Marketing and Social Media in the Online Games Industry
Free-to-Play is the New-Way
May 4th
There was a day when there was a simple goal in the mind of most people in the Marketing department at a game company: How can we convince people to buy our game?
With a not so simple strategy this was accomplished by many things such as creating buzz through advertising, months a months of PR work before, co-promotions with retailers, generating pre-orders, game trailers, amazing artwork, sales, and the tons of other strategies that were and still are huge factors in the success of a game. As you can probably assume, the major obstacle as in any product is usually the price. New boxed retail PC games are usually in the range of $40-$60. Even with the new developments of digital distribution this price has begun to decrease but still weighs in as a major factor in consumer buying decisions. Unless you were really looking forward to the game or had money to burn, you most likely weren’t going to purchase a game. This is all combined with the pirating of games nowadays and is also a large concern for game developers that receive zero revenue from these users. Then along came games such as WoW who decided that charging on a subscription base would actually be a way of receiving consistent revenue by adding value over the life of their games which, for a few games, has been very effective at capturing those who are committed to a single game over long periods of time. This still didn’t target the demographic that doesn’t want to pay for games, or as many say, can’t afford to play these games.
Until recently there weren’t many great free games to play (without pirating). Sure there are thousands of casual flash and browser-based games that are great for killing time and getting some cheap thrills but no in depth and high quality games that you could play completely free. Why would developers put out these types of games for free anyways?
Enter: Free-to-Play, F2P, Play4Free, etc. The growing phenomenon of this type of business model is due to a number of different factors.
1. It’s free to play! Who could say no to a game that costs nothing. It completely attracts a large range of demographics, depending on the quality and style of the game. Most games are easy to download / log-in to and are geared towards instant rewarding systems and try to get you hooked on the game as quickly as possible.
2. They capture both ends of the income levels. Younger, non-working, lower-income players can play these games for free as long as they want and increase the amount of players playing the game and its popularity. The other side is the older, working, higher-income players (Whales) that can spend as much money as they want to gain the better items, weapons, style items, boosters, etc. to create an advantage or more recognition in the game. These players generally make up for the players not spending money and often more than compensate for others. Reports of some users spending in the $1,000′s on some games shows the attractiveness of this type of model.
3. Developers can continue to work on one game rather than constantly creating new ones. They are rewarded for the ongoing updates and work on a game, keeping players around for long periods of time. This results in less long-term work.
While we see this trend of many traditional game models switching over to this new type, we will see a shift in the way games are made, marketed and sold (nor not sold).
The 2 Types of Online Gamers – Should We Define?
Mar 4th
As the online gaming market continues its growth we see the predominant demographic changes from a once young male market to a market that is now hard to categorize. When it comes to defining the type of gamers, there are many different views. No doubt you have come across the ever popular debate over Hardcore vs. Casual Gamers. Most will tell you that a Hardcore gamer is one that plays a lot, plays more in depth games and strives to compete as well as master them. If they play Final Fantasy VII once or twice a week on easy mode, does it mean they are truly hardcore? Casual gamers on the other hand are seen to have a more relaxed view on games. They are a past-time rather than a main source of entertainment and generally are not competitive or highly skilled in the games that they play. If they play a social game for significant amounts of time and are awesome at them, does it still mean they are casual?
With these definitions, it often labels games based on them and limits the demographic potential that could be generated. We are currently seeing a dramatic shift in how people are playing games with the rise of social, mobile and online games. More and more people are transitioning from playing simple Facebook games to becoming a “gamer” so to speak. As people progress and learn and become more experienced with the very fundamentals of gaming they will slowly prepare themselves for the more challenging and in-depth types; with or without them being conscience of it. A once FarmVille addict could soon be playing RPG’s.
Slowly but surely, these trends will continue and as we see the amazing and creative new genres and styles and the growth of different demographics, it will be obvious that the pre-conceptions of what types of people will be playing what types of games will be harder than ever to determine. We need to start changing the way we view the market and begin to realize that a simple Hardcore or Casual definition just won’t cut it.
The Rise of Social Gaming
Feb 1st
As is the case in many industries, the rise of one usually assists in the growth another. Social Media Sites such as Facebook have done just that. According to a recent study, more than 200 million gamers are playing Facebook games every month now… 200 Million! As this number continues to grow, so does the amount of social games being created and released. “Social Games” are browser based casual games that have social network integration or elements. What makes makes this type of game different from traditional games is the “easiness” of playing. No download, no going to a store, usually simple game play style and the highly social aspect of playing (usually with or against thousands, or millions of other players). The majority of these games are marketed as “free-to-play” but quickly involve you in the game and aim to have you purchasing cheap virtual items for real money. A few dollars doesn’t seem to mean much to you at the start but will quickly add up
Women represent largest social gaming demographic
if your not careful. With the social aspect of these games, developers are banking on the fact that you want to be better than others. A $2 deposit will increase your stats, give you a better building, power-up your player or various other ways to create an advantage over other players.
While the Social Games market looks to surpass $1 Billion in revenue, the big game developers are laughing all the way to the bank (and so is Facebook who now takes 25% of all revenue) seeing this trend grow and grow. It wasn’t long ago that the vast majority of online gamers were mostly young males, but that is changing quickly. It’s shown that 40+ women represent the largest demographic in the social gaming market. Games such as Farmville, Cityville, and Mafia Wars are showing the amazing potential of these types of games. The lack of true skill involved is instantly apparent, no quick fingers, accurate mouse movements or dexterity in necessary which opens up the market for people who can play and become successful at these games.
Will we continue to see this growth or is the peak in sight? Is the women demographic as loyal to these games as you see in other hardcore games?
Welcome to Wiz Marketing!
Jan 20th
I’m Shawn Wilhelm, the founder of Wiz Marketing. For those just hearing of us, here’s a rundown of the topics for this blog. We will be covering many types of topics and industries in regards to Social Media and Online Marketing but our goal is to focus our efforts on the Online Gaming industry.
Since the turn of the century the online gaming industry has grown from retail purchased games and simple browser-based games to the giant it is now. From MMORPG’s for hardcore gamers such as the ever-famous World of Warcraft with 12+ million subscribers to the thousands and thousands of social games that 40+ year old women are taking over, the market has undergone great changes and seen tremendous growth.
Not only from working in the industry but from having video games and the online world be a part of daily life, it’s been amazing to see from the inside-out the great changes in every aspect of this industry. The changes not only in the technical side such as graphics and game play but the way games are marketed, monetized and customized to serve any and every demographic. Whether your a young gamer or an aging baby boomer there’s a variety of games targeted to you.
At Wiz Marketing, you will find unique points of view, interesting information and the current trends in all aspects of this amazing industry.
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