©2010 – datagenetics all logos and trademarks in this presentation are property of their...

©2010 – DataGenetics

Nick Berry

All logos and trademarks in this presentation are property of their respective owners.

M.Eng, ARAeS, CIPP

The changing world of casual gaming

©2010 – DataGenetics

Biography – Nick Berry

1988 1994 2008 2010

©2010 – DataGenetics

PC Casual Game Universe

Web Download

Social

©2010 – DataGenetics

PC Casual Game Universe

Web Download

Social

AdvertisingSales

Micro-transactions

©2010 – DataGenetics

Web Portals

©2010 – DataGenetics

Number of players

24 hours

©2010 – DataGenetics

The Results

Advertising Potential

©2010 – DataGenetics

Download Games

©2010 – DataGenetics

Price evolution of deluxe downloads

$19.95

$6.95 $6.99

$9.99

$12.99

$15.99

$19.99

©2010 – DataGenetics

Social Networksfacebook

©2010 – DataGenetics

Just how big is it?

©2010 – DataGenetics

2003 2004 2005 2006 2007 2008 2009 20100

100

200

300

400

500

600

700

800

0 1 5.5 12

50

100

350

Year end registered users (MM)

?

July

©2010 – DataGenetics

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 China#2 India#3 facebook

… it would the 3rd largest in the World.

©2010 – DataGenetics

What is the most popular Windows application of all time?

©2010 – DataGenetics

Effect of facebook on traditional Casual Gaming web sites

Dec-9

8

Apr-9

9

Aug-9

9

Dec-9

9

Apr-0

0

Aug-0

0

Dec-0

0

Apr-0

1

Aug-0

1

Dec-0

1

Apr-0

2

Aug-0

2

Dec-0

2

Apr-0

3

Aug-0

3

Dec-0

3

Apr-0

4

Aug-0

4

Dec-0

4

Apr-0

5

Aug-0

5

Dec-0

5

Apr-0

6

Aug-0

6

Dec-0

6

Apr-0

7

Aug-0

7

Dec-0

7

Apr-0

8

Aug-0

8

Dec-0

8

Apr-0

9

Aug-0

9

Dec-0

9

Apr-1

00

50000

100000

150000

200000

250000

300000

350000

400000

450000

Peak Population

Data courtesy of

©2010 – DataGenetics

Facebook

Habbo

Windows Live Spaces

Orkut

Friendster

hi5

LinkedIn

Badoo

Flixster

Classmates.com

Flickr

Viadeo

MyHeritage

0 100,000,000 200,000,000 300,000,000 400,000,000 500,000,000 600,000,000

Worldwide Registrations – Social Networks

©2010 – DataGenetics

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

facebookAround 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. After Thailand, no other country accounts for more than 1%.

©2010 – DataGenetics

Gender breakdown of FaceBook users Worldwide

Female dominant Male dominant

United States 44.31% male United Kingdom 48.26% male India 69.88 % male

©2010 – DataGenetics

Demographics

©2010 – DataGenetics

facebook Demographics

AGE

13

65+

FemaleMale

©2010 – DataGenetics

facebook Demographics - USA

Many users of college age.

In USA large number of members over 65

©2010 – DataGenetics

facebookDifferent Countries

©2010 – DataGenetics

Similar Countries … Similar Profiles

©2010 – DataGenetics

Similar Countries … Similar Profiles

©2010 – DataGenetics

Different Countries … Different Profiles

©2010 – DataGenetics

Interests

©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

Micro-transactions

©2010 – DataGenetics

Propensity to pay?0.8% users spend

2.1% users spend

3.0% users spend2.6% users spend

2.4% users spend

Sorority Life, % users who spend by ageSource: “Rules to Monetize By …”, Playdom 2010

©2010 – DataGenetics

Are you targeting your game to the paying audience?

$OEven 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

+10%

- Avatars- Fashion- Accessories

Things that do not adjust the balance of the game

Kill 10 more Orcs

= or =

Pay 10 gold coins

Time

Money

Bling Accelerators Power-ups

Pay to get 10 gold coins to get +10% attack bonus for

12 hours

©2010 – DataGenetics

The economic beauty of micro-transactions

Volume

Price

$19.95

$6.95 The Long Tail …

The “Tall” Tail …

©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.

Source: DDB, October 2010

©2010 – DataGenetics

Closing Advice

©2010 – DataGenetics

You’re a Service not a Product

©2010 – DataGenetics

Measure Everything!

Analytics is now just as important as game design!

Play

Join

or

©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

The EndQuestions?

1010101011100110011011110110010010011001111100101001001001001001001001001001100111011011100110111101001001110011011011011011000011111001110111001100110011001110011001001011101110110110100101

Nick@DataGenetics.com