Future of Monetizing Social Games
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The future of social game monetization and the revolutionary change to observe and look out for.
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Future of Monetizing Social Games
- 1. The Future of Monetization? Driving Game & Content Development Elvin Li Founder & CEO Ryan Lou Biz Dev Partner Fiona Poh Marketing Mgr
- 2. About ZelRealm Commerce Tools for Social Game Developers Analysis Monetization Virtual Goods Management
- 3. Is this a cheat sheet?
- 4. Breakdown
- 5. Maturity of gaming niches Over expectations Social Games Steady growth MMOGs Mobile games PC, Consoles games Consolidation
- 10. Premium features
- 11. Virtual Gifting
- 12. Integration with real world transactions
- 14. Subscription
- 15. Pay for time
- 17. Selling Branded Items from your site
- 18. Retail (bricks & mortar)
- 22. Advertgames
- 23. Try Before you Buy
- 26. Velvet Rope or Member's Club
- 27. Foreign distribution deals
- 28. User Generated Content
- 29. Pay for Storage Spacehttp://news.cnet.com/8301-13846_3-9983073-62.html
- 30. What’s Hot: Hybrid Model Micro-Transaction + Subscription + Immersive Brand Advertising + Metered System + …. “Why get rid or alienate your current subscriber base? Would you really cancel your current subscribers?” – LOGIN 2010, Fernando Paiz (DDO)
- 33. Understanding Monetization (Lifetime Value – User Acquisition Costs) x scale = Profit Credit: Siqi Chen (Serious business) How long people play Conversion rates Game dynamics Marketing effectiveness Flow of game Payments
- 34. Understanding Monetization (Lifetime Value – User Acquisition Costs) x scale = Profit Credit: Siqi Chen (Serious business) Facebook killed virality Typically Ads (US$1.50 per user) Multiple Platforms Cross promotion
- 36. Understanding Monetization (Lifetime Value – User Acquisition Costs) x scale = Profit Credit: Siqi Chen (Serious business) Same problems as Web 2.0
- 37. Understanding Monetization (Lifetime Value – User Acquisition Costs) x scale = Profit Credit: Siqi Chen (Serious business) Is about managing trade-offs
- 38. Understanding Monetization (Lifetime Value – User Acquisition Costs) x scale = Profit Credit: Siqi Chen (Serious business) Is about managing trade-offs
- 39. Reducing leakages Make it simple to learn
- 42. Virality
- 43. Entry/Exit
- 44. Revisit rates
- 47. The social gaming industry Predictions Growing industry (like blogging before) Where’s the innovation? Every game will be social
- 48. Why Free To Play? Symptom of worldwide recession Users as a KPI (Funding / Acquisition) Bigger upside Doesn’t require big spike
- 49. Excuse me, are you a gamer?
- 50. Who plays social games
- 51. Demographics (ASIA) Who Uses Facebook? The Asian Context CASE: INDONESIA
- 52. Compared to US: More males use Facebook than females (18.4% overall) Male Age: 18-25 - 45.9% 13-17 – 23.5% Overall: Users under 25 – 72.5% More women in younger ages play Facebook compared to men
- 53. Demographic (US) average age is 48 90% reported the same or increased game play over the past 3 months 27% and 25% reported less time spent reading (mag, book, newspaper) and home TV/movie viewing respectively 43% of the time, game players log into social networks specifically to play games friends’ recommendations are the #1 factor influencing social game selection 35% have purchased a virtual gift while playing a social game
- 54. Gifting
- 55. VS
- 58. Social Whales Players who spend massively on virtual goods and gifts Whale: > USD$1, 000Super Whale: > USD$10,000 Mafia Wars, Happy Aquarium etc Small percentage (10%) of users in the category Single minded
- 59. TOP SPENDER : SAUDI ARABIA
- 60. Facebook phenomenon Increased number of people using social media Increased number of people playing social games too
- 61. Facebook phenomenon Increased number of people using social media Increased number of people playing social games too
- 62. Future of Social Game Spending on social games is open –ended Assumption: even LARGER whales Larger spenders No extreme spending foreseen
- 63. The future?
- 64. Future of monetization Consolidation Socializing
- 65. Future of monetization Remember this?
- 67. Future of monetization Selling IP Selling Users
- 73. Lessons: Relevance Ask more questions to understand your audience
- 74. Lessons: Test TestTest Ad models Marketing methods Promotions Email methods PPA PPC Word of mouth PR Video marketing PPM Expect the unexpected Monetization models Brand engagement Freemium Inter-operability Virtual items New markets
Editor's Notes
- Elvin’s slide
- Elvin’s slide (What we do)
- Overall, users under 25 make up 72.5% of all Facebook users in that country, with more women in the younger categories than men.But, men make up most of Facebook’s Indonesian users. What age group are do most of them fall into? A large percentage of men fall in to the 26 – 34 age group, with a sharp dropoff after that.Notably, older demographics barely register a blip, with users over 35 making up just 8.9% of the total userbase.http://www.insidesocialgames.com/2010/06/09/whos-using-facebook-around-the-world-the-demographics-of-facebooks-top-15-country-markets/
- Listed above, you can see the top five individual spenders within Social Gold’s network. According to the company, most whales are “pretty single-minded” — meaning that you can assume most of them spent their money in a single, beloved game. And to give perspective, we’ve included the average for all spenders.The amount these leading whales are paying out looks pretty shocking, but whales are not strictly a new phenomenon. Before social gaming took off, there were casual game players spending profligately on their favorite titles; for instance, several years ago Andrew Busey of Duels.com (now part of Challenge Games, which just got bought by Zynga) told me that his game had attracted a set of hedge fund employees who competed to out-spend each other, paying over a thousand dollars each for armor and weapons.
- But social gaming on Facebook has rocketed the casual market into the stratosphere, not only in terms of how many people are playing, but also in spending levels. What’s really surprising about the above figures is not just that someone would pay as much for virtual goods as they might spend on a new car, but that Social Gold tracked these five spenders over a period of just six months, since last November.
- Multiple media,exchangable currencies