IP & SOCIAL GAMES
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1) FremantleMedia is a large independent TV and entertainment company that sees gaming and social games as a growth area, investing in companies like Ludia and Radical Media. 2) Using known media IP in social games can benefit both the publisher/developer and media owner by driving discovery, engagement, and revenue. However, good IP alone is not enough - games also need high quality design, analytics, monetization opportunities, and viral elements. 3) A case study of The Price is Right social game showed how it successfully translated the TV show into a multiplayer game on Facebook, driving high monetization and an increasing user base through its community focus, purchase opportunities, and viral and paid user
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IP & SOCIAL GAMES
- 1. IP & SOCIAL GAMES KATHARINE LEWIS
- 2. One of world’s largest independent TV production and entertainment companies $2bn business 40 countries World-class brands
- 3. IP sits at the heart of our business gaming Invested in Ludia 2008, 2010 Invested in @Radical Media 2010
- 4. gaming
- 5. Gaming is one of our growth areas c. 70 casual games in the market Across almost every platform Multiple top 10 and top 20 hits Multiple partners Multiple business models Social gaming is new growth area
- 6. IP is a win-win for social gaming PUBLISHER/DEVELOPER Easier Discovery Lower marketing costs Higher trust (& virality) Known demographic MEDIA IP OWNER Very high brand engagement Extends life of brand Strengthens brand Can broaden demographic Deliver meaningful revenue
- 7. IP can limit your downside MEDIA IP: Can have more than 50% success rate ORIGINAL IP: Often in the top 5 on leader boards but lower hit rate
- 8. So media IP is a guaranteed winner on Facebook, right? Not necessarily…
- 9. Good IP isn’t enough… Strong examples Weak examples ESSENTIAL ELEMENTS High quality game design Good analytics Frequent opportunities to purchase Strong viral design Decent marketing budget Proper translation of the brand Brand appropriateness UK game
- 10. Price is Right Case Study
- 11. Price is Right has all the right elements Famous brand, memorable game play Faithfully translated from the TV show e.g. Contestants Row, Showcase Showdown Play with FB Friends and FB users Real-time multiplayer Focus on community The result? Great monetization and growing user base 2,000,000 MAUs / 300,000 DAUs
- 12. Monetization strategy Purchase extra ‘Episodes’ Direct micro-payments for Coins Special offers Super Rewards Offer wall (30% inc. in revenues) Wild Tangent product placement (20% of revenues) Subscriptions (Coming soon) Total ARPU Daily around $0.06
- 13. Paid acquisition strategy Female audience 90% of all installs Cheaper clicks (up to 3x less) 35-50 year olds Target players of similar games and friends of players (inc. CVR 20%) Very cost efficient marketing due to brand 70% CVR, $0.26 CPA
- 14. Cross promotion on FME’s network Cross promotion on FME’s network Similar audience, 3% increase in DAUs since September Applifier delivering less due to lower audience synergies
- 15. Retention strategy Viral pop-ups: New level, High Score, Team Cash Weekly prize draw Virtual currency better incentive than trips! Frequent visits rewarded by more bonus coins 18% of DAUs have already purchased virtual currency 3 million games played/week
- 16. 2011 for FM 8-10 new games on the slate – titles under wraps Some original IP games Seeking partners for specific FM IP…
- 17. Crystal ball… Surge of media IP into the market TV brands, Movie brands, board-game titles Increased focus on using sophisticated CONTENT as a retention tool as viral channels decline and marketing $$ rise Re-make of existing game
- 18. Contact: Katharine Lewis Katharine.lewis@fremantlemedia.com Olivier Delfosse Olivier.delfoss@fremantlemedia.com THANK YOU
Notas del editor
- Hi, thanks for the introduction Charles.I’m going to talk to you today about how FremantleMedia has begun to exploit its media IP in the social gaming space.
- For those of you who don’t know FremantleMedia, we’re one of the world’s largest independent TV production and entertainment companiesWe’re a $2bn business, are in 40 countries, though our biggest market is the US...and we have a portfolio of world-class media brands – both our own and those that we represent for other people.
- Media IP sits at the heart of our business. Wherever it’s originally created, our Enterprises business unit look for ways to exploit it across other media platforms. We do this for both our own brands and those that we represent for other people.
- Price is Right is a great example of this
- Gaming has been particularly successfulWe have about 70 games in the market or about to launchWe’re across almost every platformWe have multiple top 10 or top 20 hitsWe work with multiple partners…and operate under multiple business models – everything from licensing to co-production to publishing through our recently-acquired gaming business Ludia.Social gaming is our newest area – we’ll be investing heavily in this area in the coming year.
- So how does IP fit in with social gaming?In social gaming, media IP can offer a win-win situation for games developers/publishers and for brand owners for multiple reasons:For publishers/developers media IP this can mean:Easier discoveryLower marketing costs (better brand recognition and memorization) at least initiallyHigher trust level can deliver greater virality if the right viral mechanics are in placeKnown demographic can help you target the game more effectivelyFor media IP owners this can mean:Very high brand engagement – compared with a TV show or a movieExtension of the life of the brand between TV seasons or film sequels Increase strength of brand – e.g. Family Feud game was one of the factors delivering an increase in TV ratings of the gameshow by 40% overall, and 86% among the older female demographicCan broaden demographic – reduce average of TV showIf a game is successful, its revenues can match that of other mainstream media platforms
- Media IP can also limit your downside in both social gaming – and in general in a gaming portfolio.This graph shows theoretical risk/reward profiles for media-IP based games, and original-IP based games.Original IP games that hit the top of the leaderboards do extraordinarily well in terms of revenue. But in our experience the hit rate on these games is now. It’s high riskMedia IP games tend to have a higher success rate because they are so recognizable by the user – people at least try them once. This limits the downside on these games. Some media-IP games hit the top 5 or top 10 levels in games leaderboards, but more often than not they spend a lot of time in the top 20s or top 25s, giving you sustainable income.
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- Games using media IP must have the basic elements to succeed:High quality design and game mechanicsGood analyticsFrequent opportunities to purchase virtual itemsA strong viral designDecent marketing budget and capabilitiesProper translation of the brand – and an appropriate brand
- I’d like to illustrate what I think is an excellent translation of media IP into a game, by looking more closely at the Price is Right game published by our partner Ludia
- Price is Right works because it has all the right elements.Ludia chose Price is Right because of its strong brand and highly memorable game playPrice is right is one of the longest running, most loved game shows in TV historyThe mechanics of the game lend themselves well to online gaming – the game mechanics are simple but there is enough depth to which can aid player retentionThe game was designed as a multiplayer game from the start – and deliberately allowed players to play both with FB friends and any other FB players in order to deliver enough liquidityThis gives the game a natural social feel, but we had to layer on additional social elements to encourage viralitySo far the game is exceeding our expectations – we have 2m MAUs and 300k DAUs
- A little bit about our Retention Strategy.We use the typical viral pop-ups – for example to display a user’s new level, high score or to notify users’ friends about how much team cash they’ve wonWe have a weekly prize draw – we originally had an all-expenses paid trip to LA to see the show, but in fact we found that a prize draw for extra currency was more popular!We also have a frequent visit loyalty program – the more you visit on successive days, the more free bonus coins you get each day.This has resulted in some good retention metrics – 18% of DAUs have already purchased virtual currency, and we have 3m games played every week, mostly by existing players.
- One last note – what do we see happening in social gaming in the next 12-18 months?There will be a surge of IP into the market – TV shows, movies, board-game titlesWe expect to see an increased focus in using sophisticated content as a retention tool, as viral channels decline and marketing costs rise. A great example of this is the special missions created by Attention Span Media for Zynga’s Mafia Wars.