Interaction and Engagement: The Evolution of Advertising in Social Games

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Robert Schneider, TrialPay Europe, Peter Wexler, TrialPay

a4uexpo Barcelona 2012

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  • PETE
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  • The Internet has become freemiumAirline exampleTons of free services which get you from A to B
  • Just like earning airline miles – you can sit in economy with everybody else, pay to sit in business, or use your bonus from another purchase to upgrade
  • Interaction and Engagement: The Evolution of Advertising in Social Games

    1. 1. It’s Game Time …Interaction and Engagement: The Evolution of Advertising in Social Games@a4uexpo#trialpay Payment and Promotions Platform CONFIDENTIAL © 2012 TrialPay Europe. All rights reserved. 0
    2. 2. Why are you here? 1 Because after this is a cocktail reception and I want to rest my feet before! Because my spouse is playing social games all 2 the time online and on mobile and I want to figure out why! Because I am interested in finding and 3 exploiting new performance marketing channels! Payment and Promotions Platform CONFIDENTIAL 1
    3. 3. How people use the internet Payment and Promotions Platform CONFIDENTIAL 2
    4. 4. Which advertising works?5% I am considering buying something40% I am looking for information25% I am interacting socially??% I am earning my online living Payment and Promotions Platform CONFIDENTIAL 3
    5. 5. 5%: “I am considering buying something” Payment and Promotions Platform CONFIDENTIAL 4
    6. 6. 5%: “I am considering buying something” SEO Post-Transaction Marketing Vouchers Retargeting Price Comparison Paid Search Cashback Loyalty Special Interest Blogs and Communities Purchase intent is already present High Conversion rates Significant channel overlaps („customer journey“) Payment and Promotions Platform CONFIDENTIAL 5
    7. 7. The 5% in Action A customer already searching for Neckermann is less valuable than someone who isn’t. On Google, Neckermann might pay for customers that were already going to buy from them. Payment and Promotions Platform CONFIDENTIAL 6
    8. 8. 40%: “I am looking for information” Display Advertising Contextual Advertising Continued importance at the expense of traditional advertising (Print and TV) Significant purchase triggers, but not last touchpoints Payment and Promotions Platform CONFIDENTIAL 7
    9. 9. 40%: “I am looking for information” Display Advertising Contextual Advertising Realtime Bidding Continued importance for branding and image Growth at the expense of traditional advertising (Print and TV) Significant purchase triggers, but not last touchpoints Payment and Promotions Platform CONFIDENTIAL 8
    10. 10. The 40% in ActionA customer reading about Euro Cup is not looking to purchase goods or services Lots of noise to get message across and get desired action (click to sale) while user consumes information. Payment and Promotions Platform CONFIDENTIAL 9
    11. 11. 25%: “I am interacting socially” Payment and Promotions Platform CONFIDENTIAL 10
    12. 12. 25%: “I am interacting socially” Social Media Advertising Viral Marketing Fan Page Advertising No purchase intent Very low response rates to advertising (pub example) Interest can be raised for trending commercial topics Opinions are built and shared Payment and Promotions Platform CONFIDENTIAL 11
    13. 13. “I am earning my online living” Payment and Promotions Platform CONFIDENTIAL 12
    14. 14. Accessing the 25%! A customer who is presented a deal from Neckermann before shedecided to purchase might decide to buy from Neckermann and do so instead of at Zalando next time she shops for clothes Payment and Promotions Platform CONFIDENTIAL 13
    15. 15. “I am earning my online living” Earn-based economies Reward-based payments Social Game advertising Offer users a deal for their engagement Reach new users and create impulses for buying and interacting Advertise where users spend more and more time Combine large audiences and precise targeting Payment and Promotions Platform CONFIDENTIAL 14
    16. 16. Why should advertisers care? Payment and Promotions Platform CONFIDENTIAL 15
    17. 17. Online casual gaming is now a mainstream activity Representative mix of age and gender Larger audiences than prime-time TV Cityville The Sims Social Two and a Half Men Adventure World Farmville 21 Questions NCIS: Los Angeles Male Female Modern Family Big Bang Theory The Mentalist TV Shows CSI How I Met Your Mother Social Games Gardens of Time Diamond Dash Bejeweled Blitz Pioneer Trial14-17 18-24 25-34 35-44 45-54 55+ Café World 0 US5audience in million 25 10 15 20 30 35Balance of male and female users Casual gaming has become a77% of users = eCommerce target group major leisure time activity. Data based on Facebook statistics and Nielsen TV ratings Payment and Promotions Platform CONFIDENTIAL 16
    18. 18. What about Europe and Facebook, specifically!Approximately 25-50% userpenetration and growing Payment and Promotions Platform CONFIDENTIAL 17
    19. 19. Ok but I need more stats! References: eMarketer and Casual Gaming Association Payment and Promotions Platform CONFIDENTIAL 18
    20. 20. And what about tablet/mobile trends? Nearly half of EU Smartphone Users are Gamers 53%/47% Female to Male split Game ad revenue to reach $894M by 2015 References: comScore, MobiLens,Touchstone Research Payment and Promotions Platform CONFIDENTIAL 19
    21. 21. OK, tell me more about these earned/reward based economies! Spend time I want stuff for my game! Spend money 50,000+ virtual items sold every second using Facebook Credits Engage with brands Payment and Promotions Platform CONFIDENTIAL 2 20
    22. 22. So how does this look? Game example: The Sims Social from Playfish, a division of Electronic Arts Publisher implements branded icons and banners within games to ensure high level of user interaction while promoting in a pay for performance manner Payment and Promotions Platform CONFIDENTIAL 21
    23. 23. How about a lead/registration example? In this example: Car Town from Cie Games Payment and Promotions Platform CONFIDENTIAL 22
    24. 24. I want to go straight to sales, ok! In this example: Restaurant City from Playfish, a division of Electronic Arts Payment and Promotions Platform CONFIDENTIAL 23
    25. 25. I need to build brand awareness! In this example: Social Girl from Crowdstar . Payment and Promotions Platform CONFIDENTIAL 24
    26. 26. Campaign Goal – Introduce a Product to a New Market BRANDING +++ REACH +++ CONVERSION +++ Lead users to the desired conversion through interactions with your brand.1. Reward a smaller amount of credit for a series of videos and questions2. Reward a larger amount of credits for subscription to the service Payment and Promotions Platform CONFIDENTIAL 25
    27. 27. Get Creative! Clinique promotes new product lines by asking users to share success stories. Unilever helps users find their “heart age” Payment and Promotions Platform CONFIDENTIAL 26
    28. 28. Brands getting feedback from the public Companies can perform market research, accessing their target demographic and achieving a statistically significant sample. Payment and Promotions Platform CONFIDENTIAL 27
    29. 29. Brands as part of the experience Brand Interaction becomes part of the gameBrand Interaction provides game play benefit Payment and Promotions Platform CONFIDENTIAL 28
    30. 30. Brands as part of the experience Payment and Promotions Platform CONFIDENTIAL 29
    31. 31. Getting attention in store! 100K in Farmcash redeemed in 6 weeks Seen in Target stores nationwide 100K in Farmcash redeemed in 6 weeks 13MM users downloaded songs Payment and Promotions Platform CONFIDENTIAL 30
    32. 32. How does this look on Mobile? Entry Point OfferWall Offer Detail Completing offer Get Kicks for FREE Get Kicks for FREE Get Kicks for FREE 3 Kicks 160 Kicks 90 Kicks 50 Kicks 250 Kicks Variable Payment and Promotions Platform CONFIDENTIAL 31
    33. 33. Rewards are now not just about games! Payment and Promotions Platform CONFIDENTIAL 32
    34. 34. Conclusion 1 Don’t stop pulling, BUT evaluate pushing to gain new customers in an efficient performance manner. 2 Get creative with campaign types to engage audience. 3 Work closely with your reward economy publisher partner to measure customer quality. Payment and Promotions Platform CONFIDENTIAL 33
    35. 35. Thanks Robert Schneider Head of TrialPay Europe Sophienstraße 33A 10178 Berlin Germany office: +49 30 28879641 mobile: +49 174 3338853 skype: robertschneidertp e-mail: robert@trialpay.com website: www.trialpay.com Peter Wexler Senior Director of Strategic Partnerships 303 Bryan Street – Floor 2 Mountain View, CA 94041 USA office: 1.650.318.2602 mobile: 1.617.290.8668 skype: peter.wexler e-mail: peter@trialpay.com website: www.trialpay.com Payment and Promotions Platform CONFIDENTIAL 34

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