloads are games Angry birds has been downloaded 140 MM times Business Game selling ($0,99-4.99) model In-app purchase (new levels, skills, etc) ~$ 0.99 (Free lite versions) Opportunities In-game product placement for brands In-game advertising Branded games
  • 17. Angry birds Rio special edition
  • 18. Relevance from brands perspective β€’ Social and Mobile are growing more relevant as marketing/branding tools β€’ Ad spending in social games is expected to hit $ 293 MM in 2011 compared to $ 183 MM in 2009, a 60% growth. β€’ 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
  • 19. Why not console and MMORPG? β€’ 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) β€’ 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. β€’ 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). β€’ 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.