Regional European social networks jumped into the social games arena in 2010 in order to capitalize on the revenue and retention growth these products provide. Facebook, too, grew in Europe but local social networks leveraged regionally-focused user experiences to gain large audiences and compete effectively against the global giant. Europe’s social network audiences are far from saturated in terms of excellent game content and relatively few titles are actually available. As a result, the market remains very attractive for social game developers though competition continues to intensify. Join Alexey Kostarev, Co-Founder & CEO of i-Jet Media while he summarizes what’s happening with social games in Western Europe, Poland, Hungary, Latvia and other eastern European countries, and presents his thoughts on prospects for growth and opportunity in these markets. Alexey Kostarev is the CEO/Co-Founder of i-Jet Media which he co-founded in 2005. In 2009, Alexey’s company launched Happy Harvest in Russia which gained 10 million monthly active users and 20 million USD in 9 months. Today, there are more than 60 million users on 30 social networks across the world playing the 70 games published by i-Jet Media. Alexey is among five finalists of the Mashable Awards in the category “Entrepreneur of the Year”. i-Jet Media has seven offices located in the USA, China, Russia, and Ukraine.

1. Social Games in Europe:
Battlefield or Bonanza?
Alexey Kostarev, CEO & Co-founder

2. europe is a large audience…
million
users
200
Столбец1
other networks
100
15 main social networks
0
Facebook
beyond Facebook
Sources: socialbakers.com; data provided by social networks; reports of i-Jet Media research group

3. … and the audience KEEPS growing
74 000 000 4 800 000
62 000 000 4 400 000
50 000 000 4 000 000
2010 2010
2 600 000
2 300 000
2 000 000
2010
Sources: data provided by social networks; reports of i-Jet Media research group

4. europe is heavily segmented By social networks…
million Netlog
users Skyrock
80 NK
VZnet
hi5 (EU)
60 Hyves
iWiW
40 Tuenti
Fotka.pl
Lokalisten.de
20 draugiem.lv
i.ua
0 grono.net
ONE.LT
15 main networks rate.ee
Sources: data provided by social networks; reports of i-Jet Media research group
4

5. … and by languages
Games in
Best monetizing
6
distributions
languages
en nl ro Saudi Belgium Romania
Arabia
sp fr de
Netherlands Germany France
Sources: data provided by social networks; reports of i-Jet Media research group

6. No absolutely open social network exists in Europe
closed
40% 60%
half-closed
Source: reports of i-Jet Media research group

7. Only 1 app for 180,000 users on 15 main networks
100000
social games
50000
other applications
0
Facebook
15 main social
networks
Sources: appdata.com; data provided by social networks; reports of i-Jet Media research group

8. … But the numBer of social games KEEPS growing
20 10
10 5
0 0
2010 2010
60
30
0
2010
Sources: data provided by social networks; reports of i-Jet Media research group

9. Only 1 developer for 700,000 users on 15 networks…
6000
4000
apps authors
2000
0
Facebook
15 main social
networks
Sources: appdata.com; data provided by social networks; reports of i-Jet Media research group

10. … But the numBer of social game authors is growing
20 4
10 2
0 0
2010 2010
30
15
0
2010
Sources: data provided by social networks; reports of i-Jet Media research group

11. The European market lacks FOR content – and it is
ready to consume apps, especially social games

12. Main problems of entering Europe
- Covering segmented audiences
- Fulfilling requirements of networks
- Lots of product managements
- Games genre

13. Farms occupy top3’s of social games in Europe
64%
farms
16% business sims
12%
tamagochi
others
Sources: data provided by social networks; reports of i-Jet Media research group

14. Europe is a battlefield between developers
30%
Europe
30% China
20% Russia
others
Sources: data provided by social networks; reports of i-Jet Media research group
14

15. Preferences of social networks
game and service quality
partner’s experience
game genre
partner’s HQ country
Source: social networks opinion poll carried on by i-Jet Media in January 2011
15

16. other problems can be settled through:
or
16

17. Wild West Trains
by Evolution
$8,000+
Source: reports of i-Jet Media research group
17

18. Farm Frenzy
by Alawar Entertainment
$8,000+
Source: reports of i-Jet Media research group
18

19. Thank you for your attention!
@iJetMedia
alexeykostarev@gmail.com
19