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How Advertisers Can Capitalize On Branded Virtual Goods

Many advertisers are quickly learning the power of branded virtual goods within games, especially mobile social games. Aside from the obvious benefits of very low production and fulfillment costs, the mobile medium is an excellent way to reach people in a personal way. Virtual items within games provide a fun, interesting way to launch creative campaigns and to make a positive connection between players and brands.

Social game makers like Zynga and CrowdStar are making great use of Facebook Credits (the company’s internal payment system for virtual goods) and leading the way to huge profits. eMarketer has forecast that Facebook Credits will bring in $470 million this year, compared to $140 million in 2010 and $39 million in 2009. The growth of the mobile gaming market is equally impressive, and is predicted to hit $1.6 billion in revenue by 2015.

If you’re an advertiser, here are three tips to keep in mind as they relate to mobile virtual goods:

1.  Think Outside The Banner

Banners are still an important part of most campaigns but virtual goods make it possible to reinforce the message. Integrate your product into a game, and work with developers and publishers to find creative interactions with gamers.

For example, musicians and their record labels have embraced the power of virtual branding; as social games giant Zynga prepared for its IPO, they launched their sixth mobile-first title ForestVille, which features a Michael Buble avatar. ForestVille allows gamers to party with Buble's band around a holiday bonfire, plus gain access to an exclusive video in CityVille.

Another great example is Best Buy’s sponsorship of CityVille, where users can acquire a Best Buy Sleigh, which ties the brand into both the game and the holiday season.

2. Gamers Love Consumables

A disproportionate percentage of virtual goods are items that have a one-time use to enhance game play. These items help gamers advance through the game more quickly, and will create a positive association between a product and achievement.

Because these items are just used once, there are ample opportunities to showcase different products or brand mascots. Find a way to insert your product or messaging through some virtual goods, and your business will be associated with the fun of gaming in the mind of that gamer.

For example, Cascadian Farm partnered with Zynga last year to place their organic blueberries as a consumable item in its hit game FarmVille. As proof of the efficacy of the campaign, thousands of the players also took the extra step to ‘Like’ the Cascadian Farm Facebook page.

3.  Remember The Social Nature of Gamers

Games that monetize well are those that allow users to interact with each other. Virality is almost always a core feature of games that are driven by virtual goods, and it’s also great for brands. Gamers are much more social than the average user, so try to find ways to leverage this fact.

Find a way to promote your product or service while allowing gamers to be social with each other -- whether sending energy or ‘love’ to another gamer or helping another player on a quest. Allowing users to send a branded item to their friends is a great two-for-one interaction: It promotes viral distribution while reinforcing the brand message.

As we look into a promising future for mobile social gaming, virtual goods are certain to take center stage in terms of revenue and as a branding opportunity. The virtual goods market is expected to boom in the coming years, yielding $4.6 billion by 2016 according to Juniper Research. Savvy marketers are already making low risk investments by turning their brand into a game achievement and sharing experience.


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