Geoff Cook's Presentation

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Geoff Cook's Presentation

  1. 1. 1 Synchronous Games Confidential – myYearbook 2010 – Not for Distribution
  2. 2. 2 What is myYearbook? • Social Platform for Meeting New People on Web or Mobile o Social games and applications “break the ice” and drive retention and monetization o Location-based stream with 1+ million updates per day drives content discovery • Top 30 Property in the US in Total Time Spent1 o Ranked one of the Top 25 engaging web sites in the US1 (by min/user/month) o The #1 Site for Teens in the US1 • Fast-Growing Revenue o $25 million revenue run rate; Profitable since March 2010 o 62% revenue growth since January 2010 • Innovative Social Media Team o 100 employees, including 50 engineers and 20 in advertising sales (1) - comScore US Confidential – myYearbook 2010 – Not for Distribution
  3. 3. 3 Revenue Growth Driven by Advertising and Virtual Goods Confidential – myYearbook 2010 – Not for Distribution - 500,000 1,000,000 1,500,000 2,000,000 myYearbook Historical Revenue
  4. 4. 4 People Make Games Social Confidential – myYearbook 2010 – Not for Distribution Source: Information Solutions Group. 2010 Social Gaming Research Report “Through social gaming I have met new friends who will hopefully be my friends for life.” “I have met people from all over the world and am in touch via email, phone, etc.” “I met my love of 6+ years on an online game.”
  5. 5. 6% 8% 13% 13% 15% 20% 30% 37% 56% 62% 0% 10% 20% 30% 40% 50% 60% 70% Current classmates My children under 18 My children 18+ Spouse Co-workers Former classmates Other relatives Online strangers Online friends Real world friends 5 People Like to Play Games with Others They Don’t Know in Real-Life Confidential – myYearbook 2010 – Not for Distribution Source: Information Solutions Group. 2010 Social Gaming Research Report
  6. 6. 6 People Mostly Play with Others of the Same Age • The ability to find people your age is very important to social game players Confidential – myYearbook 2010 – Not for Distribution 14% 6% 11% 18% 22% 76% 0% 10% 20% 30% 40% 50% 60% 70% 80% Don't know People my grandparents' age Children (less than 18 years old) People my parents' age People my adult children's age People my own age (+/- 10 yrs) Source: Information Solutions Group. 2010 Social Gaming Research Report
  7. 7. 7 People Like to Make New Friends in Games • More than 70% agree that that they have made friends online as a result of playing social games Confidential – myYearbook 2010 – Not for Distribution Strongly agree 27% Somewhat agree 47% 0% 10% 20% 30% 40% 50% 60% 70% 80% I have made new friends as a result of playing social games Source: Information Solutions Group. 2010 Social Gaming Research Report
  8. 8. 8 Synchronous Games Encourage Meeting New People and Making New Friends • Real-life board games, card games and pool are all synchronous games Confidential – myYearbook 2010 – Not for Distribution
  9. 9. 9 Facebook Games are Almost 100% Asynchronous • Only 5 of the top 100 Facebook game apps are synchronous: Confidential – myYearbook 2010 – Not for Distribution Asynchronous dominates Facebook apps Synchronous not yet developed #3 #46 #76 #83 #89 Okey - Turkey
  10. 10. 10 So What are Facebook Users Playing? • Mostly they are playing different versions of the same game Confidential – myYearbook 2010 – Not for Distribution
  11. 11. 11 Farmville, Petville, and Café World – Like Most Facebook Games – Share the Same Mechanic • Users perform a set of actions which take a certain amount of time to complete. Then the user will perform another action in sequence to gain cash and experience: – In Farmville, a user plows land, chooses seeds, plants, waits for seeds to grow and then sells vegetables. – In Café World, a user cleans the stove area, chooses a dish, waits for the meal to cook and then serves the meal to customers. – In Petville, a user cleans the pet, waits for it to get hungry and feeds it and claims a reward. Confidential – myYearbook 2010 – Not for Distribution
  12. 12. 12 Not Only the Same Mechanic, but Also the Same Game Over and Over Again • Many Top 100 social games have a popular Top 100 largely identical rival: Confidential – myYearbook 2010 – Not for Distribution Farming: Restaurant: My Farm Pets: Zoo:
  13. 13. 13 These Games are Not Optimized for Human Interaction • There is nothing social about “Plowing Crops” • So what are they optimized for? Two things: “Virality” and Monetization • Get 2% of your users to pay you and the other 98% to spam their friends – Guess which part is the trick? Confidential – myYearbook 2010 – Not for Distribution =Not Social
  14. 14. 14 Why Are Game Mechanics the Same? • Because it works….For now. – It makes money and gets users – Why do anything else when you can create another farm game or zoo game and make some money? – Why invest in anything that doesn’t start with: “It’s like Farmville but it’s about something even more interesting than farming” • These games grew by spamming Facebook viral channels and can not survive without them • Just this week got a Farmville post on my Wall from some “friend” I went to school with 20 years ago Confidential – myYearbook 2010 – Not for Distribution
  15. 15. 15 What Happens without Viral Channels? • It ain’t pretty: LOLapps traffic drops by 2/3 when viral channels are suspended by Facebook. • These games can not exist without the viral channel Confidential – myYearbook 2010 – Not for Distribution
  16. 16. 16 Why is This Unsustainable for Games Developers? • Facebook is constantly restricting viral channels • It’s supply and demand. Facebook signs up everyone. Page view growth flattens out, demand for advertising continues to grow, advertising rates go up, cost of new user acquisition goes up • Facebook knows its games are derivative – modeled on getting 2% of users to pay and turning the other 98% into a spam engine – and it doesn’t want that • Facebook needs to own the discovery mechanic – imagine an App Store-like experience disrupting the entire ecosystem • Look for new viral channels from Facebook Confidential – myYearbook 2010 – Not for Distribution
  17. 17. 17 So Does This Mean Facebook Will Win Synchronous Games When It Chooses To? Confidential – myYearbook 2010 – Not for Distribution • Facebook has the wrong social graph for synchronous games • The Facebook Social Graph is based on your real-world connections – i.e. people you already know • Facebook doesn’t want you cluttering up its core asset with people you don’t know, which is what would happen if they exposed a way to discover people based on games • Facebook is not about meeting new people • Changing the paradigm will lead to more significant privacy concerns than have been seen to date
  18. 18. 18Confidential – myYearbook 2010 – Not for Distribution The Facebook Social Graph • 130 friends on Facebook (per Facebook statistics) • 5-10 friends online right now • 2-5 online friends want to play a game right now • [0-2] online friends want to play a game with you All Friends Friends Online Now Want to play a game With me Few, if any, friends are ready to play a game with you Facebook Has the Wrong Social Graph for Synchronous Games
  19. 19. 19 Finding People to Play Games With on myYearbook Confidential – myYearbook 2010 – Not for Distribution The myYearbook Social Graph • 30 million registered myYearbook users • 100,000 users online right now • 10,000 users filtered by age/gender/location • 5,000 users online, filtered that want to play a game right now • [2,500] users that want to play a game with you right now Registered Users Users online right now Filtered by age/gender/location Filtered that want to play Want to play with you More game partners on myYearbook than your total list of Facebook friends.
  20. 20. 20 Predictions of the Future of Synchronous Gaming • Expect innovation. Synchronous gaming is wide open. • People make games social. Current games do not emphasize human interaction. Future successful games will. • People like to play games with strangers, but not just any stranger. They like to play with people of a given age, gender, skill level, etc. In short, they like to play against people they may want to friend. Expect to see innovation around game matching. • Synchronous games require different viral channels and discovery. Expect new viral channels and app store like interface for game discovery. • The squeeze on developers will continue with increased marketing costs and reduced asynchronous viral channels. Development will follow the new viral channels. Confidential – myYearbook 2010 – Not for Distribution
  21. 21. 21 Questions? Want to Develop for a Synchronous Platform? Want a Great Job in the US? Geoff Cook gcook@myyearbook.com
  22. 22. 22 Appendix Slides
  23. 23. 23 Active, Gaming-Oriented Community Are myYearbook Members Playing Social Games? Source: myYearbook Member Survey. 10,154 Respondents. April, 2010. Yes 78% No 22% Confidential – myYearbook 2010 – Not for Distribution
  24. 24. 25% 34% 25% 12% 5% ExtremelyImportant ModeratelyImportant Somewhat Important Slightly Important Not Important Meeting New People Through Social Games Source: myYearbook Member Survey. 6,302 Respondents. April, 2010. 24Confidential – myYearbook 2010 – Not for Distribution How important are these relationships in your life? 41% 31% 23% 6% Casual Dating Online Only None What kind of relationships have you formed on myYearbook?
  25. 25. 25 Game Play Behavior – Length of Game Session • 81% of social game players sessions are longer than 16 minutes • 2/3 of all game players play for more than 1 hour every week Confidential – myYearbook 2010 – Not for Distribution Source: Information Solutions Group 2010 Social Gaming Research Report 1% 6% 12% 23% 27% 22% 6% 3% 0% 5% 10% 15% 20% 25% 30% <5 min 5-10 min 11-15 min 16-30 min 31-60 min 1-2 hrs 3-4 hrs 5 hrs +
  26. 26. 26 Logging in Specifically to Play Games • Almost half of people who log in to play social games are there just to play games Confidential – myYearbook 2010 – Not for Distribution Source: Information Solutions Group 2010 Social Gaming Research Report 2% 34% 24% 13% 27% 0% 5% 10% 15% 20% 25% 30% 35% 40% 0% 1% - 25% 26%-50% 51% - 75% 76% - 100%
  27. 27. 27 So Does This Mean Facebook Will Win Synchronous Games Once It Chooses To? • It doesn’t have much of a head start. Top Facebook synchronous games and their monetization model: Confidential – myYearbook 2010 – Not for Distribution #3 #46 #76 Drive revenue through chip and gold purchases. Chips and gold spent on game play, tourney buy-ins, gifts and other items. Drive revenue through purchase of ‘Saga Tokens’ and ‘Ninja Emblems’ (upgrade status). Also runs a selection of offer walls to earn tokens for completed offers. Sink Tokens on Weapons, Body Armor and other items. Drive revenue through purchase of ‘Treats’ through various payment methods. Can also upgrade to Membership level by buying enough Treats. Sink Treats on weapons, pets, combos and accessories.

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