A marketing plan for a new in-game advertising service that takes advantage of semantic web concepts.

1. IN-GAME ADVERTISING
PYROCONTEXTS
Marketing Plan
Ibrahim Shafi
Semantic Contexts, LLC
ibrahim@shafi.org

2. PYROCONTEXTS
 Goal: To be the premier in-game advertising
network for advertisers seeking real time
feedback and targeting information.

3. MARKETING OBJECTIVES
 Gain market share over the next
year from industry leaders in larger
network audiences
 Offer a more precise and a lower
cost ad targeting system using an
automated auction to sell ad space.
 Quickly and efficiently deliver
targeted advertising into
network-based games
 Increase brand awareness from 0
percent to 20 percent.
 Increase channel members to
build network.

4. Unlimited Product Placement Potential

5. TAKE ADVANTAGE OF THE CONTEXT

6. TEST DRIVE UNLIMITED (2006)

7. PRODUCT – VALUE TO THE CUSTOMER
1. Dynamic, Flexible  Most “advertising” is static
2. Broad Reach  Unique integrations by title
3. Accountable  Measurement by sell-thru
4. Easy to integrate  Game teams pushing back
5. Agencies drive  Agencies limited in role
value

8. PRODUCT - OFFERING
Broker Campaigns Dynamic In- Product
game Placement in
Advertising Games
• PLC – Introduction
• Focus on educating the customer about the benefits and value of our products.
• Increase brand awareness
• NPD – Design Phase

9. TONY HAWK PRO SKATER (1999)

10. CRAZY TAXI (2000)

11. TRUE CRIME (2003)

12. SPLINTER CELL PANDORA TOMORROW (2004)

13. AUTOZONE OFFROAD FRENZY

14. NBA 2K6 (2005)

15. FIGHT NIGHT 3 (2006)
Burger King Achievement
100
Beat The BK Invitational Fight.
Dodge Achievement
100
Beat the Dodge sponsored fight
EA SPORTS Achievement
150
Beat any EA SPORTS sponsored fight
ESPN FNF Achievement
150
Beat any ESPN Friday Night Fight event
ESPN PPV Achievement
150
Beat any ESPN Pay Per View fight event
ESPN WNF Achievement
Beat any ESPN Wednesday Night Fight 150
event
Everlast Achievement
100
Beat the Everlast sponsored fight
Under Armour Achievement
100
Beat the Under Armour sponsored fight

16. PRODUCT - BRANDING
 Strategy - Build utilitarian value
 Ability
for anyone to advertise in a video game.
 For game publishers, allow total control over
where ads can appear.
 Use Brand Extensions for new products

17.  Online Auction Bidding
 Audience profiles
 Characteristics of the game
environment
 The price they’re willing to pay
per impression
 Overall budget
 Competitors
 Value
Pricing Objective: Maximize
quantity of customers served  Price sensitivity

18. GENERAL ENVIRONMENT
Marketing Mix (4Ps)
Product Promotion
Price Place
Industry
Value to Value from
Market Customers Customers
-Increasingly fragmented media
advertising channels.
-Digital age: Consumers are
moving to new media. Advertisers -At least 132 million gamers
are following. 13 years and older in the U.S.
-The most coveted consumers
– men aged 18 to 34.
-Income from in-game advertising -Young men play an average
to offset development costs and of 12.5 hours of video games
increase profits. each week compared to less
than 10 spent in front of the
- Can provide highly segmented
TV.
marketing and detailed tracking.

19. INDUSTRY GROWTH
 Brand placement in games is forecasted to as much as $1
billion by 2010”
300
250
% Increase
200 In Game
Advertising
150 Revenue
Advergaming
100 Revenue
50
0
2003 2005 2007
+ Source: Nielsen Entertainment
Graph Data: The Yankee Group report: "Marketers Look to Video Games to Drive Their Messages Home" forecast

20. TARGET AUDIENCE DIVERSITY
 "If the goal is to reach [young]
males, there is a lot of waste
in buying network television,“
 Nielsen Entertainment
Senior Vice-President
Michael Dowling.
Source:” Rated M For Mad Ave”
Businessweek.com 2/27/06

21. ENVIRONMENTAL ANALYSIS
Growing number of video game players
Game sales on the rise
Increased youth spending power
Traditional advertising less effective
Technology improving and getting cheaper
ESRB ratings, self-regulating industry
Today’s digital age

22. COMPANY ANALYSIS - SWOT
Strengths Weaknesses
• Technical expertise • Unknown company
• computer code • Cost of data-acquisition could be high
• Innovative software application to cater • Limited resources & funding
ads to each specific users
• Utilizing software to tie in market data
Opportunities Threats
• Low Competitors’ software sophistication • Some established competitors
• Highly coveted demographic – Male mid • Large powerful companies entering the
30’s. field
• More children making purchasing • Government regulation
decisions
• International markets
• Independent game developers

23. COMPANY FIT
Fit w/
Fit w/ Fit w/
Competitor
Customers Context
s
Performance   
Goals & Objectives   
Capabilities   
Strategy & Tactics   
Organization   
Implementation   
Sustainability   

24. CUSTOMER ANALYSIS
Key • Blue Chip Advertisers through Ad Agencies
Segments • Direct advertisers, mostly small companies
Perceived • Access to key demographics – 18-34 yr
old males
Value • Real time metrics on ad effectiveness
Derived • More precise ad targeting to increase
impact and brand awareness
through

25. CUSTOMER ANALYSIS – MARKET SIZE
“Which marketing channels/efforts are you currently using, piloting, or
expecting to pilot within the next 12 months?” Total
Currently using Piloting or expecting to pilot No plans to use at all adoption
Email marketing 83% 10% 6% 94%
Search marketing 64% 16% 21% 79%
Behavioral targeting 38% 36% 27% 73%
Contextual targeting 37% 32% 31% 69%
Rich media emails 36% 31% 33% 67%
Rich media display ads 45% 22% 33% 67%
Blogs/social networks 13% 38% 49% 51%
RSS 10% 37% 53% 47%
Mobile marketing 11% 32% 57% 43%
Advergames/in-game advertising 13% 15% 72% 28%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
In-game Ad Market = $56M Source: Forrester’s Q4 2005 Marketer Benchmark Survey
$56M in 2005
Projected $732M in 2010
Yankee Group, Mar. 06

26. COMPETITORS
 IGA Worldwide
 Massive Incorporated
Competitive advantages: Massive and IGA Worldwide sign exclusive
agreements with online developers such as Activision to place ads into online
games. These agreements serve as a virtual monopoly against all other
competition. In addition, these competitors can claim that they have set the
benchmark for advertising in these industries.
Weaknesses: The in-game advertising is only accessible to large blue-chip
advertisers such as Coca-Cola and GM. Smaller companies do not have a
low cost way to get on the network.

27. MARKETING STRATEGY (STP)
SEGMENTATION
Advertising
Direct Advertisers
Agencies
AKQA – Coca Cola, Nike, Microsoft Auto Industry
BBDO – Anheuser-Busch, Visa, Pepsi Fast food chains
BBH – Audi, Levi’s, British Airways Large retailers, department stores
Bernstein-Rein – McDonald’s, Yahoo, Wal-Mart Soft Drinks Industry
JWT – Kellog, Unilever, T Rowe Price Beer Industry
Leo Burnett – Procter & Gamble Athletic Products
The Martin Agency- UPS, GEICO, NASCAR, Miller Entertainment Industry
McCann Erickson- Mastercard, Sony, Intel Electronics, Video Games
Airline Industry
Smaller local regional businesses With
limited advertising budget

28. TARGETING
Direct Advertisers Companies that
interested in the are willing to bid
online 18-34 male for advertising
audience space
Smaller
companies that
Companies that can’t afford
need constant or national marketing
fast update of campaigns
advertising
message •Local or regional
businesses

29. POSITIONING
 PyroContexts delivers advertisements to a quality audience
with the highest level of accuracy and timeliness among all in-
game advertising companies because our proprietary bidding
technology, and video game network better identifies, at any
given moment, the final customer (video game player) by age,
location, demographics, behavioristic and psychographic
measures.
 In the mind of the advertisers, PyroContexts should be the in-
video company with the technological edge in advertising
delivery.

30. PLACE - DISTRIBUTION STRATEGY
Channel length: Channel width:
DIRECT EXCLUSIVE
• Our Network to • Proprietary
access video technology,
games bidding
advertising linked
to video games.

31. PLACE – DISTRIBUTION STRATEGY
PyroContexts
Video Game
Players
VG
VG
VG
Advertisers
Channel
PYROCONTEXTS
Partners
VG VG
VG

32. PROMOTION
Generate Gaming • Consumer Electronics Show
Network: Targeted PR • Expand company awareness among developers
Campaign
Create Client • Explain Software innovations
Relationships: • Visit Advertisers
Dedicated Sales Team
Establish our brand: • Billboards
• Magazines
Traditional ads in • Online advertising
Major US Cities
Generate hype:
“Blogger” appeal

33. QUESTIONS?