SOCIAL GAMES AS AN INSTRUMENT OF MARKETING ON FACEBOOK. GENERAL PICTURE AND ANALYSIS. Course of study, joint faculty: Comunicazione, Innovazione, Multimedialità Mentor: Dear Professor Costa Co-Mentor: Dear Professor Muzzio Dissertation by Katharina Damm ACADEMIC YEAR 2011/2012 Comunicazione, Innovazione, Multimedialità Executive Summary Target - Social Games: • people that are different from the ones who play console-games • people that have not been gamers Social Games on Facebook: 2 decisive advantages • Social Graph • Viral Spread Social Games are effective for Brand Recall Relation BRAND-GAME-FIT => to have success it has to be the right game, the right audience and the right platform Dissertation by Katharina Damm Comunicazione, Innovazione, Multimedialità General Information Definition Social Game Social Game is the term used to indicate the games on Facebook and other social networks. Dissertation by Katharina Damm Comunicazione, Innovazione, Multimedialità General Information Revenue: 8,6 billion dollars (2014) – whole Social Game market 3 billion dollars (2014) – Social Games on Facebook Audience: How many gamers: Facebook: 61% of the users Italia: 65% of the gamers Gender: 70% of the gamers are women Average age: 39 years Dissertation by Katharina Damm Comunicazione, Innovazione, Multimedialità General Information applications developed by third-party: Game developer MAU (monthly active user) 1 ° 284 001 554 2 ° Tot N° of app on FB 3 best games (in milioni di MAU) 89 The Ville (58,8) Texas HoldEM Poker (36,2) CityVille (20,6) 55 114 330 51 The Sim Social (16,1) SimCity Social (15) Bejeweled Blitz (8,5) 3 ° 50 093 494 12 Bubble Witch Saga (18,4) Candy Crush Saga (13,9) Pyramid Solitaire Saga (6,1) 4 ° 38 664 866 5 ° 23 905 627 7 Diamond Dash Bubble Island (19,1) (7,6) 20 DragonCity (10,8) Social Empires (6,1) Monster World (7) Social Wars (4,2) Dissertation by Katharina Damm Comunicazione, Innovazione, Multimedialità Facebook – game categories Total number of users per game category 300 250 200 150 100 50 0 251,61 million 273,72 million 2,69 million Dissertation by Katharina Damm Comunicazione, Innovazione, Multimedialità Social Games – business model modality free-to-play 3 pillars: 1. Third-party advertising revenue 2. Players’ micro-transactions 3. Users’ data collection Dissertation by Katharina Damm Comunicazione, Innovazione, Multimedialità Third-party advertising revenue Around Game Advertising: Integration of banners around the game. Product Placement/ In-Game Advertising: Integration of the product/brand in the game environment => the product/brand is part of the game experience itself. • There are various types of Product Placement Dissertation by Katharina Damm Example of the modality Around Game Advertising: SunExpress in The Ville (Zynga) Dissertation by Katharina Damm Example of the modality Product Placement: Toyota in CarTown (Cie Games) Dissertation by Katharina Damm Comunicazione, Innovazione, Multimedialità Players’ micro-transactions Purchase of virtual elements with real money in the game. • There are various mechanics that create the desire for purchasing in the games. Dissertation by Katharina Damm Example of a mechanism that creates the desire for purchasing: Degradation of quests – FarmVille (Zynga) Dissertation by Katharina Damm Comunicazione, Innovazione, Multimedialità Users’ data collection The system measures and analyses automatically how users interact with the game. Revenue comes from the sale 60% of the revenue from Social Games comes from the second pillar – the micro-transaction! Dissertation by Katharina Damm Comunicazione, Innovazione, Multimedialità Analysis of the 20-top Social Games Automotive 5% Typologies of advertiser BestBuy, Bing, Gamestop Donation 13% Music 9% Telecomunication 17% Film, TV & Cinema 10% Education 1% Travel 3% Insurance & Finance 13% Fashion & Beauty 5% Food & Beverage 20% McDonald, Frito Lay, Dunkin’ Donut’s Garden & Nature 3% House & Furniture 1% Dissertation by Katharina Damm Comunicazione, Innovazione, Multimedialità Analysis of the 20-top Social Games Same brands are in more than one game from the same game developer Example: Amex Serve => in FarmVille, CityVille, CastleVille Display time: from 1 week to more than one month The advertising campaigns are often accessible only by gamers who arrived at certain game levels. The types of Product Placement that are used the most: Branded Mission and Branded Reward Dissertation by Katharina Damm Example of Branded Mission and Branded Reward: Samsung in The Sims Social (EA) Often the Mission is to click I like on the firms’ fan page Dissertation by Katharina Damm Comunicazione, Innovazione, Multimedialità Analysis of the 20-top Social Games Quantity of advertising campaigns for each game: 25 20 15 10 5 0 The most presence of publicity is in the category Simulation. => The type of category is decisive for the implementation of advertising campaigns. Dissertation by Katharina Damm Thank you for your attention! Course of study Comunicazione, Innovazione, Multimedialità Katharina Damm