Game video streaming: Your game is being watched more than it is being played

[Music] and now the quiet start my name is Carol I'm from Spain and I come from a performance marketing background the mobile 10 years ago I started a company which I grew to 70 million turnover last year I sold that company last month to focus full-time on a new venture I've started together with the co-founder in Spain we have offices in Madrid Barcelona and Berlin we're self-funding so far we've invested 2 million out of our own pockets and I hope we can build 100 million companies in the next 3 to 5 years so before I start I have a question for you does anybody know who this guy is

nobody whose nephews now this guy is a he's a youtuber he lives in the south of Spain in a village called San Luca d'Ivoire Amira it's a second poorest village of Spain has a poverty index of 40% but the guy has a big YouTube channel and he plays GTA who knows what this game is I guess everybody knows GTA GTA is a four billion dollar franchise they made between four and five billion on the last game which is GTA 5 the model company 2k is worth 7.3 billion dollar but here's something funny and I'm going to have done Europe tally themselves oh so yummy red tango yo've NOC vivo en lugar de bon Omega means noventa billionaire producer nasal may represent an un say por ciento de los place toss

OS abuse Visenya you know Toma kinko por ciento de consumo total daheia tanto de gente en del fuego como de gente cuando multiple my apologies for the rendering is running on the big screen but basically this 19 year old guy from Spain we present 1.5 percent of the total consumption of GPA and I'm gonna make that number hard now let's go to the next does anybody know this game of thrones once again four billion franchise is a top show of HBO I think owned by Time Warner my second thesis is that people watching GTA is bigger than people watching Game of Thrones so as a broadcast content details bigger than Game of Thrones so let's now go to what we do so the games business used to be people playing games

but now more and more consumption of video games is people watching other people play games now on this level we have a lot of statistics platform we have up any for mobile we are seems by force team we have Google Play analytics we have Apple analytic there's a bunch of analytics tool to measure this 99 billion industry of people playing video games now now they really knows what's going on with people watching games how big is a game in terms of consumption of people watching the game so we've we're building place that's calm to give you some numbers we've written a bunch of algorithms to index initially the 6,000 biggest YouTube

channels playing games and we've indexed a list of 25,000 games for console for mobile for PC and for browser we've indexed 9 million gameplay views associating every view with a specific game and then putting on tons of matrix and cents of video posts views likes time which influencers are playing which demographics are watching so basically mapping the consumption of video games in sense of people consuming a game by watching it now the first results are astonishing we've indexed more than 50 billion hours of gameplay view and I'm going to show you some as an example I'm going to show you GTA so GT as a game

[Music] they sold 80 million copies of GTA had an average of 117 hours per copy this gives four nine point three billion hour of people playing GTA Act it's funny because on average every human has played more than an hour of GTA so this is the consumption of GTA in terms of people playing GTA big entertainment people playing this is what we know this is the 99 billion industry now how big is GTA in terms of people watching GTA I'm going to show you so this is a preview of the platform we're launching in August so if you here go to GTA you see that accumulated GTA has accumulated

on YouTube 44 billion views so once again every human on average has watched six GTA videos in terms of time the accumulated time is 3.3 billion hours of consumption so going back and putting this next to this here you have the watch you see that 25% of GTA is people watching GTA so the total consumption is switching toward people watching the games and so just to show you so this is the evolution of you see that the one of the topics are GTA this is the evolution of GTA GTA is doing per day 37 million views every day

here can you do you can consider videos the channels we will have into the the final version we will have youtubers that played it for language we will have the engagement we will have the time this is incredible value for that brand because they launched a game every four to five years if this wouldn't be happening they have to rebuild her brand again and again the brunt of these people is being kept alive by those people playing those game and keeping this community engaged it's a huge value now let's go back to Daniel Depp the guy talked about Johnny Depp and has an accumulated 2 billion views on GTA and 150 million hours of gameplay that guy alone of 19 years old nobody knows who is represents 6 percent of all the gameplays of GTA on YouTube

if we calculate that on the total consumption of GTA that single guy represents 1.5 percent of the total consumption of GTA if we calculate consumption by the sum of people watching and playing GTA this is something huge and as a huge value there that eventually the industry will shift and take into account now so basically there you see that the watch part of GTA is big now and so the conclusion of this is a game is not longer content to be played it's already big in terms of content being watched now the question is how big so let's take big TV and compare GTA with big TV so we have nine point nine point three billion dollars on GTA now I

spent the whole afternoon trying to get the numbers of Game of Thrones eventually I got them the biggest season of Game of Thrones and views was season six with an average of 25 million viewers per episode there were 10 episodes at an average of one hour that gives for 250 million hours of people watching Game of Thrones episode episode 6 there were seven episodes so that means that Game of Thrones in terms of people watching Game of Thrones is less than two billion hours so the astonishing conclusion of this is that has broadcast content GTA is bigger than Game of Thrones and III know it's difficult to get in and but the the three lessons of this first part of my

talk as well is not moving is first of all the watch part of games is big it's really big the second one is and influencer marketing his product marketing you guys produce video games you have to start thinking of yourselves not only as producers or stuff that people are going to play you have to think of yourselves of producers of stuff that people are going to watch and by the way third conclusion as producer of broadcast content you're as big if not bigger than big TV shows GTA on YouTube is bigger than Game of Thrones I guess that a guy producing cheap GTA is not thinking of himself as a competitor of Game of Thrones but in terms of hours he's not only a competitor he won to give you an example

of this I'm going to go to a goat simulator which was a steam game lies by an indie studio this guy launched a game it was specifically built to produce visual attractive content the result were 966 million views on YouTube and this game made approximately 20 million in sales and was developed by a team of less than 10 people just because these guys understood the leverage of producing good out of this audio-visual content so now you're going to tell me okay this is oh well we're mobile and what about mobile so let me give you a game for mobile does anybody know this game yeah and this is an incredibly stupid game but it makes for fantastic

visual content like this video who had 10 million views once again we measured the consumption of this mobile game on YouTube and here are the results slither did 2 billion views on YouTube I think it's a big number to take in so I'm going to reference that and concrete numbers and if you take two billion views of a video and you take a CPM let's take a normal CPM for incentivize videos in a mobile app if you apply that to 1 billion views that's worth 2 million of media spent at the CPM of 1 that's a value of 2 million now if you would spend that money on paid for YouTube campaigns you would do it as a CPM of more than 10 and we'd be talking about more than 20 million of media

spent but guess what I heard the result these guys were number one in the games category in 95 countries in a penny and there were number one overall in 52 countries the only reason because of that is that the game was massively played of course you'll be saying yeah it's a one-time hit this guy that were popular for a couple of weeks and then it was over so here you have the history and the game was launched in April it immediately shot to the number one and the AppStore rankings and it is still on the number 40 position in the games category for mobile games in the US by the here effect of youtubers playing it and by the sheer effect of building a game that youtubers picked up I wanted

to play so actually if you do some numbers led you some numbers for this little game and I'm going to approach it from two perspectives one a you a perspective so if I have two billion video impressions I do it at a one CPM I get two million and user acquisition if I do it at a ten CPM I pay twenty million in user acquisition but now let's look at the numbers of installs this guy did this is Android they did two hundred million installs so I know all of you you like calculating CPI's so let's apply two hundred million the effect of this is a CPI between 0.1 and 0.01 dollar CPI so basically and and now

comes the good thing this is a calculation from a user acquisition point of view but the implementer marketing is not user acquisition marketing this game was big because the youtubers wanted to play it so they built the game so that automatically it got huge views so all this positioning they got it for free and and welcome to my conclusion then there's a common thinking that influencer marketing is user acquisition marketing and that's a big mistake I'm going to be very blunt and paying for user acquisition on YouTube is like paying for sex you can pay for it and you can continuously keep paying for it but if you really really want value you have to build the product so that the

youtubers want to play it and the only way to get there is to build a product that the youtubers are going to that you the users are going to want to watch and I see you thinking again yeah that's so cool indie games are cool on YouTube it'll never apply apply on top crossing games so let's have a look at the places of to top closing games so I'm going to go here and I'm going to take clutter al versus game of war and those are the real accumulated play stops of those two games per day now clash royale is doing approximately 15 million views per day and game of war is doing two hundred and thirty thousand and by the way most of these are on their official channel and they paid for these kinds of games have live ups and they depend on continuous

continuously getting features and engaging an active community in the game by designing the game so that youtubers can pick it up clash royale gets all that stuff for free not only in user position but also in community engagement and actually engaging a community in use features and pay for them game of war is paying for sex they're basically continuously saying to get user acquisition and paying to engage the users inside their game so this is really important and now comes the good thing it can be quantified the thing is nobody just did it so we indexed this for 25,000 games we have 1 billion data points in our system we launched it in August at Gamescom and we will give out those data

for free to all the developers and we will give you the data about your game about your competitors game you will see all the views all the engagements all the youtubers that have been playing your game in your competitors games the engagement of the youtubers I have here the demographics I have my base graph tons of information so and all that stuff we will give for free as a host and now as you thinking again how am i make gonna make money and my previous company last year I spent 50 million dollar on buying media I had a team of 30 people optimizing data and the question how will you make money on data can only be said by somebody that

doesn't understand high scale performance marketing asking that question about this is like asking Google why they're launching an Android and asking Mark Zuckerberg why he built what's up I can assure you the sheer volume of people watching your game will have a strong effect on people acquiring your game and people using your game and this industry eventually will move towards a data-driven product driven performance approach and that's a we're working so we are working on transactional business models on top of their data we already did the first test campaign with the local company in Spain and here are the results we launched the game with YouTube were driven product driven performance marketing we launched it in 17 spanish-speaking markets we drove three million installs and we

reached number one and 16 out of 17 markets and then the other market which was Puerto Rico we were number two overall number one in games okay look and it's just 20 minutes so I've seen it so I learned with my contact details feel free to contact us we will be happy to give you the stats of your game and if you ask very nicely also of your competitor scream thank you very much [Applause] [Music]