e-Commerce: Complete. Configured. Connected.
Casual Games
What Happens to Virtual Goods Once a Game Closes?
Feb 15th
Last week, word of a virtual goods lawsuit against Google resurfaced in the news. Originally filed last fall, angry players of the game “SuperPoke Pets” are seeking damages for their class-action suit against the game’s owner, Google. “SuperPoke Pets” allowed players to chose their favorite pet (dog, cat, frog, etc.) and care for it online by purchasing “gold” with real-life money. Using the virtual gold, users could purchase special items such as dog bones, food and treats. for their pets.
“SuperPoke Pets” was created by Slide, a gaming company that was acquired by Google in August 2010. Last summer, it was announced that the game would stop selling gold for virtual goods news that caused a wave of blacklash and crazed spending by gamers.
According to the article, “Virtual Pet Owners Sue Google Over Lost ‘Gold’” by Paidcontent.org, “… some players rushed to stockpile virtual items after the company announced that it would stop offering gold-based transactions. These players hoped to sell their items on a secondary market (basically, a Craigslist of sorts for items like virtual doggy bones) but those hopes were dashed when Google said it would kibosh the game.”
This is an interesting discussion as it marks one of the first litigation filed surrounding virtual goods sales and the value of the money used to purchase them. The dispute over the SuperPoke virtual goods and similar online currencies and the items purchased with them has, until now been a thing of the future – consumers never seemed to worry about making their purchases or the risk involved. As you know, the virtual goods and services market is large and we’re interested to see how challenges like this lawsuit are dealt with in court.
As a selling platform for virtual goods and services, we understand the value of providing buyers with safe and secure transactions. We ensure that all sellers on our platforms meet all business and industry standards. It’s important that Plimus’ sellers enable a frictionless shopping experience with a secure checkout process.
This lawsuit was transferred to federal court in San Jose last week, and we’ll continue to track its development and keep you posted on the news.
Casual Gamers Playing Longer Online
Nov 18th
A recent study from social gaming company PopCap found that casual gamers now spend more time each week playing games online. The survey found that 41 percent of Internet users in the U.S. and U.K. play games for more than 15 minutes a week – nearly doubling the figure from 2010 (24 percent).
The study, conducted by Information Solutions Group for PopCap Games, polled results from 1,201 online surveys. Demographically, 801 of the respondents originated from the U.S. while 400 were from the U.K.
Nearly 120 million consumers (in the U.S. and U.K. combined) play social games – are you one of them? Survey results indicate that consumers are now more likely to purchase virtual items or services while playing an online game. Forty-six of respondents indicated that he or she would purchase virtual game content with their own money, up from 32 percent in January 2010. Overall, nearly 31 million players worldwide have purchased a virtual good and/or service during online game play with actual currency.
Other interesting statics include:
• There are more female social gamers than male players in both the U.S. and U.K. (54 percent vs. 46 percent in the U.S, and 58 percent vs. 42 percent in the U.K).
• Men, however, are more likely to make in-game purchases than women.
• The average age of a social gamer is younger, as the average age of a social gamer declined from 43 years of age to 39.
You can learn more about the study by reading the article, “Gaming Stamina and Player Growth is on the Rise, PopCap Survey Says,” by Cassandra Khaw of VentureBeat.
Report: New Research on Virtual Goods
Nov 16th
A recent report from the analyst firm Juniper Research forecasts that virtual goods purchased via a mobile platform will total $4.6 billion in 2016. According to the report, the increased use of social gaming is largely due to the rise in smartphone and tablet adoption. As consumers continue to replace feature phones with smartphones, virtual goods bought from mobile social media services will increase from $3 billion this year to nearly $5 billion worldwide in 2016.
The Juniper report states that most social media services have not yet been able to monetize their offerings effectively. So, while many social media sites are popular with U.S. consumers, it remains a challenge for these sites to make a profit from those who use their platform. Simply, they need to make sure the consumers are more than just casual visitors to their site, but that they are consistently upselling them with value-added goods and services.
Looking globally, Juniper analysts reported strong sales of virtual goods through mobile media services in Japan and China, stating the firm expects this growth to expand to the United States. By adopting monetization models that cater to mobile offerings, social media services can increase revenue per user and sustain profitable revenue models.
An open architecture is key to a successful monetization model. Today’s online commerce happens anyplace, anytime and anywhere. It’s social and it’s virtual. A profitable online sales model cannot be constrained by platform, technology or location. Here at Plimus, we feel that all organizations, not just mobile social media services, require a frictionless, simple and open solution that facilitates a move toward a business model that increases ROI and takes advantage of the increase in virtual goods spending forecast by Juniper Research.
What do you think? What monetization models will have the greatest impact on increased virtual goods and services sales?
Additional information on the Juniper report can be found in the article, “Report: Social Virtual Goods Via Mobile to Reach $4.6B in 2016,” in Mobile Payments Today.
Digital Commerce Spending Continues to Rise
Aug 10th
A new study has found that one out of every three online gamers is spending real currency for virtual goods. The study, commissioned by Visa’s PlaySpan and VG Market, polled more than 1,000 men and woman gamers last month.
Some key findings from the study include:
- Console games with online play account for more than half (51 percent) of virtual purchases using real money.
- Social networking sites report 30 percent of purchases while massively multiplayer online (MMO) games account for 28 percent.
- Females are three times more likely than men to use Facebook credits to purchase virtual goods and/or services (32 percent to 13 percent, respectively).
What we found most interesting, however, were the results indicating how frequently consumers were purchasing virtual goods and services online. With more than 10 years serving the digital commerce industry, Plimus has kept a close eye on both how often and how much consumers buy online.
Based on conversations with our customers, partners and general consumers, we’re confident the virtual goods market will not slow down anytime soon. As indicated in the survey, 72 percent of respondents indicated they spent more or about the same money on virtual sales compared to last year. Moreover, results indicated that nearly 48 percent of consumers have purchased in-game currency within the past 12 months.
These figures will continue to rise as more and more consumers engage with the virtual world. Let’s hope that next year’s results show three out of four online gamers spending money for virtual goods.
You can learn more about this study by reading Dean Takahashi’s article, “More Gamers Are Spending Real Money on Virtual Goods, And Women Are Spending More Than Men,” published early last week.
A new study has found that one out of every three online gamers is spending real currency for virtual goods. The study, commissioned by Visa’s PlaySpan and VG Market, polled more than 1,000 men and woman gamers last month.
Some key findings from the study include:
- Console games with online play account for more than half (51 percent) of virtual purchases using real money.
- Social networking sites report 30 percent of purchases while massively multiplayer online (MMO) games account for 28 percent.
- Females are three times more likely than men to use Facebook credits to purchase virtual goods and/or services (32 percent to 13 percent, respectively).
What we found most interesting, however, were the results indicating how frequently consumers were purchasing virtual goods and services online. With more than 10 years serving the digital commerce industry, Plimus has kept a close eye on both how often and how much consumers buy online.
Based on conversations with our customers, partners and general consumers, we’re confident the virtual goods market will not slow down anytime soon. As indicated in the survey, 72 percent of respondents indicated they spent more or about the same money on virtual sales compared to last year. Moreover, results indicated that nearly 48 percent of consumers have purchased in-game currency within the past 12 months.
These figures will continue to rise as more and more consumers engage with the virtual world. Let’s hope that next year’s results show three out of four online gamers spending money for virtual goods.
You can learn more about this study by reading Dean Takahashi’s article, “More Gamers Are Spending Real Money on Virtual Goods, And Women Are Spending More Than Men,” published early last week.
Great Hill Partners Acquires Plimus for $115M USD .
Aug 8th
Today is a big day for the Plimus team! We proudly announce that Great Hill Partners has acquired Plimus for $115 million dollars. Great Hill purchased 100 percent of the company from a shareholder group including Susquehanna Growth Equity LLC, Plimus founders, key management members and employees.
Through continued growth in our seller base, Plimus has experienced equally strong growth in transactions, revenue and profit. Following the close of the deal, the current senior management team and employees led by CEO Hagai Tal will work with Great Hill Partners to continue carrying out Plimus’ long-term business plan.
As quoted in our press release, Hagai Tal says, “With our solid existing customer base and favorable market trends, we are fortunate to work with Great Hill Partners to expand our ability to capture the opportunities ahead. Our Plimus teams in the U.S. and Israel will continue to focus on our clients’ successful monetization in an increasingly global, complex and expanding online and mobile world. Our vision of e-Commerce 3.0 and frictionless e-Commerce will fuel these solutions.”
To learn more about this announcement, click here to review the entire release.
Plimus at Casual Connect Seattle
Jul 14th
Next week Plimus will be exhibiting at Casual Connect Seattle. The Casual Games Association produces the premier events for the casual games industry with more than 3,500 professionals attending its shows each year. According to its website, “Casual Connect brings together the most talented and knowledgeable experts in the casual gaming field to further the casual games industry with the best of networking and learning.” Plimus regularly attends the Seattle and Germany shows and finds great value in getting to know the attendees visiting and meeting fellow vendors exhibiting at the conferences.
Additionally at this year’s event, Simon Jones, our vice president of strategic solutions, will present on Tuesday, July 19. During his presentation, Simon will introduce “The ReACT Model” to the digital commerce community, addressing how this model helps companies increase total revenue via pre- and post-sale promotions.
Simon will share three case studies of companies that have used the Plimus e-Commerce platform to successfully increase their Average Order Value. Attendees of this session will gain an understanding of the impact of multivariate testing on the checkout page in turbo-charging close rates, and how to employ direct customer management and single sign-on to help build higher Total Lifetime Value from their customers.
Here are the session details:
Casual Connect Seattle
What: “Virtual Economic: Don’t Just Act … ReACT!,” in which Simon will explain how The ReACT Model gives online businesses the tools needed to dramatically boost their revenue
When: Tuesday, July 19 at 10:30 a.m. PDT
Where: Benaroya Hall and Triple Door
In the Founders Room
200 University Street
Seattle
Register: http://seattle.casualconnect.org/registration.html
Feel free to stop by our booth and say hello and find out how to make more mooooo-lah with with Plimus for your casual games (and try your hand at our flying cows). You could win a cow – a cow tail – or a Samsung Galaxy TAB! Also, you can contact the Plimus team to schedule a meeting via this email address: s-plimus@casualconnect.org. Safe travels to Seattle!
Study Finds Casual Gaming Helps Ease Depression
Mar 10th
A recent study found that playing casual games can lift a person’s mood. The study, conducted by East Carolina University (ECU) and funded by Popcap Games, revealed that consumers who regularly played Bejeweled had reduced symptoms of depression and anxiety.
Sound familiar? Good for you, maybe you’ve been playing your casual games like me to boost your mood and outlook. In June, I posted a blog about another study from the same vendor, “Casual Gaming – Who Knew It Could Improve Cognition?,” which found that consumers playing games such as Bejeweled, Peggle or Bookworm “… for 30 minutes demonstrated an 87 percent improvement in cognitive response time and an overwhelming 215 percent increase in executive functioning.” Now it seems like we’re seeing a trend here – casual games are not only fun, social activities but they also are good for your overall mental health.
These results are part of an ongoing study by ECU, which found that, in addition to helping cognition, playing casual games helped reduce tension, anger and fatigue. According to an article in The Seattle Post-Intelligencer, the director of the ECU department conducting the survey found that casual games had potential as a treatment for clinically depressed patients. Just think about how big an impact this could have on the medical industry.
During the past six months, I’ve closely followed the developments of this study and believe the results are a strong affirmation that game developers must cater to their online audience and build a “frictionless” online experience. Limit the distractions during the gaming experience to maximize that positive impact on gamers’ outlooks.
What are your thoughts? This study didn’t look at Farmville or other Zynga games; for those players, do you feel the same? How are casual games impacting your life?
Charles Born,
Head and VP of Marketing
Photo credit: http://www.flickr.com/photos/jar0d/4649749639/
Casual Goes Mocial
Feb 14th
Tortured combinations of terms aside, Casual Connect Hamburg has been all about the impact of Mobile and Social gaming on the Casual Gaming market. It seems no conversation is complete without looking to the expansion of the space from downloadable games to new channels and new business models.
The cornerstone of the ongoing changes to Casual Gaming was the fascinating perspective shared by Rovio, the publisher of uber-popular title Angry Birds. Channeling the most forward-thinking entrepreneurs of our time, Rovio’s Mighty Eagle, Peter Vesterbacka, shared how the company’s flagship title is as much a brand and a franchise as it is a wildly popular and addictive time-suck. If you thought Angry Birds was ubiquitous on smartphones, you ain’t seen nothing yet: the brand will soon extend onto your TV, into your living room and throughout retail chains.
Casual Game publishers are starting to emulate Hollywood, whose products’ success was once measured by cinema ticket sales, but is now defined by crossover product marketing and multi-media sales. For some publishers that means taking a single popular title and creating ever more acquirable items (plush toys, board games and advertising tie-ins) to expand the brand. For others it means taking their catalog of games and building a studio-based franchise revolving around audience communities and continuous cross-promotion. Either way, the day of measuring success by number of units sold of a given title is becoming a thing of the past.
Certainly, Facebook’s decision to impose its Facebook Credits as the primary way to buy into games that inhabit its world has caused some consternation and concern. Nonetheless there is a sense that this may be just what the industry needs to start some reflection on whether to commit to a single platform led and controlled by someone else. There’s lots of innovation around allowing players to carry their in-game identity (and game progress) across channels – imagine taking those level-ups you’ve achieved on iOS and having them persist through your PC-based or IPTV-based game play. Ultimately, carrying one’s persona from channel to channel will open up the ability to build ongoing relationships between studio and player. Simultaneously, it confounds the efforts of the walled garden managers to retain control (and a large share!) of player revenues.
While it’s not wildly clear how the social gaming meme of the last year or two will play out in the next 12 to 24 months, there’s absolutely no question that casual gaming is delving deeper into the persistent relationship between player and game. Nor is there much challenge to the idea of building a movie franchise-like halo of offers around any title that gains traction. If ever there were a year to Go Mocial, it seems, 2011 is it.
Simon Jones,
VP of Strategic Solutions
Photo credit: http://www.flickr.com/photos/daryl_mitchell/3560636199/
Plimus at Casual Connect Europe
Feb 7th
This week Plimus is overseas at the Casual Connect Europe show. It’s the first show of the year for our casual gaming customers and I have to say, it’s always been a favorite of mine. The sheer magnitude of the casual gaming category is enormous – you have only to take a quick peek at the show’s website to see what I mean – “Casual Connect is the place to learn more about an industry which entertains 300 million people each month.” A significant number of our customers fall within this sector and we’re excited about our continued growth and the prospect of making our portfolio in this particular area even bigger.
Our very own, Simon Jones, will be speaking at the show – on the panel “The Future of Monetization” – to talk about how developers and merchants can plan and implement a game up-sell strategy. While I don’t want to give away too much up front, Simon will discuss new monetization techniques to help game developers and merchants capitalize on the expanding opportunities by narrow casting their marketing messages and strengthening their purchase processes to turn shoppers into buyers with greater regularity. Sounds pretty cool to me!
Simon will be posting a blog once he returns home from the event, so stay tuned. He’ll share show insights, provide his feedback and likely have some great anecdotes in terms of what’s new and cool in the casual gaming space.
And if you happen to be in Germany next week, swing by and see us at our table. Not only can we demonstrate making more ‘moolah’ with our flying cows….but we can also show you concrete examples of how Plimus can increase game revenues. It’s going to be a great show.
Charlie Born,
Head and VP of Marketing
Advertisers Cash In On Social Gaming
Jan 26th
To say that 2010 was a monumental year in social gaming would be casually understating the obvious. Last year alone, social gaming generated more than $850 million dollars in revenue and recorded roughly 53 million users. While these numbers are impressive, new reports indicate that social gaming is just starting to pick up steam. As we head into the New Year, social gaming is beginning to attract more attention from marketers and advertisers aching to cash in on this flourishing industry. According to a new report from eMarketer, the amount of resources advertisers will pour into social gaming is one factor that will help drive U.S. social games revenues past the $1 billion mark in 2011.
With roughly one in four Internet users engaged in social networks, this space has become a prime target for lead generation and advertising efforts. It’s not the massive amount of consumers alone drawing advertisers to this space; it’s also the demographic makeup of the audience that’s extremely desirable. On average, social gamers are typically 34-year-old women, a group widely known as the controllers of purse strings and an audience not typically engaged in traditional games.
This audience, paired with the revenue growth of the social gaming market, presents an optimal platform for marketers to promote their brands through social games. These games allow advertisers to brand virtual goods, offer custom games, create virtual environments within existing games and promote lead-generation offers. Additionally, some creative ad campaigns combine virtual and real-world items, expanding the gaming experience beyond social networks.
Although virtual goods will continue to bring in the biggest share of social gaming dollars through 2012, advertising spend will reportedly grow more rapidly in 2011 with marketers shelling out $192 million to advertise. Furthermore, eMarketer forecasts that this investment will continue to grow and projects a rise of 41 percent in ad spending in 2012.
What’s not to like about all of this? Internet users enjoy their games and advertisers are able to reach millions of consumers…seems like a win-win situation to us. For our part, Plimus will continue to offer an immersive and seamless online experience, keeping gamers entertained and allowing advertisers and other vendors to make money!
Charles Born,
Head and VP of Marketing
Photo credit: http://www.flickr.com/photos/athrasher/2823255013/
