Social game monetizing

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SG MONETIZATION THE RISE OF SOCIAL GAMES Mu’min Santoso @msantoz SPARX UP AWARD 2011 SEMINAR SERIES. JAKARTA, JUNE 23, 2011

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This presentation made for Sparx Up Award 2011 Seminar Series.

Transcript of Social game monetizing

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SG MONETIZATIONTHE RISE OF SOCIAL GAMES

Mu’min Santoso @msantoz

SPARX UP AWARD 2011 SEMINAR SERIES. JAKARTA, JUNE 23, 2011

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Topics• Definition• Overview• Social Game Success Factor• Monetization• Q&A

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“Any game where the key game design elements are based on the interaction

between the players”- Klaas Kersting, Gameforge -

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OVERVIEW

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Ad:tech Sydney – March 2011

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HOW DO SG MAKE MONEY?

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EVOLUTION?

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IT’S CHANGED

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WHY CHANGE?CHANGE THE WAY WE PLAY GAME

BORN : 2007

3rdsense – Adtech Sydney

35% Social Gamers have never played a game beforeZINGA’S ‘CITYVILLE’ REACH 100M ACTIVE MONTHLY PLAYERS A MONTH AFTER LAUNCH

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RULE OF THE ‘GAME’

RockYou

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WHY SOCIAL GAME RISING?

NETWORK EFFECT

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SOCIAL/VIRAL

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REPEAT PLAY

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SOUGHT AFTER

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LONGEVITY

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REWARDING

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5 COMPONENTS OF SUCCESSFUL SOCIAL GAMES

ENGAGEMENT

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VIRTUAL ITEMS (VI)- Functional, decorative, gifts, status,

rewards, collectibles- Allow players to set goals (they save

up to buy = long term objectives)- Promote Trading & exchanging

(open up communication between players)

- Large price variants between VI increases overall game depth

- “Rare” or exclusive VI promote a sense of urgency and impulse buys

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VIRTUAL CURRENCY (VC)

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SOCIAL GRAPH62% of all social gamers play with REAL friends

PopCap, 2010

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FEEDBACK

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NEVER ENDING GAMEPLAY

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UNDERSTANDING MONETIZATION

ARBITRAGE

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Monetization Models

http://lsvp.wordpress.com/2008/07/02/29-business-models-for-games/

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Keys to MONETIZATION

RockYou

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Who Plays SG?

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What’s Hot? SPENDER

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Spender• Players who spend massively on virtual goods and gifts• Whale: > USD 1,000• Super Whale: > USD10,000• Mafia Wars, Happy Aquarium, etc• Small percentage (10%) of users in the category• Single Minded

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Spender

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What’s Hot? FREEMIUMMicro Economy:• Virtual Items• Virtual Currency

Via Zerealm

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WHY FREEMIUM?

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What’s Hot: MICRO ECONOMY (ME)

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Drive Action through ME

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What’s Hot? CONVERGENCE

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What’s Hot? CONVERGENCEMOBILE!

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MOBILE?Mobile is the most powerful digital medium

to the date

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Why?• It’s a BIG (numbers)• It’s Personal (nature)• It has More Context (Identification of Needs)• It Can Make you Money

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Source: Effective Measure, April 2011

61,88 %Mobile Others

38,12 %

24.195.080 people internet mobile

Internet Habitconnect with others

Source: BBC World Service poll, 2010RazorFish 2010

1

2

3

4

search and share information

play games

showing existence

5 ecommerce

IT IS BIG

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It’s PERSONAL- 91% of people have their mobile within arm’s

reach 24/7 – Morgan Stanley 2007

- 60% of Married people will not share their mobile with their spouse! – Wired Magazine 2006

- It takes an average of 26 h for a user to report a lost wallet but only 68 minutes to report a lost mobile phone – Unisys Survey

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It’s PERSONAL

10% of under-25-year-old find it OK to text whilst having sex Retrevo Gadgetology Report, 2010

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Mobile Has More Context• Personal Mass Media• Always Carried• Always On• Built in Billing System• Present at the point of Creative Impulse• Accurate audience identification• Captures social context• Enables augmented reality

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What’s Hot? BRAND

3RDSense on Ad:tech Sydney 2011

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What’s Hot? BRANDHow Brands can use games?• Advertising around games• Advertising in games• Sponsoring part of games• Taking an existing game & re-skinning it• Creating games from scratch• Creating games portal• Create social game with Virtual Economy

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Benefit for Brand• Cost effective form of Marketing• Deep band exposure• Collect Data• Establish a personal connection• Allow customers to interact directly with Brand• Leave people feeling good about your brand• Viral & Social• Great way to educate

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LESSONS: KEEP TESTING

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TO SUM IT UP• PUMP THE NETWORK EFFECT• ENGAGE TIGHTLY• GRAB THE FUTURE POTENTION• PREPARE REVENUE GENERATOR

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QUESTION?

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THANK YOU

Mu’min Santoso @msantoz