How in-VR Hopes To Evolve the Convention Industry

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While E3 has opened its doors wider to consumers for this summer’s annual Los Angeles trade show and Gamescom continues to attract over 340,000 gamers to Cologne, Germany every August, startup in-VR sees a unique opportunity to connect the public with brands and companies through virtual reality. The company is hosting the world’s first video game convention in virtual reality this December. While VR games will be part of the offerings, this virtual convention will feature games across all platforms, including mobile, console and PC.

“The video game industry is very early at adopting new technology and they already have a lot of games in VR,” Chryssa Tsouraki, co-founder and COO of in-VR, told AListDaily. “We thought the best way to start our venture was to focus on gaming.”

Chryssa Tsouraki
Chryssa Tsouraki, co-founder and COO of in-VR

Stelios Papagrigoriou, co-founder and CEO of in-VR, said gaming is also a fun industry to launch an event. It’s for all conventional games and experiences.

“Since we’re in VR, exhibitors can recreate their gaming worlds in their booth,” Papagrigoriou said. “You can have video game characters talk to visitors. You can offer the ability to download and play free game demos and we also have a click-and-buy option for selling games to attendees.”

The three-day event will offer lectures from leading game makers, both traditional and VR creators. HTC has already committed to two speakers and Tsouraki said discussions are on-going to “work on something great” with the tech company for in-VR.

Stelios Papagrigoriou
Stelios Papagrigoriou, co-founder and CEO of in-VR

In addition to the HTC Vive, in-VR will support Oculus Rift and Samsung Gear VR. Papagrigoriou said support for PlayStation VR is currently in its plans.

Although pricing hasn’t been finalized, attendees will be charged anywhere from $10-$15 to $100 to attend the virtual convention. The higher-end pricing will include all-access, as well as the ability to instantly create a virtual room for meetings at any time.

Tsouraki said the 72-hour non-stop experience will be something like an MMO VR game. There will be over 100 hours of content for people, including exploring the exhibition space, listening to lectures from 200 speakers and being able to ask questions during Q&As.

“It’s going to be a funky design and companies will be able to do crazy stuff in the venue because we don’t have to obey the laws of physics,” Papagrigoriou said. “We don’t have to limit the space. We’ll have high standards in content, so not just anyone can join.”

Virtual reality opens up a lot of creativity for game publishers and brands. Papagrigoriou said companies can sponsor everything from robots to the moon to parties.

“You can create a fun VR experience and engage with fans that way,” Papagrigoriou explained. “We have billboards that people can interact with. The arena is going to be amazing. There will be things flying around you. For sponsors with VR content, it’s a great way to showcase the product in a large room. We’re also discussing with someone to sponsor the moon. You can sponsor pretty much everything. You can showcase your service and product and artwork in an active way.”

While shows like E3 and the Game Developers Conference can charge millions of dollars for booths, Tsouraki said in-VR is giving the opportunity for creative people to design around their own budgets. Plus, she said the click-and-buy option opens up the ability to earn revenue.

“Game publishers have embraced it,” Tsouraki said. “We’re not doing a VR conference, we’re doing a gaming convention and using VR as a medium, but we’re welcoming all types of games.”

Companies can build their own VR booths from scratch or use in-VR partners for a turn-key solution to do all the work. Booth prices will range from $500 to $1,000 for independent developers, for a 5 to ten square meter booth, and the highest-end platinum package is $50,000, which includes everything from an 80 square meter virtual booth to a custom avatar with the company’s branding, as well a click-and-buy button and brand marketing pre-event. There will also be gold and silver package options.

Tsouraki said in-VR has received a lot of interest from an energy drink and payment brands that want to get involved in this event, which she expects will attract over 20,000 attendees.

“Anyone involved in a normal gaming convention could sponsor our event as well,” Tsouraki said. “We’ve built a really fun community around this and we have good advisors, so we can take a brand to this audience in a unique way.”

In addition to working directly with the VR platforms, in-VR is also partnering with many VR arcades across the globe to open the event to more people.

“We’ll have really well-priced tickets for them to go and attend it in that way,” Tsouraki said. “This wasn’t part of our initial plans, but we started getting inbounds from these indie VR arcades so we’re going to launch a campaign soon for them.”

While the current VR landscape is dominated by lower-powered mobile devices from Google and Samsung and even Sony, Oculus and HTC are slowly finding an audience, Papagrigoriou sees a mainstream VR future.

“Although VR is not widely adopted yet, we know it’s going to get adopted,” Papagrigoriou said. “It’s a bet we’d like to take. There are die-hard fans out there that will participate today. And we’ll grow in accordance with VR adoption. We’ll move into other industries that will embrace VR as well.”

Skybound Interactive Exec Explains Virtual Reality Game Plan

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Skybound Interactive is taking a patient approach when it comes to virtual reality gaming. The interactive division of Skybound Entertainment, which is best known for The Walking Dead, has released its first original VR game, Giant Cop.

Dan Murray, president of Skybound Interactive, discovered the indie game from Other Ocean Interactive on a trip to the Philippines, where he was visiting an art team that works on multiple games. The actual Oculus Touch game was developed in Newfoundland, Canada.

“I was struck by how fun it was, and it had a strong narrative component to it and a unique voice, which I thought would be exciting for Skybound fans,” Murray told AListDaily.

Now that the game has shipped for Oculus Rift with Touch support as a timed exclusive, Murray said versions will be released in the future for HTC Vive and PlayStation VR. There are also bigger plans for the IP outside of gaming.

“It starts as a game first and then the conversation is organic as we bring the idea to the rest of the company across all of the different departments so they can see the potential behind the IP and see how we can partner up and add value,” Murray said.

Skybound is using its network of 1.7 million Skybound Insiders to market the $24.95 game, which received a marketing push at EGX Rezzed through Influencers and press. Also, Facebook-owned Oculus, which helped defray some of the development costs in exchange for a timed exclusive window, is also cross-promoting the title.

“This is more of a long-term play,” Murray said. “We’re not a marketing agency or a traditional publisher, we’re a partner on content. We have a lot of plans to support and share this game with all of our fans. We do a lot of internal communication with our fan base.”

Skybound Interactive is also working with Starbreeze and Overkill on The Walking Dead shooter for PC and consoles, as well as The Walking Dead VR game demo, which has made the rounds of trade shows and public conventions over the past few years.

“It was an extension to the PC and console first-person shooter and the VR component was something they wanted to pursue as a test case for some of their ambitions,” Murray explained. “We were cool with that, but we also wanted to bring it to fans so we made an Overkill’s The Walking Dead bus and drove it around to our Walker Stalker conventions.”

Murray said that first step into VR is now being polished for an IMAX version, but the team is also working on the next iteration of The Walking Dead VR experience as well.

“We have a lot of different ideas, and we want to do something really big with Starbreeze, but the focus right now is on the PC and console game,” Murray said. “We have some other game ideas for The Walking Dead that are different as well, but that’s something to talk about soon.”

Murray sees room for both home-based and location-based VR games as the company explores virtual reality.

“It makes perfect sense to deliver something over-the-top and exciting to take advantage of the more powerful hardware for the premium experience inside of a location, which is not very different than what the movie theater experience is versus your 4K TV at home,” Murray said.

When it comes to VR gaming, Murray said the company is working on a bunch of unannounced projects, but the key is in looking at titles that will innovate and deliver something fresh and exciting.

“Our business model is to partner with creators around an IP,” Murray said. “Traditionally we did that with comic books and extended the universe outward. We did a SuperFight card game and YouTube series and a 505 video game and all kinds of other merchandise around it. That same philosophy is important for us to be thinking about licensing things like we did with The Walking Dead. We wanted to reach out to the indie gaming community and find developers that have strong IPs and things they want to develop.”

That holds true for all video game platforms, including virtual reality.

“There’s been so much activity around VR as a medium since Oculus entered the market, and it’s something that the gaming community has been familiar with for over a decade,” Murray said. “It’s still early days, especially in the home. We’ll continue to see the hardware get better and more affordable and more consumer-friendly. It’s going to take a while for the home environment to become the leading location for where people can experience VR. Location-based entertainment centers are very much a recreation of the arcades that I grew up with. They have the ability to introduce VR to more people, as well as bring people together socially.”

Shazam Has Ears For AR With CTO Hire; McDonald’s Shakes Up Its Marketing

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From media networks to gaming, here are the week’s biggest job moves.

Remy Malan is headed to MMO developer Roblox to helm their newly created role of vice president of customers.

Intel announced the appointment of Aicha S. Evans as their new chief strategy officer. Evans will be responsible for driving Intel’s long-term strategy to transform from a PC-centric company to a data-centric company.

Shazam has its eyes on augmented reality. The music-identifying app has hired Richard Sharp as its chief technology officer to help develop the technology for the platform.

McDonald’s has made some moves in its marketing leadership. CMO Deborah Wahl is leaving the fast food giant after leading it for the last three years. She will be replaced by Morgan Flatley, the former CMO of PepsiCo. Julia Vander Ploeg, vice president of digital, is also leaving the company and will be replaced by Farhan Siddiqi, a former vice president of global digital experience at McDonald’s, who is now the new head of US digital.

Sam Toles, formerly the senior vice president and GM for Vimeo Entertainment Group, has been hired by MGM to serve as SVP of digital and new platforms.

Former Ericsson CEO Hans Vestberg is headed to Verizon to oversee its fiber network infrastructures teams.

Luxury lifestyle brand Coach announced the appointment of Joshua Schulman as its president and CEO, effective June 5. In this newly created role, Schulman will be responsible for all aspects of the brand globally. Separately, the company announced that Andre Cohen, currently president of North America and global marketing, will be leaving the company at the end of June to return to Asia with his family.

J.Crew’s president and executive creative director Jenna Lyons, a 26-year veteran of the company, is stepping down from the retailer when her contract expires in December.

Electrolux announced that CMO MaryKay Kopf has decided to leave her position, effective May 1. The company has appointed Lars Hygrell, who currently is senior vice president of marketing, as her successor.

Job Vacancies 

CMO, Mixed Reality GE Waukesha, WI
Vice President, Marketing Esurance San Francisco, CA
Vice President Marketing American Eagle Financial Credit Union East Hartford, CT
VP, Marketing (Global Underwear) Calvin Klein New York, NY
VP, Marketing & Digital Channels City of Hope Irwindale, CA
Director, Marketing  Fox Deportes Los Angeles, CA
Director of Brand Content & Partnerships  Time Warner Burbank, CA
Senior Marketing Manager Apple Santa Clara Valley, CA
Sr. Manager, Creative Services NBC Universal Universal City, CA

Make sure to check back for updates on our Jobs Page.

Have a new hire tip? Let us know at editorial@alistdaily.com.

How This Brand Hopes To Bring Clarity To Smart Home Automation

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The battle for smart home automation is intensifying, as Amazon Alexa and OK Google target consumers across multiple devices. With an Amazon Echo touchscreen rumored to be in the works, startup Pan Sea Co. is releasing a $200 Android-powered touchscreen Clarity Speaker that will support both Alexa and Google voice services in June. The 7-inch device is being marketed as the central hub for the automated home, enabling users to access Google Now, Google Assistant, Alexa, entertainment services like Spotify, Pandora, Netflix, Google Play and communication apps like Skype. It’s available for pre-order at $150.

“People like the new, simple ways to interact with technology,” Dake Liu, CEO of Pan Sea Co., told [a]listdaily. “AI voice service is currently at the forefront, but not the only one that people are focused on. When people communicate with modern interactive technology, it should feel more natural than if you were just interacting with a machine. We loved the thought of people being able to see and speak to one another, so we added touchscreen into the smart speaker.”

With Clarity, users can control and manage every aspect of the connected home. Using voice commands to control Alexa or Google, or leveraging the 7-inch touchscreen, users can control a range of devices including Nest, TP-Link, Samsung SmartThings, Insteon, Ecobee, Wemo and Hue Personal Wireless Lighting.

“AI voice is evolving into the control center for the Internet of Things, a lot of IOT product will be in your home in the coming years,” Liu said. “Developing an IOT product that can be controlled by one hub was important so we could stand out in the crowd. Clarity is a great device that seamlessly connects all IOT products together and enhances your quality of life.”

Pan Sea Co. developed a special app to connect with the Alexa voice service and opened the OK Google function from the Android system. Liu said this makes it easy to switch between the two services. If consumers want to access Amazon Alexa, they would touch the Alexa app on the Clarity Speaker screen and then say the wake-up word, “Alexa,” with the instruction. For Google, you would touch the microphone on the display screen, say “OK Google” and give it an instruction.

“We don’t have detailed information about the rumored Amazon Echo, but we believe Clarity will be on the market ahead of the device,” Liu said. “Clarity is also portable and unlike Amazon Echo, does not need to be plugged in for operation. This means Clarity can be enjoyed anytime and anywhere. Finally, again as it uses the Android OS, Clarity will have access to more apps than a device on an Amazon-only platform.”

The first wave of Clarity products are going to the 1,500 backers who crowdfunded $250,000 on IndiGogo to get the ball rolling. That exceeded the campaign goal by over 400 percent.

“The crowdfunding campaign made us really identify our core selling points and areas of differentiation,” Liu said. “It has also given us a platform to reach, and be scrutinized by, tech enthusiasts and early adopters.”

The company also learned the importance of respecting all of the audiences out there and delivering a valued product to them. It employed surveys and A/B tests with this crowdfunding audience to make decisions moving forward.

Liu said the company will continue to target consumers who are looking for connected home devices, who are interested in Alexa-enabled devices, but not necessarily an Amazon product, and users who are looking to diversify their lifestyles with a stylish, yet functional connected home device.

Liu said the Clarity brand means, “Making machine communication clearer.”

“Clarity is more than just an audio speaker, it’s an entertainment system as well as a smart hub for the home,” Liu said. “The device is made to not only deliver exceptional sound performance, but users can also watch movies, video chat with others and enjoy their favorite apps from the Google Play store.”

The global voice recognition market, which also includes the growing automotive AI industry, is expected to reach $127.58 billion by 2024, according to a new study conducted by Grand View Research. The report found that enhanced devices represented half of the entire market in 2015 thanks to the increasing usage of voice recognition solutions in the home automation and consumer electronics application areas.

What Eye Tracking Teaches Us About Advertising And Consumer Behavior

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All brands want to be seen, but eye tracking helps determine how effective those glances really are. The technology is being utilized by marketers and research teams to better understand human behaviors across a variety of ad types and platforms.

The Eyes Don’t Lie

A recent study by video technology platform, Teads, for example, found that users spent 24 percent more time watching video ads embedded within premium content on websites than they did watching video ads in social feeds. In addition, ad recall was twice as high for in-article video as it was for skippable pre-roll ads. Video ads embedded in premium content were found to drive purchase intent 27 percent higher than skippable pre-roll ads or video ads found on social feeds.

Another eye tracking study conducted by biometric tracking firm Sticky, ad tech firm InSkin Media and market research firm Research Now Group found that viewers need about a second of looking at an ad to have even the smallest amount of ad recall. In the study’s terminology, “gazing” means looking at an ad long enough and with enough attention to actually have the possibility of remembering it. These results aren’t terribly surprising, unless you have a photographic memory. The study determined that in order to get a second of gazing from a viewer, the ad needs to be on-screen for an average of at least 26 seconds and must be viewable for at least 14 seconds to be seen at all.

Which types of display ads are the most effective? It depends on what the consumer is looking for. Meditative conducted an eye-tracking study of 39 participants of mixed ages who were assigned certain search tasks. As they searched, participants were shown digital display ads in various sizes and positions across both web page mock-ups and actual sites.

Using the resulting data, the researchers were able to generate heat maps showing the length of time spent looking at various parts of the pages, as well as gaze maps indicating where people looked and clicked. What they found is that just because as ad is present, doesn’t mean a person will look at it.

Digital display ads were 80 percent more likely to be noticed by study participants if they were relevant to a task the searcher was currently working on, compared with ads relevant to something the searcher had looked for in the past. Out of all the ads that were served to the study participants, only 16.6 percent were actually viewed (as defined by 50 percent or more of their pixels were in view for a minimum of one second). The most-viewed ads were located above the web page compared to below—ads shown above the page were viewed 50 percent more and 87 percent longer on average.

Example of heat map (source http://www.garethspictures.com/ )
Example of heat map created through eye tracking, with red indicating the longest gaze times. (Source: http://www.garethspictures.com/)

We See What You Did There

While most studies are conducted within closed environments, technology is being tested to record eye tracking out in the world. In 2013, Google filed a patent for a system of “pay per gaze,” in which registered advertisers pay Google every time a Google Glass user looks at an ad in his/her external field of vision. The patent mentions the technology’s ability to “determine which on-screen elements draw the user eye.” The pay-per-gaze system could even track a viewer’s emotional engagement with an ad by measuring pupil dilation and retraction.

Researchers are testing a new product called SideWays that can track what products catch your attention on the shelves in physical retail stores. As soon as a customer walks up to an item, the device automatically starts tracking what he/she looks at, which could allow shop owners to cater advertisements according to interest.

Immersive Tracking

HTC has just begun rolling out VR advertisements, complete with eye tracking to measure the ads’ effectiveness. The program, still in pilot stages, is available only in China at the moment, HTC told [a]listdaily. Luckily for advertisers interested in the medium, VR has a head start on brand recall. In a recent study testing the effectiveness of marketing in VR, brand recall was at least eight times more effective across all brands with immersive VR as well as double the intent to share.

NVIDIA is studying a type of rendering based on how the human eye works. A technique called “foveated rendering” creates the highest quality imagery only at the center of your vision where your eye can detect sharp detail, while rendering low quality imagery in the periphery of your vision where your eye is not tuned to pick up high resolution details.

Combined with eye-tracking, it’s widely believed that foveated rendering is an important pathway to unlocking retinal-resolution VR rendering in the near future, meaning imagery so sharp that any additional detail would be indiscernible.

Led by medical diagnostics, the eye tracking market is estimated to exceed one million dollars by 2020, at a CAGR of 35.2 percent.

Pay To Play: The Age Of Game Subscription Services

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Physical video game sales continue to drop as gamers opt for the convenience of digital downloads—especially in the US, where the segment rose 43 percent in January. As with music, movies and television, consumers enjoy the instant gratification of cloud-based interactive entertainment, not to mention the significantly lower cost of a monthly fee compared to purchasing every game available.

Clash Of The Console Titans

PlayStation Now offers nearly 500 games that can be played instantly on a PS4 or PC. Since PlayStation Now uses cloud, users can start a game on one device and continue on another. The service’s inventory consists mostly of PS3 titles, but it’s switching gears to PS4 and PC only. Sony will discontinue support for older devices beginning in August.

Sony’s Game & Network Services division, which includes the PlayStation brand, reported a 5.2 percent increase in sales to $5.33 billion for the three months ending December 31, 2016. PlayStation Now subscribers on devices no longer supported may opt to discontinue their subscriptions or finally invest in a PS4—a console that is selling better than ever. As of January 1, the PS4 is sitting pretty at 53.4 million units sold worldwide—a pace higher than even the PS2, the best-selling game console of all time.

In the wake of sad PS3 and Vita owners comes a timely announcement from Microsoft—an upcoming subscription service called Xbox Game Pass. Unlike PlayStation Now, Xbox Game Pass allows subscribers to download titles directly to their system and play anytime as if they were purchased.

These games will be available to play so long as the subscription is in good standing—otherwise, the player has an option to purchase them at a discount. Microsoft’s new service will launch with approximately 100 games this spring, including Halo 5: Guardians, Payday 2, NBA 2K16 and SoulCalibur II.

Image portraying endless game options available on Xbox Game Pass

Lookin’ Pretty On PC

Purchasing or building a gaming PC can be expensive and time-consuming, but Nvidia offers the solution. GeForce Now is a Netflix-style cloud gaming service that streams video games to systems with the highest-possible quality graphics. In essence, gamers are able to “rent” mid-range or high-end video card capabilities for a limited time.

GeForce Now is as an exclusive service to the Nvidia Shield TV media streaming and gaming set-top box, but another version is making its way to PCs and Macs. The key difference is that the PC/Mac version allows its users to install games purchased from digital storefronts such as Steam, Origin, Uplay, Battle.net and others on a virtual desktop with 1 terabyte of storage. Users can also choose which video card they would like to purchase time for—a mid-range GeForce GTX 1060 or the high-end GeForce GTX 1080.

EA Access offers entry to a number of EA-published games for around $5 a month for either PC or Xbox One, along with early access to new games and a discount on purchases.

LiquidSky doesn’t currently have its own proprietary storefront, but the platform gives access to a virtual Windows desktop in the cloud and an ultra-high-speed direct connection to the internet. Users can install any game they own from any online storefront they prefer such as Steam, Origin, GoG, HumbleBundle, Battle.net and add new titles as they are purchased.

LiquidSky users are able to utilize the service for free by interacting with ads from partners like True[x]. Doing so earns “SkyCredits,” which can be redeemed for time playing with higher graphics and memory speeds.

Virtual Access

Just launched, HTC’s Viveport subscription offers a selection of five VR games or experiences “from an ever-growing library of curated content.” Unlimited access will be available, with users able to swap titles in and out each month. For $6.99 per month, Vive headset owners can sample a plethora of content, adding additional value to their investment.

“The marketplace for Vive apps has grown at a tremendous pace with more than 1,600 titles now available across different app stores and over 30 new apps launching daily,” Rikard Steiber, president of Viveport at HTC Vive, said in a statement. “The rapid growth of the app market is a win for VR overall yet it can present discoverability challenges that affect both customers and content creators. Introducing a subscription model to VR is a natural evolution of where this market is going, and as film, music and TV have proven it’s becoming the preferred way customers want to explore and experience entertainment content.”

viveport-subscription-blog-2

Is Mobile Subscription Next?

Mobile gaming is the largest sector in interactive entertainment, and consumers spent a whopping $41 billion on mobile games last year. Console, PC and VR games get their own subscription services, so will mobile be next?

Joost van Dreunen, CEO of SuperData, sure thinks so.

“The success of the subscription model in music and video streaming tells us that consumers are willing to commit to a monthly payment in exchange for access to a curated buffet of content,” he told [a]listdaily. “As the market for mobile gaming matures, game publishers will seek out ways to lock in their audiences, rather than have them play for a short period and move on. A subscription-based strategy will be a key component in that context.”

How Data Is Changing Marketing

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Internet privacy has been a hot topic lately since the repeal of internet privacy rules passed last year by the Federal Communications Commission (FCC). The bill would have imposed internet service providers strict guidelines on how gathered data—such as browser histories—are treated. Major telecommunications companies, while defending the repeal, are assuring customers that they have never, nor will they ever sell sensitive information without consent. These companies claim that they already abide by strict guidelines set forth by the FTC, which are enforceable by state Attorneys General.

Whether or not you believe these claims or agree with the repeal, the fact remains that marketers rely on accurate data to make sure advertisements are shown to the right people. (You wouldn’t want your ad for reverse mortgages to be targeted to teenagers after all.) Since data collecting sites such as Google and Facebook already use a variety of customer information to customize experiences and target ads, service providers want to remain competitive, as well. Facebook’s Audience Network, for example, captured an impressive 34 percent of all display ad spending last year and is expected to reach 39 percent in 2017.

Targeted ads are based on data such as age, gender, location and browsing history (which is why you see the same ads pop up across multiple websites). With ad blocking on the rise, relevant marketing has never been more crucial. Mobile ad targeting is getting more accurate, according to Nielson’s Digital Ads Benchmarks and Findings report, with 60 percent of mobile ad impressions viewed by people of the age and gender intended by advertisers. This number is up from 49 percent in the same period of 2015. This is good news, considering most (75 percent) of programmatic display ads will be on mobile this year, according to forecasts by eMarketer.

By the end of this year, US digital ad spending will reach $72.09 billion, eMarketer further predicts, representing 36.8 percent of US total media ad spending. Just as internet users demand transparency from social networks and service providers, marketers have equally high standards for those selling programmatic ads.

“Advertisers are demanding a new kind of relationship that provides significantly improved control and transparency,” World Federation of Advertisers (WFA)  said in a statement, “with nearly 90 percent reviewing and resetting contracts and business models to deliver on these objectives.”

Easter Cheeps, Cheap Ads And Other Must-Read Marketing Stats

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This week, we get a glimpse into upcoming holiday plans, internet ad spending and which streaming services reign supreme.

Hopping To The Store

Easter is April 15th, and the National Retail Federation (NRF) has predicted record spending for the spring holiday. Americans who observe Easter will spend $18.4 billion, NRF predicts, a six percent increase over last year. 2017 is expected to see the highest average spend per person—around $152—since the NRF started tracking Easter spending 14 years ago.

Of everything consumers plan to buy, around $5.8 billion will be spent on food and $2.6 billion on candy. Fifty percent of respondents said they plan to buy clothing, up from 45 percent last year—the highest percentage in a decade. Department stores will be pleased to hear that 46 percent of Easter observers in the survey intend to shop there, up from 41 percent a year ago.

Advertising Trust

us_internet_users_who_trust_ads_Internet users in the US trust advertisements more than they did two years ago, according to YouGov. The company’s March 2017 survey asked internet users who see ads at least once a month if they trust the advertising they see, read or hear. Sixty-one percent of respondents said they do, compared to 50 percent in 2014. YouGov found that in addition to being more trusting of advertising, 72 percent of respondents said they feel the ads they encounter are “honest.”

Streaming Satisfaction

There are many streaming services to choose from, but Netflix and Spotify deliver the best customer experience, according to the 2017 Temkin Experience Ratings, based on a survey of 10,000 US consumers. Out of the top 16 streaming media companies, Netflix and Spotify tied for the top spot with a score of 74 percent, followed by Amazon Prime Instant Video and Pandora, tied at 73 percent.

For the first time ever, streaming music services were responsible for more than 50 percent of all US music industry revenue in 2016, according to a report by the Recording Industry Association of America (RIAA). Revenue from paid subscription plans brought in $2.5 billion, with an average of 22.6 million US consumers subscribing to streaming services last year—more than doubling from 2015.

Safe or Cheap?

top_10_contributors_to_global_ad_growthWhen it comes to advertising, do you get what you pay for? That may be the case with programmatic ad spending, particularly when those ads appear on YouTube. Several brands have pulled their advertising campaigns from YouTube after finding their ads had appeared next to extremist content. Enders Analysis compared the cost of advertising on the platform, as obtained through several outlets. Higher priced ad placement such as YouTube Preferred offers more control over where ads appear, but most advertisers simply buy YouTube ads at scale, via ad exchanges like Google’s AdX.

“The basic idea of ‘you get what you pay for’ in programmatic video advertising, either in media costs or agency planning and service fees (or both, depending on the type of media), is something we believe that many advertisers have yet to fully incorporate into their strategy for media buying,” said Enders Analysis research analyst, Matt Littunen.

Overall, Global internet advertising expenditure will grow 13 percent to reach $205 billion in 2017, according to Zenith’s new Advertising Expenditure Forecasts. The updated forecast projects that the US will contribute 28 percent of worldwide ad expansion through 2019 and the fastest-growing component of internet ad spend will be social media, which will grow at an average rate of 20 percent a year to reach $55 billion by 2019.

Disney Interactive Explains Why ‘Club Penguin’ Migrated To Mobile

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Disney Interactive has shuttered its Club Penguin virtual world, a top subscription-based destination for millions of kids for the past 11 years to launch a new mobile version called Club Penguin Island. The subscription-based app has been designed with plenty of video game experiencing, allowing players to embark on island quests, earn special rewards, and take on daily challenges to level up their penguins.

Liza Wood, executive producer of Club Penguin Island, told [a]listdaily that over the years, Disney has seen a shift in kids’ play patterns from desktop to mobile, particularly on Club Penguin.

“We understand that kids are now playing more on mobile, so it was important for us to invest in a Club Penguin experience designed for these platforms as the next chapter for the virtual world,” said Wood. “Mobile games have amazing potential and continues to be a company priority.”

Disney is charging Apple and Android gamers a $4.99 monthly subscription after a seven-day free trial. “Like in the classic game, kids can download Club Penguin Island for free to socialize, role-play and participate in activities around the island,” Wood explained. “The $4.99 subscription gives kids unlimited access to all the features such as the all-new Adventures and Clothing Designer. At $4.99 per month, this is a better price point than the legacy desktop version (of $5.99), making membership even more valuable and accessible.”

The legacy PC experience was showing its age after a decade, which allowed the development team to start from scratch with the new mobile version. Wood said the team was empowered to create a fully upgraded, enhanced experience for mobile.

“Every aspect of the player experience was considered,” Wood said. “The vibrant world of Club Penguin has been upgraded to a beautiful 3D world. We learned that playing in portrait orientation worked best for small hands and designed all our cameras and controls for that. We have also enhanced the chat system with contextual quick chat and a wide range of colorful, expressive emoji. For example, if you’re sitting by the campfire, ‘Do you know any ghost stories?’ will be an option in the quick chat. The new Clothing Designer introduces even more possibilities for kids to express themselves by customizing their penguins.”

Club Penguin Island’s primary audience is kids 6-to-12-years of age. According to Wood, it’s more than a game. It’s a global community. With kids playing on mobile, it means they can engage with their penguin community wherever they are, at home or on the go.

“We’ve built this new Club Penguin experience from the ground up, especially for mobile,” Wood said. “We wanted the experience to be really accessible, which meant developing the game for portrait mode so kids wouldn’t have to stretch their fingers across the screen for long periods of time. From a design perspective, the game has been upgraded to a 3D environment, making it even more immersive and visually appealing. It was important for us to modernize the experience for a new generation of players who are now being introduced to games on mobile devices first.”

Disney acquired Club Penguin back in 2007 for $700 million. The virtual world launched in 2005, attracting over 12 million users and more than 700,000 paying subscribers by 2007. That number ballooned to more than 200 million users by 2013. More recently, Club Penguin’s audience had shrunk to about 5.6 million monthly visitors in December 2016, according to SimilarWeb. There’s no public data on how many of these kids were paying subscriptions.

Over the years, Disney’s brand has faced a lot more competition with targeting kids with services that include YouTube Gaming, Lego Life, Lego Worlds, PBS Kids and Nick.com. Wood said what separates the Club Penguin brand is that it’s a global community that transcends borders.

“Community engagement and socialization have always been important,” Wood said. “We are always listening to the community feedback and implementing changes. As a result, we have a community that is active, passionate and inclusive.”

Disney is marketing the game through a brand new website that will be updated regularly with game highlights and news. The game’s community manager and Club Penguin celebrity, Bobbi, also hosts a new video series:  “Island Insider” that is featured on the CPI blog and YouTube.

“The series will address community questions, provide sneak peeks and communicate major product updates,” Wood said. “You’ll also see Bobbi out and about at events and hosting in-game meet-ups as her penguin, Megg. For our 13+ audience and parents, we have active community portals on Facebook, Twitter, and Instagram.”

For the Disney super-fans, the developer has integrated some exclusive content in the in-game Disney Shop. Players can try on and buy items featuring popular Disney and Pixar franchises, including Frozen, Finding Dory, Toy Story, and Monsters Inc.

“In addition, we are working with key divisions across the company to partner on exciting initiatives throughout the year,” Wood said. “More on that to come!”

Marketers Join The Conversation With Branded Stickers

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From cave paintings to poo emoji, humans have a strong emotional connection between ideas and pictures. EMarketer projects that more than a quarter of the world’s population will use consumer messaging apps by 2019 and a whole lot of people are enhancing their conversations with stickers. While thousands of stickers are available across multiple platforms, marketers are joining the conversation with branded images to share.

It should first be noted that stickers are not emoji. While emoji (those little, yellow faces and small icons) are a great way to express ideas, stickers are generally more versatile in their use. Representing characters and situations more than facial expressions alone, stickers can be added to message threads, placed on top of text, over other stickers and on top of photos. They can even be “peeled” and reused within a conversation. As with their emoji cousins, the sticker phenomenon got its start in Japan before catching on across the world.

Disney princess stickers for iMessage (Apple)
Disney princess stickers for iMessage.

Films are a natural choice for branded stickers and Dreamworks was the first to offer them on Facebook Messenger for Despicable Me 2. Since then, messages within the platform can be embellished with stickers from The Muppets, Lego Batman, Pixar movies and more. On Apple’s iMessage platform, fans can share stickers for Beauty and the Beast, Power Rangers and La La Land just to name a few.

Beauty and fashion are a popular theme among branded stickers, as well. Brands getting in on the action include (but are definitely not limited to) Sephora, Coach, L’Oréal, Dove and Nike.

Hungry? Dunkin’ Donuts, McDonald’s, Coca-Cola and Burger King offer sticker packs for iMessage among others, for those times when only food will illustrate what’s on your mind.

A 2013 study by OnData found that 35 percent of US smartphone users added stickers daily to chat conversations and 74 percent had used them before. At 43 percent, Indonesia used stickers the most on a daily basis, while Brazil used them the least at 24 percent. WhatsApp was a top choice for many regions in the study, which has since been acquired by Facebook.

Earlier this month, Giphy announced that it wants to make it easier for artists to create animated sticker apps for the iMessage App Store. The company launched 12 stickers apps, each featuring animated sticker designs from a different artist. Each app costs 99 cents, with all proceeds going to the artist. Giphy also quietly acquired Imoji, TechCrunch reported, a startup that had developed a popular platform for creators to build and distribute custom-made stickers and emoji to the messaging masses.

Before you get the idea of marketing with stickers, consider this—Japanese mobile messaging app Line brings in more than $20 million per month selling sticker packs, which typically trade for one to two dollars for sets of 12-to-18, according to data from the company.

Although Apple has yet to release any sticker-related data, the company reports that over 76 percent of active iOS devices have switched over to iOS 10, which now offers stickers.