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.