business of branded mobile gaming
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The white paper addresses the uprising trend in mobile gaming industry and offers some advice for branded mobile gaming strategy. Feel free to contact [email protected] or (212)-480-2100TRANSCRIPT
BUSINESS OF BRANDED MOBILE GAMES
an aurnhammer whitepaper
Friday, September 27, 2013
www.aurnhammer.com@aurnhammer
Confidential: Property of Aurnhammer, 55 Broad Street, 13th Floor, New York, NY 10004 1
ContentsIndustry Overview 3
Gaming Leads Mobile 5
Case Studies 8
Aurnhammer 10
5 Key Questions 15
About Aurnhammer 16
Confidential: Property of Aurnhammer, 55 Broad Street, 13th Floor, New York, NY 10004 2
Industry OverviewEvolving technology has brought mobile to the spotlight of business trends. A major game-changer, the smartphone has simplified traditional phones and achieved a broader appeal. Through tapping and swiping, users get to enhance their quality of life without investing a lot of energy in understanding the device. The number of US smartphone owners in 2012 landed at 121.4 million, a little more than 38% of the population. This number is projected to grow another 1/3 by 2015 and reach 160 million.1
Smartphone’s success has won marketers’ attention since mobile is where consumers are. In a 2012 survey, 74% of US marketers indicate they currently use a mobile platform for their business, compared with only 32% of respondents in 2009. Mobile becomes an indispensable gadget for everyday life, and a new growth area to engage consumers.
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1 eMarketer.com
Digital or Online AdvertisingContent Creation and Management
Search Marketing (including Paid Search)Design, Development & Maintenance of the Corporate Website
Email MarketingAnalytics
Marketing on Social Networks (Ex: Facebook, LinkedIn, Twitter)Mobile Marketing
Commerce Experiences (Marketing-Led)Video Production
Company BlogOthers
0% 3% 6% 9% 12% 15%
Digital Marketing Budgets by Percentage
Source: Gartner for Marketing Leaders
Confidential: Property of Aurnhammer, 55 Broad Street, 13th Floor, New York, NY 10004 4
$0
$7.5
$15.0
$22.5
$30.0
2012 2013 2014 2015 2016 2017
US Mobile Advertising Spending, In Billions2012 - 2017
Source: eMarketer.com
Gaming Leads MobileIt’s no surprise that gaming stands out as a star player in the rising mobile industry. Smartphone’s portability and technological features set up a powerful gaming platform, while the application markets open up a direct distribution channel for innovative designers to provide beautiful gaming apps in big quantity and great quality.
Let’s take a look at how games dominate the market. Estimated in 2013, nearly 126 million people in the US will play a game on their mobile phone at least once a month.2 81% of iOS users have downloaded free games on their phones, which is 11% higher than the runner-up, social networking apps.3 The upper hand in paid apps is even bigger: the number of respondents who have purchased games (72%) is four times of those who have purchased music (18%).4 The large market share ensures investment value in mobile gaming.
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2 http://www.emarketer.com/Article/Gaming-on-Mobile-Leads-All-Other-Online-Platforms/1010125
3 eMarketer.com
4 eMarketer.com
0
50
100
150
200
2011 2012 2013 2014 2015 2016 2017
US Smartphone Gamers2011 - 2017, in Millions
Source: eMarketer.com
The freemium app pricing model is also testing well on games. In Q2 2013, 43% of US gamers have made at least one in-game purchase in a mobile game.5 Players are incentivized to pay for the power-ups to push forward their game progress. The financial result is impressive: from 2011 to 2012, US mobile gaming revenues went up by nearly 140% from $572 million to $1,363 million.6 Revenues from initial downloading, in-gaming purchases, and ad-supported options have all boosted up significantly.
Confidential: Property of Aurnhammer, 55 Broad Street, 13th Floor, New York, NY 10004 6
5 eMarketer.com
6 eMarketer.com
Games
Social Networks
Utilities
Music
0% 30% 60% 90%
Games
Music
Health & Fitness
0% 20% 40% 60% 80%
Source: eMarketer.com
Most Popular Free v. Paid Mobile App DownloadsAccording to US iOS Users, by Type, 2013 (% of respondents)
Free
Paid
US Mobile Gaming Revenues, by Type, 2011 - 2017in millions
2011 2012 2013 2014 2015 2016 2017
Download $260 $587 $746 $907 $1076 $1202 $1326
In-game $232 $559 $737 $960 $1205 $1561 $1791
Ad-supported $79 $218 $297 $373 $478 $580 $655
Total $572 $1363 $1780 $2240 $2753 $3344 $3771
Note: numbers may not add up to total due to rounding: includes tabletsSource: eMarketer, April 2013; confirmed and republished, October 2013
US Mobile Gaming Revenue Growth, by Type, 2011 - 2017% change
2011 2012 2013 2014 2015 2016 2017
Ad-supported 93.2% 176% 36.3% 25.9% 28.0% 21.5% 12.8%
In-game 81.1% 140.4% 31.9% 30.2% 25.5% 29.6% 14.7%
Download 81.2% 125.3% 27.2% 21.5% 18.1% 12.3% 10.3%
Total 82.7% 138.4% 30.6% 25.9% 22.9% 21.5% 12.8%
Note: numbers may not add up to total due to rounding: includes tabletsSource: eMarketer, April 2013; confirmed and republished, October 2013
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Case StudiesThere is no doubt consumers are turning to mobile games. Advertising within mobile games allows brands to develop their own forms of entertainment and drive engagement. It is a whole new way to encourage consumers to interact with the brand and build a community.
Snapple: “Spiny Lobsters in Snaplantis”
The game is part of the “Re-enFACTments” campaign and Snapple’s No.1 digital initiative for the year.7 The concept is based on Snapple “Real Fact” #694: Spiny lobsters migrate in groups of 50 or more, forming a conga line on the ocean floor.
“The way consumers interact with brands today is a lot different. Everyone has a phone with them at all times. Everyone has a multiscreen life that they live. We are putting the brand where consumers are—and that’s on these multiple screens.”
-Dave Fleming, Director of Brand Marketing, Snapple
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7 eMarketer.com
Red Bull: “Red Bull X-Fighters”
The mobile game is adapted from the Red Bull X-Fighters motorbike stunt competition, one of the most prestigious and most challenging freestyle motocross competitions.
“On mobile devices, consumers are just one click away from our online and social platforms, and mobile offers a great opportunity to engage consumers throughout the day, wherever they happen to be.”
--Wolfgang Schmirl, Head of Digital Media, Red Bull
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AurnhammerThe Aurnhammer team has spotted the jewel of mobile gaming since a long time ago. Following our clients’ broader marketing aim, we have created branded mobile gaming apps for various industries. We are always dedicated to provide brands with leading products by incorporating our tech expertise and fun personality.
Education: ThinkSmart Games: “The Animal Alphabet Singers”
To be released soon! The Animal Alphabet Singers is a cute and charming educational game app. Children can learn alphabetics from the animal characters singing the letters they each stand for. In collaboration with ThinkSmart, Aurnhammer pushes forward mobile education from ABC.
Confidential: Property of Aurnhammer, 55 Broad Street, 13th Floor, New York, NY 10004 10
Hotel & Casino: Foxwoods
Aurnhammer created a realistic slot machine app for Foxwoods, North America’s largest resort casino. As users spin the reels on their iOS based devices, they can tap on information about gaming, dining, nightlife and accommodations at Foxwoods. The app allows customers to interact with Foxwoods in a new and exciting context.
“The Foxwoods brand is constantly evolving in a way that speaks to today’s audience, and this exciting application is just the latest example of that. We have a strong commitment to staying current, while at the same time maintaining a focus on our loyal consumer base, and we’re proud to be on the forefront of consumer trends yet again with the launch of the world’s first-ever casino-branded iPhone application.”
--Robert Victoria, Senior Vice President of Consumer Marketing, Foxwoods
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Financial Insurance: Mass Mutual, “Save The Game”
Developed as an entertaining branded application, “Save! The Game” from Mass Mutual is also an instructional tool to teach children the value of saving money. Players can run, jump and dodge their way through a fantastic world collecting all the virtual money they can find before time runs out. Explore a fantastic world, earn some gold, and learn about the value of saving along the way.
“Interactive games can be a powerful educational platform for engaging kids on serious topics, and Save! The Game harnesses that potential to bring the concept of wants versus needs to life. MassMutual is proud to offer this app as part of our longtime commitment to education. We encourage parents to share it with their children to help teach them about the value of making good decisions about money.”
--Nick Fyntrilakis, Assistant Vice President, Corporate Responsibility, Mass Mutual
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Sports & Leisure: Bass Pro Shops, “Bass Pro Snowball Bonanza”
Bass Pro Shops, America’s premier outdoor retailer, teamed up with Aurnhammer to create the Bass Pro Snowball Bonanza–a realistic arcade style snowball shooting game for iOS. The app provides a playful and addictive fast-paced snowball fight game. It brings fun to the whole family while encouraging Bass Pro’s brand recognition.
Confidential: Property of Aurnhammer, 55 Broad Street, 13th Floor, New York, NY 10004 13
Health & Fitness: Planet Fitness
As America’s fastest growing gym, Planet Fitness encourages their customers to not take themselves too seriously. To help PF enter the mobile place in a humorous way, we created a playful app to keep Planet Fitness members connected and entertained.
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5 Key QuestionsThinking about marketing your brand within an addictive game? Here are 5 questions to ask for your branded game:
1. Who’s your game’s audience?
2. What games are trending in the AppStore?
3. What’s the depth of your game play?
4. What’s your distribution plan (iOS, Android, HTML5)?
5. Last but not least - be creative and have fun!
Confidential: Property of Aurnhammer, 55 Broad Street, 13th Floor, New York, NY 10004 15
About AurnhammerAurnhammer LLC, headquartered in New York City, is a creative media, custom design and development company specializing in branded smart applications for mobile. Aurnhammer has provided creative solutions for clients such as: Sony Music Entertainment, Showtime Networks, Kohler, Foxwoods Resort Casino, Lumber Liquidators, Bass Pro Shops, Mass Mutual, Bowers & Wilkins, Extra Innings, Stanley Hand Tools, Russian Standard Vodka, Century 21 Real Estate, Planet Fitness, Mentor Interactive and ClosetMaid. Besides technological skill in coding and programming, Aurnhammer team players bring experience in the fields of film and television production, digital arts, and graphic design. At the company’s core is a solid team of strategists, designers and programmers who work in a variety technologies and platforms to flawlessly bring these ideas to life. Visit http://www.aurnhammer.com and follow @AurnhammerLLC on Twitter to learn more about the company.
Aurnhammer55 Broad Street, 13th FloorNew York, NY 10004
212.480.2100
Bill Aurnhammer: [email protected]
Donn Gobin: [email protected]
@aurnhammerllc
facebook.com/aurnhammerllc
linkedin.com/aurnhammerllc
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