Yandex online gaming_category_overview

Online Gaming Category Overview

Yandex International Business Development [email protected] +1 857.288.8762 [email protected] +44 020 3291 3306

Segment Volumes

ü  Query dynamics ü  User interest growth in regions ü  Category growth forecast

3

1,332,749,976 1,564,292,889

+18%

0

20

40

60

80

100

120

140

160

180

2012 Apr May Jun Jul Aug Sep Oct Nov Dec 2013 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 Feb

Mill

ions

of S

earc

h Q

uerie

s Search queries in Gaming category increased by 18%

Yandex data, March 2014, Geo - Russia

Comparison Period: Mar’12 - Feb’13 and Mar’13 - Feb’14.

Search queries in Gaming Category

4

Fastest growth came from areas outside Moscow & St Petersburg


Over the last 12 months the number of queries on online gaming increased: •  In Moscow and St-‐Petersburg by 15% •  In Russian regions (except Moscow and St-‐Petersburg) by 23%; •  In CIS-‐countries (except Russia) by 37%.

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%


Russia (except Moscow and St-Petersburg)

CIS

Moscow and Saint-Petersburg

Gro

wth

in Q

uerie

s

Search queries in Gaming Category

5

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Spring 2012 Summer 2012 Autumn 2012 Winter 2013 Spring 2013 Summer 2013 Autumn 2013 Winter 2014

Russia (except Moscow and St-Petersburg)

Moscow and Saint-Petersburg

Overall share of queries is decreasing in big cities


72% 74% 73% 74% 75% 75% 73% 75%

28% 26% 27% 26% 25% 25% 25% 27%

Share of Search Queries: Cities vs Regions

Sha

re o

f tot

al Q

uerie

s

6

Winter is peak season for gaming queries


0

50

100

150

200

250

300

350

400

Spring 2012 Summer 2012 Autumn 2012 Winter 2013 Spring 2013 Summer 2013 Autumn 2013 Winter 2014

Mill

ions

of S

earc

h Q

uerie

s

Russia

CIS

Seasonality of Gaming Search Queries: Russia vs CIS

7

Solid query growth forecast through 2014 and 2015


0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

2012

A

pr

May

Ju

n Ju

l A

ug

Sep

O

ct

Nov

D

ec

2013

Fe

b M

ar

Apr

M

ay

Jun

Jul

Aug

S

ep

Oct

N

ov

Dec

20

14

Feb

Mar

A

pr

May

Ju

n Ju

l A

ug

Sep

O

ct

Nov

D

ec

2015

Fe

b M

ar

Apr

M

ay

Jun

Jul

Aug

Que

ries

Forecast for Gaming Query Growth

ü Most popular games genres ü User interest growth in genres ü Interest towards MMO games

Online Games by Genre

9

Action, Shooter and Adventure games dominate


0

5

10

15

20

25

30

35


Mill

ions

of Q

uerie

s

Action Shooter Adventure RPG Simulation Strategy Arcade Fighting Logical Slasher Online board games

Monthly Search Queries by Gaming Genre

10

Action, Shooter and Adventure make up almost 75% of interest


The main interests of users are divided among three genres. The interest in genre is heavily driven by specific branded titles. For example, these titles exemplify the top categories:

•  AcEon – World of Tanks •  GTA Shooter – Counter

Strike, Warface, •  Adventure – MinecraP

Generic queries for the most popular genres make up no more than 3-7% of the total volume.

25%

22.1%

22.4%

10.4%

10.3%

6.5% 3%

1.5%

0.7% 0.6%

0.2% Action

Shooter

Adventure

RPG

Simulation

Strategy

Arcade

Fighting

Logical

Slasher

Online board games

11

Strong growth is seen in many of the genres


Dynamics by percent. Adventure increased by 69%, mainly from the growth of interest in the game Minecraft. Interest towards RPG fell by 6% due to the decreased interest by generic search toward mmorpg, but also a reduced interest in the games WOW и Lineage. However, there is a tendency of growing interest in mmorpg – Archeage.

Mar 2012 – Feb 2013

Mar 2013 – Feb 2014

+69% +7% +25%

-6% +7%

+44%

-3% +10% +18% -21% +6%

0

50

100

150

200

250

300

350

Adventure Shooter Action RPG Simulation Strategy Arcade Fighting Logical Slasher Online board games

Mill

ions

of Q

uerie

s

Annual Query Growth by Gaming Genre

12

Absolute annual query growth by Gaming Genre


-8,324,391

-2,103,618

-1,466,399

165,303

1,405,008

1,599,266

7,798,090

16,926,087

24,648,065

54,067,686

113,638,680

-20,000,000 - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000

RPG

Slasher

Arcade

Online board games

Logical

Fighting

Simulation

Shooter

Strategy

Action

Adventure

13

MMO Action is the largest and fastest growing area


The most popular type of Massively Multiplayer Online Games is MMO Action, representing games like World of Tanks, World of Warplanes, War Thunder.

-

2

4

6

8

10

12

14

16

18


Mill

ions

of Q

uerie

s

MMO ACTION MMOFPS MMORPG MMORTS + MOBA MMORG

Search Queries per MMO Theme

ü TOP online games ü Browser vs Client games ü Online games popularity by platforms ü Online games popularity by contribution

model

Online Games

15

0

2

4

6

8

10

12

14

16


Mill

ions

of S

earc

h Q

uerie

s

World of Tanks

Counter Strike

Warface

Dota

World of Warcraft

ArcheAge

Call of Duty

Fallout Online

Battlefield

Lineage

World of Tanks is by far the most popular MMO game


Search Queries by MMO Game Title

16

World of Tanks is also most popular Action game


0

2

4

6

8

10

12

14

16


Mill

ions

of S

earc

h Q

uerie

s

World of Tanks

GTA

Thief

War Thunder

Batman

Hitman

World of Warplanes

Castlevania

Prince of Persia

Dishonored

Search Queries by Action Game Title

17

Shooter Titles: Counter Strike is most popular, but Warface is growing quickly


0

1

2

3

4

5

6

7

8

9


Mill

ions

of S

earc

h Q

uerie

s

Counter Strike

Warface

Call of Duty

Battlefield

Far Cry

Crysis

Saints Row

Half-Life

Resident Evil

Left 4 Dead

Search Queries by Shooter Game Title

18

Minecraft dominates the Adventure category


0

5

10

15

20

25


Mill

ions

of S

earc

h Q

uerie

s

Minecraft

Assassin's Creed

The Last of Us

Darksiders

Watch Dogs

Overlord

The wolf among us

The Walking Dead

Mirror's Edge

Machinarium

Search Queries by Adventure Game Title

19

PC games dominate the online gaming market



PC games Mobile games Console games

Search Queries by Platform for Online Games

20

Free-2-Play and Buy-2-Play revenue models dominate


Free-2-play (World of Tanks, Counter Strike, Dota) Buy-2-play (Minecraft, GTA Online) Pay-2-play (World of Warcraft, Diablo, EVE) Group «Freemium» mainly consists of games for mobile platforms

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000


Free-2-play Buy-2-play Pay-2-play Freemium Q

uerie

s

Search Queries by Revenue Model for Online Games

Search Patterns

ü  Various writings of games’ titles ü  Queries for gaming-related terms

22

Search Query Behavior of Online Gamers

55% of users’ queries for online games are in Russian. The other 45% use queries in English. Only 55% of queries include the original title of online game. 45% of queries include slang, abbreviations and short titles. Yandex data, March 2014, Geo - Russia

23.7%

31.3% 13.5%

13.2%

16.4%

1.8%

Full original title (e.g. "World of Tanks")

Full original title, written in Russian (e.g. "Контр Страйк")

Abbreviations in Russian (e.g. "ГТА")

Abbreviations in English (e.g. "GTA")

Slang (e.g. "Контра")

Game title with misprints

23

Queries made by users searching for gaming-related terms

53% of queries represent various writings of game titles. 47% are inlaid queries, including exact user intent.


39.9%

21.9%

13.7%

12.2%

9.4%

2.0% 0.6%

0.3% Installation, downloads, clients

Learning, lets-play, giudes, videos, cheats

Updates, patches, mods

Registration, servers

Gaming universe: other (maps, skins, weapon etc.)

Additional interest (screenshots, wallpapers, music etc.)

Gaming universe: heroes (abilities, experience, level up)

Gaming universe: social (races, clans, guilds)

Competitive landscape

✓  Category Leaders’ Click Share ✓  Click Share – Search vs. Content Sites ✓  Click Share by Regions ✓  Average CPC (dynamics) ✓  Average CPC (by position)

25

Paid Click share performance for Gaming Advertisers

In Q1 2014 – 49% of total click volume in category was drawn by TOP-3 advertisers.


26%

48%

31%

Search Content sites Direct - all sites

Clicks (Q1 2014)

15%

7%

10%

7%

12%

7% Top-3 advertisers Other advertisers

26

Paid Click Share – Search vs. Content Sites

Search clicks Content sites clicks

Click share

In Q1’2014 clicks from content sites made 22% of total click volume.

22%


27

Paid Click Share – Search vs. Content Sites

Search

Online games


Content Sites

Online games

28

Paid clicks by Keyword strategy

Brand awareness plays an important role in the success of CPC campaign in category. Brand keywords clicks share reaches 70% of all clicks for TOP advertisers.

71%

16%

11%

1%

Branded keywords

Generic keywords

Retargeting

Keywords on competitors


29

Paid click share by location


14%

5%

81%

Click share (March 2014)

Moscow St-Petersburg Regions

0%

20%

40%

60%

80%

100%

Oct Nov Dec 2014 Feb Mar

Online games

Moscow St-Petersburg Regions

30

Average СРС for Online Game Category


CPC

Online games

31

Average СРС Trends


Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2014 2013 2012

32

Average CPC (by position)


Oct Nov Dec 2014 Feb Mar

Online games (premium) Online games (guaranteed/dynamic)

33

Thank you!

Yandex International Business Development [email protected] +1 857.288.8762 [email protected] +44 020 3291 3306

Documents

Yandex online gaming_category_overview