Hottest online activity for adults: Games
A recent report indicates that online gaming beats social networking and video sharing for internet users over 18. This year 34% reported playing online games weekly, 29% watching videos, and only 19% participating in social networking sites. Gaming saw the largest yearly growth — from 19% in 2006 to 34% this year.
Gaming, as a whole, is hot. MTV recently announced they were investing half a billion dollars in gaming. The unpredicted global success of the World of Warcraft MMORPG raking in $1 billion in revenue have certainly helped grease the flow of revenue to online gaming (that was in 2006.)
So how can an independent online entrepreneur take advantage of this information? (Those of you who voted “no” to owning your own business in our latest poll, take note.)
First, its what isn’t being done that matters. Is this story just about gaming being big? What I see is that adults need more social networking sites to call home. Myspace’s audience either appears to be young & wild while Facebook remains home to the young & educated.
Second, advertisers need performance from gaming advertising (and video, as well.) Considering the religious zeal mega corporations poured millions in to promoting themselves on the tiny niche virtual world of Second Life, this is easy money. Game developers + public relations machine = a money printing press. Give the brand advertisers real engagement, not a sideshow a few academics and jounalists visit.
There is a lot of money to be made. Lots of competition is not a bad thing. Simply work your business around and with the competition rather against it — thats the way to go.
Need more ideas?
Nice one Andrew, but yes I need ideas. Not sure what your thoughts on this are, but wondering what direction you would go as web publisher in making a play on this. Forums? fansites? straight up affiliate sites? What kind of avenues do you see the most promise in? Maybe you’re not comfortable talking these kinds of details publicly, but this is my unabashed attempt to pick your brain.
Comment by Marc — August 24, 2007 @ 8:01 pm
Its not my specialty, but some publishers are doing well with web based games. I ran a PC game site and forum a few years ago; it was lots of work & the revenue was insignificant.
One high value area is third party marketplaces for online game items & gold. Jumping on new online games early & achieving top SE placement could be one strategy to get these ad dollars. Trying to build sites and communities around already established games is very tough.
Comment by Andrew — August 24, 2007 @ 11:39 pm
Playing off Andrew’s last comment– if you want to see the success of an online gaming site take a look at slexchange.com all the vendors use it to sell goods– and they keep a currency market going at a slightly different value then the traditional SL marketplace (typically)
Comment by Paul Drago — August 25, 2007 @ 9:46 pm
Yeah I remember hearing about people coding their own games and making pretty good money off them. My problem is I just don’t have the time to devote to becoming intimate with any games (without forfeiting my real life). Kind of funny because I was addicted to video games when I was growing up, but I’ve been completely out of it for years. So I guess this is a difficult nut to crack for someone like me with minimal exposure. I’ll have to come up with something that doesn’t require a lot from me personally. Nothing comes to mind immediately, so I’ll have to leave it on simmer. Hopefully an idea will strike at some point.
Comment by Marc — August 25, 2007 @ 9:55 pm
Thanks for the tip. I’ll have a look into it.
Comment by Marc — August 25, 2007 @ 9:56 pm
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Pingback by Coffee Break - August 27, 2007 — August 27, 2007 @ 8:42 am
I saw your comment over at Problogger from the 23rd and wanted to commend you on your great advice. I stumbled on your blog through that link and will be following along. Thanks again!
Comment by Kyle M. Stephens — August 27, 2007 @ 9:31 am