Kongregate Company Overview Q2 2013
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Kongregate Company Overview
Q2 2013
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GameStop Company Background
GameStop Corp. • Headquarters: Grapevine, TX • Fortune 300 company (NYSE: GME). World’s largest video game
retailer with 2011 revenues of about $10 billion • Recognized as a top 35 digital media company and 17th most
powerful brand in the U.S. • CompeTTve differenTaTon in customer connecTvity and service,
merchandise mix; material advantages in used games • MulT-‐channel strategy to address exisTng and new forms of game
distribuTon and moneTzaTon
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GameStop’s Multi Channel Strategy
• 6,600+ stores in 17 countries with over 500 million visitors per year
• 35% market share driven by knowledgeable gaming associates and “buy, sell, trade” model
• World’s largest retailer of game products & services
• Kongregate.com: Largest social game plaForm for core gamers
• Impulse: Digital download plaForm for core PC games
• Spawn Labs: Streaming plaForm for AAA games
• Detailed purchase informaLon on 21 million+ PowerUp Reward members. Members consLtute 65%+ of GameStop’s U.S. sales
• Largest U.S. video game magazine – Game Informer (4th largest U.S. magazine overall)
• 50 million+ monthly uniques across the GameStop Digital Network, including two of the fastest growing video game websites (GameStop.com, GameInformer.com and Kongregate)
We bring together an unparalled combina3on of retail and digital assets that are built upon a founda3on of massive reach and deep loyalty
Retail Footprint Digital Distribu3on
Reach and Loyalty
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GameStop’s Multi Channel Strategy
Leveraging the strength of GameStop’s network to drive
traffic & engagement
Social Media
GameStop.com and Kongregate.com
In Store
GameInformer
Employee Engagement
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Kongregate Company Introduction
Kongregate offers turnkey social gaming for partners and core gaming audience: • Community: 16M monthly uniques with high engagement and Xbox-‐style achievements (220M earned to date)
• Content: World’s largest collecLon of Flash and social games
• CuraMon: Address discoverability through staff experts, social integraLons, raLngs and recommendaLon engine
• MoneMzaMon: PlaForm level virtual currency “Kreds” with global payments support. Integrated with GameStop PowerUp Rewards program
Unlike Facebook, there are no out-‐of-‐pocket customer acquisi3on expenses for games on Kongregate
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More about Kongregate…
Hardcore gaming audience • 85% Male, Average Age 21 • Index very high for console, PC Gaming • 67% of users play daily • Driven by achievements (1M+ badges/wk) • 85%+ of users already have Unity installed
Game discovery • Tons of content, raLngs & recommendaLons to surface the best games
Deep community & social features: • Profiles, Points, Levels, Achievements, • Friends, Chat, Comments, Forums, etc.
Time Magazine Top 50 Website of 2010
Demographics Why Gamers Love Kongregate…
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The Opportunity with Kongregate
§ Reach Millions of Core Gamers – Top games generate 40M+ game plays
§ Superior Mone3za3on over Facebook – Kongregate users moneTze at rates much
greater than FB, generally 2-‐3x ARPU – Some cases of 5-‐7x ARPU on Kongregate vs FB
§ No-‐cost, Turnkey Promo3on across both Kongregate and GameStop – Developers have the opportunity to leverage the full promoTonal and discovery
resources of Kongregate and GameStop with no out-‐of-‐pocket expenses – Combines huge scale and targeTng with both online and offline promoTon
§ Easy Integra3on – 2-‐3 days integraTon work for exisTng Facebook games
“We have had our game on Addicting Games, Spil Games, and BigPoint, amongst others, and Kongregate’s revenue per user constantly hammers them. It’s not even close.”
-- Derek Day, Developer, Sacred Seasons 2
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Some of Kongregate’s Existing Developer Partners
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Select Games
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Developer Testimonials
Pueng our games on Kongregate has been one of the best decisions we've made in our publishing business. With Kong's massive user-‐base of hardcore, loyal gamers, we've witnessed retenTon and moneTzaTon numbers 2-‐3x those of other plagorms. IntegraTon is quick and simple, and the Kongregate team is awesome to work with.
-‐ Jared Psigoda, CEO, Reality Squared Games (Crystal Saga, Wartune)
Kongregate has become a great publishing partner with IGG. Kongregate.com's great adverLsing flexibility (no cost, no obligaLon), 2x ARPU than the closest compeLtor, together with significant amount of seasoned players make the PlaForm a stand-‐out from the cloud for publishing top quality games! An experienced Kongregate team also makes the integraLon seamless. IGG is looking forward to publishing all major Ltles on Kongregate in the near future.
-‐ Mark Zhang, CTO, IGG (Galaxy Online 2, Wings of DesMny, Dawn of Darkness)
Working with Kongregate to bring Outernauts to their plagorm has been a fantasTc experience for Insomniac. Kongregate’s community is passionate and a pleasure to interact with, while their staff has demonstrated experTse and provided Tmely recommendaTons that have helped us constantly improve the overall game experience. Moreover, Kongregate brought in a lot of players at no cost to us and given the steep cost of new player acquisiTon for other plagorms on the web, this has been a criTcal part of making Outernauts a success.
-‐ Ted Price, Founder and CEO, Insomniac Games (Outernauts)
Through Kongregate we were able to connect with a large group of dedicated players that we wouldn't have been able to reach otherwise. Kongregate is a fantasTc partner and does an amazing job supporTng and promoTng games.”
-‐ Aron Koh, Execu3ve Producer at Nexon (The Grinns Tale, Cloudstone)
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Kongregate Standard Partner Program
§ At a 70 / 30 revenue share, Kongregate provides: – IniTal launch promoTon of at least 5M spotlights ads on site – Front page promoTon in the Hot New Games secTon
(requires a 3.75 avg. game raTng) – ConsideraTon for permanent site badges
(requires a 3.85 avg. game raTng)
§ Standard Partner Program is the star3ng point for all developers on Kongregate
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Kongregate Premier Partner Program
§ If a game is performing well, the developer is invited to join Kongregate’s Premier Partner Program
§ Substan3al benefits for Developers over Kongregate Standard Program – ConTnued onsite spotlight ads of 5M-‐10M impressions each month – Homepage features for major expansions (~every 6 weeks) – Outbound messages (game updates, special events) to exisTng players and relapse players – Inclusion in Kongregate weekly newslemers – Facebook and Twimer posts – Special challenges to earn exclusive items or currency – Paid off-‐site adverTsing to drive new players to the game – PotenTal access to GameStop online and retail markeTng channels
§ Kongregate covers all marke3ng-‐related hard costs as well as the considerable sod costs of GameStop retail promo3ons, etc.
§ Under Premier Program, revenue share adjusts to 50 / 50 to reflect the added benefits and increased costs to Kongregate
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Kongregate Premier Partner Program (cont)
§ Select Premier Partners may also qualify for GameStop-‐specific marke3ng opportuni3es – Examples include in-‐store and GameStop.com promoTons, email and FB posts
In-‐store sweepstakes and other promoLons
Emails to GameStop database (21M+ members)
Social shares (5.5M+ Facebook fans , 270k
Twiler followers)
Features on GameStop.com (21M+ monthly uniques)
GameStop TV Features Major Game Launch Tie-‐Ins
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Premier Program: GameStop Marketing Vehicles
Retail/In-‐Store GameStop.com § Placement: POSA card rack, POS impulse rack, Shelnalkers, Countercard
§ GameStop TV: Consumer-‐facing promo segments
§ Associates: Trial, advocacy, sales incenTve contests
§ Freq / Reach: 3 wk Mktg. kit, 10M+ customers
§ Online promoTon placement: Home page rectangular rotaTng banner, Landing page with call-‐out banner
§ Frequency: 30-‐day placement
§ Reach: 17M+ monthly uniques
PowerUp § Email and Direct Mktg Programs: Weekly ad email inclusion, targeted email, e-‐summary banner
§ Site placement: Dashboard msgs, Carousel banner
§ Reach: 5-‐21M targeted customer contacts
Social Media § Facebook messaging
§ Wall Posts § Twimer integraTon
§ Sponsored tweets § Reach: Over 5.5M Facebook fans; over 270K Twimer followers
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Case Study – War Metal: Tyrant
§ Collec3ble card game developed by Synapse Games – Launched Feb 2011
34M+ plays since launch – User purchase rate of over 2%
2x ARPU on Kongregate vs. Facebook
§ Major in-‐store GameStop promo3on August 2011 – Tyrant featured in 4,300 GameStop stores – Physical cards handed out to customers, $10,000 contest to encourage gamers
to try Tyrant, employee incenTve contest to inform customers about Tyrant…
Kongregate has absolutely become a central part of our social gaming strategy. Their extremely loyal userbase combined with free distribuTon makes an incredible combinaTon for developers, and drives almost twice the moneTzaTon we see on Facebook. -- Alex Reeve, CEO, Synapse Games
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Case Study – Dream World
Turned-‐based MMO developed by Playmage Games • Launched Jan 2010 on Kongregate • 20M+ gameplays and conTnued growth (even aner 2 years)
Higher per-‐user mone3za3on on Kongregate vs Facebook • 2x ARPU • 3x ARPPU
User and Revenue Growth Kongregate vs. Facebook
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• Integrate APIs
• ~2 days of eng. work
Integra3on
• QA TesTng • Submit game
Pre-‐Launch • Spotlight ads • Gather performance data
• Deliver recommendaTons to maximize raTng, retenTon and moneTzaTon
Game Launch
• Hot New Games lisTng
• Featured Games promo
• Ongoing opTmizaTon
Marke3ng • Homepage features of new content
• Newslemer • Media Buys • Badges/ Achievements
Ongoing Kongregate Promo3on
• Go Big Promo
Gamestop Promo3on
Developer Engagement Process
Kongregate works closely with developers throughout the en3re process to maximize user engagement and mone3za3on
– Total pre-‐launch development Tme typically 2-‐3 days of one engineer’s Tme
Kongregate Premier Partner Program
“Integrating Dream World with Kongregate’s platform was very easy and took no more than couple days of work.”
-- William Ren, CEO, Playmage Games
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Kongregate Developer and Integration Tools
• StaMsMcs: A simple API that allows submission of player progress and high scores. On site leaderboards enables Kongregate to put achievements on a game and promote it
• Kreds: To accept payments within a game, Kongregate has an API that enables the use of Kreds for purchases.
• AuthenMcaMon: Allows validaTon of a logged-‐in Kongregate user (via a server-‐side call) to get them into your game enTrely behind the scenes.
• IntegraTng a game from Facebook to Kongregate is a quick and simple process
• Kongregate maintains KompaMble, an open source project that acts as an abstracTon layer to manage a single code base for a game on Facebook and Kongregate plagorms
• Kongregate also helps developers opTmize social differences with Facebook
• For instance, while Kongregate players are highly social, they communicate in different ways (game-‐specific chatrooms, forums, etc.) from Facebook.
A few of Kongregate’s APIs… Integra3on
Learn more on dev.kongregate.com
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Get Your Games on Kongregate
§ Reach Millions of Core Gamers § Easy Integra3on § Earn More § Contact: [email protected]
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