the virtual economy
TRANSCRIPT
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Realising the Virtual Economy
30th June 2010
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Why you should think about the Virtual Economy
New Revenues
New Customers
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The Virtual Economy: definition
“An emergent economy existing in a
virtual persistent world, usually
exchanging virtual goods in the
context of an internet game”
-Wikipedia
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“The flow of money through apps”
-Jellyworm
The Virtual Economy: definition
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Apps
The flow of money through apps
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Global value
Source: Piper Jaffray, Plus Eight Star,
Susan Wu, Charles River Ventures, Inside Network
2010
2013
$6b
$11b
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EA games bought Playfish
Buys Playfish
for $275m
Lays off 1,500
fulltime employees
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July 2007
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the biggest gaming portal in the
world
is
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Q. What is the biggest single media property in the world?
...bigger than the population of
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Peaked at 83 million users in 2010
A. Farmville
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It’s not just about “daily games”
Utilities MMOs
CommunitiesVirtual Worlds
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...is a 43 year old woman
The average social gamerin the UK & US..
Source: PopCap
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Jellyworm’s first principle
App users opt in
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The second principle
100% play
10% pay
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All gameplay uses virtual currency
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Average Direct Payment:£7 per transaction
Biggest single transaction = $1m
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Enhancing brand values and delivering a profit!
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Facebook users pay £1- £2 to send virtual goods to their friends
Remains on user’s tabbed profile indefinitely
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Advertisers are getting new customers by offering virtual currency
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Surveys generate new customer leads
New customer leads from £0.50
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The big on-line app developers don’t make advertiser branded
apps...yet
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Will start to
dominate the
social space from
2013
Branded apps
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Branded apps are much more prominent on the iPhone
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The third principle
If you can’t create,
integrate
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Viral mechanics have already been developed
Massive audiences already exist
Users are already engaged
Integrate into existing apps
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Public Enemies & Mafia Wars
900m viral impressions
In one week!
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The fourth principle
T.V.E=R.O.I
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The Virtual Economy
If you can’t create, integrate
The Virtual Economy = R.O.I
100% play, 10% pay
App users opt in
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Jellyworm.com