Tyson Greer - Mobile Edugame Market Innovations 2014

Ambient Insight 2014

Mobile Edugame Market Innovations 2014

Key Findings from Recent Ambient Insight Research

Tyson Greer, Chief Executive Officer

Ambient Insight LLC

Serious Play Conference 2014July 23, 2014


Partial List of Ambient Insight’s Clients

Adobe

Amazon

Amplify

Apple

Blackboard

BrainPOP

British Council

Cambridge University Press

Chungdahm Learning

Cisco

Disney

Hasbro

Houghton Mifflin Harcourt

IBM

John Wiley & Sons

McGraw-Hill

Macmillan

Microsoft

Oxford University Press

Pearson

Qualcomm

Rosetta Stone

Ambient Insight is an integrity-based market research firm that uses predictive analytics to identify revenue opportunities for suppliers.


Agenda

Introductions - Research Taxonomy

Key Findings from Ambient Insight Research

Innovations in Edugame Content Products & Custom Services

Trends to Watch

Show me the Money


Ambient Insight’s Learning Technology Research Taxonomy

Have Eight Buyer Segments

From Six Types of Suppliers

That Buy Eight Types of Digital Learning Products

Packaged

Content

Consumer PreK-12Corporations

- Businesses

Higher

EducationFederal

Government

State - Local

GovernmentAssociations

& Non-ProfitsHealthcare

Custom

ContentSoftware as a

Service (SaaS)

Value Added

Services

Installed Tools

& Technology

Learning

Devices

Digital Video,

Text, & Audio

Reference

Self-paced

eLearning

Courseware

Collaboration-

based

Learning

Simulation-

based

Learning

Cognitive

LearningMobile

Learning

Social

LearningGame-based

Learning

Ambient Insight’s 2014 Learning Technology Research Taxonomy

Seven International Regions

North

America

Latin

AmericaEastern

Europe

Western

EuropeAsia Africa

The Middle

East

http://www.ambientinsight.com/Resources/Documents/AmbientInsight_Learning_Technology_Taxonomy.pdf


Six Types of Mobile Edugame Learning Products

Knowledge-based games

Skills-based games

Brain trainers and cognitive fitness games

Language learning games

Location-based learning games (emerged in 2009)

Mobile augmented reality games (emerged in 2010)

Ambient Insight forecasts revenues for six types of Mobile Edugames:

Clever Goats

Ambient Insight’s 2014 Learning Technology Research Taxonomy

http://www.ambientinsight.com/Resources/Documents/AmbientInsight_Learning_Technology_Taxonomy.pdf


Key Findings from Ambient Insight

Research


Key Findings from Ambient Insight Research - The Market

The growth rate for the global Game-based Learning market is 6.7%

In North America: growth rate for all Game-based Learning is 7.6% , but for mobile edugames is 12.5% - and from 2013 to 2018 mobile edugames revenues will nearly double

Consumers still dominate packaged content purchases, the academic market is growing, and nonprofits and government continue to buy tourism-related content services

Mobile edugame investors were bullish in 2011, showed a spike of interest in 2012, slowed in 2013, and steady in H1 2014

New suppliers continue to flood the market, and product visibility becomes increasingly difficult

Cross-platform products (connecting web & app on device) still increasing

Telecoms, device-makers, & NGOs provide Mobile Learning value added services (VAS), except rarely in North America, so far.


Key Findings from Ambient Insight Research - The Buyers

Suppliers capitalize on consumers’ interests: early childhood education, tourism, health, fitness and wellness, cognitive fitness, nature, and sustainability

Top “selling” (or downloaded) apps are for young children; edugames that offer parental involvement are on the rise

Explosion of personal learning devices (PLDs) and tablets fuel the market

Cultural institutions continue to invest heavily in edugames, with a mix of in-house and custom content services

Emergence of easy-to-use mobile game-building tools supports cultural shift towards using game-creation as an educational experience

Government entities escalated awareness about protecting privacy of children, and updated regulations and guidelines.


Personal Learning Devices Proliferate Across the Globe

Amplify Tablet System bundles Classroom Tools, content and apps, filtering, MDM, and implementation support

OLPC XO-10 Tablet with Bluetooth-enabled keyboard

LeapFrog’s new LeapTV living room console with educator-approved games and videos for 3-8 year olds

Kurio 7S (kidSAFE+ seal)


Mobile Edugames Inhibitors v. Opportunities

Discoverability

So many apps, so many app stores

Partner with Big Players (profit or nonprofit)

Market in multiple media

Join publishing programs

Map content to standards (CCSS, Next Generation Life Science Standards…)

Offer professional development to educators

Seek sponsorship from 3rd

parties

http://www.gamesandlearning.org/2014/06/09/teachers-on-using-games-in-class/

Academic inhibitors Fragmentation of the

market Lack of teacher support Social and cultural

structures: enough & which devices? or are devices banned?

Attitudes: educators and teens

http://www.gamesandlearning.org/2014/06/09/teachers-on-using-games-in-class/


Combining Common Core & Teacher Support & User-generated Content

Lack of teacher training in how to use edugames in (or out of) the classroom inhibits sales

July 2, 2014, Imaginary Number Co over-achieved $42K Kickstarter campaign to bring Mathbreakers to Android and iPad tablets

- Classroom setup free for 3 months- Lesson plans & level editor $25

Teacher Dashboard: assign game levels and student track progress https://www.mathbreakers.com/lessons/Trial%20Lesson/

https://www.mathbreakers.com/lessons/Trial Lesson/


Innovations in Edugame Content Products and

Custom Services


Knowledge & Skills: Products for PreK-2 Dominate the North American Edugame Market

Funbrain Jr, early math, literacy, problem-solving web & app published by Pearson Education

Sight Words in Space by

Clever Goats

Gummii Math Educational Games , the first to crack iPad Top 25 in Canada.


“The 2013 Content Trench” – Percent of Total Paid Mobile Learning Apps by Target Demographic

34%

10%

5%6%

3%

6%8%

28%

0%

5%

10%

15%

20%

25%

30%

35%

40%

What’s on the Store Shelves?Consumer-facing Paid Mobile Learning Content (All Apps Including Edugames)

Across All Major Application Stores, Platforms, and Devices

The vast majority of PreK-2 Mobile

Learning content is game-based


Knowledge & Skills: Combining Critical Thinking Skills with Knowledge-based Learning Opportunities

ELA + STEM = Argubot AcademyGlassLab + NASA launched an iPad adventure CCSS-based (STEM) game to develop critical thinking skills and interest in science.


Knowledge & Skills: Interest in Coding Levels Up

Hakitzu: Elite, an update to the original, teaches STEM skills and the next level of coding. “Teacher’s Pack” offers guidance and lesson plans.

CargoBot for 5+ uses a moving crane to shift boxes

and use coding concepts like loops, procedures, and

debugging.


Knowledge & Skills: Includes “Life Skills” for Students

Parents and schools buy Social & Emotional Learning skills (SEL) edugames to develop children’s emotional intelligence

IF… (If You Can Company) SEL role-play, decision-making adventure game for ages 9-11, includes a Parent’s menu.


Knowledge & Skills: Health & Wellness for Consumers CME Edugames for Healthcare Students & Professionals

For medical students, “Osmose with Your Friends” crowd-sourced game from 2013 DreamIt Health tech accelerator

For consumers, health & wellness topics include alcohol, allergies,

anatomy, asthma, brain fitness, cardiovascular health, dental health, diabetes, exercise &

fitness, food & nutrition, pet care, obesity & weight loss, pain,

smoking cessation, substance abuse, and safety

TAO WellShell isometric fitness device over-achieved Kickstarter $100,000 goal


FDA Intends Discretion When Regulating Mobile Medical Apps as Devices

FDA identified examples of mobile apps for which the FDA will “exercise enforcement discretion” (6/11/14)

http://www.fda.gov/MedicalDevices/ProductsandMedicalProcedures/ConnectedHealth/MobileMedicalApplications/ucm368744.htm

The list identifies 24 types of apps including those that:

Provide prediabetes patients with tools or guidance to create healthy habits

Use video games to motivate patients to do their physical therapy exercises

Are intended for individuals to make decisions or offer behavioral suggestions related to health or wellness (including “use social gaming to encourage healthy lifestyle habits”) – but are NOT marketed as diagnosis or treatment.

http://www.fda.gov/MedicalDevices/ProductsandMedicalProcedures/ConnectedHealth/MobileMedicalApplications/ucm368744.htm


Brain Trainers and Cognitive Fitness Apps: New Players Continue to Enter the Market

Lumos Labs, Rosetta Stone (Vivity Labs), Nintendo, and Cogmed dominate North American market

Lumosity with 60 million iOS users, and just now launches on Android

Master of Words PRO ($2.99) #1 on Amazon US-Games-Free category (not just edugames) after “daily deal”

Brain+ (beta in Denmark, Jan 2013) entered North America and UK markets (July 2014) with 3 “scientifically-proven” games, including Remember Me.

Remember Me, Brain+


Language Learning: Edugames Teach Languages on Smartphones, Tablets, and Game Consoles

Dora’s Worldwide Rescue Spanish vocabulary for age 4

Ubisoft’s language coaching apps for Nintendo

Memrise has 1 million active users for language and other courses with crowd-sourced content


Language Learning: Converging Product Types Boost Engagement (and Sales)

Sesame Workshop updated AR “Word-o-Scope” letters game with email-able word labels & game ideas to extend learning beyond the app

Top selling apps across the planet are: Edugames for young children & language learning apps. Add in AR!

Elmo’s Alphabet Challenge by Sesame Street, one of the first AR edugames


Location-based Learning: Venues, Brands, and Suppliers Create Cross-platform Promotions

Students visiting the Minnesota Historical Society use Play the Past app during field trips to museum and back in the classroom.

Tourist attractions create or sponsor location-based treasure hunts

Edinburgh International Science Festival built a free city-wide “Sci Quest” edugame

Sainted Media’s free multimedia Global Treasure Apps offer “real-world rewards” in the sponsor’s gift shop or café venue

Brands also use game apps to engage customers and/or “edu-sell”

Marriott hired evviva games to create XPLOR scavenger hunt/arcade game/puzzles app for 5 cities. Includes “in-game economy” enabling users to buy and sell goods.

Microsoft and DreamWorks teamed to create a free (no IAP) road trip app Dragon Adventure World Explorer, using Here Maps technology, Weather Channel data, and Foursquare popularity. SDK coming soon.


Augmented Reality: Making History, Science, Math, and Reading Come Alive

Qualcomm’s Vuforia Platform used by brands, developers, content owners for advertising, publishing, gaming, tourism, education…

AR Freedom Stories bring US/Canadian

Underground Railroad to life

Math-based games for kids 6-9, from PBS KIDS funded by US Dept of Education

https://www.vuforia.com/


Trends to Watch


Trend: Tools for the Creator EconomyUser-Generated Games and User-Generated Content

TinyTap is a platform for anyone to create edugames, which can be published on the TinyTap Market, AppStore, Google Play, and Web

TinyTap Space Game uses Stroop Effect

Futuba Classroom Games includes question sets. Students & teachers can use their ownimages, audio, and text to add to the question bank.

Playingmondo.com - find or build virtual playgrounds and use Mondo builder to create location-based games


Trend: Supporting “Mobile Parenting” with Communications and Data

Kindergarten Readiness (FunBrains Jr) - interactive parent skills checklist

IF… - Parents’ Menu, schedule frequency of updates

GuruCool PlaySchool (KidZone Studios) - provides view into child’s progress, suggests activities and daily tips

PBS Play & Learn - math & literacy skills edugame “specifically for parents”

Fingerprint Digital - Mom-Comm with in-app messaging

National Geo’s Animal Jam – companion website has a Dashboard for parents

Suppliers provide connection and data to parents to counter their concerns (guilt) of “cellphone-as-babysitter” and their

desires for quality educational/play experiences


Trend: Data & PrivacyThe Two-Edged Sword

Developers and platform-providers are creating new ways to mine data

What does “big data” mean in edugames for children?

Opportunity Watch Out For…

To deliver a child’s progress data to parents: to boost their engagement and product satisfaction

Collecting data without obtaining parental consent

To accumulate a treasure-trove of users’ gameplay data: to make improvements or drive new product features


To provide a more personalized learning experience


To transmit data to third parties (e.g. ad network, analytics company)

Transmitting, sharing data without obtaining parental consent


Trend: Data and PrivacyNew FTC COPPA Rules Can Be Costly

The Federal Trade Commission (FTC)’s Children’s Online Privacy Protection Act (COPPA) rules have teeth

New rules went into effect July 2013 Expanded privacy definitions include: geo-tagging, behavior

targeting, and (closing the 3rd party loophole) ad network cookies and social networking

Approved “Safe Harbor” self-regulatory programs

Fine potential = $16,000 per incident

Prosecutions:

– May 2011: Playdom, $3 million settlement

– June 2012: New Jersey Attorney General sued 24x7digital

– Feb 2013: Path, $800,000 settlement


Trend: Data & PrivacyFTC-approved “Safe Harbor” Programs

Some suppliers identify themselves as “family friendly” and respecting children’s privacy by displaying seals of approval such as the “Know What’s Inside” from MOMs with apps. http://www.momswithapps.com/about)

There are now 6 FTC-approved Safe Harbor programs that provide certification that members adhere to COPPA rules:

• Aristotle International, Inc.• Children’s Advertising Review

Unit• ESRB Privacy Certified• kidSAFE+• Privacy Vaults Online, Inc

(DBA PRIVO)• TRUSTe

http://www.momswithapps.com/about


Data and Privacy: California Publishes New Guidelines

2003: California Online Privacy Protection Act (CalOPPA) - the first law in US to require a conspicuously posted privacy policy for web & apps

2013: Attorney General of California’s guidelines reinforce the FTC’s “privacy by design” approach and the Organization for Economic Development’s (OECD) “Fair Information Practice Principles,” (FIPPs) with a couple of new twists:

1. Recommendation to encrypt transmissions of PII (personally identifiable information) includes apps downloaded or used.

2. Introduce a new term “surprise minimization,” meaning to “minimize surprises to users from unexpected privacy practices.

2014: New guidelines…


Trend: Data and PrivacyCanada Aligned with EU Rules

The Personal Information Protection and Electronic Documents Act (PIPEDA) enforces European Union’s privacy directives (collection, use, retention and disclosure of personal information)

Under the United Nations 1989 Convention on the Rights of the Child, privacy is a basic human right for everyone under the age of 18.

Office of the Privacy Commissioner of Canada (OPC) has focused on children's online privacy as a priority.

Some Canadian provinces (Alberta, B.C., Quebec, and Ontario) also legislate data protection.


Trend: Smart Toys for Skills-based Learning and Learning 21st Century Skills

Tiggly iPad apps are free; shapes are $29.99

SK Telecom smart toy teaches language arts

Uboly uses a smartphone for a “brain”

Kids get to program the Play-I “robots”

Tangible Play’s Osmo add-on for iPads https://vine.co/v/MwBYjYi1WeX

https://vine.co/v/MwBYjYi1WeX


Trend: Wearables + Edugames Coming Soon…

Oculus Rift offers opportunity for immersive learning experiences

“Ok Glass… Reform Education”Suppliers such as Duolingo and Word Lens have ported their Mobile Learning language and translation apps to Google Glasses

Top 100 Game Tech Trendshttp://www.develop-

online.net/news/the-top-100-

tech-in-games-

revealed/0194694

http://www.develop-online.net/news/the-top-100-tech-in-games-revealed/0194694


Innovative Revenue and Distribution Models

New Opportunities

New Challenges


Incubators and Accelerators are Proliferating Providing Financial Support and Connections to Experts & Capital

May 2013, Zynga.org committed $1 million for “Edtech Game Accelerator” to focus on learning games in partnership with NewSchools Venture Fund.

Motion Math and Kidadaptivewere in Zynga.org’s 2013 cohort. Tiny Tap and Kiko labs in 2014.

Kaplan EdTech Incubator, powered by TechStars, offers $20K investment, June – September co-location in New York City, market insights, mentorships, access to Kaplan’s Learning Science group…

Rock Health opened in 2013 and claims to be “The first seed accelerator for digital health startups.”


Innovative Revenue and Distribution Options

Revenue Models:

Sponsorships (nonprofits & commercial brands)

Free, lite, and premium

Subscription services

Partner with telecoms and device-makers

Crowdfunding

Ads

Real-world goods

In-app purchases - virtual goods/ micropayments for virtual items

Distribution Channels:

Channel partners (BrainPOP, Edmodo, Learning.com, Florida Virtual School…)

Specialty app stores & programs

Public libraries

Commercial digital libraries adding mobile content, e.g. OverDrive

Partner with virtual schools, home school suppliers, device makers, publishers, and telecoms

Personal Learning Devices

New app promotion services and new marketplaces


Revenue and Distribution: Brought to You by the Letter “S” for Subscriptions

March 2014 released subscription-based (in-app purchases £ 2.49; or auto-renewable £1.99)

Includes “together time” tips for parents

Allows children to record their voices in different languages

Sesame Street S’More is a bi-monthly interactive digital magazine for kids (ages 4+)


Revenue and Distribution: Playsourcing - Games for Giving Back

Gamers steer a course to collect “Element Alpha,” through genuine DNA microarray data. Collective flight path gameplay contributes to massive data crunching behind the app to analyze real genetic data.

Feed-A-Pet –For every level a player completes, the Pet Project donates money to feed homeless pets in need. (Donations funded by ads)

Play to Cure – Genes in Space


Q & A

Ambient Insight’s Free Resource Library at:

http://www.ambientinsight.com/News/PublishedContent.aspx

This presentation, the “Mobile Edugame Market

Innovations 2014,” past presentations, and our Learning

Technology Research Taxonomy can be downloaded from

http://www.ambientinsight.com/News/PublishedContent.aspx

Tyson Greer - Mobile Edugame Market Innovations 2014

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