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Realising the Virtual Economy

          30th June 2010
Why you should think about the
      Virtual Economy


        New Customers



         New Revenues
The Virtual Economy: definition


“An emergent economy existing in a
  virtual persistent world, usually
  exchanging virtual goods in the
  context of an internet game”
  -Wikipedia
The Virtual Economy: definition



  “The flow of money through
             apps”
 -Jellyworm
The flow of money through apps




             Apps
Global value
                                                   $11b
                 $6b




               2010
                                                   2013
Source: Piper Jaffray, Plus Eight Star,
Susan Wu, Charles River Ventures, Inside Network
EA games bought Playfish

                       Buys
                     Playfish
                    for $275m




                     Lays off
                      1,500
                     fulltime
                    employees
July 2007
is
the biggest gaming portal in the
             world
Q. What is the biggest single
 media property in the world?


...bigger than the population of
A. Farmville




Peaked at 83 million users in 2010
It’s not just about “daily games”


                    Virtual
Communities
                    Worlds




  Utilities         MMOs
The average social gamer
            in the UK & US..




                 ...is a 43 year old woman
Source: PopCap
Jellyworm’s first principle




           App users
             opt in
The second principle




        100% play
         10% pay
All gameplay uses virtual currency
Average Direct Payment:
   £7 per transaction




Biggest single transaction = $1m
Enhancing brand values and delivering a
               profit!
Facebook users pay £1- £2 to send
   virtual goods to their friends




Remains on user’s tabbed profile indefinitely
Advertisers are getting new customers
     by offering virtual currency
Surveys generate new customer leads




       New customer leads from £0.50
The big on-line app developers
don’t make advertiser branded
          apps...yet
Branded apps


  Will start to
  dominate the
social space from
       2013
Branded apps are much more
  prominent on the iPhone
The third principle



          If you can’t
              create,
             integrate
Integrate into existing apps

      Massive audiences already exist




        Users are already engaged




Viral mechanics have already been developed
Public Enemies & Mafia Wars




               900m viral impressions

                   In one week!
The fourth principle




          T.V.E=R.O.I
The Virtual Economy

      App users opt in

    100% play, 10% pay

If you can’t create, integrate

The Virtual Economy = R.O.I
Jellyworm.com

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The Virtual Economy