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The Social Games
     Opportunity
in Europe and Russia
   Alexey Kostarev,
   co-Founder and CEO
Social Games Axiom:




 Large              Large
Audience            Profits
Social Games Axiom #2:




 Small             Small
Audience           Profits
Facebook?
One can earn big money
on Facebook if ready for
competition and huge
investments.
Good news:
one can avoid
a ‘sanguinary’
competitive war




LOCAL MARKETS
Russian social games market




       100% per
         year!




* Source: GP Bullhound
In almost every region, local networks are
                meaningful size



Vznet          NK              MoyMir
20M           20M               30M



                VKontakte
OK                80M                    Orkut
60M                                      50M
MAU of all main European networks in compare with
Facebook
Europe and Russia:



 Population: ~1 billion people;

 40 main social networks – 200 mln users;

 Facebook audience: 170 mln users.
Social networks in Europe and Russia



 Open

 Half-closed
                                mostly
 Closed
Open social networks


 open API description;

 open and unified financial conditions;

 low quality requirements;

 few requirements to technical support.
Half-closed social networks


 open API description;

 standard financial conditions; contract;

 applications are checked more thoroughly;

 technical support in the users’ language




  17M               2.5M               4M     1M
Closed social networks

 API description – only for trusted partners;

 individual agreements;

 very high quality requirements, compulsory beta-testing;

 many technical support requirements (only in the users’
  language).




            70M            21M           12M
Own funds                            Publisher
• Full control of revenue and game   • No worries and significant
  performance on the network           expenses for the game launch
• Publisher’s experience               and performance on the network
                                     • Sharing revenue
Every time you spend money on          Solo developers publish their own
hosting, changing API, and technical   games on
support. And costs are growing with    2 social networks or less
every new social network
Benefits of cooperation with professional publishers
               in Europe and Russia:



 larger users’ payments;

 fast traffic growth;

 fast distribution;

 optimization of monetization schemes;

 no expenses .
Sources:

AppData - http://www.appdata.com
AppData - http://www.appdata.ru
Compete - http://siteanalytics.compete.com
Crunchbase - http://www.crunchbase.com
DoubleClick Ad Planner | Google - https://www.google.com/adplanner
Facebakers - http://www.facebakers.com
Quantcast - http://www.quantcast.com
i-Jet Media analytic reports
Thank you for your attention!


          iJetMedia

    alexeykostarev@gmail.com

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Day2 1030 kostarev_social games opportunity

  • 1. The Social Games Opportunity in Europe and Russia Alexey Kostarev, co-Founder and CEO
  • 2. Social Games Axiom: Large Large Audience Profits
  • 3. Social Games Axiom #2: Small Small Audience Profits
  • 4. Facebook? One can earn big money on Facebook if ready for competition and huge investments.
  • 5. Good news: one can avoid a ‘sanguinary’ competitive war LOCAL MARKETS
  • 6. Russian social games market 100% per year! * Source: GP Bullhound
  • 7. In almost every region, local networks are meaningful size Vznet NK MoyMir 20M 20M 30M VKontakte OK 80M Orkut 60M 50M
  • 8. MAU of all main European networks in compare with Facebook
  • 9. Europe and Russia:  Population: ~1 billion people;  40 main social networks – 200 mln users;  Facebook audience: 170 mln users.
  • 10. Social networks in Europe and Russia  Open  Half-closed mostly  Closed
  • 11. Open social networks  open API description;  open and unified financial conditions;  low quality requirements;  few requirements to technical support.
  • 12. Half-closed social networks  open API description;  standard financial conditions; contract;  applications are checked more thoroughly;  technical support in the users’ language 17M 2.5M 4M 1M
  • 13. Closed social networks  API description – only for trusted partners;  individual agreements;  very high quality requirements, compulsory beta-testing;  many technical support requirements (only in the users’ language). 70M 21M 12M
  • 14. Own funds Publisher • Full control of revenue and game • No worries and significant performance on the network expenses for the game launch • Publisher’s experience and performance on the network • Sharing revenue
  • 15. Every time you spend money on Solo developers publish their own hosting, changing API, and technical games on support. And costs are growing with 2 social networks or less every new social network
  • 16. Benefits of cooperation with professional publishers in Europe and Russia:  larger users’ payments;  fast traffic growth;  fast distribution;  optimization of monetization schemes;  no expenses .
  • 17. Sources: AppData - http://www.appdata.com AppData - http://www.appdata.ru Compete - http://siteanalytics.compete.com Crunchbase - http://www.crunchbase.com DoubleClick Ad Planner | Google - https://www.google.com/adplanner Facebakers - http://www.facebakers.com Quantcast - http://www.quantcast.com i-Jet Media analytic reports
  • 18. Thank you for your attention! iJetMedia alexeykostarev@gmail.com