Analysis BRANDING TheFameGame G3i talks to Paul Kanareck, Head of FreemantleMedia
Ventures, about the value of branding in the online gaming marketplace and what the future holds
Branding is a big issue online right now. Despite the relative immaturity of the online gaming market as compared to land-based, there have already been high profile branding failures, legal disputes and high court settlements. Cost, usage restrictions and long-term value are defining factors in the way that Intellectual Property is currently being exploited in online gaming from the operator's point-of-view, but there are also much wider considerations. G3i talks to Paul Kanareck, FremantleMedia's Head of Ventures, to separate out the gaming equivalents of Celebrity A-listers from the Big Brother wannabes.
VALUEADDED In a market that's constantly vying for player attention, the cost of acquisition and methods of retention are fundamental to the operation of a successful online gaming business. Big brands deliver great recognition, but their price tags must be balanced against their potential for revenue generation. So how do you quantify that value in a gaming context? "The criteria used to decide whether to bring a brand into gaming always includes whether it feels ‘a fit’ with the type of game we want to make and an understanding of who the game is for," explains Mr. Kanareck. "It also includes the question of what branded elements can be leveraged... are there photos, classic theme tunes or characters that will enrich the impact of the brand on the player and on the game play? A brand has to be much more than just a logo in order to perform at the level we would expect."
FremantleMedia's view is that branded games allow for increased profit and greater marketing creativity. But is it an outcome that's worth the licensing cost, the adherence to strict usage rules and game design restrictions? "While it’s true that licensing fees represent an additional cost to the operator, a well-executed branded game makes up for this cost by helping to acquire new customers and keeping the site competitive, increasing the likelihood of player retention," states
Paul. Analysis of operators’ Net Gaming Revenue numbers has shown that adding a premium branded game does not merely move money around by cannibalising existing games but rather generates incremental revenue on the site. On the marketing and promotions side, strong brands lend themselves to exciting and effective promotional campaigns. "We’ve seen great returns from ticket giveaways for The X Factor Live Tour for example," says Mr. Kanareck. "Also, we’re able to provide great support to an operator’s marketing team with brand style guides and graphics packs."
UNIVERSALAPPEAL FremantleMedia is in the fortunate position of having international formats with the same branding globally (such as Baywatch) as well as those that are localised for different countries beyond just language (such as Family Fortunes/Family Feud). Europe is a particularly tricky market to satisfy by a universal brand, due to the diversity of languages and cultures and there's an argument that specificity is more important than broad acceptance. In addition to global formats FremantleMedia can also offer those that are much stronger in particular markets— FremantleMedia, for example, has huge hits across key markets in Europe. This means that FremantleMedia is able to work with operators to target specific markets and is another example of the company's belief in portfolio diversification.
Paul isHead of
"Building a games portfolio is like building a financial portfolio - it’s about diversification and recognising that a one- size-fits-all approach won’t work," explains Mr. Kanareck. "While it is possible to identify brands that will appeal to a relatively broad demographic, it’s savvy to take a chance with brands that might have slightly more ‘niche’ appeal and thus provide something more targeted to a particular player type or profile. This broadens the operators customer base."
G3i I ISSUE 2 I PAGE 38
FremantleMedia Ventures.
FremantleMedia is a
global entertainment businesswith
formats such as The XFactor, American Idol and The
Apprentice and is
owned by RTLGroup and Bertelsmann.
ROBOCOPVS. LEGALLYBLONDE The most obvious sort of segmentation is in terms of brands that are primarily male-oriented vs. primarily female- oriented, for example RoboCop vs. Legally Blonde. On the other hand, some brands effectively bridge the gender divide - Baywatch and Stargate SG-1 are certainly in this category. On a more complex level there is the important distinction between casual players who want a high win frequency type of experience compared to those who appreciate a greater level of volatility - long dry periods offset by
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