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Engagement Unleashed:

Gamification for Business, Brands, and LoyaltyJune 2011

2

Methodology

• Sample size: 2004

• US residents

• 50% male, 50% female

• Ages 18–44

• Field Dates: 11-May-11 to 17-May-11

• The survey was administered through Ipsos OTX MediaCT’s standard survey environment

• Respondents were recruited via email from Ipsos OTX MediaCT’s Sample Community and linked to the survey environment to complete the online survey

3

Executive Summary

• 50% of the US online population between the ages of 18 and 44 play social games on a daily basis

• Males — 54%

• Females — 46%

• Tablet owners — 66%

• Smartphone owners — 53%

• Three of the top four reasons why people play social games can be attributed to boredom

• “They help to pass the time when I’m bored” — 57%

• “It gives me something to do when I am in the mood for something mindless” — 40%

• “It is a good way to spend time alone” — 39%

• This trend of gaming to fulfill pockets of boredom is particularly true among females, while males indicated a stronger preference for competition

4

Executive Summary

• When it comes to specific kinds of social challenges, respondents were most interested in participating in multiplayer gaming and trivia challenges. While not as many people are familiar with scavenger hunts and guessing/probability scenarios, they did express interest in participating in these kinds of challenges

• ‘Discounts’ are the most compelling incentives for winning a challenge, followed by ‘Social Action’ and ‘Points Towards Loyalty Program’. Only 1-in-4 said that ‘Status in the Community’ was a very compelling incentive

• Among those interested in social challenges, males and tablet owners are most likely to view these challenges as ways to connect with the local community and make new friends

• Heavy social gamers are more likely to be interested in clues-based challenges and are more aware of recent in-game ad campaigns from specific brands

• Among those who are currently employed, 18–24 year olds were the group most willing to take a salary reduction to work for a social responsible company. This is evidence of a potential generational divide when it comes to social responsibility in the workplace

5

Key Statistics

• Among respondents who are employed, approximately half say that they play social games at work during a typical day. Males are more likely to play than females (53% vs. 39%), and Tablet owners are more likely to play than Smartphone owners (68% vs. 54%). Unsurprisingly, heavy social gamers have the highest incidence of social gaming at work (70%), compared to only 34% of light social gamers

• Among respondents who are employed, 55% would be interested in working for a company that offers games as a way to increase productivity. The groups with the most interest in this workplace perk are heavy social gamers (74%), heavy app spenders (81%), and males 18–34 (68%)

• 71% of smart device owners turn to their smartphone or tablet device when they are bored. This trend is most prevalent among males and females between the ages of 25 and 34

• Approximately 1-in-2 smart device owners (smartphones or tablets) say that they are interested in participating in clues-based challenges against others for a chance to win prizes. Interest in these challenges was most prevalent among males 25–34 (53%) and heavy app spenders (67%)

• Among people interested in clues-based challenges, 85% would be willing to play for at least 30 minutes for a chance to win a cash prize of $100. 1-in-4 would be willing to play for at least 3 hours

6Q1. How often do you play social games? Social games are online games that you can play on social networks or apps.

Frequency of Social GamingOn average, 50% of people online between the ages of 18–44 play social games on a daily basis.

53% of Smartphone owners play daily

66% of Tabletowners play daily

46%Playdaily

54% play daily

7

Never; 53%

Less than 30 min-

utes; 19%

30 minutes to an hour;

14%

1 to 2 hours; 8%

3 to 4 hours; 3% 5+ hours; 3%

Playing Social Games at Work

Among Those Employed

Q23. Does your employer provide you with access to the Internet during work hours?Q24. In a typical day, how often do you play social games at work? Don’t worry, we won’t tell your boss.

Internet Access & Social Gaming at Work

Yes, I have un-limited access;

49%

Yes, but some social

network-ing sites

are blocked;

24%

No, I do not have access;

23%

I'm not sure; 4%

Internet Access at Work

8

Overall Males Females 18-24 25-34 35-440%

25%

50%

75%

100%

32% 36%

25%35% 35%

27%

24%25%

23%

26% 25%

21%

27%25%

31%

26%24%

31%

9% 7%12%

5% 9%10%

8% 8% 9% 7% 7% 11%

Not interested at all

Not very in-terested

Somewhat in-terested

Very interested

Extremely in-terested

Among Those Employed

Q25. How interested would you be in working for a company that offered games as a way to increase productivity within the workplace?

Games As an Incentive to Increase ProductivityThe large majority of respondents said they were interested in working for a company that used “gamification” as an incentive.

9

Overall Males Females Age 18-24 Age 25-34 Age 35-440%

25%

50%

75%

100%

19% 21%16%

24% 21%15%

28% 27%30%

31%27%

29%

53% 52% 54%45%

52% 56% No

Maybe

Yes

Among Those Employed

Q25a. Would you be willing to take a salary reduction to work for a company that was a leader in social responsibility and environmental sustainability?

Willingness to Take Salary ReductionAmong those who are currently employed, 18–24 year olds were the group most willing to take a salary reduction to work for a socially responsible company.

10

Played in the Last Month

Q2. Which of the following social games have you played in the last month?

Profile of Players of Social Games

FarmvilleBejeweled

Blitz Mafia Wars Cityville

Texas Holdem Poker Café World Frontierville

Monopoly Millionaires Treasure Isle

BASE 566 442 352 323 293 243 231 183 151

Mean Age 31.5 32.3 31.8 31.3 32.2 31.2 31.3 31.1 31.0

% Male 56% 44% 72% 61% 72% 43% 60% 60% 53%

% Employed 66% 66% 71% 65% 71% 62% 64% 63% 66%

% White or Caucasian

63% 67% 61% 60% 66% 61% 64% 70% 61%

% Single, Never Married

43% 37% 43% 46% 39% 43% 45% 48% 42%

% with Bachelors Degree or Higher

32% 33% 36% 34% 30% 30% 29% 30% 33%

11

Among Those Who Play Social Games

Q3. Why do you play social games? Please select all that apply.

Males Play Because of Competition, Females Play Because They Are Bored

Overall Males FemalesAges18–24

Ages25–34

Ages35–44

SmartphoneOwners

Tablet Owners

BASE 1566 821 745 326 636 604 755 336

They help to pass the time when I am bored 57% 54% 61% 55% 58% 57% 60% 47%

I feel relaxed when playing 45% 44% 46% 40% 44% 48% 46% 48%

It gives me something to do when I am in the mood for something mindless 40% 36% 45% 39% 42% 39% 46% 40%

It is a good way to spend time alone 39% 36% 41% 40% 38% 39% 41% 43%

I like to be challenged 31% 33% 30% 29% 31% 33% 31% 39%

I like competing against others 31% 36% 24% 23% 34% 31% 33% 36%It gives me something to do when I have a bad day 28% 28% 28% 33% 28% 26% 30% 28%

It gives me something to do with friends 28% 33% 22% 30% 29% 26% 33% 37%

I enjoy being a part of an online community 27% 32% 22% 26% 30% 25% 29% 38%

I feel mentally stimulated 26% 27% 25% 22% 27% 27% 26% 36%

I like to explore new worlds 20% 25% 15% 24% 20% 19% 21% 32%

I like to do things I could never do in real life 18% 21% 14% 23% 19% 14% 18% 27%

I feel like I am part of the story 15% 17% 13% 19% 15% 13% 16% 27%

I like to learn a new set of skills 14% 17% 11% 17% 13% 13% 16% 26%

It gives me something to do with my family 13% 15% 12% 13% 15% 12% 16% 23%

It is something to do while I am on the go 13% 15% 10% 16% 15% 9% 19% 26%

It gives me something to do with kids 10% 10% 11% 7% 10% 13% 11% 18%I like feeling like I am hip compared to other gamers 6% 9% 3% 8% 8% 4% 9% 18%

It gives me something to do when I am at a party 5% 7% 3% 5% 6% 4% 6% 15%

12

A scavenger hunt where you would need to complete a task (i.e. send a photo) at a

specific physical location

A probability or guessing scenario where you could wager points with another player

A physical game where you would have to make movements with your smart phone to

complete the task

A trivia game where you would need to correctly answer a few questions

A multiplayer game challenge with a game you already own

27%

29%

34%

46%

54%

36%

35%

31%

35%

29%

36%

35%

35%

19%

17%

Very Familiar Somewhat Familiar Not Familiar at all

Among Total

Q4. You indicated that you own a smart phone or a tablet and you like to play social games. How familiar are you with the following types of game-based “social challenges” that you play on your smart device while in a public place (i.e. restaurant, bar, park, store)?

Familiarity With Social ChallengesMost people are at least somewhat familiar with multiplayer and trivia game challenges, but less than 30% are “Very Familiar” with guessing scenarios and scavenger hunt challenges.

13

A probability or guessing scenario where you could wager points with another player

A physical game where you would have to make movements with your smart phone to

complete the task

A scavenger hunt where you would need to complete a task (i.e. send a photo) at a

specific physical location

A trivia game where you would need to correctly answer a few questions

A multiplayer game challenge with a game you already own

35%

35%

38%

45%

49%

42%

40%

40%

39%

34%

24%

25%

23%

16%

17%

Very Interested Somewhat Interested Not at all Interested

Among Total

Q4A. How interested would you be in participating in the following types of social challenges on your smart device with other people while in a public place (i.e. restaurant, bar, park, store)?

Interest in Participating in Social ChallengesThough multiplayer and trivia gaming challenges are still at the top, scavenger hunts rank ahead of physical games and guessing scenarios.

Not as familiar, but interested

14

Status in the community

Social action that directly benefits the local community

Social action that directly benefits the environment

Points towards loyalty program (i.e. airline miles, hotel points)

Social action that directly benefits children

A discount on a product or service

26%

42%

44%

50%

50%

57%

40%

47%

42%

38%

40%

37%

34%

11%

14%

12%

10%

6%

Very Compelling Somewhat Compelling Not Compelling at All

Among Those Interested in Participating in Social Challenges

Q9. You indicated that you might be interested in participating in a social challenge. How compelling are the following incentives to you if you were to win the challenge?

How Compelling Are the Following Incentives?Discounts are the most compelling incentives for winning a challenge, followed by ‘Social Action’ and ‘Points Towards Loyalty Program’. Only 1-in-4 said that ‘Status in the Community’ was a very compelling incentive.

15

Among Those Interested in Participating in Social Challenges

Q11. How likely would you be to opt into a social challenge if it was organized/sponsored by the following types of groups?

Likelihood to Opt into Social Challenge if Sponsored by…Among those interested in social challenges, two thirds say they would be very likely to opt in if it was sponsored by friends or family. Only 27% said they would opt in if it was sponsored by a large corporate brand.

Large corporate brand

Local small business

Neighborhood group

Nonprofit group or charity

Friends or family

27%

36%

37%

47%

64%

50%

52%

53%

45%

32%

22%

12%

10%

8%

3%

Very Likely Somewhat Likely Not Likely at All

16

Overall Males FemalesAges 18–24

Ages 25–34

Ages 35–44

Smartphone Owners

Tablet Owners

BASE 459 371 170 384 276 604 726 328

Local social challenges seem like a great way to meet new friends

30% 34% 26% 32% 32% 26% 29% 40%

I like the idea of using my smart device to get more connected with the local community

30% 34% 25% 31% 32% 26% 29% 38%

I would prefer to interact with the community on my smart device than in person

18% 20% 16% 23% 18% 15% 17% 27%

I don't particularly care about the community aspect I am most interested in the reward

14% 17% 11% 19% 15% 10% 14% 23%

Agree Strongly

Q12. How much do you agree with each of the following statements about your feelings towards local

social challenges?

Attitudes Towards Local Social ChallengesAmong those interested in social challenges, males and Tablet owners are more likely to view these challenges as ways to connect with the local community and make new friends. 27% of Tablet owners say they would rather interact with the community on their smart device than in person.

17

Overall Smartphone Owners

Tablet Owners Heavy Social Gamers

Medium Social Gamers

Light Social Gamers

0%

25%

50%

75%

100%

45% 44%

58% 55%47%

32%

30% 31%

23% 25%

30%

35%

25% 25%19% 20% 23%

34%

No

Maybe

Yes

Among Smart Device Owners

Q13. Would you be interested in participating in a clues-based challenge with your smart device (like a scavenger hunt) to compete with others to find hidden treasures or win prizes?

Interest in Participating in Clues-Based ChallengeHeavy social gamers are significantly more interested in participating in clues-based challenges than light social gamers.

18

Less than 30 minutes

30 minutes to an hour

1 to 2 hours

3 to 4 hours

Up to 5 hours

0% 5% 10% 15% 20% 25% 30% 35% 40%

15%

29%

34%

12%

11%

Among Those Interested in Participating in Clues-based Challenge

Q14. How long would you spend to play a clues-based challenge for the chance to win a prize of around $100?

Time Willing to Spend for the Chance to Win a Cash Prize of $100How long would you spend to play a clues-based challenge with the chance to a prize of around $100?

19

Receive email

updates; 44%

Play an online game; 37%

Attend an event in per-

son; 12%

Commercials/ads on TV/radio; 3%

Other; 3% Nothing; 1%

58% say it is important for

brands to be fun and playful

Q20. Thinking about your experience with brand promotions and advertisements, how important is it for the communication to be fun and playful?Q21. If a brand were to communicate about a product, how would you to prefer to hear about it?

Brand Messaging & CommunicationIf a brand were to communicate about a new product, how would you like to hear about it?

20Q18. Do you recall seeing any of these brands while playing social games recently? Please select all that apply.

Awareness of In-Game Brand AdvertisingHeavy social gamers are also more likely to be aware of in-game ad placements from recent campaigns.

McD

on

ald

's

Co

ca-C

ola

Mic

roso

ft

At&

t

Old

Na

vy

Sta

te F

arm

Ele

ctro

nic

Art

s (E

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fre

ecr

ed

itre

po

rt..

.

Fo

rd

To

yota

Fa

rme

rs I

nsu

ran

ce

Blo

ckB

ust

er

Dre

am

Wo

rks

Ch

ee

rio

s

7-1

1

MT

V N

etw

ork

s

Tri

de

nt

eM

usi

c

Jam

ba

Ju

ice

H&

M

rea

lArc

ad

e

Vo

lvo

Dig

iorn

o

Gre

en

Gia

nt

Fly

cell

0%

10%

20%

30%

40%Heavy Social Gamers Medium Social Gamers Light Social Gamers

21 Q19. What was your feeling towards seeing the brand while playing a social game?

Feelings Towards the Brand After Seeing Ads…While Green Giant did not have strong awareness, 70% of those aware said they had a positive view of the advertising. This is tied to a campaign where Farmville players could earn cash by purchasing Green Giant products.

Green

Gia

nt

Coca-

Cola

Elec

troni

c Arts

(EA)

7-11

Dream

Wor

ks

Micr

osof

t

Trid

ent

Ford

H&M

Jam

ba Ju

ice

Cheer

ios

Digio

rno

Flyc

ell

Block

Buste

r

MTV

Net

wor

ks

McD

onal

d's

Old N

avy

eMus

ic

Volvo

real

Arcad

eAt&

t

Stat

e Fa

rm

Farm

ers In

sura

nce

freec

redi

trepo

rt...

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Negative Neutral Positive

22

Definitions

• Social games are defined as online games that you can play on social networks or apps

• Social challenges are defined as game-based challenges as that you play

on your smart device while in a public place

• Smart device is defined as a Smartphone or Tablet

• Social Gaming Frequency

• Heavy social gamers = 10+ hours social gaming in a typical week

• Medium social gamers = 3–10 hours social gaming in a typical week

• Light social gamers = less than 3 hours social gaming in a typical week

• App Spending Habits

• Heavy App spenders = $20+ spent on Apps during last 12 months

• Medium App spenders = $5 to $19.99 spent on Apps

• Light App spenders = Less than $1 to $4.99 spent on Apps

Appendix

24

TotalSmartphone

owners Tablet owners

Mean Age 31.7 31.2 31.5Gender

Male 50% 53% 61%Female 50% 47% 39%

EthnicityWhite or Caucasian 67% 65% 60%Hispanic — NET 11% 12% 14%Asian/Pacific Islander 8% 9% 14%Black or African-American 7% 8% 6%Native American, Alaska Native, Aleutian 3% 3% 3%Other 3% 3% 3%

Education Level Less than high school education 6% 3% 4%High school diploma, but not college 21% 15% 15%Some college but no degree 30% 29% 26%College degree 32% 40% 38%Masters degree or above 11% 13% 18%

Marital StatusSingle 44% 40% 42%Living with domestic/romantic partner 25% 27% 29%Married 22% 25% 23%Widowed 0 – 1%Separated/ Divorced 8% 7% 5%

Demographics