Games & Social Mediaby Renan Bidoia

Prof. Robert Kozinets

AgendaDefinition

What’s going on?

Statistics

Cases/ExamplesZyngaVirtual WorldsFoursquare

Conclusion

What is Social Gaming?Web-based games, based on social network platforms

Multiplayer Interactive elements / Shareable content Awareness of others’ actions

Simple and creative games

Casual gamers

3 Main Types Social games in Social Networks Game Portals In-browser social games

Social Gaming Market

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

• Brands Visibility (In-Game Advertising)

• Worldwide Exposure• Social Media in great

growth• Low-Tech needs

• Reliance on the Social Networks

• Charge for Ads, Transactions and Space (No Free Virality)

• Diversify social network platforms (MySpace, Hi5, etc)

• “Niche Trend”• More time spent

online• Global Internet

Penetration (23% in 2008; 30% in 2012)

• Initial Stage (Fragile)• Social Networking

Fatigue (Loss of Attractiveness; Fad)

• Highly competitive market

Negative

Internal factors

Externalfactors

Positive

How companies make money?• V-Commerce• In-Game Advertising• Sponsorships

Developers and

Distributors

• Percentage fee of transactions, ads and space for virality

Social Networking Platforms

• PayPalPayment Providers

StatisticsDo you play social

games online?

ZyngaFounded in 2007

Already profitable (47% margin) $850 million revenues (2010)

Free Games Virtual Goods X Real Money Crops (FV), Guns (MW), Treasure (TI)

Over 215 million active users monthly

Valued at $4.5 billion Big set of investors ($219 million)

and advisors

FarmVille

Virtual WorldsUsers can create Avatars

Alternative Identities“The Sky is the Limit”

Corporate OpportunitiesAdvertisingV-CommerceMarketing ResearchHuman Resource Management Internal Process Management

Second Life

Foursquare Mixture of social, locative and gaming elements to encourage

people to explore the cities in which they live

“Check-Ins” Share location to friends Bookmark places

Users compete in a Leaderboard More Check-Ins More Points Unique discounts and benefits

Social Media Integration Update Facebook/Twitter status Login through Facebook Add Friends through Gmail, Facebook and Twitter

Foursquare for Business

Many advantages, such as:Increase loyaltyDeeper RelationshipConstant Feedbacks

Conclusions and TrendsVery positive perspectives in short-term

Demographic trends Social Network Growth Emerging Platforms Opportunities

Some threatening factors Reliance on Social Networks High Competitive Market

Without SM Platforms and its components, there’d be no Social Games

Mobile devices Huge importance

QUESTIONS ?

ReferencesSocial Gaming Report – Econsultancy

http://blogs.wsj.com/digits/2010/05/04/farmville-maker-zynga-valued-at-4-billion/

http://360.datamonitor.com/Product?pid=BI00028-007

http://360.datamonitor.com/Product?pid=BI00028-008

http://www.brandchannel.com/home/post/2011/02/24/Zynga-Profits-Soar.aspx