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Games

Advanced Social Media Marketing
Key platforms in games today
• Social games
• MMORPGs (massively multiplayer online role-
  playing games)
• Consoles
• Mobile games
Platform        Social Games on Facebook
Top performers Zynga’s CityVille and FarmVille
Core audiences Mostly ~48 years old (46% >50) Women (55%)

                2010 ISG

Reach           CityVille: 90.6 MM players
                Farmville: 45.8 MM players
                Total number of players est. in 250 MM

Business        Freemium: ~5% of the players pay for Zcoins to exchange for
model           in-game virtual goods
                In 2010, $ 510 MM were spent in virtual goods

Opportunities   In-game product placement
for brands      In-game advertising
                Promotions with Zcoins
                Branded social games (ex.: NY Jets Ultimate Fan on
                Facebook)
Cascadian Farm Farmville Organic
          Blueberries
Capital One Farmville Goat
Bing FarmCash Promotion
NY Jets Facebook Social Game
Platform        MMORPG
Top performers World of Warcraft (more than 50% mkt share)
Core audiences Mostly Men (84%) ~30 years old
                2010 dedalus/xeroxParc


Reach           10.3 MM subscribers (WoW - nov. 2011)


Business        Prepaid limited game time
model           Subscription (credit/debit cards monthly fees)
                (free starter edition – up to level 20)

Opportunities   In-game advertising
for brands      Mainstream games like WoW don’t place in-game ads, but
                other less popular games do (ex: Anarchy)
MMORPG Anarchy in-game ad
Platform          Console games
Top performers Nintendo Wii                                 Microsoft XBOX
               Sony PS3                                     Sony PSP
               Nintendo DS
Core audiences Mostly Men (58%) ~37 years old (29% 50+)
                  2011 Entertainment Software Association

Reach             Wii: 89.5 MM                              XBOX: 57.9 MM
(hardware sold)   PS3: 55.4 MM                              PSP: 70.9 MM
                  DS: 149.3 MM

Business          Selling:
model             Consoles ($249-499)
                  Accessories ($9.99-$269.99)
                  Games ($49.99-149.99)
                  On demand games, movies, music – through services like
                  XBOX Live, PS Network or Wii Channels
Opportunities     In-game advertising
for brands        Branded Games (Burger King)
Burger King XBOX 360 games (2006)
            $ 3,99/each
NBA Live in-game ad
Need for speed in-game ad
Madden in-game ad
Platform        Mobile Games
Top performers AppStore
               Android Market
Core audiences Mostly Women (53%) ~28 years old
                Juniper research


Reach           37% of Iphone owners game daily
                70%-80% of all downloads are games
                Angry birds has been downloaded 140 MM times

Business        Game selling ($0,99-4.99)
model           In-app purchase (new levels, skills, etc) ~$ 0.99
                (Free lite versions)

Opportunities   In-game product placement
for brands      In-game advertising
                Branded games
Angry Birds in-app banner
Angry birds Rio special edition
Relevance from brands perspective
• Social and Mobile are growing more relevant as
  marketing/branding tools

• Ad spending in social games is expected to hit $
  293 MM in 2011 compared to $ 183 MM in 2009,
  a 60% growth.

• In 2010, mobile game developer made $ 87 MM
  off advertising revenue. By 2015, this figure is
  expected to be 10 times that amount: $ 894 MM
Why not console and MMORPG?
• Fact 1: console games are better designed and value-added
  products compared to social and mobile games (2010’s Grand Theft
  Auto 4 cost $ 100 million)
• Fact 2: console and MMORPG gamers are more critical than others,
  assigning great value to elaborate graphics and storylines, and are
  in general less tolerant to in-game advertsing when it is clearly out
  of the context.
• This drives the industry focus increasingly on the player and less on
  the advertiser (Last year, Microsoft shut down its dynamic in-game
  advertising division called Massive).
• Now, big producers like Eletronic Arts control the dynamic in-game
  advertising display for their games. The trend is that only games
  where advertising is a natural part of the storyline (like Fifa Soccer
  and NBA Live) will carry in-game advertising.
Gustavo Donda & Don Valdez
INTEGRATED SOCIAL CAMPAIGNS & GAMES
ADVANCED SOCIAL MEDIA MARKETING
WEEK #3
GAMES - BASICS

 Games x brand’s promise and
  target behavior
 Consider the engagement pyramid
 Don’t skimp on development
 Brand campaign or Game campaign?
GAMES

 Moving parts
 Linchpin element vs. Equal contribution
 Selection of tactics
 Examples
MOVING PARTS
 TECHNOLOGY                  PLATFORMS
   Traditional Video Game      Web Browser Based
   Adobe Flash                 Mobile
   PHP                           iOS
                                  Android
   JavaScript
   Combination

 FEATURES                    MONETIZATION
   Community &                 Virtual Good
    Asynchronous                 Transactions
   “Never ending”
                                Virtual Stock Exchange
   Virtual Currency
LINCHPIN ELEMENT VS. EQUAL CONTRIBUTION

                                         Social Media
              Technology                  Optimization is the
                                          focal point of Social
                                          Gaming
 Features
            Social Media     Platform
                                         Everything is
            Optimization
                                          secondary


              Monetization
SELECTION OF TACTICS

 CRITERIA                VARIATIONS
   Making a Good Game      Goals
   Network Effect              Creating Awareness
                                Selling
   Engagement
                                Branding
   Arbitrage
                                Remarketing
   Monetization
                            Type of Brand
New in Games

Advanced Social Media Marketing
             NYU
What’s happened in 2011

•       Job Displacement & Layoffs
    –       Disney, Activision, THQ, RockYou, Silicon Knights, CCP, Ignition, Team Bondi ~ plagued
            by layoff
    –       West Pier Studio, Roundcube Entertainment, & ShortRound Games were formed
•       Kickstarter & Crowdfunding
    –       Instead of turning to a game publisher or venture capitalist for seed money
•       Maturing Social Game Space
    –       Shift from appealing to people’s compulsive nature and actually building quality games
•       Xbox 360’s Sales Strength
    –       Expanded base & reach
•       HTML5
    –       Open format web standard: developers only have to build their games once & it would
            be inherently cross-platform
        •      Easy to learn
        •      Alternative to Adobe Flash
Marketing: What’s hot in 2012:
              Gamification
• Specially important for
  Social Media Marketing
• Leverages engagement &
  loyalty
   – Missions, accomplishments &
     challenges
   – Rewards & badges
   – Mechanics driving to action
Gamification everywhere
• New applications:
• http://www.stickk.com/
Gamification everywhere
• New applications:
   – Work performance:
     http://getworksimple.com/
Gamification everywhere
• New applications:
   – Health:
     https://www.superbetter.com/
Gamification everywhere
• New applications:
   – Fitness: http://www.striiv.com/
Gamification everywhere
• New applications:
   – Fundraising: http://www.globalgiving.org/leaderboards/global-open-challenge/
Gamification everywhere
• New applications:
   – Discount shopping: http://lockerz.com/
Mobile Games explosion
• Apple announced getting to 1 million apps in appstore
• Harder to stand out
• Competition pushing mobile games to become from casual games to
  better finished products
• Getting closer to console games sophistication in terms of story & graphics
PlayPhone Launches Cross-Platform Social
               Gaming Network
• Formally launched December        • Distinguishing Features:
  14th                                 – Supports all leading platforms
• 1st true social gaming network         (iOS, Android, Adobe AIR, &
                                         HTML5)
• Presence in over 25 countries        – Cross-platform play via
• 35 million registered users on         smartphones & tablets
  feature phones                       – Synchronous multiplayer
• Over 3 million registered users        gaming
  on smartphones                       – Single sign-on w/Facebook or
                                         PlayPhone SGN user ID
• Have 1,600 developers signed         – Advanced social integration
  up for its Software Developer          w/Facebook
  Kit (SDK)                            – Universal currency via
• Relations w/100 global carriers        playcredits (R)
                                       – Multiple payment options
                                         including global direct-carrier
                                         billing
Technology: Virtual and physical game
           environments
• RockSmith: like a Guitar Hero, but you actually plug in your
  real Guitar
Virtual and physical game environments –
          Applications popping up
• Specially important for the game industry
• iPad example: Disney AppMates
Kinect puts Xbox much ahead the
               competition
• The industry hasn’t even scratched the possibilities enabled by gesture-
  based technology
• In its ad campaign Microsoft suggests all sorts of innovation through
  kinect hacking
Kinect puts Xbox much ahead the
               competition
• Internet is already populated with primitive open-source code for kinect

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Presentation games complete

  • 2. Key platforms in games today • Social games • MMORPGs (massively multiplayer online role- playing games) • Consoles • Mobile games
  • 3. Platform Social Games on Facebook Top performers Zynga’s CityVille and FarmVille Core audiences Mostly ~48 years old (46% >50) Women (55%) 2010 ISG Reach CityVille: 90.6 MM players Farmville: 45.8 MM players Total number of players est. in 250 MM Business Freemium: ~5% of the players pay for Zcoins to exchange for model in-game virtual goods In 2010, $ 510 MM were spent in virtual goods Opportunities In-game product placement for brands In-game advertising Promotions with Zcoins Branded social games (ex.: NY Jets Ultimate Fan on Facebook)
  • 4. Cascadian Farm Farmville Organic Blueberries
  • 7. NY Jets Facebook Social Game
  • 8. Platform MMORPG Top performers World of Warcraft (more than 50% mkt share) Core audiences Mostly Men (84%) ~30 years old 2010 dedalus/xeroxParc Reach 10.3 MM subscribers (WoW - nov. 2011) Business Prepaid limited game time model Subscription (credit/debit cards monthly fees) (free starter edition – up to level 20) Opportunities In-game advertising for brands Mainstream games like WoW don’t place in-game ads, but other less popular games do (ex: Anarchy)
  • 10. Platform Console games Top performers Nintendo Wii Microsoft XBOX Sony PS3 Sony PSP Nintendo DS Core audiences Mostly Men (58%) ~37 years old (29% 50+) 2011 Entertainment Software Association Reach Wii: 89.5 MM XBOX: 57.9 MM (hardware sold) PS3: 55.4 MM PSP: 70.9 MM DS: 149.3 MM Business Selling: model Consoles ($249-499) Accessories ($9.99-$269.99) Games ($49.99-149.99) On demand games, movies, music – through services like XBOX Live, PS Network or Wii Channels Opportunities In-game advertising for brands Branded Games (Burger King)
  • 11. Burger King XBOX 360 games (2006) $ 3,99/each
  • 13. Need for speed in-game ad
  • 15. Platform Mobile Games Top performers AppStore Android Market Core audiences Mostly Women (53%) ~28 years old Juniper research Reach 37% of Iphone owners game daily 70%-80% of all downloads are games Angry birds has been downloaded 140 MM times Business Game selling ($0,99-4.99) model In-app purchase (new levels, skills, etc) ~$ 0.99 (Free lite versions) Opportunities In-game product placement for brands In-game advertising Branded games
  • 17. Angry birds Rio special edition
  • 18. Relevance from brands perspective • Social and Mobile are growing more relevant as marketing/branding tools • Ad spending in social games is expected to hit $ 293 MM in 2011 compared to $ 183 MM in 2009, a 60% growth. • In 2010, mobile game developer made $ 87 MM off advertising revenue. By 2015, this figure is expected to be 10 times that amount: $ 894 MM
  • 19. Why not console and MMORPG? • Fact 1: console games are better designed and value-added products compared to social and mobile games (2010’s Grand Theft Auto 4 cost $ 100 million) • Fact 2: console and MMORPG gamers are more critical than others, assigning great value to elaborate graphics and storylines, and are in general less tolerant to in-game advertsing when it is clearly out of the context. • This drives the industry focus increasingly on the player and less on the advertiser (Last year, Microsoft shut down its dynamic in-game advertising division called Massive). • Now, big producers like Eletronic Arts control the dynamic in-game advertising display for their games. The trend is that only games where advertising is a natural part of the storyline (like Fifa Soccer and NBA Live) will carry in-game advertising.
  • 20. Gustavo Donda & Don Valdez INTEGRATED SOCIAL CAMPAIGNS & GAMES ADVANCED SOCIAL MEDIA MARKETING WEEK #3
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  • 24. GAMES - BASICS  Games x brand’s promise and target behavior  Consider the engagement pyramid  Don’t skimp on development  Brand campaign or Game campaign?
  • 25. GAMES  Moving parts  Linchpin element vs. Equal contribution  Selection of tactics  Examples
  • 26. MOVING PARTS  TECHNOLOGY  PLATFORMS  Traditional Video Game  Web Browser Based  Adobe Flash  Mobile  PHP  iOS  Android  JavaScript  Combination  FEATURES  MONETIZATION  Community &  Virtual Good Asynchronous Transactions  “Never ending”  Virtual Stock Exchange  Virtual Currency
  • 27. LINCHPIN ELEMENT VS. EQUAL CONTRIBUTION  Social Media Technology Optimization is the focal point of Social Gaming Features Social Media Platform  Everything is Optimization secondary Monetization
  • 28. SELECTION OF TACTICS  CRITERIA  VARIATIONS  Making a Good Game  Goals  Network Effect  Creating Awareness  Selling  Engagement  Branding  Arbitrage  Remarketing  Monetization  Type of Brand
  • 29. New in Games Advanced Social Media Marketing NYU
  • 30. What’s happened in 2011 • Job Displacement & Layoffs – Disney, Activision, THQ, RockYou, Silicon Knights, CCP, Ignition, Team Bondi ~ plagued by layoff – West Pier Studio, Roundcube Entertainment, & ShortRound Games were formed • Kickstarter & Crowdfunding – Instead of turning to a game publisher or venture capitalist for seed money • Maturing Social Game Space – Shift from appealing to people’s compulsive nature and actually building quality games • Xbox 360’s Sales Strength – Expanded base & reach • HTML5 – Open format web standard: developers only have to build their games once & it would be inherently cross-platform • Easy to learn • Alternative to Adobe Flash
  • 31. Marketing: What’s hot in 2012: Gamification • Specially important for Social Media Marketing • Leverages engagement & loyalty – Missions, accomplishments & challenges – Rewards & badges – Mechanics driving to action
  • 32. Gamification everywhere • New applications: • http://www.stickk.com/
  • 33. Gamification everywhere • New applications: – Work performance: http://getworksimple.com/
  • 34. Gamification everywhere • New applications: – Health: https://www.superbetter.com/
  • 35. Gamification everywhere • New applications: – Fitness: http://www.striiv.com/
  • 36. Gamification everywhere • New applications: – Fundraising: http://www.globalgiving.org/leaderboards/global-open-challenge/
  • 37. Gamification everywhere • New applications: – Discount shopping: http://lockerz.com/
  • 38. Mobile Games explosion • Apple announced getting to 1 million apps in appstore • Harder to stand out • Competition pushing mobile games to become from casual games to better finished products • Getting closer to console games sophistication in terms of story & graphics
  • 39. PlayPhone Launches Cross-Platform Social Gaming Network • Formally launched December • Distinguishing Features: 14th – Supports all leading platforms • 1st true social gaming network (iOS, Android, Adobe AIR, & HTML5) • Presence in over 25 countries – Cross-platform play via • 35 million registered users on smartphones & tablets feature phones – Synchronous multiplayer • Over 3 million registered users gaming on smartphones – Single sign-on w/Facebook or PlayPhone SGN user ID • Have 1,600 developers signed – Advanced social integration up for its Software Developer w/Facebook Kit (SDK) – Universal currency via • Relations w/100 global carriers playcredits (R) – Multiple payment options including global direct-carrier billing
  • 40. Technology: Virtual and physical game environments • RockSmith: like a Guitar Hero, but you actually plug in your real Guitar
  • 41. Virtual and physical game environments – Applications popping up • Specially important for the game industry • iPad example: Disney AppMates
  • 42. Kinect puts Xbox much ahead the competition • The industry hasn’t even scratched the possibilities enabled by gesture- based technology • In its ad campaign Microsoft suggests all sorts of innovation through kinect hacking
  • 43. Kinect puts Xbox much ahead the competition • Internet is already populated with primitive open-source code for kinect

Hinweis der Redaktion

  1. When we think about the word integration another word immediately comes to our mind, and that is connections. So, that’s why for the last few years, every time that someone had to speak about integrated campaigns, he presented an image similar to that:
  2. Specially nowadays, with all these social media tools and APIs that made ease to integrate websites to Facebook fanpages, to twitter recipients to instamgram accounts, and so on, every digital campaign born with all parts totally connected. But there is another kind of integration that is much more important for brands and businesses and was only made possible because of the internet. Different from this flat, let’s say, horizontal integration, I’m talking about a deeper vertical integration.
  3. This allows brand managers to assign different values for each part depending on the role that this part plays in the campaign  In my view, this perspective of integrated campaigns eases the decision-making process.This is very well illustrated in the Big Skinny Case that we read this week. When you understand your consumer’s journey and the different roles that each part of your campaign performs to convince him in this process, and more important, which are those that influences more taking in account your product, brand and target characteristics, it helps you to distribute your investments much better.
  4. More and more, analytics tools are lining up with that vision, allowing the tracking different KPIs configuration of integrated dashboards.This is an example of a dashboard from the interactive advertising bureau to track performance of a branded game or application.You can notice that it put together campaigns and financial metrics, and considers 4 steps of the consumers journey: awareness, appreciation, action, advocacy.
  5. Branded games are a kind of investment that has a high potential of buzz but with high production costs.In terms of investment distribution, the decision of creating a game as a big part of an integrated campaign involves shifting budget from media buying to production. This means making a big bet on earning organic buzz media.  So, the keypoints to consider are:Be 100% sure that is the most suitable form of communication for your brand’s promise and target behavior.Remember: Casual gamers are a much bigger audience than game fans- Make the right decisions about development: nothing would save a poorly done game - A branded game has to work as a communication tool for your brand, generating buzz. Integrate that with the right social optimization technics and tools: do a careful planning, so you won’t end up spending money to communicate the game to avoid total disaster
  6. Through these moving parts, Social Network Gaming optimize overall Social Media in (1) players recruiting other players to partake in activity and (2) linking the increased social media activity to “unlocking” rewards in games. http://en.wikipedia.org/wiki/Social_network_game http://www.time.com/time/magazine/article/0,9171,1935113,00.htmlhttp://www.socialmediaexaminer.com/why-social-media-gaming-is-big-business-for-your-business/http://www.dreamgrow.com/social-media-gaming-infographic/
  7. Social Media Optimization is comprised of: (1) People, (2) Services, and (3) Content People  community driven, everything is social Services  entertainment and/or function-driven Content  content is king, content-driven “Social Games & Virtual Goods” by Martin Szugat of SnipClip.com
  8. Making a good game  metric driven, social then fun, must generate social capital, regular updates & new items… reach, retention, revenue Network effect  reach, user acquisition, reengagement Engagement  create competition among friends using visible metrics or get friends to help Arbitrage  users, user-initiated actions, user-participation Monetization  drama, friendship, competition, collections, gambling, individuality Creating Awareness  convert non-gamers to casual gamers Selling  know your demographic & setup easiest conversion methods: PayPal, Credit Card, Offers Branding  in game advertising, controlled experience Remarketing  capitalize on existing consumers, enticing users to re-purchase premium currency Type of Brand will determine what type of gaming you create- related to industry, product, or brand image itself DAU  daily active user“ Monetizing Social Gaming” by Lisa Marino, Chief Revenue Officer of RockYou.Com
  9. http://www.gamasutra.com/view/news/39097/Gamasutras_Best_Of_2011_Top_5_Major_Industry_Trends.php
  10. No longer limited to playing with friends who only have the same operating systemPlayPhone has its own virtual currency (Playcredits) and you can access various carrier billing and payment options, even on a closed platform such as Apple’s iOS. You don’t have to exit a game to pay for a virtual good. PlayPhone is a preferred direct-billing partner with both AT&T and Verizon in the U.S.