Episode is an interactive storytelling mobile game, that has successfully reached to Gen Z. The game has seen over 2 billion total episodes viewed and 700 percent year-over-year revenue growth in 2016. This is a proposal for an advertising plan within the game. As this forms a perfect opportunity for advertisers to connect with Gen Z, who are arguable the toughest generation to grab the attention.

1. ADVERTISING PLAN FOR EPISODE GAME
NEHA GOYAL
January 2017

2. INTRODUCTION
PROBLEM STATEMENT
Michael Dawson, Pocket Gems “Many entertainment platforms have attempted to reach Generation Z, but few have
succeeded. Snapchat and YouTube are good examples of companies who are popular with Gen Z … and I’d argue
that Episode, the mobile storytelling platform we’ve built, is another.
For background, over two-thirds of Episode’s audience are women between the ages of 13-25. In developing Episode
as an entertainment network and platform for them, we’ve seen over 2 billion total episodes viewed and 700 percent
year-over-year revenue growth in 2016.”
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And I’d like to propose an advertising plan for game. As this forms a perfect opportunity for advertisers to connect
with Gen Z, who are arguable the toughest generation to grab the attention for.

3. FOR SUCCESSFUL IN-GAME ADVERTISING EXPERIENCE
PROPOSED AD DESIGN PRACTICES
▸ All the Ad placements are opt-in, a player is not forced to view an Ad
▸ Ads to be created, should blend with the natural theme of story. Let’s say in case of Pretty Little Liars, Ads of
Fashion/ Beauty to be used to trigger players needs
▸ All In-App-Purchases (Gems, Passes) do not compete with Ads, as IAPs are important revenue streams for
company
▸ One of the biggest reasons users dislike ads is because these can disrupt the game experience (pop-ups and
auto-play videos are often cited as the most annoying ads for players). Great video ads are far from annoying:
these are both compelling and intuitive. Hence each Ad enhances the total Game experience
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In order to design an Advertising experience for user, I have kept following pointers in consideration. These can be seen
from user perspective. As providing an Ad experience within a game should be user-focussed and should not effect the
total gaming experience. By understanding these points, the idea of Ad design can be related.

4. GAME STARTS CHOOSE THE
“LOOK”
PROPOSED ADVERTISEMENT PLACEMENT 1 INTRODUCTORY ‘TEASER’
A Custom Fashion/ Beauty
<10-15 second Video Ad to
blend with User Experience
Watch a Short Video and earn 20
to the new sexy look
No, thanks Watch Video
WANT A NEW
“LOOK”
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5. PROPOSED ADVERTISEMENT PLACEMENT 2 CHOICE
INTRIGUING
CHOICES REWARDS
Watch a Short Video and earn 18
to play Truth or Dare now
No, thanks View to Play
A short customized portrait
style 16- 30 second Video
Ad to grab attention
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6. PROPOSED ADVERTISEMENT PLACEMENT 3 ENDING
THE END A short >30 second video Ad,
focussed on player’s
unconscious need
REWARDS FOR
NEXT EPISODE
Watch Short Ad to earn 1 free to
learn what happens next
No, thanks View to Play
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7. EFFECT OF ADVERTISEMENT DESIGN FROM USER PERSPECTIVE
POSITIVE NEGATIVE
Interactive- Strategic placement of these 3 Ads in
storyline of each episode makes it more interactive for User
User Experience- These targeted Ads in Episode will
create a valuable impression by not forcing on users and
thus result in a higher probability of purchase. 46% of
Mobile game players prefer Video Ads over any other type
of Ads.
Engagement- The Ad design engages users and thus
builds loyalty, providing the brand an opportunity to create a
specific storyline, in an integrative manner
Richer Experience- Users are actively engaged in
game play, in a leisure state of mind – an optimal
environment for captivating their attention. As users are
hungry for video, thus these engaging Ads provide a richer
experience overall.
User Experience- If a Video Ad is not interactive or
engaging enough, then it might decrease the User
Experience. In this case, it could have adverse affects on
Episode players as well.
Not Targeted- If Ads are not relevant to the playing
user then it might affect the game revenue. Episode has a
repository of million of chapters and stories, so it is
challenging for the brand to incorporate relevant Ads.
User Annoyance- While playing games, users are
very focussed on stories and want to quickly brush through
different episodes. Such Ad breaks will annoy them and
make them switch to other products.
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Source- https://blogs.unity3d.com/2016/04/20/best-practices-for-rewarded-video-ads-2/

8. EFFECT OF ADVERTISEMENT DESIGN FROM REVENUE EXPERIENCE
POSITIVE NEGATIVE
Drives Revenues- 52 percent of mobile game
developers indicated video ads provide the highest
revenue per user compared to other in-game advertising.
(Unity Tech). An average of 22 rewarded video ads
watched per install– driving $0.15 average revenue per
player per day in the US market.”
Higher Conversion Rates- Banner Ads:1 installs
per 1,000 impressions, Interstitials Ads average three
installs per 1,000, whereas Rewarded video ads earn 8
installs per 1,000
Drives IAP- The proposed rewarded video ads will
increase engagement, which is the number one factor for
improving the likelihood that a user will make an in-app
purchase later in the future.
Cannibalize IAP- Monitoring IAP is like a double-
edged sword. If more Ads are shown per session, then it
will affect revenues from game currency (Gems, Coins).
eCPM Decay-It is stronger with rewarded video ads
compared to other formats. The reason for that is the
misalignment of incentives. The user gets rewarded for
watching the video while the publishers mostly get paid for
installs.
eCPM decay- http://developers.kongregate.com/blog/ecpm-decay-in-rewarded-video-ads
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9. PERSONA SPENDING CHARACTERISTICS
GENERATION Z (BORN AFTER 1996)
TOP WEEKLY
SPENDING AREAS
FOOD 80%
CLOTHING 67%
62% prefer to spend their money
on an experience over
purchasing some material- This
can be a high quality in-gaming
experience.
Uses their smartphones 15.4
hours per week—more than any
other type of device
33% OF THEM HAVE
WEEKLY SPENDING
BUDGET OF
$50- $100
THEY WATCH 2X AS MANY VIDEOS AS ANY OTHER DEMOGRAPHIC
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10. PROSPECTIVE ADVERTISERS
MAC
Michael Kors
Kate Spade
Nike
Lulumelon
Amazon
Free People
Sephora
PINK Victoria’s
Secret
Urban Decay
Forever 21
H&M
Converse
CLOTHING/
FASHION
FOOD/
RESTAURANTSStarbucks
Chipotle
Chick-fil-A
Taco Bell
Mc Donalds
Pizza Hut
The advertisers are chosen based on the research on favorite brands of Gen Z in each category. More information can be found as follows-
http://www.businessinsider.com/what-teens-are-wearing-in-2016-2016-4, http://www.businessinsider.com/goldman-sachs-coolest-teen-retail-
brands-2015-11/#50-chlo-1, http://www.azcentral.com/story/entertainment/dining/2017/01/04/generation-z-shaping-restaurant-
industry/95443728/, http://www.businessinsider.com/where-generation-z-shops-2015-10/#shop-jeen-4
KPI’s to measure success of campaigns
Audience Demographics- Data overview about the
audience that campaign would reach
Click Thru Rate- number of times the player clicks on the
video Ad
Total Video Views & Skip Rate- if player chose to
skip video within first 10 seconds of video
Conversion- a positive action taken by player from Episode
in- game advertisement.
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11. EXCITING TRENDS IN AD TECH
Mobile advertising is attracting
more and more budgets and more ad bots.
About 59.5 percent of Google’s net global ad
revenues will come from mobile Internet ads this
year, up from about 45.8 percent in 2015.
Virtual Reality And Augmented
Reality based Advertisements/ Experiences. The
phenomenal success of Pokémon Go shows users are ready for
augmented reality experiences, and products such as Google
Cardboard and Daydream are making virtual reality far more
accessible, so video advertising will become increasingly
experiential over the coming months. By the end of 2017, this
emerging technology will be considered the norm.
79% of Gen Z is interested in VR (1)
Customized Video Ad Lengths
with respect to different platforms. Facebook’s
success with video is often attributed to the fact it runs
shorter ads. In 2017, advertisers will need to avoid a
one-size-fits-all policy, gauging ad length by platform
audience. And thus Pocket Gems need to establish
clear Video spec outlines that matches with
experience of players.
Gen Z has “highly evolved 8 second
filters” for engagement (1)
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12. DIFFERENT PLATFORMS
VIDEO ADVERTISEMENTS
According to a recent report, Generation Z uses following categories of apps the most on their mobile phones- Social
Media, Messaging, Music, Games, Navigation in the order of ranking. Henceforth to study different platforms that
integrate video ads well, I have analyzed across three categories- Social Media, Music, Entertainment.
I have picked up following applications across each category based on the Ad experience and video formats offered.
Social Media- Instagram, Snapchat, Facebook, Twitter; Music- Spotify; Entertainment- Hulu
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Gen Z Mobile Habits- http://www.adweek.com/news/advertising-branding/infographic-close-look-gen-zs-mobile-habits-169622

13. SOCIAL MEDIA
INSTAGRAM
▸ Instagram Video ads have proven to be an
effective means for generating new business.
▸ Instagram Video ads fit seamlessly into the native
browsing experience.
▸ Formats- 15 seconds square video Ads, 30
seconds horizontal, 60 seconds vertical video Ads
▸ Introduced Instagram Stories Ad this year (video
inset on right): un-clickable 5 second Photo and
15 second video ad
Video and Instagram Stories Ad- https://techcrunch.com/2017/01/11/instagram-stories-hits-150m-daily-users-launches-skippable-ads/
Video Formats- http://marketingland.com/instagram-winning-brands-video-budgets-despite-controversial-sales-strategy-176972
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14. SOCIAL MEDIA
SNAPCHAT
▸ Snapchat does Video Advertising really well and has
been pioneer in the technology especially in Vertical
formats
▸ Vertical full screen videos of 10 seconds. They are
displayed between Snaps when watching Discover
and Live content, as well as when users are
watching their friends’ Stories
▸ Interactive Ad that lets user to swipe to watch a
longer video or read an article
▸ Snapchat currently uses a Cost Per View model,
charging advertisers as soon as the video ad starts.
Snapchat Video Ads- http://www.apptamin.com/blog/snapchat-video-ads-creatives-app/
Nike’s Ad on Snapchat Discover Channel- https://www.youtube.com/watch?v=TFQdx4v6fFM
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15. SOCIAL MEDIA
FACEBOOK VIDEO ADS
▸ Visual and relevant Video Ads
▸ 85% of videos viewed on Facebook are in silent
mode
▸ Introduces valuable content in videos
▸ For example- Kay shows potential customers the
value of purchasing with the help of the happy
reaction from the woman receiving the gift in the ad
Video Specs- https://www.facebook.com/business/a/Facebook-video-ads
Video trend-http://www.nanigans.com/blog/fb/usu/facebook-video-advertising-rewind-benchmarks-2016-report
Examples- https://blog.hubspot.com/blog/tabid/6307/bid/33319/10-examples-of-facebook-ads-that-actually-work-and-why.aspx#sm.00010y7fp2dwjea5rqk21rnn2ojdw
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16. SOCIAL MEDIA
FACEBOOK 360 VIDEO
ADS
▸ Facebook 360 Video Ad makes users feel like a
genuine part of the experience, as video unfolds
▸ Creates memorable and engaging campaigns
▸ Creates Virtual reality experience
Video Snapshot- http://www.adweek.com/news/technology/here-are-10-most-viewed-360-degree-facebook-videos-brands-171372
http://www.theverge.com/2016/6/9/11893604/facebook-360-degree-photos-news-feed
Video Stats- https://facebook360.fb.com/
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17. SOCIAL MEDIA
TWITTER
▸ Introduced ‘First View’ videos with
premium placement and maximum
reach to drive advertising dollars
▸ Video is already an engaging content
on Twitter. In fact, 92% of Twitter video
views happen on mobile
▸ Records Video Ads engagement
through autotplay format
▸ Twitter’s video Ad format generates
highest revenues for company from its
total advertising revenues
Video Views- http://marketingland.com/twitter-q2-2016-earnings-186139
Twitter Trends- https://marketing.twitter.com/na/en/insights/leaning-into-video-trends-on-twitter.html
First View Video Ad- http://www.digitaltrends.com/social-media/twitter-first-view-video-ads/
Screenshot- https://blog.twitter.com/2014/introducing-promoted-video-on-twitter
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18. MUSIC
SPOTIFY
▸ Introduced Vertical Video Ads as
‘Branded Moments’
▸ ‘Branded moments’ gives people 30
minutes of commercial-free listening
music after watching Spotify Video Ad
▸ Users sees Videos with sounds as
opposite to social media channels
▸ The ads are centered around
particular moods or times of day, so
that it reaches the users in specific
context
Bose Screenshot- http://adage.com/article/digital/spotify-serves-vertical-video-ads-branded-moments/306299/
Branded Moments- http://rainnews.com/spotify-enters-vertical-video-ads-with-branded-moments/
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19. ENTERTAINMENT
HULU
▸ A variety of Ad formats offered to choose
from- 7/ 15/ 30 second commercial,
Custom video solution, Ad selector,
Interactive Interstitials, Video with Ad
player skin
▸ Hulu allows users to choose between one
long commercial at the beginning of the
show or interruptions throughout the show
Video screenshot and details- https://ignitevisibility.com/advertising-on-hulu/
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20. NEHA GOYAL
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