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    Bar World Presentation Bar World Presentation Presentation Transcript

    • “The  Bar  is  Now  Open!”  
    • Create  your  own  bar  and  brag  to  your  friends!   Bar  World  will  offer  excitement  and  entertainment  to  Facebook  game  players  by  providing  the  user  a   familiar  and  easy  point  of  entry,  consistent  incen>ves  to  return;  and  the  age  old  boast….to  own  your  own   bar!!!     Users  can  prove  their  business  savvy  in  the  bar  world  by  star>ng  off  with  the  neighborhood  dive-­‐bar  and   turning  it  into  the  hoEest  spot  in  town!   •     Design  your  bartender  and  invite  your  friends   •     Stock  your  top  shelf  with  all  your  favorite  liquor   •     Build  your  business  to  match  your  personality     •     Grow  your  bar  to  be  the  envy  of  all  your    friends    
    • Strategic  Overview   •  Effortless  ini>al  par>cipa>on  encouraged  by  a  straighKorward  and  familiar  bar  front  interface      Mark  Pincus  CEO  Zynga  Dec,  2009:  “I  think  there’s  a  con0nued  trend  towards  greater  simplicity.  We  learned   that  lesson  this  year.  While  our  games  are  more  accessible  than  hardcore  games,  nobody  realized  making   them  more  simple  would  unlock  more  users.  Nobody  would  guess  that  one  of  most  popular  categories  would   be  fish  swimming  around  in  a  bowl.    I  would  be  shocked  if  it  didn’t  get  even  more  simple.”   •  Actual  alcohol  brands  and  recognizable  drinks  bring  a  real-­‐life  experience   •  The  opportunity  to  advance  by  earning  more  cash,  adding  features,  and  personalizing  the  bar   incen>vizes  frequent  game  return.   •  By  proudly  crea>ng  a  personal  bar,  gamers  will  be  inspired  to  share  their  accomplishments  with  their   friends.     •  Organic  brand  integra>on  with  familiar  and  loved  alcohol  brands,  brings  a  unique  opportunity  for  in-­‐ game  adver>sing   •  Realis>c  game  revenue  models  and  incen>ves  to  spend  real  world  currency  are  driven  by  three  simple   measures:     –  Stock  delivery  >me  upgrade  op>ons,  spurred  from  the  desire  to  sell  more  alcohol  faster  and  grow   more  customers   –  Custom  features  and  op>ons  that  provide  bragging  rights  within  the  users  personal,  social  space,   easily  executed  by  constant  op>ons  to  “share”  different  “successes”  in  their  social  streams  and   on  specific  friend’s  walls.   –  Most  importantly,  the  more  friends  users  invite,  incen>vize  and  convince  to  patron  their  bar,  the   more  drinks  they’ll  move  and  the  faster  they’ll  fly  through  the  various  levels  realizing  the  en>re   Bar  World  experience.    
    • Game  Stage  1     Design  your  bartender  to  suit  your  personality  (male/female,  hair  color,  facial  features,  clothes)     Open  your  bar  with  our  favorite  beer  already  on  tap     Invite  friends  (the  more  friends  who  visit  your  bar  the  more  drinks  you’ll  sell!)     Your  bar  may  be  a  dive  at  first,  but  at  least  it’s  yours!   4  
    • Game  Stage  2     Now  that  your  business  is  on  its  feet,  you  have  your  first  selec>on  of  liquor     You  can  mix  more  drinks  with  your  expanded  liquor  selec>on,  hurray  for  more  customers!     Now  customize  your  bar  with  a  selec>on  of  floors,  walls,  stools  and  bar-­‐fronts     Replace  that  old  TV  with  your  very  first  flat-­‐screen!   5  
    • Game  Stage  3     Your  top  shelf  is  STACKED!    Your  mixing  capabili>es  are  at  their  fullest,  allowing  you  to  make  all  of  your   friends’  favorite  drinks.    Once  again,  making  YOUR  bar  their  favorite  des>na>on!     Your  friends  are  now  choosing  your  bar  as  their  favorite  spot  to  watch  that  big  game  or  season  finale!     Your  custom  mixed  drinks  are  flying  off  the  shelves,  now  you  are  flush  with  cash  and  can  purchase  that   marble  counter  you’ve  been  drooling  over!     All  of  your  friends  have  become  regular  customers,  your  beer  kegs  and  top  shelf  of  liquor  are  running  out   fast,  head  to  your  distributor  to  pick  out  your  top  selling  varie>es  of  alcohol.     Now  that  you  have  a  steady  source  of  income,  you  can  build  an  expansion  on  your  bar  and  add  a  room.     More  space….more  customers!   6  
    • Game  Stage  4     Congratula>ons,  you  have  a  new  room  in  your  bar!!    Your  capacity  just  grew!     Add  a  pool  table,  Mega  Touch,  dartboard,  jukebox,  piano,  or  other  fun  items  to  keep  your  friends  in  your   bar  longer,  and  drinking  more!     You  can  pack  more  friends  in  your  bar  now  that  any  other  bar  in  town,  you  now  have  the  hoEest  spot   around.   7  
    • Game  Stage  5     The  hoEest  spot  in  town  isn’t  good  enough?    Now  have  the  hoEest  spot  in  the  world…..     Have  you  ever  wanted  your  favorite  band  to  play  for  you  and  your  friends?    Have  you  ever  wanted  your   own  bowling  alley?  What  about  a  movie  theater?    Now  you  can  have  it  all!     Franchise  your  business  and  open  up  all  over  the  world!!!   8  
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    • Over  1  Billion  MAU  of  FB  Games!     Social  Gamer  Overview:  21  percent  make  between  $50,000  and  $75,000  a  year  and  21  percent  earn  more  than  $75,000,  17   percent  earn  between  $35,000  and  $49,000;  while  one-­‐third  of  those  in  the  U.S.  earn  less  than  $35,000  a  year.  The  largest   single  group  of  social  gamers  —  41  per  cent  of  those  surveyed  —  work  full  >me,  while  13  percent  are  re>red  and  11  percent   are  homemakers.       Virtual  Goods  Overview:  In  2009,  an  es>mated  $2.2  billion  in  virtual  goods  were  sold  to  consumers  globally,  and  that  number   is  expected  to  rocket  to  over  $6  billion  by  2013.Virtual  goods  are  non-­‐physical  objects  that  are  purchased  with  real  money  for   use  in  online  communi>es,  virtual  worlds,  or  games  and  fulfill  a  func>onal  or  decora>ve  purpose  in  an  online  environment.     Branded  Virtual  Goods  (BVGs)  are  virtual  goods  that  –  in  addi>on  to  offering  some  func>onal  or  decora>ve  value  –  display  an   insignia,  copyright  protected  mark,  logo  or  deriva>ve  image  of  a  known  brand,  and  by  virtue  of  being  “branded”,  command  a   higher  social  and  monetary  value  among  end  users.       Alcohol  Adver=sing  overview     Alcohol  is  primarily  marketed  to  males  and  females  aged  21-­‐35     eMarketer  just  released  projec>ons  that  Global  adver>sing  in  social  games  and  applica>ons  will  total  $293  million  next   year,  a  60  percent  increase  from  2009.   16  
    • Facebook  Gaming  Sta=s=cs   Top 10 Sectors by Share of U.S. Internet Time Share  of  Time   Share  of  Time   %  Change  in   Rank   SubCategory   June  2010   June  2009   Share  of  Time   1   Social  Networks   22.7%   15.8%   43%   2   Online  Games   10.2%   9.3%   10%   3   E-­‐Mail   8.3%   11.5%   -­‐28%   4   Portals   4.4%   5.5%   -­‐19%   5   Instant  Messaging   4.0%   4.7%   -­‐15%   Core  Economic  Model   •  Conver>ng  1-­‐4%  of  ac>ve  users  to  buyers  of  virtual  items  with  real  world  money     •  Most  Social  Games  appear  to  have  an  “Average  Revenue  Per  User”  in  the  range   of  $.20-­‐$.80  per  user  per  month   •  30  minutes  of  engagement  per  session   User  Profile   •  62%  female,  38%  male   •  78%  over  21  
    • Branded  Virtual  Goods  Overview   •  Virtual  goods  are  non-­‐physical  objects  that  are  purchased  with  real  money  for  use  in  online  communiKes,  virtual  worlds,  or  games  and   fulfill  a  funcKonal  or  decoraKve  purpose  in  an  online  environment.       •  Branded  Virtual  Goods  (BVGs)  are  virtual  goods  that  –  in  addiKon  to  offering  some  funcKonal  or  decoraKve  value  –  display  an  insignia,   copyright  protected  mark,  logo  or  derivaKve  image  of  a  known  brand,  and  by  virtue  of  being  “branded”,  command  a  higher  social  and   monetary  value  among  end  users.     •  BVGs  offer  a  way  to  increase  both  the  revenue  and  profit  margins  of  a  social  network’s  virtual  goods  business.  Since  BVGs  are  priced  at   a  premium  to  generic  virtual  goods,  they  enable  sites  to  achieve  higher  returns  by  selling  more  valuable,  higher  priced  inventory  through   their  virtual  goods  storefronts  and  marketplaces.    POINTS  FOR  SUCCESS   •  Focus  on  Customer  Interac=on.  BVGs  are  most  suitable  for  brands  seeking  high  frequency,  mone>zable,  one-­‐on-­‐one  user  interac>ons.     •  Strong  Visual  Brand  Equity.  For  the  online  user,  the  main  condi>on  for  making  a  BVG  purchase  is  immediately  recognizing  the  brand  and   the  values  for  which  it  stands,  despite  seeing  it  only  as  a  small  icon  on  a  computer  screen.  Brands  with  well-­‐known,  prominent  visual   signatures  will  be  best  equipped  to  create  a  BVG  that  conveys  authen>city  and  value  on  a  small  screen.   •  Have  Enthusias=c  Followers.  Customers  who  consider  themselves  devoted  loyalists  and  have  deeply  personal  rela>onships  with  iconic   brands  will  con>nue  their  offline  endorsement  of  the  brand  by  spending  money  on  them  in  an  online  environment.     •  Strong  Real  World  Relevance.  Brands  that  can  emo>onally  connect  with  users  through  popular  memes  are  seen  as  culturally  relevant   and  exci>ng.  Without  this  strong  aEachment  to  real  life,  brands  will  be  challenged  to  find  the  relevance  that  is  the  backbone  of  a   successful  Branded  Virtual  Good.   •  Contextual  Relevance.  This  is  a  key  factor  in  determining  the  success  of  a  Branded  Virtual  Good.  Every  brand  should  consider  how  its   exis>ng  equity  can  be  leveraged  to  create  a  compelling  virtual  good  and  what  kind  of  behavior  it  wants  to  enable  in  its  target  user  –   winning,  self-­‐expression  or  status  –  based  on  the  users’  preferred  online  ac>vi>es.  BVGs  should  fit  seamlessly  into  the  context  of  the   online  environment  and  add  value  to  online  ac>vity  in  order  to  be  viewed  posi>vely.   •  Exclusivity.  As  with  real  goods,  virtual  goods  that  are  perceived  as  scarce  are  considered  more  desirable.  BVGs  should  be  constantly   refreshed,  but  sold  in  limited  supply  at  premium  prices.  This  way  they  can  be  turned  into  exclusive  collec>bles,  and  generate  high   demand  among  fans  who  want  to  own  the  complete  series.  It  may  seem  counter-­‐intui>ve  to  limit  supply  of  a  product  with  almost  zero   marginal  cost  and  unlimited  shelf  space,  but  the  perceived  scarcity  actually  allows  brands  to   maximize  impressions.   •  High  Quality.  Users  are  drawn  to  visually  stunning  and  engaging  imagery.  BVGs  should  be  vibrant,  rich,  interac>ve  and  engaging.  These   elements  protect  the  brand’s  visual  equity,  but  also  make  the  virtual  goods  dis>nc>ve  and  able  to  stand  out  from  unbranded  items.   18        
    • Branded  Virtual  Goods  Overview  2   Market  Size  &  Forecast    When  assessing  market  size  for  Branded  Virtual  Goods,  it  is  important  to  keep  a  global  perspec>ve  since  today’s  leading  brands  have  a   global  presence  and  customer  base,  and  online  environments  like  social  networks,  online  games  and  virtual  worlds  exercise  a  reach  that   crosses  geographic  boundaries.  The  global  virtual  goods  industry  is  es>mated  to  be  a  $3.1  billion  market  (Source:  Piper  Jaffray)  and   analysts  agree  that  this  market  is  poised  to  grow  exponen>ally  within  the  next  three  to  five  years.  According  to  Piper  Jaffray  es>mates,   the  global  virtual  goods  market  will  grow  25%  over  the  next  three  years  and  generate  over  $6  billion  in  revenues  by  2013.  Further   analysis  suggests  that  by  2015,  the  industry  will  be  growing  at  a  21%  CAGR  and  be  a  $7.9  billion  market.  Currently,  Branded  Virtual  Goods   currently  make  up  less  than  1%  of  this  market,  with  global  revenue  es>mates  for  sales  of  BVGs  at  around  $15  million.  However,  as  virtual   goods  become  more  ubiquitous  and  brands  come  to  recognize  virtual  goods  as  a  valuable  engagement  and  revenue  opportunity,  we   expect  that  the  growth  of  Branded  Virtual  Goods  will  outpace  the  industry’s  overall  growth.  We  predict  that  global  BVG  revenues  will   grow  at  113%  CAGR  over  three  years  to  $150  million  by  2013  (2.5%  share)  and  at  83%  CAGR  over  five  years  to  $318  million  by  2015  (4%   share).   Future  Trends  in  Branded  Virtual  Goods   The  growth  towards  this  predicted  market  size  will  be  driven  by  a  number  of  trends  influencing  the  supply  and  demand  of  Branded   Virtual  Goods.  We  have  already  begun  to  see  ac>vity  in  these  areas  as  the  virtual  goods  industry  con>nues  to  grow,  both  in  terms  of   market  size  and  usability.    Evolu>on  from  Vanity  to  Func>onal  Virtual  Goods.  BVGs  benefit  from  seller-­‐friendly  price  dynamics:  they  are  typically  priced  higher  than   their  generic  counterparts,  and  ouen  buck  tradi>onal  economic  theory  in  that  the  best  selling  items  are  usually  the  most  expensive.  As   the  industry  matures  and  average  prices  begin  to  increase,  BVGs  will  need  to  live  up  to  their  premium  pricing  and  perceived  value  by   going  beyond  decora>ve  avatar  items  or  gius  to  incorpora>ng  func>onali>es  that  cohere  with  the  brand  and  also  enable  the  user  to   engage  in  preferred  behavior,  such  as  moving  ahead  faster  in  a  game.  For  example,  Nike  partnered  with  Gaia  Online  and  offered  Nike-­‐ branded  sneakers  that  not  only  acted  as  a  status  symbol  or  avatar  enhancer,  but  also  enabled  the  wearer  to  run  faster  than  other  players   in  the  virtual  world.  As  Branded  Virtual  Goods  become  popular,  brands  will  incorporate  such  func>onality  into  their  virtual  goods  so  that   they  are  more  relevant,  and  thus  more  desirable,  to  the  user.   The  Marriage  of  Real  and  Virtual  Worlds.     Recently,  various  brands  have  partnered  with  Zynga  to  create  real,  in-­‐store  promo>ons  for  virtual  goods  and  currency.  Green  Giant  gave   away  Farmville  cash  with  purchase  of  branded  vegetables,  and  7-­‐11  branded  its  physical  products  with  codes  that  helped  buyers  unlock   limited  edi>on  virtual  goods  in  various  Zynga  games.  Zynga’s  popularity  and  scale  has  allowed  it  to  be  the  forerunner  in  such  promo>onal   campaigns,  but  we  expect  that  as  more  hit  social  games  emerge,  there  will  be  a  greater  number  of  real-­‐plus-­‐virtual  promo>ons.  We   expect  the  model  will  flip  around  too,  where  7-­‐11,  or  any  other  retailer,  will  sell  Branded  Virtual  Goods  inside   social  games  that  translate  into  a  physical  purchase  in  real  life,  i.e.  when  you  buy  a  virtual  Slurpee,  you  receive  a  coupon  for  a  free  or   discounted  real  Slurpee.  We  expect  that  such  innova>ons  will  occur  in  the  very  near  future,  likely  within  the  2010  calendar  year.   19  
    • Digital  Adver=sing  Models   •  It is estimated that US online advertising spending will reach $25.1 billion in 2010, representing 10.8% growth over last year. Relatively healthy economic gains, along with the ongoing shift of marketing dollars from traditional to digital media, have contributed to the double-digit increase. •  As an example of the increase specifically in the Alcohol Sector, in 2008 Southern Comfort (SoCo) spent $6 million of its $8 million measured media outlay on cable TV, and another $1.5 million on magazine ads. In 2009, both those numbers dropped to zero in favor of online properties such as Facebook, Spin, Fader, Pitchfork,Thrillist and Hulu. This shows the increasing trend of advertising budget shift to online and digital 20  
    • Case  Study-­‐  Nightclub  City   •  6  million  monthly  ac>ve   users   •  1  million  daily  ac>ve   users   •  User  Profile:   •  51%  female,  49%  male   •  65%  between  18-­‐34   21  
    • Case  Study-­‐  Bar  Society   •  1.5  Million  Monthly  Ac>ve  Users   •  150k  Daily  Ac>ve  Users  
    • Case  Study-­‐  Drink  It  Up!   •  1.9  Million  Monthly  Ac>ve   Users   •  174k  Daily  Ac>ve  Users   23