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Posts tagged virtual goods
Online Giving Continues to Rise
Sep 20th
It’s no surprise that consumers are spending more money online. From digital goods and services to retail consumer goods, e-Commerce sales continue to grow worldwide. In addition to our everyday online purchases, consumers also are increasingly giving digital donations and making philanthropic gifts online. We all want to consider ourselves to be gracious, giving people; however, how much do we actually give?
A new infographic from nonprofit consultancy Convio, shows that the Internet is the fastest-growing channel for nonprofit fundraising. Since 2008, nonprofits have received donations totaling more than $1 billion from online sources. Moreover, the average donation is rising as well. Last year, the average online contribution rose to $91.94, an increase from $67.47 and $80.80 for 2008 and 2009, respectively.
To maximize this fundraising channel, nonprofit organizations must improve their customer experience and streamline the payment process. By reducing and eliminating anxiety commonly associated with online transactions, organizations will increase conversion rates, resulting in more donations for their cause.
The same techniques that Plimus uses to help vendors build customizable order pages can assist charitable organizations update their online presence with single-click gifting capabilities and repeat donor features to help reduce the barriers to online donations. Like any online business, it’s vital that nonprofit organizations also leverage a payment platform that is seamless for donors.
What do you think of the growing support for social giving? Will this trend continue in the coming years? We’d love to hear from you … let us know.
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.
Survey Finds Challenges in Getting Tablet Users to Pay for Content
Jun 30th
Last week, the Online Publishers Association (OPA) released the results of a survey that revealed some interesting observations about the preferences and habits of tablet owners when it comes to purchasing content.
Among the findings:
- Just less than half of all tablet users would be willing to pay for content if it meant avoiding advertisements
- 25 percent would prefer to buy content directly from publishers, rather than an intermediary such as Amazon or iTunes
- Newspaper apps have been downloaded by more than a quarter of the tablet users surveyed; 20 percent reported downloading a magazine app in the past 12 months
- On average, tablet users spent $53 on apps in the past year
The finding that has prompted the most discussion in the Plimus breakroom, however, is that tablet users willing to pay for content overwhelmingly seek flexibility in how they make those purchases. They want the ability to select between recurring paid subscriptions, single-issue purchases and one-time downloads. For online publishers, this presents challenges in how best to streamline and ease the buying process.
These challenges need to be addressed if publishers are going to realize their intention of generating revenue from this new platform. If these self-identified “early adopters,” who are typically more affluent, educated and media-savvy, are reluctant to commit to paid subscriptions for news, television shows and other content the outlook doesn’t look great for the general public’s adoption of paid content.
With the OPA forecasting that roughly 23 million people in the U.S. alone will own tablets by next year, publishers need to quickly figure out how they will streamline the subscription process for those willing to pay for content – while at the same time determining how to entice those who are reluctant to pay. As a vendor that has been able to monetize this new content delivery model, Apple provides a strong example for publishers looking to provide a seamless and easy online transaction process.
Here at Plimus we are working to address this growing market segment with our flexible and adaptable payment platform and Buy Anyware API that online publishers can build into their apps. Plimus solutions offer a streamlined payment process that becomes part of the content consumption experience. If you’re a publisher who’s struggling with this issue, give us a call – we’d love to help you capitalize on this growing market.
Study Evaluates Consumers’ Behaviors Towards Social Commerce
Jun 14th
Consumers want more from the traditional online experience. As consumers ourselves, we’re familiar with this – we want to relate to and feel valued by the vendor from which we are purchasing. Additionally, we like to incorporate ourselves in the buying experience — making a more interactive transaction. As consumers, we increasingly interact with retailers through a variety of social networks and other online outlets. A recent report, the “2011 Social Commerce Study,” conducted by Shop.org, comScore and Social Shopping Labs, evaluates how online shopping is directly influenced by social media, and the impact of social media on consumers’ online behaviors and habits.
According to the survey, 42 percent of online consumers have “followed” a retailer via Facebook, Twitter or the retailer’s blog. On average, consumers actually follow six retailers at any given time.
Respondents indicated they follow brands for a variety of reasons:
- 58 percent follow companies to get deals and savings
- 49 percent do so to receive updates on products or services
- 39 percent follow companies for information on contests and/or events
What do these findings mean for online merchants? Simply, social commerce is directly impacted by social media.
Consumers view the online shopping experience as larger than just the act of purchasing. Today’s buyers are influenced more by the recommendations of friends than methodically crafted marketing materials. They weigh whether or not to buy based on recommendations from their peers on social networking websites, rather than formal reviews.
In order to build a comprehensive online shopping experience, it is imperative that sellers understand what’s driving their buyers. Digital commerce is a huge market and Plimus can and will help you get started. We’ll assist you in building a comprehensive processing solution that completely addresses the needs and desires of your consumers and incorporates social media into every offering.
We’re ready, are you? Let’s get started today!
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/
Virtual Goods Sales in U.S. Continue to Grow
Oct 19th
The virtual goods market continues to grow with no evidence of a slowdown in sight. In fact, a recent report from Inside Virtual Goods found that the U.S. virtual goods market is expected to hit $2.1 billion in revenues in 2011. Wow! Now that’s some big time bucks. Here at Plimus we are seeing continuous 40% quarterly growth, handling an average of 10,000 transactions a day with new companies signing on daily to leverage the BuyAnyware™ API.
The Inside Virtual Goods report and its findings has been the catalyst for lots of discussion from industry experts and media during the last few weeks. For example, Dean Takahashi of VentureBeat discusses the Inside Virtual Goods report in his article, “U.S. Virtual Goods Market to Hit $2.1 Billion in 2011,” which predicts the continued success and growth of virtual goods through iPhone in-app purchases, massively multiplayer online games (MMOG) and social games, such as the popular Farmville, with social gaming leading the charge. I’m sure everyone has at least one friend addicted to FarmVille and spends hours clicking away to successfully raise their crops by purchasing fertilizer or a shovel. These must-have virtual items cost real money and help drive this growth online.
While FarmVille and Mafia Wars are fun, not all virtual goods revenue comes from Facebook. In 2010, we saw an increase in virtual good sales on the Apple iPhone, Microsoft Xbox Live and Sony PlayStation. These new platforms will continue to expand and help us meet our revenue goals for 2011. Additionally, large brands looking to enhance their online presence are entering the virtual goods market through acquisitions (Disney/Playdom and Electronic Arts/Playfish).
Additionally, Helen Leggart of BizReport.com also states that demand for virtual goods continues to rise and is projected to more than double its sales in 2011 (from the $1.1 billion grossed this year). Of the entire market, Helen comments that Facebook was the fastest growing segment of the virtual goods market last year was with $835 million in sales. Let’s see if that continues into 2011.
What are your thoughts on this discussion? How will sales of the virtual goods market play out in 2011?
Charles Born,
Head of Marketing
Social Gaming: Who’s Spending What, Where?
Aug 4th
As the popularity of social gaming continues to grow, the marketplace for virtual products is now offering consumers more options than ever before. Today gamers can purchase nearly any type of virtual object – from elephants to guns – nothing seems to be off limits. According to a recent report conducted by market researcher VGMarket, roughly 75 percent of online gamers are using their cold, hard-earned cash to purchase virtual goods. But how and where are these consumers spending their money?
Dean Takahashi took a look at the habits of these online spenders and broke it down in an interesting article for VentureBeat. In his piece, Takahashi highlights that not only are gamers buying, they are buying often! According to the 2010 Digital Goods Report, roughly 64 percent of users make at least one purchase a month and 9 percent buy virtual goods daily. And there seems to be no buyer’s remorse here, with half of these online shoppers reporting that they plan on spending the same amount on digital goods over the next 12 months.
And there’s no shortage of sites offering virtual goods. Currently, social networks dominate the online marketplace with users reporting that they spend an average of $50 per year on digital goods through these platforms. Trailing shortly behind social networks, consumers in the multiplayer and causal gaming markets, shell out nearly $40 per year for digital goods ranging from weapons to puppets.
Surprisingly, while men play more online games and are the primary purchasers of virtual goods, women over the age of 24 report spending disproportionately large sums of money on certain products. Women surveyed in the study, reported spending an average of $55 dollars on social networks per year compared to males who only spent about $30 dollars per year. Similarly, women reported spending twice as much as their male counterparts when buying in-game currency.
It seems there is no end in sight. It will be interesting to see where this market will expand and what digital goods will emerge as a result. For now, we here at Plimus will continue to focus on making this buying experience as immersive, seamless, and enjoyable as possible for all.
Charles Born,
Head of Marketing
Photo credit: http://www.flickr.com/photos/bohman/219249582/
