February 6-8 2008 Casual Connect Europe: West 2008 The Advertiser Side of In-Game Advertising

February 6-8 2008 Casual Connect Europe: West 2008

The Advertiser Side of In-Game Advertising


2

Agenda

• Market Trend – In-Game’s Popularity Among Advertisers

• The Advertiser and Agency’s Objectives

• In-Game Business Model

• Game Design for In-Game and User Experience

• In-Game Ad Performance


3

Market Trend – In-Game’s Popularity Among Advertisers?

• Media Fragmentation

• Marketing Noise

• Consumer Engagement

• Media Agencies’ Need for Innovation

• Gaming is on the Rise

• Casual Games’ Popularity


4

Reachdemographics and site traffic statistics

Relevancybrand fit, ad format fit, customization

Impactcampaign

performance

Dealcost-benefit

considerations

Accountabilitymeasurability,

control & optimization

The Advertiser and Agency – What are They Looking For?


5

User DemographicsAge 12-17 18-34 35-54 +55

Income0-50K

50k-75K

75k-100K

100k-125K

+125K

Number of

Children0

1-3

+3

GenderMale

Female

Marital Status

Married

Unmarried

Education

High school

College

graduate

Post graduate


6

Business Model: Case Study

• Number of games studied: 29• Number of developers: 8• Game type: Downloadable – unlimited free games• Number of downloads: 407,000• Time period: 30 days

• Key findings: – Average number of sessions per download: 4.68 sessions– Average duration per gaming session: 62 minutes– No drop in conversion rate


7

Business Model: Case Study (continued)


8

• Conversion Rate Analysis

• Minutes/Session Analysis

Business Model: Case Study (continued)

Net Increase in Revenues

Conversion Rate with Try-and-Buy Only

Co

nv

ers

ion

Ra

tew

ith

Try

-an

d-B

uy

a

nd

In

-Ga

me


9

Business Model: How Does it Work?

Game Integration

Game Developer/ Publisher

Technology Provider

1

Distribution to Gaming

Site

Game Publisher

Game Distributor

2

Distribution to Users

Gaming Portal

3

Media Sale

Media Seller

Media Agency

4

Revenues Share

5

• Two New Players: Media Seller, Technology Provider

• Keys to success: vertical integration, scale, ad inventory volumes, sales capacity

Process Flow


10

Game Design – How Should In-Game Advertising Affect My Game?

• Relevancy: Think about advertising opportunities during game design– Which ad formats can be incorporated to allow the advertiser to deliver the right message to

the right user?

• Reach: Think about new demographics– It shouldn’t be only a women’s world anymore– Stay targeted with each title

• Accountability and Scale: Pay attention to IAB standards (when possible)– Reporting data standards - accountability– Creative standards – scale

• Impressions Delivery: Think how you can generate more ad impressions with your game

– Length of play vs. Conversion in 60 minutes

• Impact: Think about user experience– Will the ad formats fit the gaming experience?– Are the ads seamlessly integrated into the game?

Key: finding the balance of game design and ad formats that will satisfy everyone’s needs


11

Interstitial Video Integration


User Experience – Will Users Accept It?

Yes they will, if you:

• Add to the gaming experience– Give something in return

• Communicate the reward

• Be non-intrusive– Allow users to avoid the ads if they want

• Be realistic (cost-benefit to the user)


13

2007: In-Game Ad Performance

• Ad Format: In-Game interstitial in downloadable games• Region: North America • Number of impressions: 9 figures• Ad spots: 15-30 seconds• Average ad frequency: 10 minutes• Skip enabled

Key Performance Indicators:• CTR: 7.04%• 50% Video Completion Rate: 75%• 100% Video Completion Rate: 58%


14

2007: Ad Performance Comparison

• Unparallel CTR

• Superior video completion rate despite auto play and skip option

• More users start watching the ad and stay engaged


Thank You

Ronnie LaviManager, Product Planning & Business Development [email protected]

Documents

February 6-8 2008 Casual Connect Europe: West 2008 The Advertiser Side of In-Game Advertising