Social game monetizing

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  • “Any game where the key game design elements are based on the interaction between the players”- KlaasKersting, Gameforge -
  • 1.1 BILLION REGISTERED VIRTUAL WORLD ACCOUNTS
  • Why The Change?In 2007, social gaming was born, removing all barriers to entry, allowing people to all ages to play together, anytime, anywhereSocial game represent a cultural shift in the way we play35% of social gamers have never played a game beforeZynga’s ‘CityVille” reached 100 million active monthly players a month after launch3rdsense – Adtech Sydney
  • Greatly Desired
  • Long Life, Great Duration
  • The Most Important!
  • VI can be Functional, decorative, gifts, status, rewards, collectibles VI allow players to set goals (they save up to buy = long term objectives) Promote Trading & exchanging (open up communication between players) Large price variants between VI increases overall game depth “Rare’ or exclusive VI promote a sense of urgency and impuls buys
  • Used to buy VI = High Revenue Generator VC is earned progressively trough game play (high time requirement, no cost) Or VC is purchased instantly (low time requirement, high cost) Also acquired in other ways (by lead generation offers, etc) Can be multi-leveled, like Farm Ville VC+VI = Virtual Economy
  • Makes the game “social”, like a party Play with/against friends, even when they’re not online Create a sense of realism community Create a strong emotional connection between players 62% of all social gamers play with REAL friends (PopCap, 2010)
  • Lots of “JUICY” feedback (bright colors, positive, etc) Gives the player MOTVATION to keep playing Trophies, awards, secrets, bonuses, rewards Opportunities and reasons to BRAG (make it go viral) Very easy to get initially, becomes progressively harder (but more rewarding)
  • Big social games never really end, player never ‘beat’ the game or ‘win’ Always add content based on demand Goals and objectives grow, as the players grow Updates > games should constantly improve
  • Players who spend massively on virtual goods and gifts Whale: > USD 1,000 Super Whale: > USD10,000 Mafia Wars, Happy Aquarium, etc Small percentage (10%) of users in the category Single Minded
  • Micro Transactions: Virtual Items Virtual Currency
  • Micro Transaction + Subscription + Immersive Brand Advertising + Metered System
  • Mobile is Personal: 91% of people have their mobile within arm’s reach 24/7 – Morgan Stanley 2007 60% of Married people will not share their mobile with their spouse! – Wired Magazine 2006 It takes an average of 26 h for a user to report a lost wallet but only 68 minutes to report a lost mobile phone – Unisys Survey 10% of under-25-year-orld find it OK to text whilst having sex – RetrevoGadgetology Report, 2010Via Volkerhisch, Scoreloopl @vhirsch
  • 3RDSense onAd:tech Sydney
  • How Brands can use games? Advertising around games Advertising in games Sponsoring games of part of games Taking an existing game & re-skinning it Creating games from scratch Creating games portal Create social game with Virtual Economy
  • Cost effective form of Marketing Deep band exposure Collect Data Establish a personal connection Allow customers to interact directly with Brand Leave people feeling good about your brand Viral & Social Great way to educate
  • Social game monetizing

    1. 1. THE RISE OF SOCIAL GAMES<br />SG MONETIZATION<br />SPARX UP AWARD 2011 SEMINAR SERIES. JAKARTA, JUNE 23, 2011 <br />Mu’min Santoso<br /> @msantoz<br />
    2. 2. Topics<br />Definition<br />Overview<br />Social Game Success Factor<br />Monetization<br />Q&A<br />
    3. 3. “Any game where the key game design elements are based on the interaction between the players”- KlaasKersting, Gameforge -<br />
    4. 4. OVERVIEW<br />
    5. 5. Ad:tech Sydney – March 2011<br />
    6. 6. HOW DO SG MAKE MONEY?<br />
    7. 7. EVOLUTION?<br />
    8. 8. <br />IT’S CHANGED<br />
    9. 9. WHY CHANGE?<br />BORN : 2007 <br />CHANGE THE WAY WE PLAY GAME<br />35% Social Gamers have never played a game before<br />ZINGA’S ‘CITYVILLE’ REACH 100M ACTIVE MONTHLY PLAYERS A MONTH AFTER LAUNCH<br />3rdsense – Adtech Sydney<br />
    10. 10.
    11. 11.
    12. 12. RULE OF THE ‘GAME’<br />RockYou<br />
    13. 13. WHY SOCIAL GAME RISING?<br />NETWORK EFFECT<br />
    14. 14.
    15. 15. SOCIAL/VIRAL<br />
    16. 16. REPEAT PLAY<br />
    17. 17. SOUGHT AFTER<br />
    18. 18. LONGEVITY<br />
    19. 19. REWARDING<br />
    20. 20.
    21. 21. 5 COMPONENTS OF SUCCESSFUL SOCIAL GAMES <br />ENGAGEMENT<br />
    22. 22. VIRTUAL ITEMS (VI)<br /><ul><li>Functional, decorative, gifts, status, rewards, collectibles
    23. 23. Allow players to set goals (they save up to buy = long term objectives)
    24. 24. Promote Trading & exchanging (open up communication between players)
    25. 25. Large price variants between VI increases overall game depth
    26. 26. “Rare” or exclusive VI promote a sense of urgency and impulse buys</li></li></ul><li>VIRTUAL CURRENCY (VC)<br />
    27. 27. SOCIAL GRAPH<br />62% of all social gamers play with REAL friends<br />PopCap, 2010<br />
    28. 28. FEEDBACK<br />
    29. 29. NEVER ENDING GAMEPLAY<br />
    30. 30. UNDERSTANDING MONETIZATION<br />ARBITRAGE<br />
    31. 31. Monetization Models<br />http://lsvp.wordpress.com/2008/07/02/29-business-models-for-games/<br />
    32. 32. Keys to MONETIZATION<br />RockYou<br />
    33. 33. Who Plays SG?<br />
    34. 34. What’s Hot? SPENDER<br />
    35. 35. Spender<br /><ul><li> Players who spend massively on virtual goods and gifts
    36. 36. Whale: > USD 1,000
    37. 37. Super Whale: > USD10,000
    38. 38. Mafia Wars, Happy Aquarium, etc
    39. 39. Small percentage (10%) of users in the category
    40. 40. Single Minded </li></li></ul><li>Spender<br />
    41. 41. What’s Hot? FREEMIUM<br />Micro Economy:<br /><ul><li> Virtual Items
    42. 42. Virtual Currency</li></ul>Via Zerealm<br />
    43. 43. WHY FREEMIUM?<br />
    44. 44. What’s Hot? HYBRID<br /><ul><li> Micro Transaction
    45. 45. + Subscription
    46. 46. + Immersive Brand Advertising
    47. 47. + Metered System</li></li></ul><li>What’s Hot: MICRO ECONOMY (ME)<br />
    48. 48. Drive Action through ME<br />
    49. 49. What’s Hot? CONVERGENCE<br />
    50. 50. What’s Hot? CONVERGENCE<br />MOBILE!<br />
    51. 51. MOBILE?<br />Mobile is the most powerful digital medium to the date<br />
    52. 52.
    53. 53.
    54. 54. Why?<br />It’s a BIG (numbers)<br />It’s Personal (nature)<br />It has More Context (Identification of Needs)<br />It Can Make you Money <br />
    55. 55. 61,88 %<br />38,12 %<br />Mobile<br />Others<br />24.195.080people  internet mobile<br />Source: Effective Measure, April 2011<br />Internet Habit<br />connect with others<br />showing existence<br />4<br />1<br />search and share information<br />2<br />ecommerce<br />5<br />play games <br />3<br />Source: <br />BBC World Service poll, 2010<br />RazorFish 2010 <br />IT IS BIG<br />
    56. 56. It’s PERSONAL<br /><ul><li> 91% of people have their mobile within arm’s reach 24/7 –Morgan Stanley 2007
    57. 57. 60% of Married people will not share their mobile with their spouse! –Wired Magazine 2006
    58. 58. It takes an average of 26 h for a user to report a lost wallet but only 68 minutes to report a lost mobile phone –Unisys Survey</li></li></ul><li>It’s PERSONAL<br />10% of under-25-year-old find it OK to text whilst having sex<br />RetrevoGadgetology Report, 2010<br />
    59. 59. Mobile Has More Context<br />Personal Mass Media<br />Always Carried<br />Always On<br />Built in Billing System<br />Present at the point of Creative Impulse<br />Accurate audience identification<br />Captures social context<br />Enables augmented reality<br />
    60. 60. What’s Hot? BRAND<br />3RDSense on Ad:techSydney 2011<br />
    61. 61. What’s Hot? BRAND<br />How Brands can use games?<br /><ul><li> Advertising around games
    62. 62. Advertising in games
    63. 63. Sponsoring part of games
    64. 64. Taking an existing game & re-skinning it
    65. 65. Creating games from scratch
    66. 66. Creating games portal
    67. 67. Create social game with Virtual Economy</li></li></ul><li>Benefit for Brand<br /><ul><li> Cost effective form of Marketing
    68. 68. Deep band exposure
    69. 69. Collect Data
    70. 70. Establish a personal connection
    71. 71. Allow customers to interact directly with Brand
    72. 72. Leave people feeling good about your brand
    73. 73. Viral & Social
    74. 74. Great way to educate </li></li></ul><li>LESSONS: KEEP TESTING<br />
    75. 75. TO SUM IT UP<br />PUMP THE NETWORK EFFECT<br />ENGAGE TIGHTLY<br />GRAB THE FUTURE POTENTION<br />PREPARE REVENUE GENERATOR<br />
    76. 76. QUESTION?<br />
    77. 77. Thank you<br />Mu’min Santoso<br /> @msantoz<br />

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