Insight about kakao games Fin.


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Insight about kakao games Fin.

  1. 1. Insight about KakaoGamesJ U N G H O N G KIMM AD H EAD L IM IT EDJ U N G HON G@MAD HEAD APP.C OM
  2. 2. Anipang, the miracle Anipang is the very first Kakao Game which triggered the start of the era of Kakao Games in Korea. It reached 2 million DAU (Daily Active Users) and over 20 million Downloads in only 15 days after launching. Its success, says the developer of Anipang, is based on the “Social Graph” of kakaotalk. JUNG HONG KIM@ MADHEAD LIMITED 2
  3. 3. Other Kakao Games 20 million Downloads for Anipang 12 million Downloads for Dragon Flight 12 million Downloads for Candypang 3 million Downloads for I Love Coffee 2 million Downloads for Viking Island JUNG HONG KIM@ MADHEAD LIMITED 3
  4. 4. Other Kakao Games Screenshots taken on Feb, 2013 6 out of 14 Top 6 out of 14 Top Free apps in New Free apps Korean Google in Korean Play Store are Google Play labeled “for Store are kakao” labeled “for kakao” Rank 1 for all three categories are “윈드러너 for kakao” JUNG HONG KIM@ MADHEAD LIMITED 4
  5. 5. What is Social Graph?Introduced by one of the co-founders ofFacebook, Mark Zuckerberg, Social Graphrefers to the personal relations of internetusers.Each user is represented as a node, and socialrelationship between the nodes occur online.This relationship is established when a useradds another user as a friend, comment on apost or like the post. This simple concept,however, created massive web of relationshipsaround the world, linking nearly everyone onEarth by over three to four nodes.This became the basis for Social Gaming. JUNG HONG KIM@ MADHEAD LIMITED 5
  6. 6. What is Kakaotalk? Social Networking Service Application, which dramatically replaced the previous SMS system. Launched on March 18, 2010. Following the great advance in telecommunication technology (3G, LTE), applications such as Kakaotalk has been extremely popular around the world. Applications similar to Kakaotalk are Whatsapp, WeChat, LINE, and MyPeople. Kakaotalk is the leading free SNS application in Korea. It is known that majority of Korean smartphone users use Kakaotalk. JUNG HONG KIM@ MADHEAD LIMITED 6
  7. 7. Main Functions of Kakaotalk1. Instant messaging2. Group call3. Free VoIP Call (Voicetalk)4. Special Emoticon5. Group messaging6. Photo/Video Sharing7. Supports Multiple platforms: iOS, Android, Blackberry, Windows, Bada JUNG HONG KIM@ MADHEAD LIMITED 7
  8. 8. Influence of Kakaotalk in KoreanMarket 97.4% of the downloaders actually use Kakaotalk. Since its launch in 2010, growing number of people started using Kakaotalk as their main communication method. Statistics show that Kakaotalk has over 72 million users around the world, over 21 million people actually use Kakaotalk every day (DAU), and Kakaotalk processes over 4.1 billion messages per day.Kakaotalk Nateon Tic talk MyPeople LINE UC JUNG HONG KIM@ MADHEAD LIMITED 8
  9. 9. Influence of Kakaotalk in KoreanMarketWhile Facebook is a micro-blogging SNS, 120Kakaotalk is instant messaging SNS. This meansKakaotalk is more accessible than Facebook: 100 80Recent study shows that people use Kakaotalk SMS 60for average of 6.38 days per week (91.1%). SNS app 40Kakaotalk has successfully replaced the old SMS 20system. As shown in the graph provided. 0Now that it supports free VoIP service, Total Age Age Age AgeKakaotalk is becoming the main communication 10-19 20-29 30-39 40+method in Korea. Source: Marketing Insight ( JUNG HONG KIM@ MADHEAD LIMITED 9
  10. 10. Social Graph of KakaotalkRecent Statistics show that there are about 38million Korean users of Kakaotalk. Consideringthat the total population of South Korea is justover 50 million, market dominance ofKakaotalk in Korea is over 75%.Average number of friends each users have onKakaotalk is estimated to be around 70.This establishes a great pool of socialrelationships among Kakaotalk users. Utilizingthis Social Graph is becoming increasinglyimportant in the modern markets. JUNG HONG KIM@ MADHEAD LIMITED 10
  11. 11. Expansion of Kakao - KakaoStory KakaoStory is a service very similar to Facebook. Microblogging service that allows the users to share news, photos and links to mutual friends. Only difference is that my Kakaostory is only visible to the authorized friends. Kakaostory shares the friend list with Kakaotalk – which means only my Kakaotalk friends can become Kakaostory friends. Kakaostory users are steadily growing over the time, reaching about 28 million users. JUNG HONG KIM@ MADHEAD LIMITED 11
  12. 12. Behind the success of Kakaostory -Kakaotalk Picture on the left shows My Profile page of Kakaotalk. Picture pointed by the arrow is called “background image.” This feature came out with Kakaostory – only the users of Kakaostory could use background image feature. Unless, the background would appear grey. This drove the Kakaotalk users to download Kakaostory, which allowed their first contact with this service. After the background feature, Kakao adopted the invitation function to Kakaostory, which became the prototype of invitation system in Kakao Games. JUNG HONG KIM@ MADHEAD LIMITED 12
  13. 13. Expansion of Kakao – Kakao Games Kakao Games includes SDK platform and Kakao Game market for mobile games. Kakao Games Market can be accessed directly from Kakaotalk application as shown in the picture on the left. It will lead the user to Google Play Store or App Store download page based on whichever OS user is on. However, Kakao Games Market is not the main route for users to access the game – surprisingly, it is the user’s Kakaotalk friends that leads people to download the game. Let us understand the general structure of kakao games first. JUNG HONG KIM@ MADHEAD LIMITED 13
  14. 14. Kakao Game SDK I’ll explain the basic structure of Kakao Game by explaining the structure of Anipang. All Kakao games require login with Kakao, which redirects to Kakaotalk application confirming login. This system is used by Facebook social games too. JUNG HONG KIM@ MADHEAD LIMITED 14
  15. 15. Kakao Game SDK Purchasable Item called Topaz Called “Hearts” which is the same as “Stamina” in ToS Leaderboard shows the highest scores. VS icon allows players to play PvP game. Heart icon allows players to send hearts to Invite Friends his or her friends. Function JUNG HONG KIM@ MADHEAD LIMITED 15
  16. 16. Kakao Game SDK – Hearts (Stamina) - One Heart is consumed when the user starts the game. - Hearts will be refilled after certain period of time – for Anipang, it is 8 minutes per Heart. - Hearts can be refilled using Topaz, the purchasable currency of Anipang. (Same as Diamond) - Hearts can be refilled using Heart Gift from friends. - Hearts can be refilled by inviting a friend to play the game. JUNG HONG KIM@ MADHEAD LIMITED 16
  17. 17. Kakao Game SDK – In-appPurchase Topaz is the purchasable In-App currency of Anipang, which is the same as Diamonds in ToS. Topaz can be used to refill the Hearts or buy special items that will help the user get through the game more easily. As the user reaches higher level, user needs more hearts to reach the next level. In order to do so, user has three options: wait for the hearts to be refilled automatically, purchase topaz to refill, and finally, invite friends to play the game. JUNG HONG KIM@ MADHEAD LIMITED 17
  18. 18. Kakao Game SDK - Invitation Player can receive a Heart by simply inviting a friend in Kakaotalk. As the level goes higher, it is crucial to purchase topaz or invite a friend to keep on playing. Pressing Invite will send a message to a friend, with invitation message and a link to Play Store or App Store. JUNG HONG KIM@ MADHEAD LIMITED 18
  19. 19. Behind the Miracle of Anipang –User-driven Marketing Over the SocialGraphInvitation system, combined with the broadSocial Graph of Kakaotalk, brought massiveprofit to Anipang. It is known that a single userin the social graph can influence more than 1thousand users simultaneously. JUNG HONG KIM@ MADHEAD LIMITED 19
  20. 20. Behind the Miracle of Anipang –User-driven Marketing Over the SocialGraph First User (1 - Assume that every Kakaotalk user has 50 Person) friends. First Layer (up to - Assume that only 40% of the friends who 20 Person) received the invitation will actually play to game Second Layer (up to 400 person) Third Layer (up to 8000 person) - Beyond Third Layer, the number of people influenced by the first user increases Exponentially. - Phenomenon can be called “Social Chain Effect” JUNG HONG KIM@ MADHEAD LIMITED 20
  21. 21. Behind the Miracle of Anipang -Understanding the Social Market - Competition in the Social World Social network, despite the fact that it is online (not physical), still occupies the aspects of real-world relationships. Anipang, by adopting the leaderboard, has utilized the basic rule of human society- competition. Leaderboard in Anipang is a crucial source of motivation for Anipang users. Leaderboard shows the scores and ranking of my friends playing the same game – which triggers competition among the social network. JUNG HONG KIM@ MADHEAD LIMITED 21
  22. 22. Behind the Miracle of Anipang -Understanding the Social Market - Creating new social trend Basic purpose of the social network is to “communicate” with others. Anipang, by allowing the sending of hearts to friends, created a new social trend – Sending Hearts. Anipang became a method of many forms of communications such as: - Starting up a talk with a very old friend - Starting up a talk with an opposite gender. by sending them Hearts. JUNG HONG KIM@ MADHEAD LIMITED 22
  23. 23. Basic Requirements for EnteringKakao Games1. Game should be fully developed.2. Should support network game.3. Age limit is 15 – No gambling, No sexuallyinappropriate materials.Even after the game is confirmed to bepublished, it might take few months to actuallybe published. JUNG HONG KIM@ MADHEAD LIMITED 23
  24. 24. Registration Procedure1. Submit report on the game (apk file, Promotion - No registration fee requiredvideo, Official report) to KAKAO through the homepage(<wbr/>contact?locale= - Individual developers can register tooko) - Already published games can also apply for this and2. KAKAO will review the game and feedback be published on Kakao Store3. Formal meeting with KAKAO4. Contract5. KAKAO will provide KakaoSDK6. Apply KakaoSDK to the game and submit the game7. KAKAO will test the game8. Registration to Play Store/App Store/Kakao Store JUNG HONG KIM@ MADHEAD LIMITED 24
  25. 25. Profit ShareKakao will share 30% of the profit that the PROFIT SHAREDeveloper will obtain after sharing 30% to the Google Kakao DeveloperOpen Market.Overall, the Developer receives 49% of thetotal profit. 30%Considering the effect in marketing, thisshould not be considered a trade-off. 49% 21% JUNG HONG KIM@ MADHEAD LIMITED 25
  26. 26. Average Profit of Kakao Games Profit per day (million HKD approx.)3.5 3 2.92.5 2.1 21.5 1.4 10.5 0.4 0 Anipang Candypang Puzzle Zoo Zoo Dragon Flight Profit per day (million HKD) JUNG HONG KIM@ MADHEAD LIMITED 26