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Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1. Current situation of online marketing. . . . . . . . . . . . . . . . . . . 2. Introduction to the main players. . . . . . . . . . . . . . . . . . . . 3. Drawbacks of traditional advertising. . . . . . . . . . . . . . . . . 4. Emerging solutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5. Summary of available solutions. . . . . . . . . . . . . . . . . . . . . . 6. Play marketing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.1. Definition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.2. Main patterns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6.3. 7 Principles of play marketing. . . . . . . . . . . . . . . . . . . . . . . . 6.4 Examples of gamified marketing. . . . . . . . . . . . . . . . . . . . . . Cases of Goodbuzz. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Play marketing benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Goodbuzz solution – blueprint to get started. . . . . . . . . . . . . . . 5 steps to launch a successful play marketing campaign. . . Information sources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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IntroductionIn 2004, about 1000 households in America were asked this simple question: “If you had to live in deserted island and could only take one of the following with you, which would you take? “

The result speaks for itself. 64% of respondents said they will take their computer with an Internet access. In 2013, they would say “I’ll take my tablet or smartphone with an Internet connection” which would include radio, mobile communication (cellphone), newspapers, e-books and audio books. To sum up, 96% of people will take a device with an internet access. This simple study clearly show us where is the future of online media, and consequently advertising.

If you had to live in deserted island and could only take one of the following with you, which would you take? 96 % of people chose any device with internet access.

1. Source: Ipsos Insights

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1. Current situation of online marketing

Global advertisement spending rose from 482 billion U.S. dollars in 2010 to 530 billion U.S. dollars in 2012 (10% growth). In 2010 global online advertising spending amounted to 15% of total advertisement spending, while in 2012 it was already 18%. It is expected that the trend will remain the same.

Based on projections, global advertising spending is expected to grow 13% by 2016 compared to 2012 and reach 600 billion U.S. dollars, while the share of global online advertising spending is estimated to reach 22% of total spending (130 billion U.S. dollars). There is a huge market potential for online advertising.

Global online Ad spending vs total ad spending

2. Source: Go-Gulf

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However, the potential is geographically concentrated in one region – North America (40% of online advertising spending). So, the global trend very much depends on consumer behavior in USA and Canada where most of global advertising market players are established. Nevertheless, Western Europe and Asia-Pacific regions together amount to around 50% of online advertising spending.

3.Source: Go-Gulf

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2. Introduction to the main players

Google, Yahoo/Microsoft, Facebook, and Aol are the largest players of online advertising market. Together they hold 61% of the market while 39% is held by substantially large amount of small players.

To start with, Google which is the largest player in the market (44%) offering powerful marketing tools and free translation tools to help attract audiences everywhere in the world.

Another player, Yahoo/Microsoft (12% of the market share) claims that they deliver custom solutions to build a brand and the required response. Yahoo’s targeting tool is able to turn audiences into customers, helping to reach the right people and deliver the right message.

Online advertising market share

4. Source: Go-Gulf

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Where advertising agencies are planningto spend on social media ads

5. Source: Go-Gulf

Furthermore, social network Facebook with a user base of more than 1 billion holds 3% of online advertising market. Their share is expected to grow significantly in the future together with an emerging generation of social networks.

Companies that use Facebook Ads can enjoy the word-of-mouth marketing since users comment and like an average of 3.2 billion times every day.

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3. Drawbacks of traditional advertisingGFK Media Efficiency Panel has evaluated several digital advertisement campaigns (2011) in order to accurately audit the return on marketing investment on short-term sales. The findings are surprising and prove that advertising market has changed significantly due to changed consumer behavior and customer needs.

It was proved that online marketing campaigns are on average more efficient than offline. ROI for online activity was 75% compared to 66% for press, 53% for outdoor and only 43% for TV ads.

In addition, online marketing activities are now as competitive in terms of reach as traditional channels – digital campaigns now reach on average 33% of online population while press reaches less than 40%, and outdoor less than 30%.

The impressive reach statistics are supported with significant exclusive reach by digital campaigns to consumers not exposed to TV advertising. It is estimated that at least 25% of consumers who saw at least one online advertisement were never exposed to TV ads, while on the other hand 46% of those who saw ads on YouTube and other videos online had no contact with corresponding ads on TV.

To conclude the facts on growing efficiency of digital marketing campaigns, online channels consistently bring higher sales uplift than traditional. Google Search is proved to provide biggest driver (41%), while an average contact with an online is 9%, compared to 6% for outdoor, 7% for TV and 8% for press.

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However, currently used solutions are not perfect and have some drawbacks. The main issue with existing advertising options is waning effective-ness.

People who live near train lines finish to find ways to adjust to the noise … They barricade theirwindows, and use noise filters and ears plugs when they need peace of mind.

Todays, consumers have began to treat advertising as the noise of those trains.

They use adblockers, mail filters, and actively or passively ignore anything outside of the content they are consuming.

People who live near train lines find ways to adjust to the noise... Consumers have begun to treat encroaching advertising just like thos trains.

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To illustrate, people stopped noticing advertisements. This phenomenon is called advertisement blindness. It is scientifically proved that people do not see ads on web pages anymore. Colored areas in the picture below represent relevant and important areas for the visitor.

The analogy can be drawn with the people who live near the trains. After some time, people learn how to ignore the noises of the environment and live peacefully. As a result of advertisement blindness and a very low click-through rate it takes a very long time to reach customers. It is estimated that an ad copy need to be displayed 5.000 to 50.000 times to get one single click from customers.6. Source: Marketing Pilgrim

Ad blindness

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In order for the customer to see the advertisement and act on, it costs more money to reach customers and convert clicks in sales. In addition, conversion rates are lower than they used to be. There are other problems with an increasing supply of online advertising. Firstly, it takes more time to reach customer and to get a significant volume. Secondly, the prices of online advertising are increasing.

7. Source: MediaMind

Banner ad click through by type of site, 2010

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Smartphones market

8. Source: Go-Gulf

Another challenge is related with migration to mobile and tablet devices. There are more than 1 billion smart phones around the world and 89% of users use it throughout the day. However, existing advertising models doesn’t work well on mobile and tablet devices.

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4. Emerging solutionsIt is necessary to emphasize the changing behavior of consumer. Today’s customers changed the way they think and it became very important to deliver message that he would be willing to receive. People spend their time on social networks and game platforms or use their smart phones in every available second of their life.

It’s necessary to understand today’s customer’s way of thinking in order to deliver a message that he would be willing to receive

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People seek for fun, ability to compete, participate, talk about it and share on social networks.

Building cities, managing farms, playing with angry animals and reading what their friends are doing andrecommending on Facebook & Twitter became essential part of everyday life.

9. Source: Go-Gulf

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Currently, around 2 billion people use Internet everyday and spent around 35 billion hours per month. So, one person on average is 16 hours per month online.

Another important aspect for the customer is to get a receiving touch. Based on the results of Statista consumer survey (2011), it is clear that customer would prefer personalized message with a good deal.

The survey showed that personal recommendations are the most trustful form of advertising (92% trust completely), while text messages are least trustful option (only 29% trust completely).

10. Source: Go-Gulf

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As a result of changing environment and challenges faced by online advertising market it is necessary to find alternative efficient ways to improve advertising experience. One of the innovative, easy to use, cost-efficient and available options is play marketing also known as gamification marketing.

Play marketing is based on integration of advertising and game-like experiences by creating advertisements which have game properties and are used to engage people.

Ways of using social media

Use of gamification marketing can allow companies to bring fun factor into product’s promotion. That is extremely appealing to the end user, who wants to have fun, participate, compete, win and share his experiences with others on social networks. For example, studies show that companies which organize are perceived to be friendlier.

11. Source: Social Media Today

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5. Summary of available solutionsTraditional ways to advertise are losing attractiveness due to reasons specific to the channel used. To begin with, Google Adwords despite being widely used have some major disadvantages.

First of all, it is passive since company has to wait for the cutomers to search for something related. In addition, Google Adwords give diminishing results from each dollar invested, because consumers have moved to mobile Internet and it takes time to deliver results with volume.

Another channel, email marketing, is not attractive because most of young people have moved to social networks. Moreover, email marketing has a very low click rate, because some emails go to spam and partly because people are becoming more and more cautious about what they receive in email. To continue with, marketing on social networks is also very specific.

However, not efficient enough since people tend not to click on ads on social networks. Furthermore, fourth available option is inbound marketing. In order to create successful campaign a lot of time is required for the creation of content and distribution. It creates a high entry barrier which goes along with steep learning curve. Last competing option is display marketing which efficiency depends on the reach.

However, it is proved that consumers are becoming blind to ads and as a result this option provides with very low conversion rate.

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To compare with, play marketing is developed with a purpose to innovate advertisement in a way which is able to bring more response from the customer simply by engaging more than traditional ways of advertising.

Ways of using social media

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Play marketing is a term that explains the use of gamification in marketing. In turn, Gamify states that, ”Gamification is the application of the game mechanics and game design techniques to make products and services more fun and engaging to help reach business objectives such as retaining and attracting new users as well as influencing their actions”.

In marketing, a gamification initiative might address emotional aspects of game theory as well as social ones by including a system of rules for participants to encouraging competition and offering prizes so that participants have a chance to win something of value.

The overall goal of gamification is to engage with consumers and get them to participate, share and interact in some activity or community. A particularly compelling, dynamic, and sustained gamification experience can be used to accomplish a variety of business goals.

6. Play marketing6. 1. Definition

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Humans have been playing games in various forms from the beginning of existence and competition is deeply ingrained in human psyche. Additional human psyche features are provided in the table below:

Desire to win as incentiveDesire to win encourages participate in games and spend time for them

Pleasure of finding the solutionIf problem is not too easy nor to hard, being capable of finding solution gives satisfaction

Display of who has engageIf it is shown who participated, people feel pleasure of social recognition

Social call: somebody challenges, band-wagon effectPeople want to prove that they are capable of doing something if others already did or want to behave the way others behave

People play lottery due to positive skewness

Finding solution for crosswords gives satisfaction

People call to radio to hear them-selves aloud

People tend to participate it is trendy

6. 2. Main patern

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Play marketing is developed with a purpose to innovate advertisement in a way which is able to bring more response from the customer simply by engaging more than traditional ways of advertising.

Engagement is one of the key factors for the vendors.

In the M2 Research Group report it is shown that 43% of the vendors are looking for the ways how to increase consumer’s engagement.

In addition, play marketing is the solution which in prospect can become a long term solution for the advertisement blindness, because of use of engagement and fun factors.

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As you can see in the graph shown below, gamification market is expected to be bigger 10 times in 2016 compared to 2012.

Moreover, The Gartner Group has estimated that 50% of corporate innovations (i. e. virtual currency, leader boards) will be based on gamification process by 2015. This new marketing tool should bring higher returns on the marketing investment, because it ismore interactive and should spread as virus among users of the product and non-users of the product. Virality can be explained by the fun factor. Customers tend to look for activities which bring engagement, happiness and fun.

12. Source: The Gartner Group

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6.3. 7 principles of play marketingPlay marketing is a friendly way to get in front of your clients

We all need an excuse to speak to a stranger. A smile, a joke, a playful accident help break the ice and eventually we have a friend for life. Traditional advertising doesn’t follow that rule. It just interrupts people and start shouting at them. That is disrespectful.

No wonder people hate advertising. Play marketing in the other hand follow that social rule, and beforehand is an excuse to have the permission from consumers to tell the story of a company or brand. In some cases it starts with simple question like “Do know which business is located at this address?”

In other cases it’s a treasure hunt experience. The starting experiences could diverse and are unlimited. Through playful interaction consumers are relaxed enough to let the advertiser have a conversation with them.

The traditional advertising based on “We have paid for this, therefore we have the right to interrupt you” will slowly fade away, as it’s not respectful of people. Permission based marketing like Play marketing will slowly grow to replace the old models.

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Play marketing is for customer engagement and awareness.

Play marketing could deliver very good short term results; however it should not be considered as direct response tactics, but a customer engagement and awareness strategy.

Advertiser should focus more on the top of the funnel, and make it cardinal goal to create a memorable experience and brand stickiness trough their play marketing campaign.

Success should not be measured on the number of emails grabbed or the number of “like”. Focusing excessively on short terms goals could backfire as consumer would feel the advertiser insecurity.

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Play marketing is an amplification strategy

As a native social media format, the “play format” behind the play marketing concept helps advertiser expand the size of their social reach across new platforms.

One of the most difficult issues of an advertiser today is how to have volume faster. The play format includes social media sharing and “friend invite friend” tools that could be smartly leverage by advertisers to achieve volume faster.

“In our new world speed matters a lot. Things are changing so fast. Marketers need innovation that delivers on scale, and on speed.” Rishad Tobaccowala, Chief Strategy and Innovation Officer, VivaKi.

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Play marketing is an opportunity to learn more about your customers

The rich format of Play marketing help advertiser to include questionnaire, quiz, survey and any other activities that help learn more about customers behaviors and preferences.

Focusing on learning creates a much deeper level of connection with customers as the format give customer voice and ways to speak back to the company or the brand. The one-way communication and advertising model is fading, consumers want to be heard, and every unique play marketing campaign should include a consumer insight goal.

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Play marketing is about creating memorable experiences

In 2000, I participated in an online contest to win a Business Book organized by “Advanced Practical Thinking” company. The contest involved answering few questions and submitting the answers through an online form 12 years later, every time I see the book I won from the contest it reminds me the experience and sometimes I check back their website. Now, if I have to hire a company providing creativity and innovative thinking tools and solutions, I’d include this company in my list to request a proposal.

A recent survey found that company which engage with customers through contests and surveys in a simple and human way, are perceived to be friendlier. As the old saying goes, “All things being equal, people will do business with a friend; all things being unequal; people will still do business with a friend. “ - Mark McCormack

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Play marketing is about respecting the customers.

- Select your prize carefully. Match it to your audience persona and the current sea son or event. - Don’t ask too much in return for your prize. No more than 3 actions. 5 actions ex ceptionally.- Contact your best influencers and supporters. Make them feel special, and keep them on a special VIP list. - Deliver what you promise, and make sure you introduce some surprise into the journey!

After you’ve get the permission to advertise to the consumers, you should understand unequivocally that the real reason why people interact with brands via social media is expectation. They will trade their attention for a worthy content or an opportunity to win a prize.

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Play marketing is about creativity, fun and triggering emotions

“The secret is respecting the consumer. You are interrupting their life. All advertising is unwanted, so if you’re going to crash the party, bring some champagne with you.” Bob Thacker, senior VP marketing and advertising at OfficeMax

The answer could be: - We want the customer to feel smart - We want the customer to feel special - We want the customer to feel heard - We want the customer to feel appreciated - We want to challenge the customer - We want the customer to feel grateful - We want the customer to laugh - We have the customer to learn something special - We want to surprise the customers - We want to create a special memory for the customer

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6. 4. Example of Gamified advertising

The world’s largest manufacturer of athletic footwear and clothing “gamified” exercise with the launch of Nike+. Over 1.8 million runners are currently using Nike+ to capture data such as distance, pace, and calories burned using a GPS sensor. In order to motivate people to do sports, Nike software loaded on the iPod device will reward users if they reach a milestone.

For example, if you beat five-mile distance record, you will hear famous athlete congratulating you. After workouts, people go online and upload their data, track statistics, set goals and play games with an online “alter ego”. Nike+ has helped the company to create a huge and active fan base.

http://beconfused.com/2007/review-nike-part-2/

NIKE+ AND IPOD

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STARBUCKS AND FOURSQUARE

The world’s biggest coffee chain started rewarding users with virtual points and virtual badges for visiting real retail stores.

Starbucks in cooperation with location-based social network Foursquare enables customers to “check-in” at retail locations on their mobile phones.

In return, customers earn points and are able to complete challenges, like “visit 5 different Starbucks”, to earn special prizes or badges.

http://www.intheworldnews.com/starbucks-handing-out-40-gift-cards-to-day/341455/

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Lipton has launched an advertising campaign and the key was the innovative banners that are interactive. This Lipton Ice Tea banner has viewers interact with the ad by typing in any letter of the alphabet to cool the franticly hot character. The letter that the consumer chooses glides across the stage and transforms into a humorous suggestion on how to cool down. The chosen letter stays bold while each animation plays out. The character is searching for the ideal way to cool down, but with each choice, the character is unsatisfied. A very interactive and engaging bannerad encouraged people to use almost all letters of alphabet and spend time looking at the brand.

http://adinavelasquez.blogspot.com/2010/08/lipton-tea-banner.html

LIPTON

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CONTREX

Contrex ad that was released in 2011 illustrates consumers interest in games. The story line is very simple, but also attractive at the same time. A crowd walks past a row of random pink exercise bikes. The bikes power up neon wires, when someone is work-ing out. Suddenly all the bikes are busy, and a nice looking man appears on the wall of the building. The more people pedal, themore he strips. Everyone looks satisfied and seems to be enjoying the show.

https://www.youtube.com/watch?v=bGJSEEx2pXc

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Tipp-Ex ad starts with the hunter who does not want to shoot a bear, and using a tipp-ex tool on the right, he “whites” the word shoot and instead offer a viewer to rewrite a word. After inserting a word, a video is showed with an inserted action.

https://www.youtube.com/user/tippexperience

TIPP-EX

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Cases of GoodbuzzEvent in New York

Word hunt game: “Who is the Keynote speaker of the event?”

There was a need to fill up the seats for the event in a very short time. Organizers decided to use play marketing tool for the promotion. “Twitter treasure hunt” game was chosen from the game library created by Goodbuzz.

The idea was that the first two people who found out the an-swer to the question received a prize – 2 VIP tickets to the event valued at $250.

The promotion was posted on the website of event, Twitter and Facebook. As a result, promotion campaign spread instantly and within 48 hours event was sold out.

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Martha’s Pastries

Treasure Hunt game: “Which business is located at this address?”

Pastry business in San Francisco used Twitter “treasure hunt” game. The game was to find “Which business is located at 325 Sharon Park Drive in Menlo Park” – the address for Martha’s Pastries. The promotion boosted sales up to 7%, and brought website’s traffic up by 400%.

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Play marketing benefits1. Get better marketing result fasterPlay marketing activate customers faster than traditional advertising.

2. Get more out of your efforts and moneyThe cost per engagement is 7+ times lower than any traditional display marketing or email marketing. You spend less time, but get better result faster

3. Direct marketing results and Long term valuesYou get leads from user’s registration to your contests and your website traffic could jump 30 to 70% in less than 30 days.

4. Improved customers relationship and brand perceptionBrand perception and stickiness improve with every new play marketing campaign.

5. It forces you to be fun and have funThe end result is that your marketing team will have more fun and will enjoy more their job than crafting boring ads.

6. You respect the customer and that always pays back”There are two things people want more than sex and money - recognition and praise.” -Mary Kay Ash.

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Goodbuzz solution – blueprint to get startedPlay marketing and Goodbuzz are two inseparable terms which go together. Goodbuzz is the leading online platform that offers scalable play marketing solutions to brands. The key idea is to use all available benefits of the play marketing in order to create successful advertising campaigns.

As a result, Goodbuzz provides advertising campaigns which are able to bring better marketing results faster with higher engagement to users.

Goodbuzz has ability to make company’s promotion viral, because business can use not only its channels, but also affiliatenetworks.

Moreover, higher brand awareness is reached together with valuable customer insights.

Furthermore, if a game is created thoughtfully and a prize is chosen wisely, than the game can spread virally without any additional help.

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5 steps to launch a successful play marketing campaign:1. Download a sample presentation of Play marketing solution from Goodbuzz site, whichincludes emails and articles you can use for free.

2. Sell the idea with your team, provide them with gathered evidence, and convince them to try

3. Do your homework a. Create an account on Goodbuzz and explore the solution b. Play with a test campaign and make some choices about what interaction actions you could use in your campaign. c. Draft your quiz, and any other content you might need. d. Draft the rules of the promotion to make sure everything will be fine. e. Think about a budget: including the prize, the Goodbuzz plan and the promotion of the campaign on relevant affiliates websites f. Get your action plan approved, and go for it.

4. Create the promotion – see the steps below

5. Finally, follow up and monitor your progress.

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STEP 1 STEP 2 STEP 3

The advertiser choosesa game from

the largeGoodbuzz library and

customizes it for its needin less than 2 minutes.

The advertiser choosesa prize and decides how

many will be given to thewinner. The prize must

be attractive, appealing;otherwise there will be no

incentive to participateand share the game.

The advertiser needs topaste the promotion codeon any page you want inorder to activate “Share

to Win” button. Thebutton will be activated

at the moment when it isinserted in the page.

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Finally, Goodbuzz is driven by innovative concept which is not widely adopted yet, however is trending.

It is based on an entirely new approach to the customer and holds the major benefit of the Goodbuzz. With play marketing help customer is not only a viewer or judge, but participates in an advertising campaign. Play marketing cannot exist without participation of users. This means that if person participated in a game, he is already affected by the advertisement.

The main difference of the play marketing is that it is based on users’ engagement.

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http://www.go-gulf.com/blog/online-ad-spending2, 3, 4, 5

http://www.marketingpilgrim.com/2007/08/eyetracking-shows-web-audi-ence-ignores-ads.html6

http://adage.com/article/digitalnext/raise-online-ad-inventory-pric-es-small-advertisers/234878/7

http://www.go-gulf.com/blog/social-networking-userhttp://www.go-gulf.com/blog/smartphone8, 9

http://www.go-gulf.com/blog/online-time 10

http://socialmediatoday.com/steve-olenski/412114/major-disconnect-be-tween-brands-and-consumers-when-it-comes-social-media 11,

‘‘Gamification in 2012”, Consumer and Enterprise Market Trends, M2 Re-search 12

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http://www.cmo.com/gaming/play-marketing-how-principles-gaming-are-chang-ing-conversationhttp://en.wikipedia.org/wiki/Gamificationhttp://www.facebook.com/advertising/?campaign_id=402047449186&placement=p-flo&extra_1=not-admgr-userhttp://www.forbes.com/sites/marketshare/2012/11/27/5-big-brands-confirm-that-content-marketing-is-the-key-to-your-consumer/http://www.ft.com/cms/s/0/10fe18d4-f8c9-11e0-ad8f-00144feab49a.html#ax-zz2EMX1zwTwhttp://gamify.com/http://gamification.org/wiki/Gamificationhttp://www.google.com/intl/en/ads/http://www.gfknop.com/pressinfo/releases/singlearticles/008891/index.en.htmlhttp://www.go-gulf.com/blog/social-networking-userhttp://www.intheworldnews.com/starbucks-handing-out-40-gift-cards-today/341455/http://www.intheworldnews.com/starbucks-handing-out-40-gift-cards-today/341455/http://www.inspirationalstories.com/quotes/mark-mccormack-i-actually-felt-like-i-was-the/http://www.statista.com/statistics/194137/forecast-for-global-ad-spending-trends/http://www.statista.com/statistics/190508/advertising-spending-world-wide-since-2010/http://www.statista.com/statistics/237974/online-advertising-spending-worldwide/ http://www.statista.com/statistics/222698/consumer-trust-in-different-types-of-ad-vertising/http://www.useit.com/alertbox/banner-blindness.html

Information sources

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