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Jim Greer, Kongregate and Jameson Hsu, Mochi Media, monetizing casual games?

Thursday, November 22nd, 2007 – running time 11:56
Can casual game developers earn enough cash to stick it to the man? Jim and Jameson discuss how their start-ups help casual game developers thrive through advertising and analytics.

If you're looking for a time killer, most of you tend to play casual games online. It is the fast-growing segment that accounts for about 10% of the $30 billion global video game industry.

But seriously, can casual gaming developers monetize on the online popularity?

Meet this week's start-ups, Jim, founder of Kongregate, a company that deems themselves as the YouTube of casual games and Jameson, founder of Mochi Media, a company that provides the essential tools for casual game developers to track and embed advertising. "With games... the repeat interaction is what's driving the advertisers interest." says Jameson.

Casual games is a niche market but may provide the essential revenue to retire in style. Game on!

Highlights
FISA ( 5:05, 5:05 ) casual gaming ( 0:27, 0:29, 1:14, 2:01, 0:27, 0:29, 1:14, 2:01 ) pogo ( 3:59, 4:56, 5:16, 3:59, 4:56, 5:16 ) GigaOm ( 0:23, 0:23 ) FISA ( 5:05, 5:05 ) casual gaming ( 0:27, 0:29, 1:14, 2:01, 0:27, 0:29, 1:14, 2:01 ) pogo ( 3:59, 4:56, 5:16, 3:59, 4:56, 5:16 ) GigaOm ( 0:23, 0:23 )

Automatically Generated Transcript(may not be 100% accurate) ( more )

" Good to go home show you sponsored by jangled."

" Hey welcome to the GigaOM show I'm home and I think. And this week we have casual gaming casual gaming and casual gaming and it -- yeah I nice Thanksgiving we are not -- pension human league kinda. Just the Turkey yet exactly. But before we go that we would like to apologize for. Some weird crazy noises you might hear in the background because you react in a temporary studio rightfully and apologized for digital noise that -- it's like there's going to be cars and trucks and some gone charged exert this I had in mind cracking these days but it's going to be. Later very problematic so we apologize in advance because of the shark -- We actually going to skip through -- line and we'll go right to those three."

" Two yes. Two to see you. Let's -- media. It congregate right to relieve themselves are not in the casual gaming. Business in terms of gaming as you might. My. Is another hostage again and well mine as -- Oh there as ingredients it's -- in and talk to them about this right so I just afraid to."

" Welcome back and we're here with that co founder and CEO of congregate -- and we're also here with a co founder and you know much media Jamison. Thanks for joining us today got to really appreciate coming out -- And it really talks about economics of casual gaming. Look at you guys to run ad network our -- that deal with. Casual game distribution and monetization to watch it is toppled and about -- models and how they're different than a lot of people get confused as -- The very mechanisms from form my -- casualty."

" Sure -- so I'll start I'm so economy is. More like -- to its destination site non network so we have you know the simple. Explanation as you can -- and so Independent amateur game developers upload there flash and other web based games. And we surround them with a bunch of community features like achievements chat profiles comments ratings all that stuff. And the models so far is -- based on so we run ads in and around the games and share that revenue back with developers."

" Emerging media is a gaming platform we have ad network. But oh really do is we help. Game developers monetize their games anywhere across led and we work with anything concrete we don't have this nation. Basically we help the game for helping developers. Analyze the analytics distribution and monetization we've created an entirely new medium. Before this people weren't advertising in games. The -- across. All sites all games three games everywhere. And most of the companies that opinion is for us have been doing out of place. With of the -- were actually just doing standard. I B units which. Are applicable to any -- you know have to -- units and it's really exciting because there's been hired mark that as it has been overlooked."

" Is that online game casually gaming business. There. At the same place where online video businesses. You know there's a lot of creation aspect to it but there's not much monetization going on in that sense."

" In the attempted in terms of time spent it's pretty close actually if you do not to compete did. The attention on metrics so like pogo dot com sat face to work out that probably very few reviewers in the show ever heard of com but it is you know not far back from YouTube in terms of hours because people spend in the game addicts and you know eight hours a week. But yet -- you write that you know it's it's still. There's advertisers who are interested in advertising in games and they still tend to gravitate towards. On consul on placements which are really difficult to scale of -- more more that is going to move into casual games which are. More like TV where you know players are more receptive to advertising. So yeah I think that's going to change but I think."

" Right now they're right if you get sensitive media you probably want to -- took place."

" And that's about it now with games it's something that people come back over and over and over and it's highly sustainable it has a very long shelf life."

" And this freaky interaction is what is really driving the attention and interest with advertising."

" You know -- congregating gains pogo are. Some of the other plays in Yahoo! games says that's a massive challenge you have -- challenge to. In FISA amendments. Are you doing anything interesting or make kind of new strategy. To kind of get in front of the people and develop a mass Marty audience."

" Honestly like you know pogo and Yahoo! games or are good and and they're really good but they're not as. I think focused on. On me the bits -- youth market that we're going out -- a different since about. Terms of subscribers to her is like 70% he now average age that forty. You know -- games is younger that's a pretty old podium -- it is an average age of about 23. Overall the sort of you know the market for online gaming is large and has has -- a lot of a lot of opportunities."

" Kids who part of the companies are two games which are doing Val. Not necessarily using your product where people were doing -- from commercially and in popularity of Dell curry gains from the."

" Yeah it seriously I just got back from Korea. As Japan for that and -- Korea and there's a huge gaming just culturally. Gains are being every gaming company get you now they. Green tree company -- and there oh import entry games. It's. They're pushing limits and when you go out there you see it for of the amongst it on the US developers but there's one tower defense Iliad -- target and that he. Balloons and you you've ever played and ridiculous just last month. We saw seven lane plays. Across 26000 sites and yet for balloons and and we touched almost every country it to a sixteen countries. And most people don't realize the reached of these games because they don't have the ability to measure cross. All the -- so in the next. What we do acknowledge. So let me ask you guys and I don't know if you're able to see what is the most that you guys have issued out to like your highest paying developer that through advertising and what's your average. Tea. US we'll do monthly us and yeah -- that. I can't really talk about how much the guys are making but. There they're definitely making more than. More than getting paid him. Those -- the top guys. Yeah and it's. It -- it is such a wide spectrum. Some people it if you make crappy -- and nobody plays. And making money."

" And nobody is making a living just off of congregate -- to -- the desktop tower defense if you combine but he Nixon congregate which is you know. Hundreds every month and in some of -- spend thousands. -- win what he gets on his destination site. You know still blended strategy a lot of these guys he definitely he. He quit his job but it's definitely is a small proportion of the game developers I think it's an open question hasn't said whether. Advertising alone is gonna get a lot of game developers there -- so that's why you know we're modernizing everybody with advertising world to meet him at the transactions. In which we were not recognized in this more pork audience but. Can make a big impact."

" You have these guys back in six months does he really has their. If they're making them for the and yeah and give a nod into the public spanking -- time."

" Okay and interview previously worn -- and casualties in -- as a manager I absolutely love. We shall check out on my had a recommend the one that's -- on -- now of pop arena and build build robots and you know -- and by the -- of."

" I'm."

" Addicted to balloons and there's a new retired and game -- hard and and."

" So we'll supplemental -- unique and June. I'm happy the other thing is that these people play games like people who object if -- and uses it -- something Canada thank god. Thanks for joining us that's really appreciate having you happen to escape and we'll be back in just -- son your feedback."

" Hey welcome back I'm home she's joyous and do you have viewer feedback. Be Irish on writing him permission he says the story is one of my favorite services unfortunately it's not accessible in India was a pleasure to see Tim you know not just to -- but. In an -- other places there's not accessible but you scored a came mostly because of that. You know our disagreements. With the EU. Review it's harder to resign -- or how minorities don't have to treat it."

" It's always disagree -- to get -- that's been reduced in. And we also have -- and who want the snow off his size medium I think sure I got it. But -- it into our email -- saying how about some outtakes at the end are you guys one take perfect. I remember are joining us on -- perfect. We do have some I think that you guys know we have Joey the cameraman for them yet to their well X rating for an anti I don't know who."

" Let me try and include a couple of okay I have one -- from crumbs those who say if it's nice to see some accurate technology in your hands and start of the revolutionary iPhone and doesn't do awful to stuff the N 95 guys. Actually that was the N 9598. Gig. Music portion which is I have to admit pretty sweet especially that. The black colors like also. And I use it for about two weeks now from what I write many -- over Thanksgiving after him. -- stuffing myself. But there picture works together -- in the keys in -- yet but before we go to all our American viewers happy Thanksgiving. Our international viewers. Throughout at least you don't really work."

" It will be and please continue reading -- at predict that they go home Revision 3 dot -- and he's getting all the email wonderfully humans."

" However when guys. The -- go home show. From the get go home show is sponsored by jangled."

" Good to go home show you sponsored by jangled."

" Hey welcome to the GigaOM show I'm home and I think. And this week we have casual gaming casual gaming and casual gaming and it -- yeah I nice Thanksgiving we are not -- pension human league kinda. Just the Turkey yet exactly. But before we go that we would like to apologize for. Some weird crazy noises you might hear in the background because you react in a temporary studio rightfully and apologized for digital noise that -- it's like there's going to be cars and trucks and some gone charged exert this I had in mind cracking these days but it's going to be. Later very problematic so we apologize in advance because of the shark -- We actually going to skip through -- line and we'll go right to those three."

" Two yes. Two to see you. Let's -- media. It congregate right to relieve themselves are not in the casual gaming. Business in terms of gaming as you might. My. Is another hostage again and well mine as -- Oh there as ingredients it's -- in and talk to them about this right so I just afraid to."

" Welcome back and we're here with that co founder and CEO of congregate -- and we're also here with a co founder and you know much media Jamison. Thanks for joining us today got to really appreciate coming out -- And it really talks about economics of casual gaming. Look at you guys to run ad network our -- that deal with. Casual game distribution and monetization to watch it is toppled and about -- models and how they're different than a lot of people get confused as -- The very mechanisms from form my -- casualty."

" Sure -- so I'll start I'm so economy is. More like -- to its destination site non network so we have you know the simple. Explanation as you can -- and so Independent amateur game developers upload there flash and other web based games. And we surround them with a bunch of community features like achievements chat profiles comments ratings all that stuff. And the models so far is -- based on so we run ads in and around the games and share that revenue back with developers."

" Emerging media is a gaming platform we have ad network. But oh really do is we help. Game developers monetize their games anywhere across led and we work with anything concrete we don't have this nation. Basically we help the game for helping developers. Analyze the analytics distribution and monetization we've created an entirely new medium. Before this people weren't advertising in games. The -- across. All sites all games three games everywhere. And most of the companies that opinion is for us have been doing out of place. With of the -- were actually just doing standard. I B units which. Are applicable to any -- you know have to -- units and it's really exciting because there's been hired mark that as it has been overlooked."

" Is that online game casually gaming business. There. At the same place where online video businesses. You know there's a lot of creation aspect to it but there's not much monetization going on in that sense."

" In the attempted in terms of time spent it's pretty close actually if you do not to compete did. The attention on metrics so like pogo dot com sat face to work out that probably very few reviewers in the show ever heard of com but it is you know not far back from YouTube in terms of hours because people spend in the game addicts and you know eight hours a week. But yet -- you write that you know it's it's still. There's advertisers who are interested in advertising in games and they still tend to gravitate towards. On consul on placements which are really difficult to scale of -- more more that is going to move into casual games which are. More like TV where you know players are more receptive to advertising. So yeah I think that's going to change but I think."

" Right now they're right if you get sensitive media you probably want to -- took place."

" And that's about it now with games it's something that people come back over and over and over and it's highly sustainable it has a very long shelf life."

" And this freaky interaction is what is really driving the attention and interest with advertising."

" You know -- congregating gains pogo are. Some of the other plays in Yahoo! games says that's a massive challenge you have -- challenge to. In FISA amendments. Are you doing anything interesting or make kind of new strategy. To kind of get in front of the people and develop a mass Marty audience."

" Honestly like you know pogo and Yahoo! games or are good and and they're really good but they're not as. I think focused on. On me the bits -- youth market that we're going out -- a different since about. Terms of subscribers to her is like 70% he now average age that forty. You know -- games is younger that's a pretty old podium -- it is an average age of about 23. Overall the sort of you know the market for online gaming is large and has has -- a lot of a lot of opportunities."

" Kids who part of the companies are two games which are doing Val. Not necessarily using your product where people were doing -- from commercially and in popularity of Dell curry gains from the."

" Yeah it seriously I just got back from Korea. As Japan for that and -- Korea and there's a huge gaming just culturally. Gains are being every gaming company get you now they. Green tree company -- and there oh import entry games. It's. They're pushing limits and when you go out there you see it for of the amongst it on the US developers but there's one tower defense Iliad -- target and that he. Balloons and you you've ever played and ridiculous just last month. We saw seven lane plays. Across 26000 sites and yet for balloons and and we touched almost every country it to a sixteen countries. And most people don't realize the reached of these games because they don't have the ability to measure cross. All the -- so in the next. What we do acknowledge. So let me ask you guys and I don't know if you're able to see what is the most that you guys have issued out to like your highest paying developer that through advertising and what's your average. Tea. US we'll do monthly us and yeah -- that. I can't really talk about how much the guys are making but. There they're definitely making more than. More than getting paid him. Those -- the top guys. Yeah and it's. It -- it is such a wide spectrum. Some people it if you make crappy -- and nobody plays. And making money."

" And nobody is making a living just off of congregate -- to -- the desktop tower defense if you combine but he Nixon congregate which is you know. Hundreds every month and in some of -- spend thousands. -- win what he gets on his destination site. You know still blended strategy a lot of these guys he definitely he. He quit his job but it's definitely is a small proportion of the game developers I think it's an open question hasn't said whether. Advertising alone is gonna get a lot of game developers there -- so that's why you know we're modernizing everybody with advertising world to meet him at the transactions. In which we were not recognized in this more pork audience but. Can make a big impact."

" You have these guys back in six months does he really has their. If they're making them for the and yeah and give a nod into the public spanking -- time."

" Okay and interview previously worn -- and casualties in -- as a manager I absolutely love. We shall check out on my had a recommend the one that's -- on -- now of pop arena and build build robots and you know -- and by the -- of."

" I'm."

" Addicted to balloons and there's a new retired and game -- hard and and."

" So we'll supplemental -- unique and June. I'm happy the other thing is that these people play games like people who object if -- and uses it -- something Canada thank god. Thanks for joining us that's really appreciate having you happen to escape and we'll be back in just -- son your feedback."

" Hey welcome back I'm home she's joyous and do you have viewer feedback. Be Irish on writing him permission he says the story is one of my favorite services unfortunately it's not accessible in India was a pleasure to see Tim you know not just to -- but. In an -- other places there's not accessible but you scored a came mostly because of that. You know our disagreements. With the EU. Review it's harder to resign -- or how minorities don't have to treat it."

" It's always disagree -- to get -- that's been reduced in. And we also have -- and who want the snow off his size medium I think sure I got it. But -- it into our email -- saying how about some outtakes at the end are you guys one take perfect. I remember are joining us on -- perfect. We do have some I think that you guys know we have Joey the cameraman for them yet to their well X rating for an anti I don't know who."

" Let me try and include a couple of okay I have one -- from crumbs those who say if it's nice to see some accurate technology in your hands and start of the revolutionary iPhone and doesn't do awful to stuff the N 95 guys. Actually that was the N 9598. Gig. Music portion which is I have to admit pretty sweet especially that. The black colors like also. And I use it for about two weeks now from what I write many -- over Thanksgiving after him. -- stuffing myself. But there picture works together -- in the keys in -- yet but before we go to all our American viewers happy Thanksgiving. Our international viewers. Throughout at least you don't really work."

" It will be and please continue reading -- at predict that they go home Revision 3 dot -- and he's getting all the email wonderfully humans."

" However when guys. The -- go home show. From the get go home show is sponsored by jangled."