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Digital Content
Growth Areas & MarketTrends 2011+

Nic Mitham, CEO KZero
FCOM Navarra University, Oct 21 2011
About KZero
Consulting, Analytics, Insight
KZero services
  Sectors: Virtual worlds, branded virtual goods, casual/social gaming,
  3D gaming, augmented reality
  Start-ups / Pre-launch: Business planning, market sizing, financial
  modelling, strategic guidance, launch planning
  Operational companies: Marketing strategy, product development,
  user analysis, market entry planning, partnerships/busdev
  Brands: Media planning, campaign creation, virtual brand strategy,
  social media monetization strategies
  For VC’s/Investors: Deal-flow, investment analysis, market sizing
Clients
Media References
Virtual Worlds
Full of Weirdos and Loners
1bn
Registered Accounts
200m
Active Users
$3bn
Global Market Size
Virtual Worlds: Sizes by Territory
   North American      South America        Westen Europe   Eastern Europe         Asia         Other

                                       5%
      6%                       11%                                 7%
           3%                                   26%
                                                             10%             29%        6% 6%
16%              34%                                                                 10%            37%
                         14%                                9%


                8%                               15%                         11%          33%
  33%                                                                                             7%
                                                                 34%
                                     28%




 Age 5 -10                            10 - 15                     15 - 25                   25+
 320m accs                            652m                        385m                      42m
Registered Accounts Q2 2011
Poptropica
Kids Casual Gaming
YouTube Video: search ‘poptropica’
Moshi Monsters
Tweens Nurtering and Gaming
YouTube Video: search ‘moshi’
WeeWorld
Tweens & Teens Avatars
YouTube Video
Mamba Nation
Teenage Immersive SocNet
YouTube Video: search ‘mamba nation’
IMVU
Teenage+
YouTube Video: search ‘official imvu’
Virtual World Social
Media Ecosystems
Virtual Goods
Paying for Something that Doesn’t Exist
WTF?
$7bn
Global Market Size
Decorative Virtual Goods
Behavioural Virtual Goods
Functional Virtual Goods
Access-Driven Virtual Goods
Virtual Currencies
There’s Gold in Them Hills
BVG’s
Branded Virtual Goods
Sephora in Stardoll
Gucci in Ameba Pigg
YouTube Video: Search ‘KZero L’Oreal’
Virtual Goods vs Advertising ARPPU
$8
                 Virtual Goods      Advertising
$7
$6
$5
$4
$3
$2
$1
$0
 Sep 09   Oct   Nov   Dec   Jan 10 Feb   Mar      Apr   May   Jun   Jul   Aug   Sep
UGC
User Generated Content
YouTube Video: Search ‘minecraft’
YouTube Video: Search ‘imvu music’
Simulcasting
  Virtually Being There
Metabrands
Lady Goo Goo vs Lady Gaga
YouTube Video: Search ‘lady goo goo’
Mobile Devices
   The Trojan Horse
Average Age of a New
Mobile Phone Owner
     in the UK?
8 years old
Mobile vs Credit Cards
           Number of (billions)                 keystrokes to Purchase Completion
4                                         80




3                                         60




2                                         40




1                                         20




0                                          0
    Credit Cards         Mobile Devices        Credit Cards          Mobile Devices
Avatar Customisation
Messaging
Transmedia
ConnectedaMedia
A Good Story goes Long Way
Virtual Worlds and Toys
                            Connected Play
                         Community Building
Virtual World



                    Downloadable Virtual Goods




                                                       Toys
                           Real World Sales
                Virtual Versions, Customization, NPD
                          Virtual Goods Sales
                      Unique Activation Codes
Virtual Worlds and Media
                   Storyline/Character Extension
                User/Viewer Relationship Building
Virtual World



                Audience Growth in New Territories




                                                     Media
                    New Storylines/Characters
                       Pre-Launch Marketing
                        Virtual Goods Sales
                         User Base Growth
Transmedia Projects in the VW/MMO sectors
                              TV



Books                                 Game Consoles


                         VW/MMO



        Toys and Games              Movies
Augmented Reality
Virtual Stuff in the Real World (In your Face!)
YouTube Video: Search ‘hp augmented reality’
YouTube Video: Search ‘world builder’
web: kzero.co.uk
 twitter: @kzeroworldwide
facebook: /kzeroworldswide

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