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

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 it’s composed by 21 countries where the dominant languages are Spanish
and Portuguese and it’s 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 don’t just have the fastest growing
internet population in the world but it’s 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
America’s middle classes will outnumber the
region’s 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
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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
It’s 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
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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 it’s 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
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for lacking quality, service, and longevity.
“Players here are accustomed to games with no
enforcement of policies and no staying power. It’s a self-fulfilling prophecy: the players don’t
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? •Don’t 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
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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 it’s 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 it’s 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