Presentation games complete

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 playersFarmville: 45.8 MM playersTotal number of players est. in 250 MM

Business model

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

Opportunities for brands

In-game product placementIn-game advertisingPromotions with ZcoinsBranded 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 old2010 dedalus/xeroxParc

Reach 10.3 MM subscribers (WoW - nov. 2011)

Business model

Prepaid limited game timeSubscription (credit/debit cards monthly fees)(free starter edition – up to level 20)

Opportunities for brands

In-game advertisingMainstream games like WoW don’t place in-game ads, but other less popular games do (ex: Anarchy)

MMORPG Anarchy in-game ad

Platform Console gamesTop performers Nintendo Wii

Sony PS3Nintendo DS

Microsoft XBOXSony PSP

Core audiences Mostly Men (58%) ~37 years old (29% 50+)2011 Entertainment Software Association

Reach(hardware sold)

Wii: 89.5 MMPS3: 55.4 MMDS: 149.3 MM

XBOX: 57.9 MMPSP: 70.9 MM

Business model

Selling: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 for brands

In-game advertisingBranded 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 AppStoreAndroid Market

Core audiences Mostly Women (53%) ~28 years oldJuniper research

Reach 37% of Iphone owners game daily70%-80% of all downloads are gamesAngry birds has been downloaded 140 MM times

Business model

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

Opportunities for brands

In-game product placementIn-game advertisingBranded 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.

INTEGRATED SOCIAL CAMPAIGNS & GAMESADVANCED SOCIAL MEDIA MARKETINGWEEK #3

Gustavo Donda & Don Valdez

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

Traditional Video Game

Adobe Flash PHP JavaScript Combination

PLATFORMS Web Browser Based Mobile

iOS Android

FEATURES Community &

Asynchronous “Never ending” Virtual Currency

MONETIZATION Virtual Good

Transactions Virtual Stock

Exchange

LINCHPIN ELEMENT VS. EQUAL CONTRIBUTION

Social Media

Optimization

Technology

Platform

Monetization

Features

Social Media Optimization is the focal point of Social Gaming

Everything is secondary

SELECTION OF TACTICS

CRITERIA Making a Good

Game Network Effect Engagement Arbitrage Monetization

VARIATIONS Goals

Creating Awareness Selling Branding Remarketing

Type of Brand

New in Games

Advanced Social Media MarketingNYU

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 14th

• 1st true social gaming network• Presence in over 25 countries• 35 million registered users on

feature phones• Over 3 million registered users

on smartphones• Have 1,600 developers signed

up for its Software Developer Kit (SDK)

• Relations w/100 global carriers

• Distinguishing Features:– Supports all leading platforms (iOS,

Android, Adobe AIR, & HTML5)– Cross-platform play via

smartphones & tablets– Synchronous multiplayer gaming– Single sign-on w/Facebook or

PlayPhone SGN user ID– Advanced social integration

w/Facebook– Universal currency via 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