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This is a presentation I did for R2Games, with the latest market research of the LATAM market in early 2014

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  • 1. PresentaWise R2Games Game Monetization in Latin America
  • 2. THANK YOU FOR BEING HERE TODAY 2 PRESENTER: Marco A. Fernandez FernandezMarco fernandezmarco@live.com 1265979146
  • 3. CONTENT Market overview 3 Overview 1. 2. Market size 3. Market Potential 4. Social Media 5. Difference between markets 6. Launching a game 7. Steps to success 8. Monetization 9. Stability & Market expansion 10. Questions and answers
  • 4. WHAT IS THE LATAM MARKET? The Latin American market its composed by 21 countries where the dominant languages are Spanish and Portuguese and its composed by the following countries: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Uruguay, and Venezuela. 4 Fastest growing internet population in the world Latin America dont just have the fastest growing internet population in the world but its also the most social. Latin America's Booming Middle Class The World Bank released statistics revealing, for the first time in history, that by 2016 Latin Americas middle classes will outnumber the regions poor. IMPORTANT KEY POINTS Over 40% users play social games Brazil has the largest internet users This market has the youngest people Social media have deep penetration E-commerce has grown by 27 times since 2003
  • 5. 5 North America shows smallest revenue increase after conversion (1.1x). Latin America players are most difficult to convert (4%), but revenue increase is the highest. Western Europe shows highest conversion rate overall (8.66%). 284 Millions 5.85% 1.1x 299 Millions 3.96% 11.3x 326 millions 8.66% 3.4X
  • 6. Latin America Digital Games Industry 6 Digital revenues include DLC on PCs and consoles, mobile and social games. Brazil 34% 44% internet users play social games, 38% use their mobile devices to play games Mexico 22% 42% internet users play social games, 52% use their mobile devices to play games Argentina 14% 47% internet users play social games, 44% use their mobile devices to play games $1499 MM $6.16 MM $963 MM $295 MM Other 30% $224 MM $195 MM $125 MM
  • 7. Social Media in Latin America 7 Users spend ten hours a month (twice as the average in the rest of the world) 60% 51% YOUTUBE USERS Its the largest market for YouTube outside of the USA FEMALE USERS Women also make up 50% of the internet users in Latin America as well as 50% of the e-commerce buyers 94.1% Use social networks INTERNET USERS Facebook is the most popular social network in Latin America Are under 34 Leading on Facebook
  • 8. DIFFERENCE BETWEEN MARKETS BRAZILIAN VS GERMAN GAMERS 36% of Brazilians play social games at least once a week compared to 19% of Germans EARLY STAGE OF EVOLUTION 8 There are many differences in this market but I will just name some USA VS LATAM IN SOCIAL MEDIA NEW VS ONLY WHATS AVIALABLE PAYMENT OPTIONS If a player likes the game they tend Only 20% have access to credit cards in Latin America compared to the 70% in USA and Europe to stay more than gamers in Korea or the US, where a player can easily move on to the next title if they are even slightly dissatisfied. Countries in this region are still developing and results are not the same as in the developed countries 67% of U.S. internet users use a social networking vs. 94.1% of Latin American internet users Financial system Internet population Gaming options Different games Market develop
  • 9. LAUNCHING A GAME IN LATIN AMERICA The vital key to success in this market its to form a bond with the audience and maintain a constant presence at the forefront of their attention, because due to a number of unsuccessful free-to- play MMO experiments by publishers to reach Latin American gamers, MMOs have a reputation 1. 2. 3. 4. 5. 6. RESEARCH PLANNING DEVELOPMENT LOCALIZATION TESTING LAUNCH 9 for lacking quality, service, and longevity. Players here are accustomed to games with no enforcement of policies and no staying power. Its a self-fulfilling prophecy: the players dont want to buy any virtual goods because they expect the game will be gone in six months, and because nobody buys any virtual goods, the game is gone in six months.
  • 10. RESEARCH Companies outside the region may not fully appreciate the differences between their local gamers and those playing in Brazil or Argentina What they play? Dont just research the market but also the competitors How and where they play it? Find the key to their success and/or their failure And how they ultimately pay for it? Find partners and maintain a strong relationship with them 10
  • 11. PLANNING Marketing, Advertisement, PR, promotions, close beta launch. 11 Make sure you design your plan with time ahead JANUARY 2014 Market research, payment solutions, find partnerships, preparations for joining the market. Localization, proof reading, game development, game testing, launch alpha server. NOVEMBER 2013 MARCH 2014 JUNE 2014 Iteration & polishing, focus on monetization, and expansion
  • 12. KEYS TO SUCCESS 12 We can have greater results if we just do few extra things for the community Optimal game experiences, will give better impression of our product, reaching higher audience looking to spend their spare time and money in entertainment. Give the games a local touch Using local elements such as flags, animals, symbols and even names related with region. Having local presence gives security to the players and more confidence in spending money. Details matter, small issues can have a huge impact in this market Competition Our Company Experience Creativity Partners Solutions Game Platform Localization
  • 13. MONETIZATION Options per country 13 Most users use cash payments for their transactions Mobile Local payments Other solutions Payment options are not available in every country, also there should be focus in the main countries who already have available options working as the e-commerce grows in the region new implementations of new payments are been introduced but its too early to know the results.
  • 14. 14 Add more games in our platform for this market. Create our own games that fits the users demand Set up our own payment channels, that can work locally and effective Create a new platform dedicated to this market based in Latin America for bigger revenue and more exposure. STABILITY AND MARKET EXPANSION Once the game is launched and monetization its working properly its time to expand to the next countries as there are 21 countries in total in the region some might be more challenging than others but with the experience we already build same as the trusth and recognition it will be an easier task than what it was when we just entered the market.
  • 15. THANK YOU! Time for Discussion & Questions