Gamer Nation:  Exploring Advertising Effectiveness in the Gaming Ecosystem

Gamer Nation: Exploring Advertising Effectiveness in the Gaming Ecosystem PowerPoint PPT Presentation


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2. Let's Get Started! An Overview. Industry numbers and researchThe Growth of EngagementIndustry Segments OverviewCasual v ConsoleStrategies for Brands of How to PlayBut First, let's play a little game. 3. . Let's Start By ALL Playing a Game!. In The Past 2 Weeks I've

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Gamer Nation: Exploring Advertising Effectiveness in the Gaming Ecosystem

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1. 1

2. 2

3. 3 Let’s Start By ALL Playing a Game!

4. 4

5. 5 An Overview – Console v Casual

6. 6 The Numbers - Video Games are mainstream entertainment Video Gaming is a $30B worldwide industry1 Projected to grow to $51B by 2010 Primary demographic is Men 18-34 Secondary demographic is Men 12-17 Video gaming has evolved to rival other media2 TV advertising reach is declining due to increased time spent with video games Video gaming is increasing its reach3 35% of American parents play computer and video games Among parents who game, 80% report they play video games with their children; 66% feel playing has brought them closer together

7. 7 Games Are Big Business And Growing

8. 8 99 Million Gamers Ages 18-44 Play Games on PCs or Consoles

9. 9 Gamer Demographics Are Attractive

10. 10 Online Gaming Is Hot – The Fastest Growing Segment

11. 11 Engaging Games – Why Its An Part of Your Marketing Mix

12. 12 And User Engagement Is Growing

13. 13 Rapid Growth in Virtual Items, Goods and Services Microsoft is claiming $125 Million in Virtual Asset Sales on Xbox Live with 45 million items sold. Tencent (with over 250 million active user accounts in China) generated $100 million+ in Q1 of 2007 and over 65% of their revenue comes from virtual goods. Habbo Hotel has over 75 million registered avatars in 29 countries and 90% of their $60 million+ yearly revenue comes from virtual goods. Gaia Online does over 50,000 person to person auctions and 1 million message board posts a day - they employ people whose sole job it is to open snail mail envelopes full of cash that people send in for virtual goods. Nexon (South Korea) reported $230 million in revenue for 2005, the bulk of which stemmed from millions of “microtransactions”. In Feb. 2007, Maplestory was making about $1.6 million a month in the U.S. Many SK companies are coming to the U.S. with micro-transaction based models, ijji.com (NHN), Cyworld, Maple Story, K2 Network (aggregator), and JCE (FreeStyle Basketball with Vivendi/Sierra Online)

14. 14 Micro-transaction in Games: Emerging in the U.S.

15. 15 Games – The Opportunities

16. 16 You Control The Level Of Immersion With Your Brand…

17. 17 New Models Are Here and Getting Bigger Quickly

18. 18 Big Opportunities on Game Media Sites for Audience

19. 19 Casual and Sponsored Browser Games Are Big

20. 20 Sponsored Games Delivered High Impact Marketing Results

21. 21 How to Play; Strategy, Identify Growing Hot New Brands

22. 22

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