what's the roi? virtual worlds introduction
TRANSCRIPT
tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
Moderator | Gary Hayes
Presenters
Gary Hayes | Director LAMP@AFTRS & CEO MUVEDesign
Jeff Brookes | Regional Director - Asia Pacific, Sulake Corporation
Mitch Olsen | Co-Founder, SmallWorlds
tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
Gary Hayes | LAMP@AFTRS & CEO MUVEDesign (lamp.edu.au & muvedesign.com)
ABC Island Deakin Arts Island Thursday’s Fictions
BigPond Telstra US Fortune 100s Melbourne/Cog/AFTRS etc:
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
1. LayeredWorlds
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?2. Browser Worlds
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?3. Client Worlds
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?4. Console Worlds
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Press hyperbole or myths?
Virtual Worlds are on the decline?
There’s no one in them?
& people don’t spend long there?
They are for kids or social ‘games’ not business?
There are no marketing models?
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Virtual Worlds are on the decline?
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Investment in Virtual Worlds•Oct 06 - Oct 07 - US $1 billion US•Oct 07 to the present day - US $918 million
This breaks down roughly as:•Q3 08 - $148.5 million invested in 12 VW companies•Q2 08 - $161 million in 16 VW companies•Q1 08 - $184 million in 23 VW companies•Q4 07 - $425 million in 15 VW companies
Source: Virtual Worlds Management Reports
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?Virtual Worlds are on the decline?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
There’s no one in them?
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Habbo Hotel 12m
Stardoll 13m
Nicktropolis 5.5m Webkinz 5.5m
Club Penguin 6m
300 million globally in social virtual worlds
Habbo & WoW - 100 mill registeredRunescape - 7 mill active, 140k at once
Entropia - 700k reg, plan 15m concurrent!Second Life - regularly at record breaking
concurrency of 70k
60% of Americanʼs play video games -40% are women
Neopets 6m
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?There’s no one in them?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?There’s no one in them?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Government Communications Headquarters InGame RecruitmentTom Clancy’s Splinter Cell: Double Agentand high-octane racer Need for SpeedCarbon. By Massive•Increased traffic to the Careers inBritish Intelligence website by 1,000percent, from an average 550 uniquevisitors a day to an average 5,500•Won the “Innovation” category atthe 2008 Recruitment AdvertisingAwards, and received nominationsfor several other industry awards•Generated extensive coverage inthe national media
http://advertising.microsoft.com/europe/ResearchLibrary/ResearchLibrary.aspx?Adv_CaseStudyID=1664
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?There’s no one in them?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
& people don’t spend long there?
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?& people don’t spend long there?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
They are for kids or social ‘games’ not business?
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
They are for kids or social ‘games’ not business?
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
Virtual Worlds are partly about Lifestyle Marketing but…
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?They are for kids or social ‘games’ not business?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
•“The centralized investment in the Second Life island paid for itself after 5-6 events -recruitment at Accenture taking place in 49 countries, and each of these countries usingthe Accenture Careers island rather than building its own, the cost savings really start tostack up.•So Global Recruitment Marketing put a lot of effort into making it easy for recruiters touse Second Life. The team holds meetings, calls, and tours with recruiters and created aguide on how to sign up in Second Life, create an avatar, walk, sit, chat, etc. “
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?They are for kids or social ‘games’ not business?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?They are for kids or social ‘games’ not business?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?They are for kids or social ‘games’ not business?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Videogame advertising, both in and around game, is effective in drivingattention and recall
* Three-quarters of gamers notice ads while playing video games * 75% of gamers engage with at least one ad per minute * 81% of gamers engage at least every other minute * ½ second ad exposure is sufficient for a gamer to notice an in-game ad
Most gamers believe that ads in games add to the realism and overallexperience of playing video games and can have a positive impact.
* "It's fun to see things in games that are real." * "Like in Ghost Recon, you have the Dodge billboards in the urbanareas, and I think that is pretty effective... it adds realism because, youknow, you see ads in the real world" * "I think being in a game is way better because in TV it can sometimesannoy you and stuff and can have a negative effect on a product. But in agame, I think it has a positive effect."
Source: Videogame Advertising Engagement Study, July 2007
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?There are no marketing or ad models?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
1. Static Advertising
2. Promotions & Sponsored events
3. Virtual Goods & Product Placement
4. Dynamic InWorld Advertising
5. Branded Spaces
6. AdverWorlds & AdverGames
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?There are no marketing or ad models?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Static AdvertisingPriceWaterhouseCoopers estimates total spending on
in-game advertising to reach $1 billion by 2010.
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
•US $295 million will be spent on in-game advertising•$207 million advergaming (the creation of games topromote a brand)•Advergaming will climb to $344 million in 2011, in-gameadvertising will reach $625 million that year." eMarketer
NEW FORMS OF ADVERTISING - GAMES
There are no marketing or ad models?
1. Static Advertising
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
2. Promotions & Sponsored events
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?There are no marketing or ad models?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
Source: Betsy Book AAAS
There are no marketing or ad models?
3. Virtual Goods and Product Placement
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?There are no marketing or ad models?
Dynamic InWorld, InGame Advertising
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?There are no marketing or ad models?
5. Branded Spaces
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?There are no marketing or ad models?
5. Branded Spaces
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
6. AdverWorlds &
AdverGames
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?There are no marketing or ad models?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
"Now our audience can 'live' Laguna Beach:
The Real OC by immersing
themselves in a next generation
hybrid of TV show and virtual
community" says Matt Bostwick, SVP
Franchise Development MTV Music Group.
"The virtual world will expand and grow with
the show in real time. This will enable the
audience to take our content as a starting
point and create their own drama.
In effect, the audience becomes the content. We created a first class 'virtual team' to implement this consistingof Makena Technologies, Imaginary Forces, The Electric Sheep Company, Analog Protocol and Extra LargeTechnology to make it happen in record time."
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?There are no marketing or ad models?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Football Superstars is the world's first VirtualFootball World. An entire online virtualworld designed by football fans exclusively forfootball fans, where you can enjoy a massivelymultiplayer experience on your PC.
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?There are no marketing or ad models?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?There are no marketing or ad models?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?There are no marketing or ad models?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?There are no marketing or ad models?
© Gary Hayes | lamp.edu.au [email protected] or [email protected]
tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
THANKS
tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
Jeff Brookes | Regional Director - Asia Pacific, Sulake Corporation (habbo.com.au)
Sulake Corporation | Strictly confidential - legally protected and privileged information