Nic's presentation from the Digital Kids Conference. New York, Feb 2013.

1. Virtual Worlds /MMOs:
Key Data, Metrics and Insight
Digital Kids Conference, NYC, Feb 2013
Nic Mitham, KZero

2. KZero Clients

3. Universe Chart
State of the Market Q4 2012

7. Radar Chart
Companies by Genre & Status

13. Market Sizing
Penetration Rates and Active Users Q4 2012

14. Market Penetration: Ages 7 to 13
Active Users as a % of the Addressable Market

15. Global Unique Active Users (m)
Region
7 8 9 10 11 12 13 Total
Age
North America 0.7 1.5 2.5 3.2 3.3 3.3 3.1 17.6
Latin/South America 0.2 0.4 1.3 1.7 1.8 1.8 1.6 8.8
Western Europe 0.8 1.2 1.6 2.0 2.2 2.5 2.3 12.6
Eastern Europe 0.2 0.3 0.3 0.7 0.6 0.3 0.3 2.6
Asia 1.3 1.8 2.5 4.1 4.5 4.6 4.5 23.2
Australasia 0.1 0.1 0.1 0.3 0.3 0.3 0.4 1.6
Global Total 3.2 5.3 8.3 11.9 12.7 12.8 12.1 66.4
Logged in at least once to a VW/MMO in the quarter

16. Trends/Strategies
Where is the Market going? Key Strategies for Success

17. Licensing and Merchandising
Almost all major (10m+ reg acc) VWs have implemented
L&M initiatives
Boosts brand awareness, therefore improving
monetization conversion
Without L&M: 1% - 2% conversion rate to paying
With L&M: 4%+
Tying physical product to virtual product is the key
strategy
Virtual character activation: Skylanders, Bearville
Encouraging physical store visits: Distroller
Extending the play length: Great for the brand

18. Moshi Monsters: Activity Timeline
Reg
Accs
Moshi Music announced
Trading Cards (Topps)
Master toy deal announced DS Game: Theme park
DS Game: Moshling Zoo
Master toy range launch
Magazine launch
McDonalds promotion USA

19. Stardoll: Activity Timeline
Reg
Accs
1st Clothing Deal: JC Penney 1st Media Deal: Strictly Come Dancing
Signs Innovative Artists as Master Agent
2nd Book Deal: Random House
1st Book Deal: Random House 1st Toy Deal: Stardoll by Barbie

20. Aggressive User Acquisition
User Acquisition budget (or rather lack of) was the joint
key reason for the failure of ‘Penguin-Chasers’
Circa $750k acquisition budget is required in year one
This spend level activates viral index
Online channels do work for KT&T acquisition
Even for the younger users
Sub $1 CPA is target
Coupled with managing lapse rate
The aggressive VWs are using TV (and L&M)
Now seeing smaller VWs using TV from launch
7 VWs using TV advertising in UK

21. IP-Led and Follow-Ons
Fewer start-ups entering the sector
Those that do enter need to go for niches
More established co’s leveraging IPs are entrants
Turner
PBS
Successful VWs (or founders) are launching new VWs
Jumpstart - Math Blaster
Club Penguin - Mech Mice
Neopets - Monkey Quest
User Generated Content - Expect more UGC
Especially for younger users

22. kzero.co.uk
@kzeroworldswide
Slideshare:‘kzero’