Understand Online Paying Gamers Motivations and Purchase Behavior

1. « The P(L)AYERS »
Understand Online Paying
Gamers Motivations and
Purchase Behavior
French edition

2. Introduction:
Survey Data

3. HiPay
A Hi-Media company
• founded in 1996
• 198 M€ revenue in 2012
• Approximately 500 employees worldwide
• # 1 advertising network in europe
• Leading online payment provider in europe
• One of the leading website publishsers
• Publicly traded on the euronext , paris eurolist B
HI-MEDIA GROUP IN FIGURES:

4. HiPay
Key Facts
• Founded in 2003
• 107 m€ revenue in 2012
• 10 million transactions per month
• More than 20 000 active merchants
• 50 payment methods in more than 85 countries
• Over 100 employees worldwide
• Double banking license – payment service provider & e-money issuer

5. Survey Data
The survey was conducted by Superdata research institute. This used for this report was, performed in
May 2013, included 500 qualified, France-based respondents and 32 questions. Respondents were
prescreened as F2P online, PC gamers who have made a purchase in the last two months.
The questions asked covered three main topics dealing with online gaming: gaming habits, purchase
behavior, and payment method use and opinions.
Payment Methods and Examples
• Credit card: Visa, Mastercard, American Express, Carte Bleue
• Pre-paid game card: Ultimate Game Card
• Home Phone Billing
• SMS payment/Premium SMS payment
• Direct mobile phone billing or carrier billing: Zong, Boku or Mopay
• E-wallet: Google Checkout, Paypal or Hi-Pay
• Cash payments: Western Union or Boleto Bancario
• Direct debit or Bank Transfer: Sofortüberweisung, Giropay, iDEAL
or ePagado
.
Terminology & Definitions
Game Genres and Examples
• MMORPG or multiplayer online battle arena: Allods Online or League
of Legends
• Action/Adventure MMO: Aion, Rappelz
• FPS/First Person Shooter: Ghost Recon Online or Planetside
• Social: Farmville or Cityville on Facebook
• Strategy MMO: The Settlers Online or World of Tanks
• Casual: hidden object, card, or puzzle games like Candy Crush Saga
• Virtual world: Habbo, IMVU
• Sports: Football Manager
If you any questions or remarks regarding this study, please contact us. We appreciate your
feedback
Methodology

6. 1-Player Behavior:
Who is playing and how

7. F2P online gamer demographics
What we know about them?
30%
female
70%
male
Overall online gamers are almost evenly split
between males and females
. However, when analyzing paying gamers
only, the group skews male. PC gaming
males are accustomed to spending on video
game entertainment. Many are console
gamers where new releases cost upwards of
$60 each. While women are a rapidly
growing gamer segment, their gaming
budget is still developing.
Age-wise, majority of paying online gamers
are 19 to 45 years old.

8. Online gamers skew towards
sports and MMORPG games
1Q: What other types of free-to-play, online games did you play in the past 2 months? Please select all that apply.
2Q: What type of free-to-play, online game did you play most frequently in the past 2 months? Select one.
VW
6%
Casual
7%
Social
12% MMORPG
21% Sports
31%
27%
33%30%
23%
14%
All genres played1
Genre played most frequently2
‣ Social and casual games are the most sample friendly genres. Online gamers dabble in both
categories but neither take up most of their gaming time. Social and casual games are conducive to
low commitment playing and survey results reflect this attribute.
‣ On the opposite end, sports and MMORPG have the most dedicated F2P online players.
FPS
6%
Action
5%
Strategy
4%
14%
17%
16%
Gamers play all types but most dedicated to sports and MMORPGs

9. F2P attracts committed players
Frequency of play1
1Q: How often do you play free-to-play, online games? 2Q: When you play free-to-play, online games, how long do you play?
Average play session length2
‣ F2P online games are
immersive genre, with
over half of players
playing multiple times
day. Players also settle
in for lengthy play
sessions. Forty-two
(42%) clock their
gaming time at over an
hour.
55.2 minutes
Average daily time spent
playing F2P online games.
Over 50% of online F2P paying gamers play multiple times per day.

10. Gamers who play for longer periods of time spend more on in-game items.
1Q: Per purchase, about how much did you spend on buying in-game items or virtual goods in the past 2
months? 2Q: When you play free-to-play, online games, how long do you play?
Spend per purchase1 by Average play session length2
‣ Thirty-five percent (35%) of gamers with play sessions under ten (10) minutes
spend less than 1€.
‣ On the opposite side of the spectrum, gamers who play for more than one hour per
session have the highest percentage who spend over 20 euros.
Longer play sessions mean
higher spend

11. Play behavior varies by game
genre
1Q: When you play free-to-play, online games, how long do you play? 2Q: What type of free-to-play, online game did you play
most frequently in the past 2 months? Select one.
Average play session length1 by genre2
‣ Casual games majority of play sessions last less than ten (10) minutes. Complete
opposite of MMORPG where 60% of players settle in for over an hour every time they
play.
‣ Social gamers play sessions are middle ground. Many play for less than thirty (30)
minutes but 53% of play for more than one hour.
MMORPG most immersive F2P genre, casual least immersive.

12. 2-Purchase Behavior:
Spending habits & motivation

13. More than 1/3 of purchases
driven by competition
‣ Gaining a competitive advantage is
top of mind for gamers when
making a purchase. More than one-
third of online gamers say beating
their competition is what drives
them to buy in-game items.
‣ Price is a consideration. Taking
advantage of a sale or promotional
pricing motivates one-quarter of
purchases.
‣ Teamwork and communication least
important factors in purchase
decision.
1Q: Per purchase, about how much did you spend on buying in-game items or virtual goods in the past 2 months? 2Q: What motivated you to buy in-game
items or virtual goods in the past 2 months? Check all that apply.
Purchase motivation2
Spend per purchase1
9,40€Average amount spent per F2P online gaming purchase
And average purchase just under 10€.

14. Spending by genre reveals
key differences in players
1Q: Per purchase, about how much did you spend on buying in-game items or virtual goods in the past 2 months? 2Q: What type of free-to-play, online
game did you play most frequently in the past 2 months? Select one.
Spend per purchase1 by Genre played2
‣ Similar to game session length, casual gamers are on the low end of the spectrum. The majority
(71%) of this genres’ players spend under 5€ on in game items.
‣ Comparatively, MMORPGs have the most gamers (27%) spending over 20€.
‣ Outside of MMORPG and Casual, most game genres’ spending is concentrated between 1€ and
10€.
MMORPG & casual gamers concentrated at opposite ends of spending spectrum.

15. For all other spending ranges, aspects of competition matter most.
Purchase motivation1 by spend per purchase2
‣ Small spenders have a simple objective: play longer. These players are focused on gaining more gaming
time well above any other purchase driver.
‣ Gamers who spend just slightly more (1€ to 5€) are already thinking more strategically as they spend to
gain a competitive advantage and boost their score/rank. This desire to gain an upper hand over other
players extends through all spending ranges over 1€.
‣ Communication and teamwork low on priority list for gamers (categories not shown due to low
percentages).
1Q: What motivated you to buy in-game items or virtual goods in the past 2 months? Check all that apply. 2Q: Per purchase, about how much did you
spend on buying in-game items or virtual goods in the past 2 months?
Small spenders driven to
extend gaming time

16. Purchase motivation varies by
spend for MMO gamers
Purchase motivation: MMO gamers1
‣ Extending gameplay and competitive advantage universally important to all levels of MMO spenders.
Each spending range has these motivators at over 17% (except competitive advantage to less than 1€
spenders).
‣ Avatar personalization because a purchase driver at the 16€ category. Players at this spending level and
above are more invested in their games and want to differentiate their characters.
1Q: What motivated you to buy in-game items or virtual goods in the past 2 months? Check all that apply. Note:
MMO includes MMORPG, MMO Adventure and MMO Strategy gamers.
MMO gamers investing over 20€ focused on progress and personalization.

17. Communication drives
social/casual gamers to buy
Purchase motivation: Social/Casual gamers1
‣ Communication shows up as purchase motivator for social and casual gamers in numerous
spending ranges. Other genres rarely mention this factor in more than one spending category.
‣ Lots of variation by spending range. Extend gameplay, sale, avatar appearance, boost score,
competitive advantage and additional content are all top drivers in different spending categories.
1Q: What motivated you to buy in-game items or virtual goods in the past 2 months? Check all that apply. Note: Social/Casual includes social and casual gamers.
Social/casual gamers invest in communication more so than other gamers.

18. Online gamers
consolidate purchases
Average number of purchases less than two per month.
Number of purchases2
1Q: About how much did you spend in TOTAL on free-to-play, online game purchases in the past 2 months?; 2Q:How many purchases of in-game items or virtual goods
have you made in the past 2 months?
3 to 5
26% 1 to 2
58%
6 to 10
10%
10+
6%
1.7
Average number of F2P online gaming
purchases per month
Total F2P online gaming spend1

19. Purchase timing
depends on game type
MMORPG players make buy early on to enhance Gameplay.
Purchase timing by game genre1
‣ 45% of MMORPG players spend on virtual goods within days of playing a new game. These
gamers commit quickly and are more engaged earlier on in their playing lifecycle.
‣ Social gamers take much longer to spend. Over 25% of them do not invest until over one month
of playing. Almost half of these spenders are female (43%) reiterating the notion that women's
video gaming spending habits differ from men’s.
1Q: About how long did you play before making your virtual goods or in-game items purchase?
one day couple of days one weekcouple of weeks one month couple of months

20. 3-Payment
pressure points:
Payment choices

21. Credit cards most popular
payment method for gamers
However, 23% try to avoid credit cards for gaming purchases.
Payment method used online gaming1
‣ Credit card is the single, most utilized payment method for F2P online gamers with over 40% of
F2P online gamers using them for in-game purchases.
‣ Gamers are very comfortable using alternative payment methods. Combined alternative payments
are the majority of payment methods (51%) used. Despite their ubiquity, gamers still seen them as
problematic with 76% of gamers try to avoid use.
‣ Mobile payments (direct mobile and SMS) combined make up 19.3% of game payments.
1Q: Which of the following payment methods did you use most frequently to purchase your in-game items or virtual goods?
Other category excluded. Responses will not add up to 100%.
Payment method to avoid1

22. Small transactions favor ISP
billing and SMS payments
Gamers making larger purchases are more likely to use eWallets.
‣ Credit card top method for all spending categories (not shown). Regardless of spending
amount, gamers use credit cards for most of their online gaming purchases.
‣ ISP billing and SMS payments favored in small transactions. ISP billing is most popular in
the less than 1€ category and SMS payments seem ideal for gamers spending 1 to 5€.
Payment method used online gaming1 by average purchase amount2
1Q: Which of the following payment methods did you use most frequently to purchase your in-game items or virtual goods? 2Q: Per purchase, about how
much did you spend on buying in-game items or virtual goods in the past 2 months?

23. Alternative payment methods
use depends on genre
Different game categories favor different alternative payment methods.
Alternative payment methods used by genre1
1Q: Which of the following payment methods did you use most frequently to purchase your in-game items or virtual goods?
Use of prepaid games cards among
MMORPG players more than double
compared to others. Availability most
likely a prevailing factor.
SMS and ISP billing
most popular with
virtual world
players.

24. Security important consideration
in payment choice
Security equally important in decision to use or avoid payment methods.
Why choose payment method1
‣ Security, speed and ease of use
top priority list for online gamers
payment method choice.
‣ Spending caps important when
deciding what method to avoid.
Online gamers most concerned
about overspending with credit
cards and ISP billing.
1Q: What motivated you to buy in-game items or virtual goods in the past 2 months? Check all that apply.
Reasons to NOT use a specific payment method

25. About
Superdata Research
Founded in 2009, SuperData provides market intelligence on free-to-play and online games. By
collecting behavioral data directly from publishers and developers, SuperData identifies key trends,
establishes revenue estimates and analyses market changes for popular online games, including
MMOs and social games.
SuperData publishes industry-relevant key performance indicators. Using our unique panel of
2,000,000 paying online gamers, we establish monthly benchmarks such as ARPPU, conversion
rates, and lifetime value. Customers use our data to evaluate their performance, identify key growth
opportunities, assess revenue potential, optimize their efforts, and better understand their audience’s
wants and needs.
SuperData’s client base includes brand owners, developers, retailers, publishers, VCs, and payment
service providers.

26. Media contact: Yannis Weinbach
Tel: +33.1.53.85.88.04
y.weinbach@warningcom.com