what's the roi? virtual worlds introduction

tuesday march 10 3:45pm - 4:35pm

Virtual Worlds & Business: What's The ROI?

Moderator | Gary Hayes

Presenters

Gary Hayes | Director LAMP@AFTRS & CEO MUVEDesign

Jeff Brookes | Regional Director - Asia Pacific, Sulake Corporation

Mitch Olsen | Co-Founder, SmallWorlds



Gary Hayes | LAMP@AFTRS & CEO MUVEDesign (lamp.edu.au & muvedesign.com)

ABC Island Deakin Arts Island Thursday’s Fictions

BigPond Telstra US Fortune 100s Melbourne/Cog/AFTRS etc:

Ad:tech tuesday march 10 3:45pm - 4:35pm


© Gary Hayes | lamp.edu.au [email protected] or [email protected]



1. LayeredWorlds



Virtual Worlds & Business: What's The ROI?2. Browser Worlds



Virtual Worlds & Business: What's The ROI?3. Client Worlds



Virtual Worlds & Business: What's The ROI?4. Console Worlds


Press hyperbole or myths?

Virtual Worlds are on the decline?

There’s no one in them?

& people don’t spend long there?

They are for kids or social ‘games’ not business?

There are no marketing models?




Virtual Worlds are on the decline?




Investment in Virtual Worlds•Oct 06 - Oct 07 - US $1 billion US•Oct 07 to the present day - US $918 million

This breaks down roughly as:•Q3 08 - $148.5 million invested in 12 VW companies•Q2 08 - $161 million in 16 VW companies•Q1 08 - $184 million in 23 VW companies•Q4 07 - $425 million in 15 VW companies

Source: Virtual Worlds Management Reports


Virtual Worlds & Business: What's The ROI?Virtual Worlds are on the decline?


There’s no one in them?




Habbo Hotel 12m

Stardoll 13m

Nicktropolis 5.5m Webkinz 5.5m

Club Penguin 6m

300 million globally in social virtual worlds

Habbo & WoW - 100 mill registeredRunescape - 7 mill active, 140k at once

Entropia - 700k reg, plan 15m concurrent!Second Life - regularly at record breaking

concurrency of 70k

60% of Americanʼs play video games -40% are women

Neopets 6m


Virtual Worlds & Business: What's The ROI?There’s no one in them?


Government Communications Headquarters InGame RecruitmentTom Clancy’s Splinter Cell: Double Agentand high-octane racer Need for SpeedCarbon. By Massive•Increased traffic to the Careers inBritish Intelligence website by 1,000percent, from an average 550 uniquevisitors a day to an average 5,500•Won the “Innovation” category atthe 2008 Recruitment AdvertisingAwards, and received nominationsfor several other industry awards•Generated extensive coverage inthe national media

http://advertising.microsoft.com/europe/ResearchLibrary/ResearchLibrary.aspx?Adv_CaseStudyID=1664




& people don’t spend long there?





Virtual Worlds & Business: What's The ROI?& people don’t spend long there?





Virtual Worlds are partly about Lifestyle Marketing but…



Virtual Worlds & Business: What's The ROI?They are for kids or social ‘games’ not business?


•“The centralized investment in the Second Life island paid for itself after 5-6 events -recruitment at Accenture taking place in 49 countries, and each of these countries usingthe Accenture Careers island rather than building its own, the cost savings really start tostack up.•So Global Recruitment Marketing put a lot of effort into making it easy for recruiters touse Second Life. The team holds meetings, calls, and tours with recruiters and created aguide on how to sign up in Second Life, create an avatar, walk, sit, chat, etc. “




Videogame advertising, both in and around game, is effective in drivingattention and recall

* Three-quarters of gamers notice ads while playing video games * 75% of gamers engage with at least one ad per minute * 81% of gamers engage at least every other minute * ½ second ad exposure is sufficient for a gamer to notice an in-game ad

Most gamers believe that ads in games add to the realism and overallexperience of playing video games and can have a positive impact.

* "It's fun to see things in games that are real." * "Like in Ghost Recon, you have the Dodge billboards in the urbanareas, and I think that is pretty effective... it adds realism because, youknow, you see ads in the real world" * "I think being in a game is way better because in TV it can sometimesannoy you and stuff and can have a negative effect on a product. But in agame, I think it has a positive effect."

Source: Videogame Advertising Engagement Study, July 2007


Virtual Worlds & Business: What's The ROI?There are no marketing or ad models?


1. Static Advertising

2. Promotions & Sponsored events

3. Virtual Goods & Product Placement

4. Dynamic InWorld Advertising

5. Branded Spaces

6. AdverWorlds & AdverGames




Static AdvertisingPriceWaterhouseCoopers estimates total spending on

in-game advertising to reach $1 billion by 2010.



•US $295 million will be spent on in-game advertising•$207 million advergaming (the creation of games topromote a brand)•Advergaming will climb to $344 million in 2011, in-gameadvertising will reach $625 million that year." eMarketer

NEW FORMS OF ADVERTISING - GAMES

There are no marketing or ad models?

1. Static Advertising


2. Promotions & Sponsored events






Source: Betsy Book AAAS

There are no marketing or ad models?

3. Virtual Goods and Product Placement




Dynamic InWorld, InGame Advertising




5. Branded Spaces


6. AdverWorlds &

AdverGames




"Now our audience can 'live' Laguna Beach:

The Real OC by immersing

themselves in a next generation

hybrid of TV show and virtual

community" says Matt Bostwick, SVP

Franchise Development MTV Music Group.

"The virtual world will expand and grow with

the show in real time. This will enable the

audience to take our content as a starting

point and create their own drama.

In effect, the audience becomes the content. We created a first class 'virtual team' to implement this consistingof Makena Technologies, Imaginary Forces, The Electric Sheep Company, Analog Protocol and Extra LargeTechnology to make it happen in record time."




Football Superstars is the world's first VirtualFootball World. An entire online virtualworld designed by football fans exclusively forfootball fans, where you can enjoy a massivelymultiplayer experience on your PC.






THANKS



Jeff Brookes | Regional Director - Asia Pacific, Sulake Corporation (habbo.com.au)

Sulake Corporation | Strictly confidential - legally protected and privileged information

what's the roi? virtual worlds introduction

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