interaction and engagement: the evolution of advertising in social games

Payment and Promotions Platform CONFIDENTIAL 1© 2012 TrialPay Europe. All rights reserved.

It’s Game Time …Interaction and Engagement: The Evolution of Advertising in Social Games

@a4uexpo#trialpay

Payment and Promotions Platform CONFIDENTIAL 2

Why are you here?

Because after this is a cocktail reception and I want to rest my feet before!

Because my spouse is playing social games all the time online and on mobile and I want to figure out why!

Because I am interested in finding and exploiting new performance marketing channels!

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How people use the internet


Which advertising works?

5% I am considering buying something

40% I am looking for information

25% I am interacting socially

??% I am earning my online living


5%: “I am considering buying something”


5%: “I am considering buying something”

Paid Search

Price Comparison

SEO

Special Interest Blogs and Communities

Vouchers

Cashback Loyalty

Purchase intent is already present High Conversion rates Significant channel overlaps („customer journey“)

Retargeting

Post-Transaction Marketing


The 5% in Action

A customer already searching for Neckermann is less valuable than someone who isn’t. On Google, Neckermann might

pay for customers that were already going to buy from them.


40%: “I am looking for information”

Display Advertising

Contextual Advertising

Continued importance at the expense of traditional advertising (Print and TV)

Significant purchase triggers, but not last touchpoints


40%: “I am looking for information”

Display Advertising

Contextual Advertising

Continued importance for branding and image Growth at the expense of traditional advertising

(Print and TV) Significant purchase triggers, but not last touchpoints

Realtime Bidding


The 40% in Action

A customer reading about Euro Cup is not looking to purchase goods or services.Lots of noise to get message across and get desired action (click to sale)

while user consumes information.


25%: “I am interacting socially”


25%: “I am interacting socially”

Social Media Advertising

Viral Marketing

No purchase intent Very low response rates to advertising (pub example) Interest can be raised for trending commercial topics Opinions are built and shared

Fan Page Advertising


“I am earning my online living”


Accessing the 25%!

A customer who is presented a deal from Neckermann before she

decided to purchase might decide to buy from Neckermann and do so

instead of at Zalando next time she shops for clothes


“I am earning my online living”

Earn-based economies

Reward-based payments

Offer users a deal for their engagement Reach new users and create impulses for buying and interacting Advertise where users spend more and more time Combine large audiences and precise targeting

Social Game advertising


Why should advertisers care?


Online casual gaming is now a mainstream activity

Larger audiences than prime-time TVRepresentative mix of age and gender

Male Female

14-17 18-24 25-34 35-44 45-54 55+

Balance of male and female users

77% of users = eCommerce target group

Café World

Bejeweled Blitz

Gardens of Time

CSI

Big Bang Theory

NCIS: Los Angeles

Farmville

Two and a Half Men

Cityville

0 5 10 15 20 25 30 35US audience in million

Casual gaming has become a major leisure time activity.

TV Shows

Social Games

Data based on Facebook statistics and Nielsen TV ratings


What about Europe and Facebook, specifically!

Approximately 25-50% user penetration and growing


Ok but I need more stats!

References: eMarketer and Casual Gaming Association


And what about tablet/mobile trends?

Nearly half of EU Smartphone Users are Gamers

53%/47% Female to Male split

References: comScore, MobiLens,Touchstone Research

Game ad revenue to reach $894M by 2015


OK, tell me more about these earned/reward based economies!

Spend time

Spend money

Engage with brands

I want stuff for my game!

50,000+virtual items sold every

second using Facebook Credits


So how does this look?

Game example: The Sims Social from Playfish, a division of Electronic Arts

Publisher implements branded icons and banners within games to ensure high level of

user interaction while promoting in a pay for performance manner


How about a lead/registration example?

In this example: Car Town from Cie Games


I want to go straight to sales, ok!

In this example: Restaurant City from Playfish, a division of Electronic Arts


I need to build brand awareness!

In this example: Social Girl from Crowdstar

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Campaign Goal – Introduce a Product to a New Market

BRANDING +++ REACH +++ CONVERSION +++

Lead users to the desired conversion through interactions with your brand.

1. Reward a smaller amount of credit for a series of videos and questions2. Reward a larger amount of credits for subscription to the service


Get Creative!

Clinique promotes new product lines by asking users to share success stories.

Unilever helps users find their “heart age”


Brands getting feedback from the public

Companies can perform market research, accessing their target demographic and achieving a statistically significant sample.


Brands as part of the experience

Brand Interaction becomes

part of the game

Brand Interaction provides

game play benefit


Brands as part of the experience


Getting attention in store!

100K in Farmcash redeemed in 6 weeks

Seen in Target stores nationwide

100K in Farmcash redeemed in 6 weeks

13MM users downloaded songs


How does this look on Mobile?

Get Kicks for FREEGet Kicks for FREE

Entry Point OfferWall Offer Detail Completing offer

3 Kicks

160 Kicks

90 Kicks

50 Kicks

250 Kicks

Get Kicks for FREE

Variable


Rewards are now not just about games!


Conclusion

Don’t stop pulling, BUT evaluate pushing to gain new customers in an efficient performance manner.

Get creative with campaign types to engage audience.

Work closely with your reward economy publisher partner to measure customer quality.

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Thanks

Robert SchneiderHead of TrialPay Europe

Sophienstraße 33A10178 Berlin

Germany

office: +49 30 28879641mobile: +49 174 3338853skype: robertschneidertp

e-mail: [email protected]: www.trialpay.com

Peter WexlerSenior Director of Strategic Partnerships

303 Bryan Street – Floor 2Mountain View, CA 94041

USA

office: 1.650.318.2602mobile: 1.617.290.8668

skype: peter.wexlere-mail: [email protected]: www.trialpay.com

interaction and engagement: the evolution of advertising in social games

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