The higher average revenues suggest that virtual worlds and gaming applications are more engaging and users are willing to spend more on virtual goods if they offer a special functionality or higher social status. Among the examined social games the average revenue was between $0.82 and $6.40. The average revenue from virtual worlds ranged from $2.03 to $25.42.

 

For the study, SnipClip aggregated information about the revenue and the numbers of users from 15 social games, social networks and virtual worlds. The average values were weighted by the number of active users. The analysis covered social games with 15.1 million active users and virtual worlds with 21.8 million active users. Social networks, such as Facebook, social games, such as Mob Wars and virtual worlds, such as Habbo Hotel, are included in the study.

 

SnipClip’s study also reveals that the potential for virtual goods in social games is $340 million per year. Non-gaming social applications are estimated to generate about $215 million and virtual worlds have the potential for about $244 million. This analysis confirms the presumption of most social media experts that virtual goods are a multimillion dollar business in online communities. The recently published figures of Tencent, the Chinese social network, totaling virtual goods revenues of almost $1 billion, are not incorporated in this study, simply because Tencent makes no distinction between the virtual goods applications e.g. classical online games, instant messaging and social networks. However, the numbers suggest that the market for virtual goods in online communities is far beyond $1 billion worldwide.

 

Compared to other market studies, virtual goods in social games, social networks and virtual worlds together, count for at least one third of the worldwide virtual goods revenues. In virtual worlds and social games virtual goods sales are the most dominant revenue source, whereas social networks still generate ten times more revenues with advertising than with virtual goods.

 

As social gaming becomes more popular in social networks as well as virtual worlds, revenue streams from the sales of virtual goods become more important to community providers. However, SnipClip’s study also reveals that the context in which virtual goods are sold is significantly affecting the monetization rate.

 

Oliver Hanisch, heading the partnership and strategic alliance efforts at SnipClip recommends focusing on virtual goods applications that provide users with an engaging gaming experience and at the same time enable them to promote their social status within their community.

 

“Collecting branded virtual goods, as offered by SnipClip, provides both: a social gaming experience and a way for fans to express their passion for their favorite sports team, music group, or TV show. Therefore, we encourage community providers and content producers to consider the sales of virtual collectibles and provide our partners with an easy and ready to use solution.”

 

A detailed summary of this study will be available shortly. Please contact SnipClip at marketing@snipclip.com for a copy. 

 

SnipClip lets consumers engage in a social game where they collect virtual items related to their favorite stars. They can trade and exchange these items with friends. SnipClip lets media brands, sports franchises, and bands form deeper relationships with their fans and sell them virtual goods. Among the things fans can collect and trade are short video snippets of their favorite stars. More information can be found at http://www.snipclip.com. 

 

Media Contact
Martin Szugat
Phone: +49-89-23 51 99 64
E-Mail: press@snipclip.com

SnipClip GbR
c/o UnternehmerTUM GmbH
Lichtenbergstr. 8
85748 Garching bei München
Germany