6/28/2011 9:33:20 AM
iGaming: Monetisation of 'free' social media games
Social media has undergone a period of
rapid transformation. It has evolved from allowing
you to connect with friends and boast about your social
status, to seeing what your friends have been up to over the
weekend via user generated photos & videos, aswell as
offering various types of online games & other media.
Most social media games give aggregated scoreboards,
achievements, user rankings and tools to improve status, giving the
individual the opportunity to boast to their social networks (such
as Facebook or Twitter) about their achievements.
So how does a ‘free’ social game become monetised?
Firstly, the game has to appeal to a wide enough audience, it
must also have simple game mechanics as well as the ability to play
for short periods and at varying intervals. Unlike traditional
games, many rely on sharing with friends and using the players’
existing social network to drive game play.
Game makers rely on a number of ways to drive income into the
business. In addition to subscriptions they also heavily rely on
traditional marketing, such as in-game advertising. Game
makers are also coming up with new and interesting ways to
monetise, such as giving players the opportunity to buy additional
game modes to enhance their gaming experience, and the ability
to buy virtual goods. This revenue channel is believed
to generate up to 90% profit, with no excess stock
or expiration of goods to worry about.
Big players join the online gaming phenomenon
A number of large corporations have been getting in on the
action and entering the market including Google, Disney and
Electronic Arts (who acquired Playfish in November last year). With
the likes of Zynga purportedly earning $500k a day it’s no wonder
the big fish have entered the pond.
With various voices in the industry believing that we’re not far
from seeing the first $1billion grossing social media game, only
time will tell whether this exponentially growing market will show
any signs of slowing.
Mark Yates
iGaming
Recruitment Consultant
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