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THE RISE OF SOCIAL GAMES SG MONETIZATION SPARX UP AWARD 2011 SEMINAR SERIES. JAKARTA, JUNE 23, 2011  Mu’min Santoso         @msantoz
Topics Definition Overview Social Game Success Factor Monetization Q&A
“Any game where the key game design elements are based on the interaction between the players”- KlaasKersting, Gameforge -
OVERVIEW
Ad:tech Sydney – March 2011
HOW DO SG MAKE MONEY?
EVOLUTION?
 IT’S CHANGED
WHY CHANGE? BORN : 2007  CHANGE THE WAY WE PLAY GAME 35% Social Gamers have never played a game before ZINGA’S ‘CITYVILLE’ REACH 100M ACTIVE MONTHLY PLAYERS A MONTH AFTER LAUNCH 3rdsense – Adtech Sydney
RULE OF THE ‘GAME’ RockYou
WHY SOCIAL GAME RISING? NETWORK EFFECT
SOCIAL/VIRAL
REPEAT PLAY
SOUGHT AFTER
LONGEVITY
REWARDING
5 COMPONENTS OF SUCCESSFUL SOCIAL GAMES  ENGAGEMENT
VIRTUAL ITEMS (VI) ,[object Object]
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 impulse buys,[object Object]
SOCIAL GRAPH 62% of all social gamers play with REAL friends PopCap, 2010
FEEDBACK
NEVER ENDING GAMEPLAY
UNDERSTANDING MONETIZATION ARBITRAGE
Monetization Models http://lsvp.wordpress.com/2008/07/02/29-business-models-for-games/
Keys to MONETIZATION RockYou
Who Plays SG?
What’s Hot? SPENDER
Spender ,[object Object]
 Whale: > USD 1,000
 Super Whale: > USD10,000
 Mafia Wars, Happy Aquarium, etc
 Small percentage (10%) of users in the category
 Single Minded ,[object Object]
What’s Hot? FREEMIUM Micro Economy: ,[object Object]
 Virtual CurrencyVia Zerealm
WHY FREEMIUM?
What’s Hot? HYBRID ,[object Object]
 + Subscription
 + Immersive Brand Advertising
 + Metered System,[object Object]
Drive Action through ME
What’s Hot? CONVERGENCE
What’s Hot? CONVERGENCE MOBILE!
MOBILE? Mobile is the most powerful digital medium to the date
Why? It’s a BIG (numbers) It’s Personal (nature) It has More Context (Identification of Needs) It Can Make you Money

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Social game monetizing

Editor's Notes

  1. “Any game where the key game design elements are based on the interaction between the players”- KlaasKersting, Gameforge -
  2. 1.1 BILLION REGISTERED VIRTUAL WORLD ACCOUNTS
  3. 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
  4. Greatly Desired
  5. Long Life, Great Duration
  6. The Most Important!
  7. 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
  8. 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
  9. 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)
  10. 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)
  11. 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
  12. 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
  13. Micro Transactions: Virtual Items Virtual Currency
  14. Micro Transaction + Subscription + Immersive Brand Advertising + Metered System
  15. 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
  16. 3RDSense onAd:tech Sydney
  17. 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
  18. 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