Social Gaming Overview: Too Big To Ignore

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This presentation was delivered on April 12, 2011 for ad:Tech San Francisco in a standing room only session. If you tweet this please include #socialgaming hashtag and feel free to cc any of the presenters.

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  • SOCIAL GAMING OVERVIEW @MARKSILVA @KIMJAMES @TIMECHANGE @KIMKYAW TOO BIG TO IGNORE #SOCIALGAMING 4/12/11 ADTECH SFCopyright 2011 ANTHEM WORLDWIDE/SCHAWK INC. All Rights Reserved
  • OUTLINE Contents Overview @MARKSILVA Dynamics @KIMJAMES NEXON+Asia @TIMECHANGE International Trends @KIMKYAW Toyota Pwns Social Gaming Appendix #SOCIALGAMINGCopyright 2011 ANTHEM WORLDWIDE/SCHAWK INC. All Rights Reserved 4680
  • OVERVIEW TOO BIG TO IGNORE 50000000 Top Social Game apps earn the reach of TVs top- rated shows, the 37500000 Dancing With he Stars engagement of an addictive game and the ol 25000000 American Id popular culture impact of CityVille FarmVille Rock and Hollywood TX HodeEm 12500000 NCIS stature. NCAA Frontier Ville Sources: 1) Nielsen TV Ratings: 3/28/11 2) AllFacebook.com 0Copyright 2011 ANTHEM WORLDWIDE/SCHAWK INC. All Rights Reserved TV Social Gaming
  • OVERVIEW ITS THAT BIG Facebook-Like Growth and Scale Over half of Facebooks 500 million users play Social Games Every other check-in for Facebook is for Social Gaming Source: AllFacebook.com August 2010Copyright 2011 ANTHEM WORLDWIDE/SCHAWK INC. All Rights Reserved
  • OVERVIEW BIGGER THAN GAMING Social Gaming is tracking Facebooks ongoing growth eclipsing the reach and engagement of most media Social Games eclipse classic, console-based games in audience by over 10-timesCopyright 2011 ANTHEM WORLDWIDE/SCHAWK INC. All Rights Reserved
  • OVERVIEW ITS THAT BIG Bigger Than... The Population of England on any day and the US any month Email--Social Gaming passed email in 2010 to become 2nd leading activity online with >10% time use Any other Social Network Source: AllFacebook.com August 2010Copyright 2011 ANTHEM WORLDWIDE/SCHAWK INC. All Rights Reserved
  • OVERVIEW BIGGER THAN SHREK? I would like to be [Zynga CEO] Mark Pincus. He has nailed the next killer app, the next compelling thing thats going to happen in media. Jeffrey Katzenberg CEO, DreamworksCopyright 2011 ANTHEM WORLDWIDE/SCHAWK INC. All Rights Reserved
  • OVERVIEW BIGGEST & BEST EVER Zynga is the most-profitable, fastest-growing, and has the happiest customers of any company that Kleiner Perkins has invested in. John Doerr VC, Kleiner Perkins Caufield & Byers Investors in Amazon, Google, IntuitCopyright 2011 ANTHEM WORLDWIDE/SCHAWK INC. All Rights Reserved
  • OVERVIEW PLAYERS AND WORLDS A quick tour of the leading players in Social GamingCopyright 2011 ANTHEM WORLDWIDE/SCHAWK INC. All Rights Reserved
  • OVERVIEW PLAYERS AND WORLDS Snapshot of leading players in Social Gaming 268,386,159 36,367,080 18, 763, 314 MAU MAU MAU Monthly Active Users Monthly Active Users Monthly Active Users 58,370,803 5,753,580 2,147,100 DAU DAU DAU Daily Active Users Daily Active Users Daily Active Users Source: http://www.appdata.com/leaderboard/developersCopyright 2011 ANTHEM WORLDWIDE/SCHAWK INC. All Rights Reserved
  • OVERVIEW Zynga leads Social Games with the #1 blockbuster hit, CityVille, and a most of the top-20 Social Games As a network Zynga engages 250+ million players/month We see Zynga making Social Games a network unto itselfCopyright 2011 ANTHEM WORLDWIDE/SCHAWK INC. All Rights Reserved
  • OVERVIEW EA/Playfish is a leading developer engaging 35+ million players a month Developing Social Gaming versions of popular EA titles We see Playfish bringing more of its Gaming DNA and cross-device integration into its aproachCopyright 2011 ANTHEM WORLDWIDE/SCHAWK INC. All Rights Reserved
  • OVERVIEW Playdom is a leading player in Social Gaming engaging 18+ million players each month Cable TV-size audiences for Social Gaming With Disney acquision , we see a publishing/media model emerging for Playdom and expect Disney Network IP for the platformCopyright 2011 ANTHEM WORLDWIDE/SCHAWK INC. All Rights Reserved
  • OVERVIEW As you can imagine in a space that has grown meteorically in the past 24-months, many other players exist and more entering each month We can expect to see indie developers produce hits and have a key role in the spaceCopyright 2011 ANTHEM WORLDWIDE/SCHAWK INC. All Rights Reserved
  • DYNAMICS MORE THAN FUN & GAMES Social Networks create a rich-get-richer dynamic where early and fast movers dominate as their footprint grows Zynga grew aggressively through user and developer acquisition In addition to great games, Zynga learned how to optimize its transactions and network effect Applying this dynamic, Zynga built FrontierVille to the #2 World in under 30 days then CityVille to 100m users in under 8 weeks Zyngas rapid ascension and distribution creates significant barriers to replicationCopyright 2011 ANTHEM WORLDWIDE/SCHAWK INC. All Rights Reserved
  • DYNAMICS NOT FOR AMATEURS Pace of innovation and optimization is continual-- too fast to attempt replicating or DIY Strong agency recommendation: Collaborate over DIYCopyright 2011 ANTHEM WORLDWIDE/SCHAWK INC. All Rights Reserved
  • DYNAMICS ENTERING THESE WORLDS Advertising is less than 10% of revenues and Social Games monetize only 1-5% of users Beyond endemic placements (ingredients in FarmVille or CPG brands in Cafe World, for instance) look to aligning values and audience Seek fit and utility, not just reach and demographicsCopyright 2011 ANTHEM WORLDWIDE/SCHAWK INC. All Rights Reserved
  • DYNAMICS A DIFFERENT GAMER FOR EVERY GAMECopyright 2011 ANTHEM WORLDWIDE/SCHAWK INC. All Rights Reserved
  • DYNAMICS SOCIAL GAMERS KEY VALUES Games are a way to amplify fun had with friends Social Gaming is more about getting together with friends than the game itselfCopyright 2011 ANTHEM WORLDWIDE/SCHAWK INC. All Rights Reserved
  • DYNAMICS LEVELS OF COMMITMENT Br a n Br a n N ew Mult Build i 1 2 3 4 5 de de -C Ga a Game h d Ga m d V ir t u me M ns ann ion tio el es ec s Interac t al Integra G o od hanicCopyright 2011 ANTHEM WORLDWIDE/SCHAWK INC. All Rights Reserved
  • DYNAMICS Br a n LEVELS OF COMMITMENT 1 de d V ir t u s al G o od 1. Branded Virtual Goods The lowest level is a branded virtual good or service. Just put your name on it. This can be thought of like a media buy. Doesnt really affect game play in a branded way, but not to be discounted. The right good for the right brand can be very effective. Time frame: weeks to monthsCopyright 2011 ANTHEM WORLDWIDE/SCHAWK INC. All Rights Reserved
  • DYNAMICS DPSU+RESTAURANT CITYCopyright 2011 ANTHEM WORLDWIDE/SCHAWK INC. All Rights Reserved
  • DYNAMICS Br a n LEVELS OF COMMITMENT 2...