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It’s Game Time …
Interaction and Engagement: The Evolution of Advertising in Social Games

@a4uexpo
#trialpay




   Payment and Promotions Platform          CONFIDENTIAL
                                     © 2012 TrialPay Europe. All rights reserved.   0
Why are you here?




    1              Because after this is a cocktail reception and I want to
                   rest my feet before!



                   Because my spouse is playing social games all

    2              the time online and on mobile and I want to
                   figure out why!


                   Because I am interested in finding and

    3              exploiting new performance marketing
                   channels!




  Payment and Promotions Platform       CONFIDENTIAL                          1
How people use the internet




   Payment and Promotions Platform   CONFIDENTIAL   2
Which advertising works?




5% I am considering buying something
40% I am looking for information
25% I am interacting socially
??% I am earning my online living




  Payment and Promotions Platform   CONFIDENTIAL   3
5%: “I am considering buying something”




  Payment and Promotions Platform   CONFIDENTIAL   4
5%: “I am considering buying something”




                                                                         SEO

                                Post-Transaction Marketing           Vouchers

                                        Retargeting         Price Comparison
                                      Paid Search         Cashback    Loyalty

                                  Special Interest Blogs and Communities

 Purchase intent is already present
 High Conversion rates
 Significant channel overlaps („customer journey“)
    Payment and Promotions Platform        CONFIDENTIAL                         5
The 5% in Action




       A customer already searching for Neckermann is less
  valuable than someone who isn’t. On Google, Neckermann might
    pay for customers that were already going to buy from them.
   Payment and Promotions Platform   CONFIDENTIAL                 6
40%: “I am looking for information”




                                                     Display Advertising

                                                 Contextual Advertising




 Continued importance at the expense of traditional advertising (Print
  and TV)
 Significant purchase triggers, but not last touchpoints

    Payment and Promotions Platform   CONFIDENTIAL                         7
40%: “I am looking for information”




                                                     Display Advertising

                                                 Contextual Advertising

                                                       Realtime Bidding




 Continued importance for branding and image
 Growth at the expense of traditional advertising
  (Print and TV)
 Significant purchase triggers, but not last touchpoints

    Payment and Promotions Platform   CONFIDENTIAL                         8
The 40% in Action




A customer reading about Euro Cup is not looking to purchase goods or services
    Lots of noise to get message across and get desired action (click to sale)
                                      while user consumes information.
        Payment and Promotions Platform           CONFIDENTIAL               9
25%: “I am interacting socially”




   Payment and Promotions Platform   CONFIDENTIAL   10
25%: “I am interacting socially”




                                                Social Media Advertising

                                                            Viral Marketing

                                                       Fan Page Advertising




   No purchase intent
   Very low response rates to advertising (pub example)
   Interest can be raised for trending commercial topics
   Opinions are built and shared

      Payment and Promotions Platform   CONFIDENTIAL                          11
“I am earning my online living”




   Payment and Promotions Platform   CONFIDENTIAL   12
Accessing the 25%!




 A customer who is presented a deal from Neckermann before she
decided to purchase might decide to buy from Neckermann and do so
        instead of at Zalando next time she shops for clothes
   Payment and Promotions Platform   CONFIDENTIAL                   13
“I am earning my online living”




                                                       Earn-based economies

                                                Reward-based payments

                                                 Social Game advertising




   Offer users a deal for their engagement
   Reach new users and create impulses for buying and interacting
   Advertise where users spend more and more time
   Combine large audiences and precise targeting
      Payment and Promotions Platform   CONFIDENTIAL                          14
Why should advertisers care?




  Payment and Promotions Platform   CONFIDENTIAL   15
Online casual gaming is now a mainstream activity

   Representative mix of age and gender                           Larger audiences than prime-time TV
                                                                                  Cityville
                                                                          The Sims Social
                                                                     Two and a Half Men
                                                                        Adventure World
                                                                                 Farmville
                                                                             21 Questions
                                                                        NCIS: Los Angeles
             Male                         Female                          Modern Family
                                                                         Big Bang Theory
                                                                            The Mentalist                                   TV Shows
                                                                                       CSI
                                                                  How I Met Your Mother                                 Social Games
                                                                         Gardens of Time
                                                                           Diamond Dash
                                                                          Bejeweled Blitz
                                                                             Pioneer Trial
14-17      18-24           25-34          35-44   45-54    55+                 Café World

                                                                                              0
                                                                                                  US5audience in million 25
                                                                                                         10    15    20                    30      35



Balance of male and female users                                   Casual gaming has become a
77% of users = eCommerce target group                              major leisure time activity.


                                                                                                      Data based on Facebook statistics and Nielsen TV ratings


        Payment and Promotions Platform                   CONFIDENTIAL                                                                              16
What about Europe and Facebook, specifically!




Approximately 25-50% user
penetration and growing
   Payment and Promotions Platform   CONFIDENTIAL   17
Ok but I need more stats!




                                                    References: eMarketer and Casual Gaming Association


   Payment and Promotions Platform   CONFIDENTIAL                                              18
And what about tablet/mobile trends?




               Nearly half of EU Smartphone Users are Gamers

               53%/47% Female to Male split

               Game ad revenue to reach $894M by 2015




                                                               References: comScore, MobiLens,Touchstone Research


   Payment and Promotions Platform            CONFIDENTIAL                                               19
OK, tell me more about these earned/reward based economies!




                                          Spend time

 I want stuff for
    my game!

                                         Spend money
                                                                 50,000+
                                                            virtual items sold every
                                                                 second using
                                                               Facebook Credits
                                       Engage with brands




     Payment and Promotions Platform      CONFIDENTIAL                                  2
                                                                                       20
So how does this look?




                                                   Game example: The Sims Social from
                                                    Playfish, a division of Electronic Arts

                                                 Publisher implements branded icons and
                                               banners within games to ensure high level of
                                                user interaction while promoting in a pay for
                                                            performance manner


  Payment and Promotions Platform   CONFIDENTIAL                                                21
How about a lead/registration example?




 In this example: Car Town from Cie Games




      Payment and Promotions Platform       CONFIDENTIAL   22
I want to go straight to sales, ok!




                                               In this example: Restaurant City from Playfish, a
                                                           division of Electronic Arts




   Payment and Promotions Platform   CONFIDENTIAL                                             23
I need to build brand awareness!




  In this example: Social Girl from Crowdstar

                            .




     Payment and Promotions Platform        CONFIDENTIAL   24
Campaign Goal – Introduce a Product to a New Market


                                                     BRANDING +++ REACH +++ CONVERSION +++

                                                      Lead users to the desired conversion
                                                      through interactions with your brand.




1.   Reward a smaller amount of credit for a series of videos and questions
2.   Reward a larger amount of credits for subscription to the service


       Payment and Promotions Platform     CONFIDENTIAL                                       25
Get Creative!




                                     Clinique promotes new product lines by asking
                                     users to share success stories.




                                     Unilever helps users find their “heart age”




   Payment and Promotions Platform        CONFIDENTIAL                               26
Brands getting feedback from the public




          Companies can perform market research, accessing their target
           demographic and achieving a statistically significant sample.




   Payment and Promotions Platform   CONFIDENTIAL                          27
Brands as part of the experience




                                                     Brand Interaction becomes
                                                          part of the game




Brand Interaction provides
    game play benefit



    Payment and Promotions Platform   CONFIDENTIAL                               28
Brands as part of the experience




   Payment and Promotions Platform   CONFIDENTIAL   29
Getting attention in store!




                                               100K in Farmcash redeemed in 6 weeks
                                                  Seen in Target stores nationwide




                                               100K in Farmcash redeemed in 6 weeks
                                                  13MM users downloaded songs




   Payment and Promotions Platform   CONFIDENTIAL                                     30
How does this look on Mobile?


  Entry Point                        OfferWall                           Offer Detail          Completing offer



                                     Get Kicks for FREE                   Get Kicks for FREE      Get Kicks for FREE


                                       3 Kicks




                                       160 Kicks




                                       90 Kicks




                                       50 Kicks




                                       250 Kicks




                                       Variable




   Payment and Promotions Platform                        CONFIDENTIAL                                                 31
Rewards are now not just about games!




  Payment and Promotions Platform   CONFIDENTIAL   32
Conclusion




    1              Don’t stop pulling, BUT evaluate pushing to gain new
                   customers in an efficient performance manner.




    2              Get creative with campaign types to engage
                   audience.




    3              Work closely with your reward economy
                   publisher partner to measure customer quality.




  Payment and Promotions Platform      CONFIDENTIAL                       33
Thanks

                                         Robert Schneider
                                    Head of TrialPay Europe

                                         Sophienstraße 33A
                                               10178 Berlin
                                                  Germany

                                        office: +49 30 28879641
                                       mobile: +49 174 3338853
                                        skype: robertschneidertp
                                     e-mail: robert@trialpay.com
                                      website: www.trialpay.com




                                                                                               Peter Wexler
                                                                   Senior Director of Strategic Partnerships

                                                                                 303 Bryan Street – Floor 2
                                                                                  Mountain View, CA 94041
                                                                                                      USA

                                                                                         office: 1.650.318.2602
                                                                                        mobile: 1.617.290.8668
                                                                                             skype: peter.wexler
                                                                                     e-mail: peter@trialpay.com
                                                                                     website: www.trialpay.com




  Payment and Promotions Platform            CONFIDENTIAL                                                          34

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Interaction and Engagement: The Evolution of Advertising in Social Games

  • 1. It’s Game Time … Interaction and Engagement: The Evolution of Advertising in Social Games @a4uexpo #trialpay Payment and Promotions Platform CONFIDENTIAL © 2012 TrialPay Europe. All rights reserved. 0
  • 2. Why are you here? 1 Because after this is a cocktail reception and I want to rest my feet before! Because my spouse is playing social games all 2 the time online and on mobile and I want to figure out why! Because I am interested in finding and 3 exploiting new performance marketing channels! Payment and Promotions Platform CONFIDENTIAL 1
  • 3. How people use the internet Payment and Promotions Platform CONFIDENTIAL 2
  • 4. Which advertising works? 5% I am considering buying something 40% I am looking for information 25% I am interacting socially ??% I am earning my online living Payment and Promotions Platform CONFIDENTIAL 3
  • 5. 5%: “I am considering buying something” Payment and Promotions Platform CONFIDENTIAL 4
  • 6. 5%: “I am considering buying something” SEO Post-Transaction Marketing Vouchers Retargeting Price Comparison Paid Search Cashback Loyalty Special Interest Blogs and Communities  Purchase intent is already present  High Conversion rates  Significant channel overlaps („customer journey“) Payment and Promotions Platform CONFIDENTIAL 5
  • 7. The 5% in Action A customer already searching for Neckermann is less valuable than someone who isn’t. On Google, Neckermann might pay for customers that were already going to buy from them. Payment and Promotions Platform CONFIDENTIAL 6
  • 8. 40%: “I am looking for information” Display Advertising Contextual Advertising  Continued importance at the expense of traditional advertising (Print and TV)  Significant purchase triggers, but not last touchpoints Payment and Promotions Platform CONFIDENTIAL 7
  • 9. 40%: “I am looking for information” Display Advertising Contextual Advertising Realtime Bidding  Continued importance for branding and image  Growth at the expense of traditional advertising (Print and TV)  Significant purchase triggers, but not last touchpoints Payment and Promotions Platform CONFIDENTIAL 8
  • 10. The 40% in Action A customer reading about Euro Cup is not looking to purchase goods or services Lots of noise to get message across and get desired action (click to sale) while user consumes information. Payment and Promotions Platform CONFIDENTIAL 9
  • 11. 25%: “I am interacting socially” Payment and Promotions Platform CONFIDENTIAL 10
  • 12. 25%: “I am interacting socially” Social Media Advertising Viral Marketing Fan Page Advertising  No purchase intent  Very low response rates to advertising (pub example)  Interest can be raised for trending commercial topics  Opinions are built and shared Payment and Promotions Platform CONFIDENTIAL 11
  • 13. “I am earning my online living” Payment and Promotions Platform CONFIDENTIAL 12
  • 14. Accessing the 25%! A customer who is presented a deal from Neckermann before she decided to purchase might decide to buy from Neckermann and do so instead of at Zalando next time she shops for clothes Payment and Promotions Platform CONFIDENTIAL 13
  • 15. “I am earning my online living” Earn-based economies Reward-based payments Social Game advertising  Offer users a deal for their engagement  Reach new users and create impulses for buying and interacting  Advertise where users spend more and more time  Combine large audiences and precise targeting Payment and Promotions Platform CONFIDENTIAL 14
  • 16. Why should advertisers care? Payment and Promotions Platform CONFIDENTIAL 15
  • 17. Online casual gaming is now a mainstream activity Representative mix of age and gender Larger audiences than prime-time TV Cityville The Sims Social Two and a Half Men Adventure World Farmville 21 Questions NCIS: Los Angeles Male Female Modern Family Big Bang Theory The Mentalist TV Shows CSI How I Met Your Mother Social Games Gardens of Time Diamond Dash Bejeweled Blitz Pioneer Trial 14-17 18-24 25-34 35-44 45-54 55+ Café World 0 US5audience in million 25 10 15 20 30 35 Balance of male and female users Casual gaming has become a 77% of users = eCommerce target group major leisure time activity. Data based on Facebook statistics and Nielsen TV ratings Payment and Promotions Platform CONFIDENTIAL 16
  • 18. What about Europe and Facebook, specifically! Approximately 25-50% user penetration and growing Payment and Promotions Platform CONFIDENTIAL 17
  • 19. Ok but I need more stats! References: eMarketer and Casual Gaming Association Payment and Promotions Platform CONFIDENTIAL 18
  • 20. And what about tablet/mobile trends? Nearly half of EU Smartphone Users are Gamers 53%/47% Female to Male split Game ad revenue to reach $894M by 2015 References: comScore, MobiLens,Touchstone Research Payment and Promotions Platform CONFIDENTIAL 19
  • 21. OK, tell me more about these earned/reward based economies! Spend time I want stuff for my game! Spend money 50,000+ virtual items sold every second using Facebook Credits Engage with brands Payment and Promotions Platform CONFIDENTIAL 2 20
  • 22. So how does this look? Game example: The Sims Social from Playfish, a division of Electronic Arts Publisher implements branded icons and banners within games to ensure high level of user interaction while promoting in a pay for performance manner Payment and Promotions Platform CONFIDENTIAL 21
  • 23. How about a lead/registration example? In this example: Car Town from Cie Games Payment and Promotions Platform CONFIDENTIAL 22
  • 24. I want to go straight to sales, ok! In this example: Restaurant City from Playfish, a division of Electronic Arts Payment and Promotions Platform CONFIDENTIAL 23
  • 25. I need to build brand awareness! In this example: Social Girl from Crowdstar . Payment and Promotions Platform CONFIDENTIAL 24
  • 26. Campaign Goal – Introduce a Product to a New Market BRANDING +++ REACH +++ CONVERSION +++ Lead users to the desired conversion through interactions with your brand. 1. Reward a smaller amount of credit for a series of videos and questions 2. Reward a larger amount of credits for subscription to the service Payment and Promotions Platform CONFIDENTIAL 25
  • 27. Get Creative! Clinique promotes new product lines by asking users to share success stories. Unilever helps users find their “heart age” Payment and Promotions Platform CONFIDENTIAL 26
  • 28. Brands getting feedback from the public Companies can perform market research, accessing their target demographic and achieving a statistically significant sample. Payment and Promotions Platform CONFIDENTIAL 27
  • 29. Brands as part of the experience Brand Interaction becomes part of the game Brand Interaction provides game play benefit Payment and Promotions Platform CONFIDENTIAL 28
  • 30. Brands as part of the experience Payment and Promotions Platform CONFIDENTIAL 29
  • 31. Getting attention in store! 100K in Farmcash redeemed in 6 weeks Seen in Target stores nationwide 100K in Farmcash redeemed in 6 weeks 13MM users downloaded songs Payment and Promotions Platform CONFIDENTIAL 30
  • 32. How does this look on Mobile? Entry Point OfferWall Offer Detail Completing offer Get Kicks for FREE Get Kicks for FREE Get Kicks for FREE 3 Kicks 160 Kicks 90 Kicks 50 Kicks 250 Kicks Variable Payment and Promotions Platform CONFIDENTIAL 31
  • 33. Rewards are now not just about games! Payment and Promotions Platform CONFIDENTIAL 32
  • 34. Conclusion 1 Don’t stop pulling, BUT evaluate pushing to gain new customers in an efficient performance manner. 2 Get creative with campaign types to engage audience. 3 Work closely with your reward economy publisher partner to measure customer quality. Payment and Promotions Platform CONFIDENTIAL 33
  • 35. Thanks Robert Schneider Head of TrialPay Europe Sophienstraße 33A 10178 Berlin Germany office: +49 30 28879641 mobile: +49 174 3338853 skype: robertschneidertp e-mail: robert@trialpay.com website: www.trialpay.com Peter Wexler Senior Director of Strategic Partnerships 303 Bryan Street – Floor 2 Mountain View, CA 94041 USA office: 1.650.318.2602 mobile: 1.617.290.8668 skype: peter.wexler e-mail: peter@trialpay.com website: www.trialpay.com Payment and Promotions Platform CONFIDENTIAL 34

Editor's Notes

  1. PETE
  2. PETE
  3. PETE
  4. The Internet has become freemiumAirline exampleTons of free services which get you from A to B
  5. Just like earning airline miles – you can sit in economy with everybody else, pay to sit in business, or use your bonus from another purchase to upgrade