The changing world of casual gaming M.Eng, ARAeS, CIPP ©2010 – DataGenetics All logos and trademarks in this presentation are property of their respective owners. Biography – Nick Berry 1988 1994 2008 ©2010 – DataGenetics 2010 PC Casual Game Universe Download Web Social ©2010 – DataGenetics PC Casual Game Universe Download Web Advertising Sales Micro-transactions Social ©2010 – DataGenetics ©2010 – DataGenetics Number of players 24 hours ©2010 – DataGenetics The Results Advertising Potential ©2010 – DataGenetics ©2010 – DataGenetics Price evolution of deluxe downloads $19.95 $19.99 $15.99 $12.99 $9.99 $6.95 ©2010 – DataGenetics $6.99 facebook ©2010 – DataGenetics Just how big is it? ©2010 – DataGenetics Year end registered users (MM) 800 ? 700 600 500 July 400 350 300 200 100 100 0 50 0 1 5.5 12 2003 2004 2005 2006 2007 ©2010 – DataGenetics 2008 2009 2010 Just how big is FaceBook? 6.8 billion people on the planet 2.0 billion people connected to the internet 500 million registered facebook accounts 25% of the connected World already has a Facebook account! ©2010 – DataGenetics If facebook were a country … #1 #2 #3 China India facebook … it would the 3rd largest in the World. ©2010 – DataGenetics What is the most popular Windows application of all time? ©2010 – DataGenetics Dec-98 Mar-99 Jun-99 Sep-99 Dec-99 Mar-00 Jun-00 Sep-00 Dec-00 Mar-01 Jun-01 Sep-01 Dec-01 Mar-02 Jun-02 Sep-02 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Peak Population Effect of facebook on traditional Casual Gaming web sites 450000 400000 350000 300000 250000 200000 150000 100000 50000 0 ©2010 – DataGenetics Data courtesy of Worldwide Registrations – Social Networks Xanga MyHeritage Last.fm Viadeo WeeWorld Flickr Odnoklassniki Classmates.com MyLife Flixster Netlog Badoo Tagged LinkedIn Twitter hi5 Mail.ru Friendster Vkontakte Orkut Bebo Windows Live Spaces MySpace Habbo Qzone Facebook 0 100,000,000 200,000,000 300,000,000 ©2010 – DataGenetics 400,000,000 500,000,000 600,000,000 facebook gaming is big business “Disney Buys Playdom in $763 Million Deal, Becoming Hollywood Leader in Social Games” “Not Playing Around. EA Buys Playfish For $300 Million, Plus a $100 Million Earnout.” “Zynga Issues Shares at a $4 Billion Valuation” ©2010 – DataGenetics Top facebook Game Peaked at 84 MM Monthly Active Users (MAU). 32 MM distinct people used the application at least once a day (DAU). Close to 40% of all their users visit the application every single day! ©2010 – DataGenetics Farmville - MAU ©2010 – DataGenetics Café World - MAU ©2010 – DataGenetics Café World - DAU ©2010 – DataGenetics Café World - Engagement ©2010 – DataGenetics Around the World ©2010 – DataGenetics Where in the World? ©2010 – DataGenetics Top 25 countries on facebook Top 20 countries account for 79% of all FaceBook registered accounts. ©2010 – DataGenetics After Thailand, no other country accounts for more than 1%. Gender breakdown of FaceBook users Worldwide Male dominant Female dominant United States 44.31% male United Kingdom 48.26% male ©2010 – DataGenetics India 69.88 % male ©2010 – DataGenetics facebook Demographics 13 Male AGE 65+ ©2010 – DataGenetics Female facebook Demographics - USA Many users of college age. In USA large number of members over 65 ©2010 – DataGenetics Different Countries ©2010 – DataGenetics Similar Countries … Similar Profiles ©2010 – DataGenetics Similar Countries … Similar Profiles ©2010 – DataGenetics Different Countries … Different Profiles ©2010 – DataGenetics ©2010 – DataGenetics Bejeweled Blitz ©2010 – DataGenetics ©2010 – DataGenetics ©2010 – DataGenetics Jay Leno vs. Conan ©2010 – DataGenetics Quiz Time – Guess the movie Answer: Twilight™ ©2010 – DataGenetics Comparing Demographic “Genes” 38.41% correlation ©2010 – DataGenetics Comparing Demographic “Genes” 80.89% correlation ©2010 – DataGenetics Cross correlation between brands ©2010 – DataGenetics Bejeweled Blitz Affinity ©2010 – DataGenetics ©2010 – DataGenetics Propensity to pay? ©2010 – DataGenetics Sorority Life, % users who spend by age Source: “Rules to Monetize By …”, Playdom 2010 Are you targeting your game to the paying audience? O $ Even if this game had 5x the traffic, it would not generate the same revenue Would you like to have the largest game on facebook, or the most profitable? ©2010 – DataGenetics Micro-transaction types Bling - Avatars Fashion Accessories Things that do not adjust the balance of the game Accelerators Kill 10 more Orcs Pay to get 10 gold coins to get +10% attack bonus for 12 hours = or = Pay 10 gold coins Time Money ©2010 – DataGenetics Power-ups +10% The economic beauty of micro-transactions Price The “Tall” Tail … $19.95 $6.95 The Long Tail … Volume ©2010 – DataGenetics Big brands are starting to get it ©2010 – DataGenetics MIT research • When playing games, people are at 95-99% “focused attention” (As measured by pupil dilation, skin resistance, pulse, movement, breathing, brain activity …) • This blows away all other media • With just 15 seconds exposure to a brand, there is >80% unaided recall. Sponsors can receive “Halo” effect by having their brands associated with success screens and level completion events. ©2010 – DataGenetics Pitching to potential Advertisers ©2010 – DataGenetics Honeymoon period for brand owners with fans! • 43% of fans visit facebook several times a day. • 50% of fans come to facebook for entertainment. • 92% say that being a fan has a positive impact in recommending to friends. • 52% recommend others to follow the brand. • 84% of fans consume (regularly/ocassionally) the brand. • There is no disconnect between brands followed on facebook and regular consumers. • An average of 9 brands are followed by users. ©2010 – DataGenetics Source: DDB, October 2010 ©2010 – DataGenetics You’re a Service not a Product ©2010 – DataGenetics Measure Everything! Analytics is now just as important as game design! Play or Join ©2010 – DataGenetics We’re now on the second generation of Social Games Generation #1 – Build it, and throw it live immediately. Fix and modify it live. Those days are over! Generation #2 – Get it mechanics reasonably polished before general release. “You don’t get a second chance to make a first impression” Today’s early adopters of new games: - Virally introduce more people to your game - Typically spend more over lifetime ©2010 – DataGenetics Questions? Nick@DataGenetics.com ©2010 – DataGenetics