©2010 – datagenetics all logos and trademarks in this presentation are property of their...

©2010 – DataGenetics

Nick Berry

All logos and trademarks in this presentation are property of their respective owners.

M.Eng, ARAeS, CIPP

The changing world of casual gaming


Biography – Nick Berry

1988 1994 2008 2010

http://go.microsoft.com/fwlink/?LinkId=186189



PC Casual Game Universe

Web Download

Social



PC Casual Game Universe

Web Download

Social

AdvertisingSales

Micro-transactions


Web Portals


Number of players

24 hours


The Results

Advertising Potential




Download Games


Price evolution of deluxe downloads

$19.95

$6.95 $6.99

$9.99

$12.99

$15.99

$19.99


Social Networksfacebook


Just how big is it?

http://www.facebook.com/photo_search.php?oid=167266103810&view=user#/group.php?v=wall&gid=167266103810


2003 2004 2005 2006 2007 2008 2009 20100

100

200

300

400

500

600

700

800

0 1 5.5 12

50

100

350

Year end registered users (MM)

?

July



Just how big is FaceBook?

6.8 billion people on the planet

2.0 billion people connected to the internet

500 million registered facebook accounts

25% of the connected World already has a Facebook account!



If facebook were a country …

#1 China#2 India#3 facebook

… it would the 3rd largest in the World.


What is the most popular Windows application of all time?


Effect of facebook on traditional Casual Gaming web sites

Dec-9

8

Apr-9

9

Aug-9

9

Dec-9

9

Apr-0

0

Aug-0

0

Dec-0

0

Apr-0

1

Aug-0

1

Dec-0

1

Apr-0

2

Aug-0

2

Dec-0

2

Apr-0

3

Aug-0

3

Dec-0

3

Apr-0

4

Aug-0

4

Dec-0

4

Apr-0

5

Aug-0

5

Dec-0

5

Apr-0

6

Aug-0

6

Dec-0

6

Apr-0

7

Aug-0

7

Dec-0

7

Apr-0

8

Aug-0

8

Dec-0

8

Apr-0

9

Aug-0

9

Dec-0

9

Apr-1

00

50000

100000

150000

200000

250000

300000

350000

400000

450000

Peak Population

Data courtesy of

http://www.pogo.com/


Facebook

Habbo

Windows Live Spaces

Orkut

Friendster

hi5

LinkedIn

Badoo

Flixster

Classmates.com

Flickr

Viadeo

MyHeritage

0 100,000,000 200,000,000 300,000,000 400,000,000 500,000,000 600,000,000

Worldwide Registrations – Social Networks


facebook gaming is big business

“Disney Buys Playdom in $763 Million Deal, Becoming Hollywood Leader in

Social Games”

“Not Playing Around. EA Buys Playfish For $300 Million, Plus a $100

Million Earnout.”

“Zynga Issues Shares at a $4 Billion Valuation”


Top facebook Game

Peaked at 84 MM Monthly Active Users (MAU).

32 MM distinct people used the application at least once a day (DAU).

Close to 40% of all their users visit the application every single day!


Farmville - MAU


Café World - MAU


Café World - DAU


Café World - Engagement


facebookAround the World


Where in the World?



Top 25 countries on facebook

Top 20 countries account for 79% of all FaceBook registered accounts. After Thailand, no other country accounts for more than 1%.


Gender breakdown of FaceBook users Worldwide

Female dominant Male dominant

United States 44.31% male United Kingdom 48.26% male India 69.88 % male


Demographics


facebook Demographics

AGE

13

65+

FemaleMale


facebook Demographics - USA

Many users of college age.

In USA large number of members over 65


facebookDifferent Countries


Similar Countries … Similar Profiles


Different Countries … Different Profiles


Interests


Bejeweled Blitz


Jay Leno vs. Conan


Quiz Time – Guess the movie

Answer: Twilight™


Comparing Demographic “Genes”

38.41% correlation


Comparing Demographic “Genes”

80.89% correlation


Cross correlation between brands


Bejeweled Blitz Affinity


Micro-transactions


Propensity to pay?0.8% users spend

2.1% users spend

3.0% users spend2.6% users spend

2.4% users spend

Sorority Life, % users who spend by ageSource: “Rules to Monetize By …”, Playdom 2010


Are you targeting your game to the paying audience?

$OEven if this game had 5x the traffic, it would not generate the same revenue

Would you like to have the largest game on facebook, or the most profitable?


Micro-transaction types

+10%

- Avatars- Fashion- Accessories

Things that do not adjust the balance of the game

Kill 10 more Orcs

= or =

Pay 10 gold coins

Time

Money

Bling Accelerators Power-ups

Pay to get 10 gold coins to get +10% attack bonus for

12 hours


The economic beauty of micro-transactions

Volume

Price

$19.95

$6.95 The Long Tail …

The “Tall” Tail …


Big brands are starting to get it


MIT research• When playing games, people

are at 95-99% “focused attention”(As measured by pupil dilation, skin resistance, pulse, movement, breathing, brain activity …)

• This blows away all other media

• With just 15 seconds exposure to a brand, there is >80% unaided recall.Sponsors can receive “Halo” effect by

having their brands associated with success screens and level completion events.


Pitching to potential Advertisers


Honeymoon period for brand owners with fans!

• 43% of fans visit facebook several times a day.

• 50% of fans come to facebook for entertainment.

• 92% say that being a fan has a positive impact in recommending to

friends.

• 52% recommend others to follow the brand.

• 84% of fans consume (regularly/ocassionally) the brand.

• There is no disconnect between brands followed on facebook and regular

consumers.

• An average of 9 brands are followed by users.

Source: DDB, October 2010


Closing Advice


You’re a Service not a Product


Measure Everything!

Analytics is now just as important as game design!

Play

Join

or

http://upload.wikimedia.org/wikipedia/commons/e/ed/Ideal_feedback_model.svg


We’re now on the second generation of Social Games

Generation #1 – Build it, and throw it live immediately. Fix and modify it live. Those days are over!

Generation #2 – Get it mechanics reasonably polished before general release.

“You don’t get a second chance to make a first impression”

Today’s early adopters of new games:

- Virally introduce more people to your game- Typically spend more over lifetime


The EndQuestions?

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©2010 – datagenetics all logos and trademarks in this presentation are property of their...

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