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www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

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Page 1: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

www.eb-ingames.com

Increasing Casual Game Revenues with In-Game Advertising

Page 2: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

www.eb-ingames.com

Increasing Casual Game RevenuesIn Game Streaming Video Advertising is Working!

License + Subscription+ In

-Gam

e Adv

ertis

ing

Rev

enue

per

Gam

e D

ownl

oad

Time

Page 3: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

www.eb-ingames.com

Global Leader in Digital Campaign ManagementOffices in all key digital markets providing 24/7/365 coverage

0 +4 +8 +12-8 -4

Page 4: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

www.eb-ingames.com

EyeblasterThe Rich Media Partner for Publishers, Agencies and Advertisers Around the World

A small sample of clients

Page 6: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

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Page 7: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

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About RealThe Global Leader in Publishing and Distribution of Casual Games

Developer Partner Network

Wholesale Partner Network

Combined Global Reach of 45M+ Unique Users per Month

Page 8: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

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ChallengesThe Industry Problem We Are Solving

• 600M game downloads in 2005– Only 12M purchased

• 588M cost producers– 35,280,000,000 Minutes– 67,123 Years– 671 Centuries– .67 Millenniums

• This is the opportunity

Page 9: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

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Consumer Response to Seeing an Online Video Ad

Brand Metrics for Video/Audio vs. Rich Media vs. GIF/JPEG

Source: eMarketer, November 2005*as a % of respondents

Source: Dynamic Logic MarketNorms, DoubleClick, May 2005*as a % of lift

0%

10%

20%

30%

40%

Visitedsite

Requested info

Visited store

Forwarded to friend

Made purchase

Ordered a subscription

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Aided brand awareness

Online ad awareness

Message association

Brand favorability

Purchase intent

Video/audio

Rich media

GIF/JPG

Video ads combine television's sight, sound and motion with the Internet's immediacy and accountability to reach and engage online audiences.

Online Video AdvertisingEffective and Accountable

Page 10: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

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Online Video AdvertisingGrowing Demand & High CPM

“[Video] is the fastest-growing major segment of Internet advertising. And all of that is money that would have been spent on traditional advertising.”

Lee Westerfield, media analyst, Harris Nesbitt

Online Video Ad Spending

Source: eMarketer, 2005

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2005 2006 2007 2008 2009

In m

illio

ns

Online Video Advertising 2005, By Vertical

49.6%

9.4%

7.9%

6.7%

6.4%

5.1%

4.2%

3.1%

2.6% 2.5%1.6%

Entertainment

Automotive

B2B

Financial Services

Consumer Goods

Software

Hardware/Electronics

Travel

Web Media

Telecom

Retail

Source: AdRelevance 2005 YTD

Page 12: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

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Ads PerformancesStrong Performances

Page 13: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

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ResultsPer download revenue increases significantly

Total Revenue Per Game Download(ShapeShifter)

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

$0.40

6/1/

06

6/8/

06

6/15

/06

6/22

/06

6/29

/06

7/6/

06

7/13

/06

7/20

/06

7/27

/06

8/3/

06

8/10

/06

8/17

/06

8/24

/06

No Ads

Extra 30 min trial

Video Ad every 10 min

No time limit

Video Ad every 10 min

Page 14: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

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ResultsTotal revenue increases significantly

ShapeShifter Total Revenue By Day (7-DMA)

$0.00

$50.00

$100.00

$150.00

$200.00

$250.00

$300.00

6/1/0

6

6/8/0

6

6/15/

06

6/22/

06

6/29/

06

7/6/0

6

7/13/

06

7/20/

06

7/27/

06

8/3/0

6

8/10/

06

8/17/

06

8/24/

06

License Rev Advertising Revenue

Page 15: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

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Business ModelDevelopers Benefit

License Revenue

+

Subscription Revenue

+

In-Game Ads Revenue

---------------------------------

Total Game Revenue

X

Developer Royalty Rate

---------------------------------

Net Revenue Paid to Developers

Page 16: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

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Version 2 – Advanced CapabilitiesDemo

Download and Install a game

Click for video grab of a game

Page 17: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

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Page 18: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

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Enabling Inventory In Game Events & Ad Policy Driven

Game 1

Internal Communication Layer

Game 2

EB Client

DRM Component

DRM Component

Notifying Event Type (1,2,3 etc)

Report on Scenario in Game (Start, Level Change, Stage change)Create

Container per ad policy

Events Manager (Timer, Counter, Ad allocation)

External Communication LayerEB Game Server

EB Client

Cache on PC

1

4

2,3

5

Page 19: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

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Strong Backend SupportFor advertisers, distributors and game developers

• Ad creation and delivery tools

• Integration with other ads campaigns

• Campaign management tools

• Billing relationships

• Technical integration

• Detailed reporting

Page 20: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

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Next StepsCreating EB enabled game

• Content approval with Real (today)

• Sign up for free EB Game SDK

• Integrate to older or new titles according to standard

• Submit for approval and free commercial license

• Make sure to negotiate your ads revenues with distributor

• Submit the game for distribution

Page 21: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

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Thank You

For additional Information contact:

RealNetworksChris HoutzerDirector of New Media, [email protected](206) 892-6331

EyeblasterRan CohenDirector, Emerging [email protected]

Page 22: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

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EB In Game Ads Solution for Casual GamesHigh Quality In Game Video Ad

Up to 30 sec high quality ad integrated in the game as a commercial break on game start, between levels and following game over – WOW effect, no distractions, no skip, click through option, integrated with the game look and feel and approved by game developer.

Page 23: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

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EB In Game Ads Solution for Casual GamesClick Through

Clicking on the video ad pause the video, takes the game to the background or minimize it and launch a browser on the landing page.

Page 24: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

www.eb-ingames.com

EB In Game Ads Solution for Casual GamesPost Click

Once browser is closed or minimized the game takes focus and video ads resume automatically. At that point a skip ad option that was not available previously becomes available.

Page 25: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

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EB In Game Ads Solution for Casual GamesLeave behind and dynamic integrated logo placements

Once browser is closed or minimized the game takes focus and video ads resume automatically. At that point a skip ad option that was not available previously becomes available.

Clickable Reminder

Dynamic Integrated Logo placements

Page 26: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

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Game Load on PC

Report ID

EB Game Server

Send Ad Policy

Based on Event & Ad Policy – Ask for an Ad

RMP Pub Ad Server

Trafficking In Game Tags

Ask for Ad (Include info on: Game id, developer, pub, genre, sub genre, language, rating etc)

Send EB Tags

Call RMP For Ad

Report Impression per flight, creative type and game ID

EB Enabled Game

Page 27: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

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Use Case

• Game House and Pop Cap enabled each 5 games

• Game House and Pop Cap signed agreement with Oberon and submitted their EB enabled games

• Oberon integrates with EB (Events)

• Oberon submits 10 games to MSN and takes 40% of revenue generated from the games

• MSN distribute the games and inventory is created

• MSN Sell the Inventory to Avenue A

• Avenue A traffic In Game flight on RMP

• MSN generate code on RMP and submit in MSN Pub Ad Server

• MSN have 1 line in their server for Oberon games

• 10m impression delivered (Avenue A gets reports on flight and Ad level on RMP)

• Avenue A pays MSN $300,000

• MSN pay to EB $30,000 rich media costs ($3CPM)

• MSN Delivers $120,000 to Oberon (40% x 300k)

• Oberon take 50% cut – $60,000 and have $60,000 to distribute to game developers

• Oberon ask EB report for % of impression associated to Game House and Pop cap

• In RMP every impression is associated with game ID – intern manually sum up the impressions per developer and report to Oberon on Excel sheet that Game House have 70% and Pop cap 30% of the flight

• Oberon pays GH $42,000k and Pop Cap $18,000

Page 28: Www.eb-ingames.com Increasing Casual Game Revenues with In-Game Advertising

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Business, Money Flow – And EB Touch Points

Game Developer (Skunk Studios)

Game Publisher (Real Publishing)

Game Distributor (RealArcade)

Advertising Revenues

Business Arrangement

Business Arrangement

Business Arrangement

EB In Game SDK

EB In Game Event Integration

Tags from RMP$1-$5 CPM

$ (%)

$10 - $30 CPM

$ (%)

Partnership and tech integration

Partnership and tech integration