The Video Game Advertising Landscape

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KSM Digital

An overview of the in-game or video game advertising audience and opportunities from Fuor Digital. www.fuor.net

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VIDEO GAME ADVERTISING A Brave New World

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VIDEO GAMERS: The Old Stereotype Antisocial Lazy Not Marketable In the minority No Income

VIDEO GAMERS: The New Generation Affluent Early adopters Connected In the Majority Social

GAMER DEMOGRAPHICS Console usage skews heavy for males 18-34, but penetration runs across demographics, and is growing among females and families

GAMERS ARE GROWING ,[object Object],[object Object],Sources: DFC Intelligence 2007; PwC Global Entertainment and Media Outlook 2007 Number of North American Online Video Gamers ( in MM)

$500 million First Week Sales $239 million First Week Revenue SCALE: GTA4 vs. The Dark Knight Source: Associated Press

PROJECTED GROWTH: Gaming vs. Cinema Worldwide Video Game (hardware + software) Revenues (left axis) Global Box Office Source: eMarketer, April 2007; Hudson Square Research, April 2008.

[object Object],[object Object],[object Object],CONSUMER ATTITUDES: In-Game Ads Source: Nielsen BASES in-game ad effectiveness study, May 2008

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Graphic Display Ad Experience Upon banner click, user can be directed to . . . ,[object Object],[object Object],[object Object],Impression generated when ad displays in slot 1 or 2 Ads in slots 3+ are partially visible on HD displays, are not reported as impressions

PlayStation Network ,[object Object],[object Object],[object Object],[object Object],[object Object]

INCENTIVES ,[object Object],McDonalds – Need for Speed

DYNAMIC MESSAGING Obama Campaign – NBA Live 2009

DYNAMIC MESSAGING Obama Campaign – NASCAR 2009

DYNAMIC MESSAGING Obama Campaign – NHL 2009

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FUOR DIGITAL: Your Gaming Experts Fuor Digital is on the cutting edge of this rapidly growing and evolving medium. We have a team of dedicated professionals who are passionate gamers themselves, and are immersed in the gaming culture. Fuor Digital has partnerships with the leading gaming networks and publishers, and can be your strategic partner for research, strategy, implementation, and tracking.

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The benefits of operating a free-to-play "game-as-a-service" are well known: elastic pricing, a direct relationship with your players, longer lifespan, and an opportunity to fine-tune after launch. But to fully realize these benefits, you need to plan your live operations strategy as carefully as you plan your game. This talk will show how you can build an effective LiveOps strategy using PlayFab.

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ABOUT SPACE APE Space Ape's hit real time strategy game, Samurai Siege, has been played by over 11m people and generated over $50m in revenue since it's launch in October 2013. The game was built by a team of 12 over 6 months. Samurai Siege has sustained in the grossing charts where many come and go in no small part because of the team's focus on live operations. Every week new content is pushed live, marketing strategies are refreshed and the game is optimised based on a combination of player research and analytics. ABOUT THIS PRESENTATION This presentation shows the evolution of the Samurai Siege analytics stack and some of the applications of the data by Space Ape's product, marketing and community teams. The stack started as a simple MVP but evolved over time as the game matured and the competitive landscape changed. It is now a fully functioning service that was easily replicated to support the launch of their next game Rival Kingdoms (currently in public Beta). As such, the presentation will be of interest to smaller games studios who are figuring out how to prioritise investment in data as well as established studios who might be re-thinking their legacy systems and figuring out how to bring the data focus needed to succeed in the modern free to play games business. This presentation was made by Space Ape's analyst Richard Reyes and shared with local game developers at the Great British Big Data Game Show & Tell in London on 25 February 2015. For more on Space Ape's Live Ops and Analytics stacks see https://tech.spaceapegames.com/2016/12/07/space-ape-live-ops-boot-camp/

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PlayFab runs a LiveOps backend services platform that handles more than 35 million monthly active players, on more than 450 live games, from studios and publishers that include Miniclip, Rovio, Hyper Hippo, Capcom, Bandai-Namco, and Atari. Getting to that level of scalability hasn’t been easy, and this talk describes the times when PlayFab nearly went down – and what architecture changes we needed to make each time to reach the next level of growth. This talk also shares some of the unique challenges of operating a shared platform, where problems are often not PlayFab’s fault, but always PlayFab’s responsibility, including game bugs that look like DDoS attacks, platform partners who break their APIs, and the joys of cascading server failures.

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To view the accompanying video see http://links.spaceapegames.com/liveops Around half of the $80m revenue generated by Space Ape’s three mid-core build and battle games is attributable to in game events. By adopting a flexible forward looking approach to tools development Space Ape efficiently operates their games with very small non-technical teams maintaining major weekly content update cycles. In this talk, Space Ape’s senior Live Ops specialists give a demo of their tools and workflows and share the content strategies that have allowed them to grow revenues whilst enabling the studio to focus the majority of its development capacity on creating new games and IP. DESIGNING SUCCESSFUL LIVE OPS SYSTEMS IN FREE TO PLAY GACHA ECONOMIES Space Ape shipped Transformers:Earth Wars in the Summer pre-baked with the community events tools that had worked so well in their previous game, Rival Kingdoms. However, they soon realised that many of the old tricks did not apply to the game’s gacha collection economy which had more in common with Kabam’s Contest of Champions than the linear economies of most Build and Battle games. In this talk Space Ape’s Live Ops Lead Andrew Munden (formerly Live Ops Lead at Kabam) will share the content strategies that work in gacha collection games as well as how to build a manageable content furnace and balance player fatigue in a sustainable way. A BRIEF HISTORY OF IN-GAME TARGETING. Analytics lead Fred Easy (ex Betfair, Playfish/EA) will share the evolution of his offer targeting technology from it’s belt and braces beginnings to sophisticated value based targeting and the transition to a dynamic in-session machine learning approach. UNDER THE HOOD: RIVAL KINGDOM'S CMS TOOLS Game changing content is introduced to Rival Kingdoms every month, with in game events at least every week. Product Manager Mitchell Smallman (formerly Rovio, Next Games) and Steven Hsiao (competitive StarCraft player turned community manager turned Live Ops lead) will demonstrate the content management tools that allow them to keep the game fresh for players without developer support. This will include the tools for configuring competitive events, inserting new content into the game as well as how they measure performance of the changes and optimise on the fly. Learn how these tools enabled them to grow revenue for 6 consecutive months with no marketing spend. To find out more about the developer go to www.spaceapegames.com

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The Video Game Advertising Landscape

1. VIDEO GAME ADVERTISING A Brave New World

3. VIDEO GAMERS: The Old Stereotype Antisocial Lazy Not Marketable In the minority No Income

4. VIDEO GAMERS: The New Generation Affluent Early adopters Connected In the Majority Social

5. GAMER DEMOGRAPHICS Console usage skews heavy for males 18-34, but penetration runs across demographics, and is growing among females and families

7. $500 million First Week Sales $239 million First Week Revenue SCALE: GTA4 vs. The Dark Knight Source: Associated Press

8. PROJECTED GROWTH: Gaming vs. Cinema Worldwide Video Game (hardware + software) Revenues (left axis) Global Box Office Source: eMarketer, April 2007; Hudson Square Research, April 2008.

9. GAMERS: Engaged, Attentive, Ad Receptive, Measurable Multi-Tasking Proof Gameplay does not allow for multi-tasking. Attention to the game is paramount. Hard-to-reach Audience Hard-to-reach 18-34 men are avid videogame players Engagement Higher levels of engagement than other media. Ad Acceptance Consumers are receptive to advertising in games because they add realism. Measurability Videogames combine brand awareness with digital accountability.

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15. IN-GAME DYNAMIC ADVERTISING

16. PHOTO-REALISITC BRAND PRESENCE

17. AUTHENTICITY – YOUR BRAND BELONGS Sprite– NBA Live 2009

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19. DYNAMIC MESSAGING Obama Campaign – NBA Live 2009

20. DYNAMIC MESSAGING Obama Campaign – NASCAR 2009

21. DYNAMIC MESSAGING Obama Campaign – NHL 2009

22. CALL TO ACTION Subway – NHL 2009

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24. OTHER GAMING OFFERINGS Casual Gaming Reaching the large 25-54 female demographic, casual gaming has taken the internet by storm. 43 million users and growing, from all age ranges. We can help your brand develop everything from a presence on leading gaming sites, to brand integration, all the way to full on custom developed games.

25. CASUAL GAMING: Examples Brand Skins Custom Games Game Sponsorships

26. FUOR DIGITAL: Your Gaming Experts Fuor Digital is on the cutting edge of this rapidly growing and evolving medium. We have a team of dedicated professionals who are passionate gamers themselves, and are immersed in the gaming culture. Fuor Digital has partnerships with the leading gaming networks and publishers, and can be your strategic partner for research, strategy, implementation, and tracking.

The Video Game Advertising Landscape

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