Women Watch Ads In Exchange For Virtual Currency

Farmville

Spending virtual currency in social network games has become a habit for some women and a possible lead-generation tool for advertisers, according to a study released Tuesday.

More than 50% of the 2,000 women who took part in the Q Interactive and Social Media World Forum survey disclose that they have used virtual currency in a social network game, such as Farmville and Causes. About 23% admit to visiting the games several times daily, and 33.4% use it at least once each day.

The study provides insight into the ways that agencies and advertisers can reach out to women through games in social networks. For example, 37.7% of women use virtual currency to advance in games, compared with 17.3% who use it to give virtual gifts. The study found that 33% interact with virtual currency because it's fun and addictive, whereas 25% say it enables them to give gifts to friends and family members and 24% believe it enables them to advance in applications and games.

Nearly 90% of women who participated in the study have not used real money to purchase virtual currency, so giving them other options to participate is important. Of those who do spend real currency, 47.1% say they have spent less than $20, between $20 and $100, 38.2%; between $100 and $500, 8.8%; and more than $500, 5.9%.

When asked why not spend real money, 37.7% can't afford it. Another 32.5% say it's not that important, 18% would rather get it for free, and 11.9% admit they don't like giving out personal information to make purchases.

While the study found that women don't like to give out personal information to buy virtual currency, they do feel comfortable watching ads for virtual cash.

Many social network games rely on virtual currency to motivate consumers to interact with advertisers either by signing up for an offer or watching an ad. Seventy-eight percent of respondents had signed up for a special promotion in exchange for virtual currency.

Ninety-seven percent of the women who participated in the study say they prefer to interact with an ad to earn the virtual currency instead of paying for it with real money. And 67% of the women who signed up to watch the ad found it useful, rather than a necessary evil to get something for free.

Advertisers view virtual currency as a fledgling marketing strategy, according to Matt Wise, president at Q Interactive. That's the biggest challenge. "Brands are sitting on the sidelines wondering how to get in the game," he says.

Women are extremely loyal to a specific game, according to the study. Among the thousands of available games across social networks, such as Facebook and MySpace, 84% say they play between one and five regularly.

When asked what makes you want to play certain games or applications, 53% said a friend or family member recommended it. Among women, 34% also revealed that they prefer online surveys, compared with health-related goods or clubs.

"It's a good opportunity for brands to jump in and interact with consumers, but there's always unscrupulous players in the space where there's a lot of money," Wise says.

Zynga, which offers FarmVille and Mafia Wars, suspended putting lead-generation offers in its Facebook games because it had a difficult time policing them, Wise says. Some believe the decision was spurred on by Facebook's removal of FishVille, Zynga's latest social game.

In a post on his Web site, Zynga CEO Mark Pincus admits the company has not been successful in controlling ad content. He says it's because other companies that Zynga works with manage the content.

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