Swain innovations in business and funding

Innovations in Business and Funding:

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Advantages of Operating for Profit*

Chris Swain, Talkie, Inc. and USCchris.swain@talkie.tv

Innovations in Business and Funding:

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Advantages of Operating for Profit*

•Non-profit orgs can do it. Profit attracts funds (from investors and foundations), talent, and ensures ongoing operations

Goal:

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Achieve Measurable Impact on Social Cause

Note: Specifically seeking more than awareness of cause.

Strategy:

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1) Achieve Mass Reach2) Impact Metric

• Actions of player translates to measurable impact• AIPDAU – avg impact / daily active user

profit > measurable impact

Achieving Mass Reach:

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1) Entertaining2) Distributed Online3) Leverages Social Graph4) Free to Play5) Real Marketing

profit > measurable impact > strategy 1: mass reach

Achieving Mass Reach:

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1) Entertaining2) Distributed Online3) Leverages Social Graph4) Free to Play5) Real Marketing

profit > measurable impact > strategy 1: mass reach

Free to Play means:1) Everybody plays free2) Optional virtual goods cost real

money• ~92% of players do not pay• ~6% pay a little• ~2% pay a lot

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Social Games Get Primetime TV-Sized Audiences

Real Marketing:

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1) Viral Features2) Public Relations3) Cross Promotion4) Media Buy in $

profit > measurable impact > mass reach > real marketing

Real Marketing:

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1) Viral Features2) Public Relations3) Cross Promotion4) Media Buy in $

profit > measurable impact > mass reach > real marketing

Do all of these.Keep expectations low.

Real Marketing:

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1) Viral Features2) Public Relations3) Cross Promotion4) Media Buy in $

profit > measurable impact > mass reach > real marketing

most reliable and effective

Achieving Profit:

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profit > impact > mass reach > marketing > media buy

LTV > ECPALTV = Lifetime Value of PlayerECPA = Effective Cost of Acquisition of PlayerLTV > ECPA means $1 to marketing returns >$1 to you

Achieving Profit:

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profit > impact > mass reach > marketing > media buy

LTV > ECPALTV > ECPA means private investors will invest in the gameCase Study: $2b free to play game industry

Impact Metric:

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AIPDAU = Avg Impact / Daily Active User

profit > measurable impact > strategy 2: impact metric

Note: Actions of player impact the real world.Easier said than done.

Case Study

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facebook.com/ecotopia

World goes from

unsustainable to vibrant

and green.

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Sustainable Platform for Affecting Change

facebook.com/ecotopia

Unlock a new story/mission

board every month.• Each board features a new

“villain” to overcome

• Real World Acts = game rewards

• Ecotopia TV – video network +

UGC contests

Grumpy Mrs. Griswald

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Sustainable Platform for Affecting Change

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seeking additional green partners

If 25,000 virtual trees are planted in game, Talkie and CI will plant 25,000 trees in the Brazilian rain forest.

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“25,000 Trees in 25 Days”

Launching this minuteat G4C!

Sustainable Platform for Affecting Change

facebook.com/ecotopia

Thank You

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Chris Swainchris.swain@talkie.tv