Tyson Greer - Mobile Edugame Market Innovations 2014


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This session will discuss key findings about mobile edugame innovations from Ambient Insight’s latest Game-based Learning, Location-based Learning, Digital English Language Learning, Healthcare, and Mobile Learning market research. The presentation delivers an overview of the demand for mobile Game-based Learning, funding and revenue opportunities for suppliers, distribution and business models, as well as market-changing trends. It will focus primarily on North America and include edugame innovations in digital English language learning, health and wellness, education, and tourism around the world. But who is buying? Consumers certainly dominate the edugame market, but what do they want from a mobile edugame and which edugame product types dominate which market segments? This session will answer those questions and provide compelling examples of innovative mobile serious game products and services of interest to developers, publishers, resellers, and suppliers.

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Tyson Greer - Mobile Edugame Market Innovations 2014

  1. 1. Ambient Insight 2014 Mobile Edugame Market Innovations 2014 Key Findings from Recent Ambient Insight Research Tyson Greer, Chief Executive Officer Ambient Insight LLC Serious Play Conference 2014 July 23, 2014
  2. 2. Ambient Insight 2014 Partial List of Ambient Insight’s Clients  Adobe  Amazon  Amplify  Apple  Blackboard  BrainPOP  British Council  Cambridge University Press  Chungdahm Learning  Cisco  Disney  Hasbro  Houghton Mifflin Harcourt  IBM  John Wiley & Sons  McGraw-Hill  Macmillan  Microsoft  Oxford University Press  Pearson  Qualcomm  Rosetta Stone Ambient Insight is an integrity-based market research firm that uses predictive analytics to identify revenue opportunities for suppliers.
  3. 3. Ambient Insight 2014 Agenda  Introductions - Research Taxonomy  Key Findings from Ambient Insight Research  Innovations in Edugame Content Products & Custom Services  Trends to Watch  Show me the Money
  4. 4. Ambient Insight 2014 Ambient Insight’s Learning Technology Research Taxonomy Have Eight Buyer Segments From Six Types of Suppliers That Buy Eight Types of Digital Learning Products Packaged Content Consumer PreK-12 Corporations - Businesses Higher Education Federal Government State - Local Government Associations & Non-Profits Healthcare Custom Content Software as a Service (SaaS) Value Added Services Installed Tools & Technology Learning Devices Digital Video, Text, & Audio Reference Self-paced eLearning Courseware Collaboration- based Learning Simulation- based Learning Cognitive Learning Mobile Learning Social Learning Game-based Learning Ambient Insight’s 2014 Learning Technology Research Taxonomy Seven International Regions North America Latin America Eastern Europe Western Europe Asia Africa The Middle East
  5. 5. Ambient Insight 2014 Six Types of Mobile Edugame Learning Products  Knowledge-based games  Skills-based games  Brain trainers and cognitive fitness games  Language learning games  Location-based learning games (emerged in 2009)  Mobile augmented reality games (emerged in 2010) Ambient Insight forecasts revenues for six types of Mobile Edugames: Clever Goats Ambient Insight’s 2014 Learning Technology Research Taxonomy
  6. 6. Ambient Insight 2014 Key Findings from Ambient Insight Research
  7. 7. Ambient Insight 2014 Key Findings from Ambient Insight Research - The Market  The growth rate for the global Game-based Learning market is 6.7%  In North America: growth rate for all Game-based Learning is 7.6% , but for mobile edugames is 12.5% - and from 2013 to 2018 mobile edugames revenues will nearly double  Consumers still dominate packaged content purchases, the academic market is growing, and nonprofits and government continue to buy tourism-related content services  Mobile edugame investors were bullish in 2011, showed a spike of interest in 2012, slowed in 2013, and steady in H1 2014  New suppliers continue to flood the market, and product visibility becomes increasingly difficult  Cross-platform products (connecting web & app on device) still increasing  Telecoms, device-makers, & NGOs provide Mobile Learning value added services (VAS), except rarely in North America, so far.
  8. 8. Ambient Insight 2014 Key Findings from Ambient Insight Research - The Buyers  Suppliers capitalize on consumers’ interests: early childhood education, tourism, health, fitness and wellness, cognitive fitness, nature, and sustainability  Top “selling” (or downloaded) apps are for young children; edugames that offer parental involvement are on the rise  Explosion of personal learning devices (PLDs) and tablets fuel the market  Cultural institutions continue to invest heavily in edugames, with a mix of in-house and custom content services  Emergence of easy-to-use mobile game-building tools supports cultural shift towards using game-creation as an educational experience  Government entities escalated awareness about protecting privacy of children, and updated regulations and guidelines.
  9. 9. Ambient Insight 2014
  10. 10. Ambient Insight 2014 Personal Learning Devices Proliferate Across the Globe Amplify Tablet System bundles Classroom Tools, content and apps, filtering, MDM, and implementation support OLPC XO-10 Tablet with Bluetooth-enabled keyboard LeapFrog’s new LeapTV living room console with educator-approved games and videos for 3- 8 year olds Kurio 7S (kidSAFE+ seal)
  11. 11. Ambient Insight 2014 Mobile Edugames Inhibitors v. Opportunities Discoverability  So many apps, so many app stores  Partner with Big Players (profit or nonprofit)  Market in multiple media  Join publishing programs  Map content to standards (CCSS, Next Generation Life Science Standards…)  Offer professional development to educators  Seek sponsorship from 3rd parties http://www.gamesandlearning.org/2014/06 /09/teachers-on-using-games-in-class/ Academic inhibitors  Fragmentation of the market  Lack of teacher support  Social and cultural structures: enough & which devices? or are devices banned?  Attitudes: educators and teens
  12. 12. Ambient Insight 2014 Combining Common Core & Teacher Support & User- generated Content Lack of teacher training in how to use edugames in (or out of) the classroom inhibits sales July 2, 2014, Imaginary Number Co over-achieved $42K Kickstarter campaign to bring Mathbreakers to Android and iPad tablets - Classroom setup free for 3 months - Lesson plans & level editor $25 Teacher Dashboard: assign game levels and student track progress https://www.mathbreakers.com/lessons/Trial %20Lesson/
  13. 13. Ambient Insight 2014 Innovations in Edugame Content Products and Custom Services
  14. 14. Ambient Insight 2014 Knowledge & Skills: Products for PreK-2 Dominate the North American Edugame Market Funbrain Jr, early math, literacy, problem-solving web & app published by Pearson Education Sight Words in Space by Clever Goats Gummii Math Educational Games , the first to crack iPad Top 25 in Canada.
  15. 15. Ambient Insight 2014 “The 2013 Content Trench” – Percent of Total Paid Mobile Learning Apps by Target Demographic 34% 10% 5% 6% 3% 6% 8% 28% 0% 5% 10% 15% 20% 25% 30% 35% 40% What’s on the Store Shelves? Consumer-facing Paid Mobile Learning Content (All Apps Including Edugames) Across All Major Application Stores, Platforms, and Devices The vast majority of PreK-2 Mobile Learning content is game-based
  16. 16. Ambient Insight 2014 Knowledge & Skills: Combining Critical Thinking Skills with Knowledge-based Learning Opportunities ELA + STEM = Argubot Academy GlassLab + NASA launched an iPad adventure CCSS-based (STEM) game to develop critical thinking skills and interest in science.
  17. 17. Ambient Insight 2014 Knowledge & Skills: Interest in Coding Levels Up Hakitzu: Elite, an update to the original, teaches STEM skills and the next level of coding. “Teacher’s Pack” offers guidance and lesson plans. CargoBot for 5+ uses a moving crane to shift boxes and use coding concepts like loops, procedures, and debugging.
  18. 18. Ambient Insight 2014 Knowledge & Skills: Includes “Life Skills” for Students Parents and schools buy Social & Emotional Learning skills (SEL) edugames to develop children’s emotional intelligence IF… (If You Can Company) SEL role-play, decision-making adventure game for ages 9-11, includes a Parent’s menu.
  19. 19. Ambient Insight 2014 Knowledge & Skills: Health & Wellness for Consumers CME Edugames for Healthcare Students & Professionals For medical students, “Osmose with Your Friends” crowd-sourced game from 2013 DreamIt Health tech accelerator For consumers, health & wellness topics include alcohol, allergies, anatomy, asthma, brain fitness, cardiovascular health, dental health, diabetes, exercise & fitness, food & nutrition, pet care, obesity & weight loss, pain, smoking cessation, substance abuse, and safety TAO WellShell isometric fitness device over-achieved Kickstarter $100,000 goal
  20. 20. Ambient Insight 2014 FDA Intends Discretion When Regulating Mobile Medical Apps as Devices  FDA identified examples of mobile apps for which the FDA will “exercise enforcement discretion” (6/11/14)  http://www.fda.gov/MedicalDevices/ProductsandMedicalPro cedures/ConnectedHealth/MobileMedicalApplications/ucm36 8744.htm  The list identifies 24 types of apps including those that:  Provide prediabetes patients with tools or guidance to create healthy habits  Use video games to motivate patients to do their physical therapy exercises  Are intended for individuals to make decisions or offer behavioral suggestions related to health or wellness (including “use social gaming to encourage healthy lifestyle habits”) – but are NOT marketed as diagnosis or treatment.
  21. 21. Ambient Insight 2014 Brain Trainers and Cognitive Fitness Apps: New Players Continue to Enter the Market Lumos Labs, Rosetta Stone (Vivity Labs), Nintendo, and Cogmed dominate North American market  Lumosity with 60 million iOS users, and just now launches on Android  Master of Words PRO ($2.99) #1 on Amazon US-Games-Free category (not just edugames) after “daily deal”  Brain+ (beta in Denmark, Jan 2013) entered North America and UK markets (July 2014) with 3 “scientifically-proven” games, including Remember Me. Remember Me, Brain+
  22. 22. Ambient Insight 2014 Language Learning: Edugames Teach Languages on Smartphones, Tablets, and Game Consoles Dora’s Worldwide Rescue Spanish vocabulary for age 4 Ubisoft’s language coaching apps for Nintendo Memrise has 1 million active users for language and other courses with crowd-sourced content
  23. 23. Ambient Insight 2014 Language Learning: Converging Product Types Boost Engagement (and Sales) Sesame Workshop updated AR “Word-o-Scope” letters game with email-able word labels & game ideas to extend learning beyond the app Top selling apps across the planet are: Edugames for young children & language learning apps. Add in AR! Elmo’s Alphabet Challenge by Sesame Street, one of the first AR edugames
  24. 24. Ambient Insight 2014 Location-based Learning: Venues, Brands, and Suppliers Create Cross-platform Promotions Students visiting the Minnesota Historical Society use Play the Past app during field trips to museum and back in the classroom. Tourist attractions create or sponsor location-based treasure hunts  Edinburgh International Science Festival built a free city-wide “Sci Quest” edugame  Sainted Media’s free multimedia Global Treasure Apps offer “real-world rewards” in the sponsor’s gift shop or café venue Brands also use game apps to engage customers and/or “edu-sell”  Marriott hired evviva games to create XPLOR scavenger hunt/arcade game/puzzles app for 5 cities. Includes “in-game economy” enabling users to buy and sell goods.  Microsoft and DreamWorks teamed to create a free (no IAP) road trip app Dragon Adventure World Explorer, using Here Maps technology, Weather Channel data, and Foursquare popularity. SDK coming soon.
  25. 25. Ambient Insight 2014 Augmented Reality: Making History, Science, Math, and Reading Come Alive Qualcomm’s Vuforia Platform used by brands, developers, content owners for advertising, publishing, gaming, tourism, education… AR Freedom Stories bring US/Canadian Underground Railroad to life Math-based games for kids 6-9, from PBS KIDS funded by US Dept of Education
  26. 26. Ambient Insight 2014 Trends to Watch
  27. 27. Ambient Insight 2014 Trend: Tools for the Creator Economy User-Generated Games and User-Generated Content TinyTap is a platform for anyone to create edugames, which can be published on the TinyTap Market, AppStore, Google Play, and Web TinyTap Space Game uses Stroop Effect Futuba Classroom Games includes question sets. Students & teachers can use their own images, audio, and text to add to the question bank. Playingmondo.com - find or build virtual playgrounds and use Mondo builder to create location-based games
  28. 28. Ambient Insight 2014 Trend: Supporting “Mobile Parenting” with Communications and Data  Kindergarten Readiness (FunBrains Jr) - interactive parent skills checklist  IF… - Parents’ Menu, schedule frequency of updates  GuruCool PlaySchool (KidZone Studios) - provides view into child’s progress, suggests activities and daily tips  PBS Play & Learn - math & literacy skills edugame “specifically for parents”  Fingerprint Digital - Mom-Comm with in-app messaging  National Geo’s Animal Jam – companion website has a Dashboard for parents Suppliers provide connection and data to parents to counter their concerns (guilt) of “cellphone-as-babysitter” and their desires for quality educational/play experiences
  29. 29. Ambient Insight 2014 Trend: Data & Privacy The Two-Edged Sword Developers and platform-providers are creating new ways to mine data What does “big data” mean in edugames for children? Opportunity Watch Out For… To deliver a child’s progress data to parents: to boost their engagement and product satisfaction Collecting data without obtaining parental consent To accumulate a treasure-trove of users’ gameplay data: to make improvements or drive new product features Collecting data without obtaining parental consent To provide a more personalized learning experience Collecting data without obtaining parental consent To transmit data to third parties (e.g. ad network, analytics company) Transmitting, sharing data without obtaining parental consent
  30. 30. Ambient Insight 2014 Trend: Data and Privacy New FTC COPPA Rules Can Be Costly The Federal Trade Commission (FTC)’s Children’s Online Privacy Protection Act (COPPA) rules have teeth New rules went into effect July 2013  Expanded privacy definitions include: geo-tagging, behavior targeting, and (closing the 3rd party loophole) ad network cookies and social networking  Approved “Safe Harbor” self-regulatory programs  Fine potential = $16,000 per incident  Prosecutions: – May 2011: Playdom, $3 million settlement – June 2012: New Jersey Attorney General sued 24x7digital – Feb 2013: Path, $800,000 settlement
  31. 31. Ambient Insight 2014 Trend: Data & Privacy FTC-approved “Safe Harbor” Programs Some suppliers identify themselves as “family friendly” and respecting children’s privacy by displaying seals of approval such as the “Know What’s Inside” from MOMs with apps. http://www.momswithapps.com/about) There are now 6 FTC-approved Safe Harbor programs that provide certification that members adhere to COPPA rules: • Aristotle International, Inc. • Children’s Advertising Review Unit • ESRB Privacy Certified • kidSAFE+ • Privacy Vaults Online, Inc (DBA PRIVO) • TRUSTe
  32. 32. Ambient Insight 2014 Data and Privacy: California Publishes New Guidelines 2003: California Online Privacy Protection Act (CalOPPA) - the first law in US to require a conspicuously posted privacy policy for web & apps 2013: Attorney General of California’s guidelines reinforce the FTC’s “privacy by design” approach and the Organization for Economic Development’s (OECD) “Fair Information Practice Principles,” (FIPPs) with a couple of new twists: 1. Recommendation to encrypt transmissions of PII (personally identifiable information) includes apps downloaded or used. 2. Introduce a new term “surprise minimization,” meaning to “minimize surprises to users from unexpected privacy practices. 2014: New guidelines…
  33. 33. Ambient Insight 2014 Trend: Data and Privacy Canada Aligned with EU Rules The Personal Information Protection and Electronic Documents Act (PIPEDA) enforces European Union’s privacy directives (collection, use, retention and disclosure of personal information)  Under the United Nations 1989 Convention on the Rights of the Child, privacy is a basic human right for everyone under the age of 18.  Office of the Privacy Commissioner of Canada (OPC) has focused on children's online privacy as a priority. Some Canadian provinces (Alberta, B.C., Quebec, and Ontario) also legislate data protection.
  34. 34. Ambient Insight 2014 Trend: Smart Toys for Skills-based Learning and Learning 21st Century Skills Tiggly iPad apps are free; shapes are $29.99 SK Telecom smart toy teaches language arts Uboly uses a smartphone for a “brain” Kids get to program the Play-I “robots” Tangible Play’s Osmo add-on for iPads https://vine.co/v/Mw BYjYi1WeX
  35. 35. Ambient Insight 2014 Trend: Wearables + Edugames Coming Soon… Oculus Rift offers opportunity for immersive learning experiences “Ok Glass… Reform Education” Suppliers such as Duolingo and Word Lens have ported their Mobile Learning language and translation apps to Google Glasses Top 100 Game Tech Trends http://www.develop- online.net/news/the-top-100- tech-in-games- revealed/0194694
  36. 36. Ambient Insight 2014 Innovative Revenue and Distribution Models New Opportunities New Challenges
  37. 37. Ambient Insight 2014 Incubators and Accelerators are Proliferating Providing Financial Support and Connections to Experts & Capital May 2013, Zynga.org committed $1 million for “Edtech Game Accelerator” to focus on learning games in partnership with NewSchools Venture Fund. Motion Math and Kidadaptive were in Zynga.org’s 2013 cohort. Tiny Tap and Kiko labs in 2014. Kaplan EdTech Incubator, powered by TechStars, offers $20K investment, June – September co-location in New York City, market insights, mentorships, access to Kaplan’s Learning Science group… Rock Health opened in 2013 and claims to be “The first seed accelerator for digital health startups.”
  38. 38. Ambient Insight 2014 Innovative Revenue and Distribution Options Revenue Models:  Sponsorships (nonprofits & commercial brands)  Free, lite, and premium  Subscription services  Partner with telecoms and device-makers  Crowdfunding  Ads  Real-world goods  In-app purchases - virtual goods/ micropayments for virtual items Distribution Channels:  Channel partners (BrainPOP, Edmodo, Learning.com, Florida Virtual School…)  Specialty app stores & programs  Public libraries  Commercial digital libraries adding mobile content, e.g. OverDrive  Partner with virtual schools, home school suppliers, device makers, publishers, and telecoms  Personal Learning Devices New app promotion services and new marketplaces
  39. 39. Ambient Insight 2014 Revenue and Distribution: Brought to You by the Letter “S” for Subscriptions  March 2014 released subscription-based (in-app purchases £ 2.49; or auto- renewable £1.99)  Includes “together time” tips for parents  Allows children to record their voices in different languages Sesame Street S’More is a bi-monthly interactive digital magazine for kids (ages 4+)
  40. 40. Ambient Insight 2014 Revenue and Distribution: Playsourcing - Games for Giving Back Gamers steer a course to collect “Element Alpha,” through genuine DNA microarray data. Collective flight path gameplay contributes to massive data crunching behind the app to analyze real genetic data. Feed-A-Pet –For every level a player completes, the Pet Project donates money to feed homeless pets in need. (Donations funded by ads) Play to Cure – Genes in Space
  41. 41. Ambient Insight 2014 Q & A Ambient Insight’s Free Resource Library at: http://www.ambientinsight.com/News/PublishedContent.aspx This presentation, the “Mobile Edugame Market Innovations 2014,” past presentations, and our Learning Technology Research Taxonomy can be downloaded from