« The P(L)AYERS » Understand Online Paying

Gamers Motivations and

Purchase Behavior

French edition

Introduction:

Survey Data

HiPay

A Hi-Media company

• founded in 1996

• 198 M€ revenue in 2012

• Approximately 500 employees worldwide

• # 1 advertising network in europe

• Leading online payment provider in europe

• One of the leading website publishsers

• Publicly traded on the euronext , paris eurolist B

HI-MEDIA GROUP IN FIGURES:

HiPay

Key Facts

• Founded in 2003

• 107 m€ revenue in 2012

• 10 million transactions per month

• More than 20 000 active merchants

• 50 payment methods in more than 85 countries

• Over 100 employees worldwide

• Double banking license – payment service provider & e-money issuer

Survey Data

The survey was conducted by Superdata research institute. This used for this report was, performed in

May 2013, included 500 qualified, France-based respondents and 32 questions. Respondents were

prescreened as F2P online, PC gamers who have made a purchase in the last two months.

The questions asked covered three main topics dealing with online gaming: gaming habits, purchase

behavior, and payment method use and opinions.

Payment Methods and Examples • Credit card: Visa, Mastercard, American Express, Carte Bleue

• Pre-paid game card: Ultimate Game Card

• Home Phone Billing

• SMS payment/Premium SMS payment

• Direct mobile phone billing or carrier billing: Zong, Boku or Mopay

• E-wallet: Google Checkout, Paypal or Hi-Pay

• Cash payments: Western Union or Boleto Bancario

• Direct debit or Bank Transfer: Sofortüberweisung, Giropay, iDEAL

or ePagado

.

Terminology & Definitions

Game Genres and Examples • MMORPG or multiplayer online battle arena: Allods Online or League

of Legends

• Action/Adventure MMO: Aion, Rappelz

• FPS/First Person Shooter: Ghost Recon Online or Planetside

• Social: Farmville or Cityville on Facebook

• Strategy MMO: The Settlers Online or World of Tanks

• Casual: hidden object, card, or puzzle games like Candy Crush Saga

• Virtual world: Habbo, IMVU

• Sports: Football Manager

If you any questions or remarks regarding this study, please contact us. We appreciate your

feedback

Methodology

1-Player Behavior: Who is playing and how

F2P online gamer demographics What we know about them?

30% female

70% male

Overall online gamers are almost evenly split between males and females

. However, when analyzing paying gamers

only, the group skews male. PC gaming males are accustomed to spending on video

game entertainment. Many are console gamers where new releases cost upwards of

$60 each. While women are a rapidly growing gamer segment, their gaming

budget is still developing.

Age-wise, majority of paying online gamers are 19 to 45 years old.

Online gamers skew towards sports and MMORPG games

1Q: What other types of free-to-play, online games did you play in the past 2 months? Please select all that apply. 2Q: What type of free-to-play, online game did you play most frequently in the past 2 months? Select one.

VW

6% Casual

7% Social

12% MMORPG

21% Sports

31%

27% 33% 30%

23%

14%

All genres played1

Genre played most frequently2

‣ Social and casual games are the most sample friendly genres. Online gamers dabble in both

categories but neither take up most of their gaming time. Social and casual games are conducive to

low commitment playing and survey results reflect this attribute.

‣ On the opposite end, sports and MMORPG have the most dedicated F2P online players.

FPS

6% Action

5%

Strategy

4%

14% 17%

16%

Gamers play all types but most dedicated to sports and MMORPGs

F2P attracts committed players

Frequency of play1

1Q: How often do you play free-to-play, online games? 2Q: When you play free-to-play, online games, how long do you play?

Average play session length2

‣ F2P online games are

immersive genre, with

over half of players

playing multiple times

day. Players also settle

in for lengthy play

sessions. Forty-two

(42%) clock their

gaming time at over an

hour.

55.2 minutes Average daily time spent

playing F2P online games.

Over 50% of online F2P paying gamers play multiple times per day.

Gamers who play for longer periods of time spend more on in-game items.

1Q: Per purchase, about how much did you spend on buying in-game items or virtual goods in the past 2

months? 2Q: When you play free-to-play, online games, how long do you play?

Spend per purchase1 by Average play session length2

‣ Thirty-five percent (35%) of gamers with play sessions under ten (10) minutes

spend less than 1€.

‣ On the opposite side of the spectrum, gamers who play for more than one hour per

session have the highest percentage who spend over 20 euros.

Longer play sessions mean higher spend

Play behavior varies by game genre

1Q: When you play free-to-play, online games, how long do you play? 2Q: What type of free-to-play, online game did you play

most frequently in the past 2 months? Select one.

Average play session length1 by genre2

‣ Casual games majority of play sessions last less than ten (10) minutes. Complete

opposite of MMORPG where 60% of players settle in for over an hour every time they

play.

‣ Social gamers play sessions are middle ground. Many play for less than thirty (30)

minutes but 53% of play for more than one hour.

MMORPG most immersive F2P genre, casual least immersive.

2-Purchase Behavior: Spending habits & motivation

More than 1/3 of purchases driven by competition

‣ Gaining a competitive advantage is

top of mind for gamers when

making a purchase. More than one-

third of online gamers say beating

their competition is what drives

them to buy in-game items.

‣ Price is a consideration. Taking

advantage of a sale or promotional

pricing motivates one-quarter of

purchases.

‣ Teamwork and communication least

important factors in purchase

decision.

1Q: Per purchase, about how much did you spend on buying in-game items or virtual goods in the past 2 months? 2Q: What motivated you to buy in-game

items or virtual goods in the past 2 months? Check all that apply.

Purchase motivation2

Spend per purchase1

9,40€ Average amount spent per F2P online gaming purchase

And average purchase just under 10€.

Spending by genre reveals key differences in players

1Q: Per purchase, about how much did you spend on buying in-game items or virtual goods in the past 2 months? 2Q: What type of free-to-play, online

game did you play most frequently in the past 2 months? Select one.

Spend per purchase1 by Genre played2

‣ Similar to game session length, casual gamers are on the low end of the spectrum. The majority

(71%) of this genres’ players spend under 5€ on in game items.

‣ Comparatively, MMORPGs have the most gamers (27%) spending over 20€.

‣ Outside of MMORPG and Casual, most game genres’ spending is concentrated between 1€ and

10€.

MMORPG & casual gamers concentrated at opposite ends of spending spectrum.

For all other spending ranges, aspects of competition matter most.

Purchase motivation1 by spend per purchase2

‣ Small spenders have a simple objective: play longer. These players are focused on gaining more gaming

time well above any other purchase driver.

‣ Gamers who spend just slightly more (1€ to 5€) are already thinking more strategically as they spend to

gain a competitive advantage and boost their score/rank. This desire to gain an upper hand over other

players extends through all spending ranges over 1€.

‣ Communication and teamwork low on priority list for gamers (categories not shown due to low

percentages).

1Q: What motivated you to buy in-game items or virtual goods in the past 2 months? Check all that apply. 2Q: Per purchase, about how much did you

spend on buying in-game items or virtual goods in the past 2 months?

Small spenders driven to extend gaming time

Purchase motivation varies by spend for MMO gamers

Purchase motivation: MMO gamers1

‣ Extending gameplay and competitive advantage universally important to all levels of MMO spenders.

Each spending range has these motivators at over 17% (except competitive advantage to less than 1€

spenders).

‣ Avatar personalization because a purchase driver at the 16€ category. Players at this spending level and

above are more invested in their games and want to differentiate their characters. 1Q: What motivated you to buy in-game items or virtual goods in the past 2 months? Check all that apply. Note:

MMO includes MMORPG, MMO Adventure and MMO Strategy gamers.

MMO gamers investing over 20€ focused on progress and personalization.

Communication drives social/casual gamers to buy

Purchase motivation: Social/Casual gamers1

‣ Communication shows up as purchase motivator for social and casual gamers in numerous

spending ranges. Other genres rarely mention this factor in more than one spending category.

‣ Lots of variation by spending range. Extend gameplay, sale, avatar appearance, boost score,

competitive advantage and additional content are all top drivers in different spending categories.

1Q: What motivated you to buy in-game items or virtual goods in the past 2 months? Check all that apply. Note: Social/Casual includes social and casual gamers.

Social/casual gamers invest in communication more so than other gamers.

Online gamers consolidate purchases

Average number of purchases less than two per month.

Number of purchases2

1Q: About how much did you spend in TOTAL on free-to-play, online game purchases in the past 2 months?; 2Q:How many purchases of in-game items or virtual goods

have you made in the past 2 months?

3 to 5

26% 1 to 2

58%

6 to 10

10%

10+

6%

1.7 Average number of F2P online gaming purchases per month

Total F2P online gaming spend1

Purchase timing depends on game type

MMORPG players make buy early on to enhance Gameplay.

Purchase timing by game genre1

‣ 45% of MMORPG players spend on virtual goods within days of playing a new game. These

gamers commit quickly and are more engaged earlier on in their playing lifecycle.

‣ Social gamers take much longer to spend. Over 25% of them do not invest until over one month

of playing. Almost half of these spenders are female (43%) reiterating the notion that women's

video gaming spending habits differ from men’s.

1Q: About how long did you play before making your virtual goods or in-game items purchase?

one day couple of days one week couple of weeks one month couple of months

3-Payment

pressure points:

Payment choices

Credit cards most popular payment method for gamers

However, 23% try to avoid credit cards for gaming purchases.

Payment method used online gaming1

‣ Credit card is the single, most utilized payment method for F2P online gamers with over 40% of

F2P online gamers using them for in-game purchases.

‣ Gamers are very comfortable using alternative payment methods. Combined alternative payments

are the majority of payment methods (51%) used. Despite their ubiquity, gamers still seen them as

problematic with 76% of gamers try to avoid use.

‣ Mobile payments (direct mobile and SMS) combined make up 19.3% of game payments.

1Q: Which of the following payment methods did you use most frequently to purchase your in-game items or virtual goods?

Other category excluded. Responses will not add up to 100%.

Payment method to avoid1

Small transactions favor ISP billing and SMS payments

Gamers making larger purchases are more likely to use eWallets.

‣ Credit card top method for all spending categories (not shown). Regardless of spending

amount, gamers use credit cards for most of their online gaming purchases.

‣ ISP billing and SMS payments favored in small transactions. ISP billing is most popular in

the less than 1€ category and SMS payments seem ideal for gamers spending 1 to 5€.

Payment method used online gaming1 by average purchase amount2

1Q: Which of the following payment methods did you use most frequently to purchase your in-game items or virtual goods? 2Q: Per purchase, about how

much did you spend on buying in-game items or virtual goods in the past 2 months?

Alternative payment methods use depends on genre

Different game categories favor different alternative payment methods.

Alternative payment methods used by genre1

1Q: Which of the following payment methods did you use most frequently to purchase your in-game items or virtual goods?

Use of prepaid games cards among

MMORPG players more than double

compared to others. Availability most

likely a prevailing factor.

SMS and ISP billing

most popular with

virtual world

players.

Security important consideration in payment choice

Security equally important in decision to use or avoid payment methods.

Why choose payment method1

‣ Security, speed and ease of use

top priority list for online gamers

payment method choice.

‣ Spending caps important when

deciding what method to avoid.

Online gamers most concerned

about overspending with credit

cards and ISP billing.

1Q: What motivated you to buy in-game items or virtual goods in the past 2 months? Check all that apply.

Reasons to NOT use a specific payment method

About

Superdata Research

Founded in 2009, SuperData provides market intelligence on free-to-play and online games. By

collecting behavioral data directly from publishers and developers, SuperData identifies key trends,

establishes revenue estimates and analyses market changes for popular online games, including

MMOs and social games.

SuperData publishes industry-relevant key performance indicators. Using our unique panel of

2,000,000 paying online gamers, we establish monthly benchmarks such as ARPPU, conversion

rates, and lifetime value. Customers use our data to evaluate their performance, identify key growth

opportunities, assess revenue potential, optimize their efforts, and better understand their audience’s

wants and needs.

SuperData’s client base includes brand owners, developers, retailers, publishers, VCs, and payment

service providers.

Media contact: Yannis Weinbach

Tel: +33.1.53.85.88.04

y.weinbach@warningcom.com