InGame Advertising, 3D Worlds Marketing

Online Social Networking & Business Collaboration World
DIGITAL WORLDS: SOCIAL, VIRTUAL, MOBILE

GAME & WORLDS
ADVERTISING & MARKETING

SOCIAL, VIRTUAL, MOBILE

www.personalizemedia.com www.theprojectfactory.com www.lamp.edu.au

Gary Hayes, Head of Virtual Worlds, TPF and Director LAMP@AFTRS
gary@personalizemedia.com - www.personalizemedia.com - www.theprojectfactory.com - lamp.edu.au


Service provider, content producer, strategist, director, web 2.0 ‘generator’
•Interactive TV & Broadband Web - BBC 8 years Senior Development Producer
•Personalisation - TV-Anytime (Future of Personal & Targeted TV)
•Emergent Media Development - Director LAMP, AFTRS
•Social Virtual World Producer - Head of Virtual Worlds, The Project Factory
• :) 9th top Media Marketing Blog www.personalizemedia.com



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

ABC Island Deakin Arts Island Thursday’s Fictions



BigPond ABC Island



Laboratory for Advanced Media Production

Founded in Sydney through AFTRS mid 2005

Incubated over 60 innovative social cross platform projects
- mobile, broadband PC/TV, IPTV, PVR, MUVEs & beyond



Scorched



TALK TODAY

Worlds AUDIENCE
Virtual Worlds MARKET
InWorld Marketing CASE STUDIES
Branded Entertainment World FUTURES


GAME WORLD

PLAYERS


Social Virtual ‘Game’ Worlds are ‘Live’



Generation V (virtual)
Definition
Unlike previous generations, a member of Generation V prefers to socialize,
obtain information and communicate through digital methods. These methods
are seen by Generation V as a means to expand their network base, allowing
them to communicate outside of their physical locations, and even globally.

Members of Generation V are not usually defined in terms of a particular age,
sex, race or location. Basically, Generation V is made up of people who
replace physical experience with an online experience.
http://en.wikipedia.org/wiki/Generation_V

•Women Comprise 40% of US Gamers
•26% of Whom Are over Age 50
•Average age of videogame players has risen to 35
Women age 18 or older represent a significantly greater portion of the game-
playing population (33%) than boys age 17 or younger (18%). 65% of American
households play computer and videogames.
Entertainment Software Association



Virtual Worlds are about Lifestyle Marketing
Aspirational, feelings, peers, family, friends, fun, entertainment, fantasy, love, death



Many are SOCIAL spaces



A lot are specialised



Social Virtual Worlds are part of Social Media



60% of Americanʼs play video games - 40% are women
300 million globally in social virtual worlds
Club Penguin 6m Habbo Hotel 12m

Neopets 6m Stardoll 13m

Nicktropolis 5.5m Webkinz 5.5m

SVWs inside gameplay environs - Runescape - 5.5m, World of Warcraft 11m, Gaia Online 3.5m



$345 Million Invested So Far This Year
•2nd Quarter 2008 - $161 million invested in 14 virtual-worlds
•1st Quarter 2008 - $184 million put into 23 virtual worlds
•Total this year alone to $345 million across 37 new worlds


VIRTUAL WORLDS

MARKET


2008
Global box ofﬁce sales $27 bln - mpa
Six Major Film Studios all media revenue $43 bln - mpa
Video games industry $48.3 bln
Online games $4.2 bln just in Asia-Paciﬁc

In 2012:
Games Industry $70 bln - pwc



•US retail gaming $18.85 Billion
•Global Box Office $9.6 Billion
•US Home DVD market $16 Billion
US Entertainment Merchants Association July 1 2008



Some MMOGs total revenues (rough)



Virtual Worlds are Big

• Gaia Online does over
50,000 person to person
auctions and 1 million
message board posts a day-
making them the 3rd largest
auction site and the 2nd
largest message board on
the Internet.
• Tencent generated $100
million+ in Q1 of 2007 and
over 65% of their revenue
comes from virtual goods.
• Habbo Hotel has over 75
million registered avatars in
29 countries and 90% of
their $60 million+ yearly
revenue comes from virtual
goods.


vCommerce and Generation V
Gaia Online



Merging of Games and SVWs



Merging of SVWs and TV



Merging of SVWs and the 2D web

Weblin and RocketOn


SuperStruct
5500 players in 2 weeks



a collaborative simulation
of a global oil shortage

32 days, 60 000 visitors
1800 players 12 countries

the best way to change
future is to play with it
ﬁrst - CNET

apr 2007



INWORLD MARKETING

CASE STUDIES



Marketing & InGame Advertising Models

Easy to Harder
1. Static Advertising
2. Promotions & Sponsored events
3. Virtual Goods & Product Placement
4. Dynamic InGame Advertising
5. Branded Spaces
6. AdverWorlds & AdverGames



Static Advertising
PriceWaterhouseCoopers estimates total spending on
in-game advertising to reach $1 billion by 2010.



NEW FORMS OF ADVERTISING - GAMES

US $295 million will be spent on in-game advertising
$207 million advergaming (the creation of games to promote a brand)

Advergaming will climb to $344 million in 2011, in-game advertising
will reach $625 million that year.quot; eMarketer



Government Communications Headquarters InGame Recruitment

Tom Clancy’s Splinter Cell: Double
Agent and high-octane racer Need for
Speed Carbon. By Massive

•Increased traffic to the Careers in
British Intelligence website by 1,000
percent, from an average 550 unique
visitors a day to an average 5,500
•Won the “Innovation” category at
the 2008 Recruitment Advertising
Awards, and received nominations
for several other industry awards
•Generated extensive coverage in
the national media

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



Splinter Cell with Nivea and Chrysler

A series of in-game product placement by Nivea.
Aimed at the male 18- to 34-year-old market
Bathroom product and billboards with
quot;There are many faces of evil. Don't let yours be one of themquot;
quot;The 'Good Guy' almost never has a beardquot;



Videogame advertising, both in and around game, is effective in driving
attention 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 overall
experience of playing video games and can have a positive impact.

* quot;It's fun to see things in games that are real.quot;
* quot;You'd notice a brand if it wasn't there... like they'll put a false brand
and I'll be like, what's that?quot;
* quot;Like in Ghost Recon, you have the Dodge billboards in the urban areas,
and I think that is pretty effective... it adds realism because, you know, you
see ads in the real worldquot;
* quot;I think being in a game is way better because in TV it can sometimes
annoy you and stuff and can have a negative effect on a product. But in a
game, I think it has a positive effect.quot;
* quot;I have no problem with it. I like it actually.quot;

Source: Videogame Advertising Engagement Study, July 2007



Promotions &
Sponsored events



* The centralized investment in the Second Life island paid for itself after
5-6 events. - If you think about recruitment at Accenture taking place in 49
countries, and each of these countries using the Accenture Careers island
rather than building its own, the cost savings really start to stack up.

* So Global Recruitment Marketing put a lot of effort into making it easy
for recruiters to use Second Life. The team holds meetings, calls, and tours
with recruiters and created a guide on how to sign up in Second Life, create
an avatar, walk, sit, chat, etc.



Virtual Goods &
Product Placement



Source: Betsy Book AAAS



Over 80 million registrations
7.5 million per month, 100 000 online at once
Branded virtual goods 90% of their $60 million+
yearly revenue comes from virtual goods.
Sophisticated Psychographics: 42 000 kids profiled



Dynamic InGame
Advertising



Branded Spaces



AdverWorlds &
AdverGames



quot;Now our audience can 'live' Laguna

Beach: The Real OC by immersing
themselves in a next
generation hybrid of TV show
and virtual communityquot; says
Matt Bostwick, SVP Franchise
Development MTV Music Group. quot;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 consisting of
Makena Technologies, Imaginary Forces, The Electric Sheep Company, Analog Protocol and Extra Large
Technology to make it happen in record time.quot;



Football Superstars is the world's ﬁrst Virtual
Football World. An entire online virtual world
designed by football fans exclusively for
football fans, where you can enjoy a massively
multiplayer experience on your PC.



BRANDED ENTERTAINMENT WORLD

FUTURES



BBC Inhabited TV circa 1996
”Inhabited TV involves the public deployment of collaborative virtual environments (CVEs) so
that on-line audiences can participate in TV shows within shared virtual worlds.” BBC R&D 1996

The experiment ran in parallel to the
BBC television series The Net. After
each TV program, its viewers were
invited to become inhabitants in a
virtual world whose design mirrored
its theme and where they could
engage in various events such as
debates between performers (e.g.,
between the author Douglas Adams
and BTʼs Peter Cochrane) and
playing with interactive objects (e.g.,
a bouncy castle). Over 2300 people
registered to become inhabitants of
The Mirror.



Blended Entertainment?
“Mixed Reality a creative or social activity that takes place
simultaneously in real and virtual worlds and where the
interaction in each are dependent on each other and resonant



Inhabited TV, Mixed Reality



Thank You

www.personalizemedia.com www.theprojectfactory.com www.lamp.edu.au


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