Gamification 2012 - 2017: Opportunities and Market Outlook for Next Generation Brand/Product Advertising through Embedded Gaming

Embedded gaming or "Gamification" is a next generation advertising approach in which gaming elements are integrated into a non-game environment. 

Gamification represents a promising strategy for public and commercial brands to increase customer activity, build loyalty, broaden reach and monetize assets.

Mind Commerce projects Gamification growth to reach $3.6 billion by 2017. It is also estimated that by 2017, 80% of Global 2000 organizations will have gamified applications and/or processes.

The goal of Gamification is to maximum user brand/product engagement through facilitation of entertainment in which the user interacts with the brand in a fun/pleasurable manner. One of the keys to success is to assess user behavioral patterns as a precursor to deploying optimal game mechanics that that align user likes, dislikes, expectations and behaviors.   Optimal design is based on research into extrinsic motivators, intrinsic values and facilitation of long term engagement.

This research includes

• Gamification business model analysis
• In-depth analysis of Gamification solution and dynamics
• Analysis of thirty two companies involved in Gamificiation
• Case study analysis of brands capitalizing upon Gamification
• Analysis of Gamification market trends and market projections 2012 - 2017
• Analysis of potential benefit metrics and non-metrics of Gamification for Brands  
• Gamification process analysis including game mechanics, design techniques, and features
• Guidelines for Brands, Vendors, Service Providers, and Investors to realize optimal success with Gamification
• Feasibility assessment of Gamification solutions across various industries (education, enterprise, healthcare, education, entertainment)

As a complement to this valuable report, Mind Commerce provides Gamification consultancy services including:

• Design a deployment solution with operational support
• Define ROI measurement & tracking metrics from Gamified solution  
• Develop cross channel marketing solutions identification and implementation
• Identify the specific Gamification potential for your industry, product or service
• Identify game mechanics for your product or service that will act as extrinsic motivators

Companies in Report
 
Vendor Platforms: Gamify.it, Badgeville, Bunchball, Bigdoor, CrowdTwist, Cynergy, SpectrumDNA, Reputely, IActionable, Scvngr, Manumatix, Leapfrog, beintoo, Objective Logistics, Rypple, CloudCaptive, Arcaris, Gigya, Gamisfaction, Play Nicely, Punchtab, Keas, RepTivity, Fusion, Badgy, Bulbstorm, Crowd Factory, FanGager, RoarEngine, Hoopla, Kitzy, and Snowfly

Brands, Service/Product Providers and others: XboxLive, Foursquare, Gowalla, Getglue, LinkedIn, Salesforce, Mint, Checkpoints, Shopkick, Hallmark, Starbucks, NIKE, Buffalo Wild Wings, Microsoft, American Airlines, Sundance Film Festival 2011, Nextjump, Speed Camera Lottery, Psych, NBC, Universal, Playboy, CrowqTap, RecylceBank, eBay, Amazon, Debhub, Playgen, Metycoon, Zynga, Cadbury, TFL Chromaroma, Bunchball, MOGL: Dinning Out, Nissan, Siemens, Hilton, SAP, BMW, Mashable, COCA COLA, Ask.Com, Google, and Facebook

Key Findings

• Gamification ranks 4th in Top Digital Marketing Trends for 2012
• The Gamification market is anticipated to reach $ 3.6 billion by 2017
• Mobile platform gamification is expected to increase by 90% in USA by 2017
• For global 2000 organizations

   80% will gamify products or services by 2017
   70% will gamify enterprise process by 2017

•  Select industry metrics:

   The entertainment industry currently holds the lead in Gamification market (45% market position)
   The education, healthcare and financial sector will increase dramatically but will not overtake entertainment by 2017

Target Audience

• Mobile network operators
• Content providers and intermediaries
• Digital marketing agency or consultants
• Internet and mobile based solution providers  
• Brands, advertisers, portals, and media companies
• Mobile commerce application and service providers
• Social gaming, mobile gaming and social commerce developers
• System integrators, consultants, and professional service providers
• Gamification platform and infrastructure providers (equipment, software, and services)

Table of Contents

1.0 EXECUTIVE SUMMARY  11

2.0 GAMIFICATION CONCEPT: HOW IT WORKS? 13

3.0 HOW GAMIFICATION EVOLVED? 15

4.0 GAMIFICATION: A BUZZWORD, BULLSHIT OR REALITY? 18

5.0 GAMIFICATION IS MORE THAN MERE MARKETING! 20

6.0 GAMIFICATION VS. SERIOUS GAMES 21

7.0 GAME-BASED MARKETING AND GAMIFICATION 23

8.0 EMERGING TECHNOLOGY HYPE CYCLE AND GAMIFICATION  25

9.0 TOP DIGITAL MARKETING TREND 2012 & GAMIFICATION 26

10.0 GAMIFICATION PROCESS & BUILDING BLOCKS 27
10.1 GAME DESIGN TECHNIQUE 27
10.1.1 5 RULES TO FOLLOW BEFORE GAME DESIGN  28
10.1.2 GAME DYNAMICS TO USE DURING GAME DESIGN 29
10.2 GAME MECHANICS  35
10.2.1 5 COMMONLY USED GAME MECHANICS 36
10.2.2 ATTRIBUTES OF GAME MECHANIC 37
10.3 GAME FEATURE 38

11.0 GAMIFICATION BENEFIT ANALYSIS  40
11.1 GAMIFICATION METRICS  40
11.2 GAMIFICATION NON-METRICS  41

12.0 GAMIFICATION PLATFORM ANALYSIS 42
12.1 GAMIFICATION PLATFORM DISRUPTION: A TIMELINE TRACK 43
12.2 12 LEADING GAMIFICATION PLATFORM OF 2012  44
12.3 32 GAMIFICATION PLATFORM METRICS (LEADING 12 + OTHER 20) 44
12.4 GAMIFY VS. BADGEVILLE: COMPARATIVE PLATFORM ANALYSIS 47

13.0 SOCIAL WEB ENGINEERING & GAMIFICATION 50

14.0 LBSN (LOCATION BASED SOCIAL NETWORKING) AND GAMIFICATION 52

15.0 FCOMMERCE, SOCIAL MEDIA, AND GAMIFICATION 54

16.0 GAMIFICATION BUSINESS VALUE DRIVER METRICS  58
16.1 WHO PARTICIPATES IN GAMIFICATION?  58
16.2 TRACKING PARTICIPANT STATISTICS DRIVE PARTICIPATION 58
16.3 PARTICIPATION DRIVES BUSINESS VALUE 59
16.4 BUSINESS VALUE METRICS 1:  A COMMUNITY OF MEMBERS OR FANS 59
16.5 BUSINESS VALUE METRICS 2:  BUILDING BRANDS  60
16.6 BUSINESS VALUE METRICS 3: DRIVING ENGAGEMENT AND LOYALTY 62
16.7 BUSINESS VALUE METRICS 4: MOTIVATING BEHAVIOR  63

17.0 GAMIFICATION: A REAL WORLD DILEMMA 65

18.0 GAMIFICATION INDUSTRY ANALYSIS  67
18.1 GAMIFICATION APPLICATION SERVICE HORIZON  67
18.2 INDUSTRY HORIZON67
18.2.1 ART INDUSTRY 69
18.2.2 COMMERCE INDUSTRY 70
18.2.3 EDUCATION INDUSTRY  71
18.2.4 ENTERTAINMENT INDUSTRY  72
18.2.5 ENVIRONMENT INDUSTRY  72
18.2.6 DESIGN INDUSTRY 73
18.2.7 GOVERNMENT INDUSTRY 74
18.2.8 HEALTH INDUSTRY 75
18.2.9 GAMIFICATION OF LIFE 76
18.2.10 MARKETING INDUSTRY  77
18.2.11 MOBILE INDUSTRY  77
18.2.12 NEWS INDUSTRY 78
18.2.13 SOCIAL GOODS INDUSTRY 79
18.2.14 WEBSITE INDUSTRY 80
18.2.15 WORK INDUSTRY / ENTERPRISE GAMIFICATION 80
18.2.16 TRANSPORT INDUSTRY  82
18.2.17 TRANSITION INDUSTRY  82
18.2.18 SCIENCE INDUSTRY  82

19.0 BRAND CAPITALIZING GAMIFICATION: A CRITICAL ANALYSIS OF 15 BRANDS 83
19.1 XBOX LIVE 83
19.2 FOURSQUARE 83
19.3 GOWALLA 85
19.4 GETGLUE 87
19.5 LINKEDIN 88
19.6 SALESFORCE 88
19.7 MINT 89
19.8 CHECKPOINTS 89
19.9 SHOPKICK  90
19.10 HALLMARK 91
19.11 STARBUCKS  93
19.12 NIKE  93
19.13 BUFFALO WILD WINGS  93
19.14 MICROSOFT 94
19.15 AMERICAN AIRLINES 94

20.0 GAMIFICATION CASE ANALYSIS 95
20.1 FOURSQUARE 95
20.2 GOWALLA 96
20.3 SUNDANCE FILM FESTIVAL 2011  97
20.4 NEXTJUMP: GET FIT 99
20.5 SPEED CAMERA LOTTERY 100
20.6 PSYCH & NBC/UNIVERSAL AND PLAYBOY100
20.7 CROWDTAP: MAKE RESEARCH & EVANGELISM COUNT 101
20.8 RECYCLEBANK: SAVE THE PLANET  102
20.9 FARMVILLE102
20.10 EBAY 103
20.11 DEVHUB 104
20.12 PLAYGEN'S METYCOON 105
20.13 GETGLUE 106
20.14 CADBURY: SPOTS AND STRIPES 106
20.15 TFL: CHROMAROMA  107
20.16 FREQUENT FLYER PROGRAMS  108
20.17 STARBUCKS  108
20.18 NIKE+ 108
20.19 BUNCHBALL 109
20.20 MOGL: DINING OUT 109
20.21 ENTERPRISE GAMIFICATION: NISSAN'S "ECO MODE" DASHBOARD 111
20.22 ENTERPRISE GAMIFICATION: SIEMENS PLANTVILLE AND HILTON'S EMBASSY SUITES 111
20.23 ENTERPRISE GAMIFICATION: SAP 112
20.24 BMW: "THE ULTIMATE DRIVE" APP 112
20.25 BADGEVILLE 112
20.26 MASHABLE: NEWS GAMIFICATION 114
20.27 COKE FREESTYLE 116
20.28 SIX FLAGS PARKS AND ASK.COM  117
20.29 SALESFORCE.COM 118
20.30 ZYNGA'S PRIVACY VILLE 120
20.31 GOOGLE 121
20.32 FACEBOOK 122

21.0 GAMIFICATION TREND 2012  124
21.1 ON GOOGLE SEARCH  124
21.2 NEW MARKETING STRATEGY 124
21.3 HEALTH GAMIFICATION AND MEDICAL MARKETING GETS HIGH MOMENTUM 124
21.4 GAMIFICATION AS MEANS TO OVERCOME COMMUTER BLUES 126
21.5 BANKS USING GAMIFICATION 127
21.6 ENVIRONMENT AND ENERGY MARKETING ON TOP TREND 129
21.7 EDUCATION GETTING GAMIFIED 130
21.8 YOUTH DEVELOPMENT WITH GAMIFICATION 131
21.9 RESTAURANT LOYALTY PROGRAM GETTING POPULARITY 132
21.10 AMIFICATION IS IN SUPER BOWL CONTEST 132
21.11 GAMIFY TV: ENTERTAINMENT INDUSTRY PEAK 132
21.12 BAZAARVOICE AND BADGEVILLE PARTNERSHIP  134

22.0 GAMIFICATION BUSINESS MODEL  135
22.1 QUESTIONS BEFORE BUSINESS MODEL 136
22.2 GENERIC MODEL  136
22.3 RYPPLE FREEMIUM MODEL 138
22.4 REVENUE CHARGING MODEL 139

23.0 GAMIFICATION: 12 MONTH TREND ANALYSIS OF 2011  141
23.1 JANUARY: REALITY GETS BETTER 141
23.2 FEBRUARY: HEALTH SETS THE PACE  141
23.3 MARCH, APRIL & MAY: SPRING SHOOTS 141
23.4 JUNE & JULY: SUMMER OF FUNDING141
23.5 AUGUST: GOING DEEP 142
23.6 SEPTEMBER: MATURING  142
23.7 OCTOBER & NOVEMBER: GAMIFICATION GOES MAINSTREAM 142
23.8 DECEMBER: A LOOK TO THE FUTURE 142

24.0 GAMIFICATION TREND PREDICTION 2012  143
24.1 GAMIFICATION GROWS UP 143
24.2 FOCUS ON BUSINESS RESULTS  143
24.3 GAMIFICATION SPREADS ACROSS ALL INDUSTRIES 143
24.4 USER REPUTATION ACROSS ALL DIGITAL TOUCHPOINTS 143
24.5 TRAINING COMPLIANCE GETS GAMIFIED 144
24.6 EMPLOYEE RECOGNITION ALSO GETS GAMIFIED  144
24.7 GAMIFICATION GETS SOCIAL 144
24.8 GAMIFICATION CONSULTING IS A BIG BUSINESS 144
24.9 THE ANALYTICS INDUSTRY IS DISRUPTED BY GAMIFICATION  144
24.10 BADGEVILLE WILL CONTINUE ITS REIGN AS THE LEADER IN GAMIFICATION  145
24.11 HIGH-END HANDHELD CONSOLE GAMING MARKET MAY EMBRACE GAMIFICATION 145

25.0 GAMIFICATION MARKET PROJECTION 2012 - 2017  146
25.1 GAMIFICATION MARKET VALUE IN SPENDING 2012-2017 146
25.2 GAMIFICATION: US VS. OTHER MARKET 2012 - 2017  146
25.3 GAMIFICATION: INTERNET VS. MOBILE PLATFORM 2012 -2017 148
25.4 WEB SERVICE VS. IN-APP VS. IN-GAME GAMIFICATION 2012 - 2017 148
25.5 INDUSTRY-WISE GAMIFICATION 2012 - 2017  149
25.6 GAMIFICATION ADOPTION CURVE BY INDUSTRY 2012 - 2017 150
25.7 INDUSTRY OBJECTIVE WITH GAMIFICATION 2012 - 2017 151
25.8 GAMIFY SERVICE ADOPTION BY GLOBAL 2000 ORGANIZATION 2012 - 2017 152
25.9 SOCIAL MEDIA MARKETING VS. GAMIFICATION SPENDING 2012 - 2017  152
25.10 AVERAGE VENDOR CHARGE FOR GAMIFICATION 2012 - 2017  153
25.11 Y2D VENDOR REVENUE GROWTH PROJECTION 2012 - 2017  154
25.12 GAMIFICATION USER STATISTICS 2012 - 2017  154
25.13 AVERAGE OUTCOME OF USING GAMIFICATION 155
25.14 SOCIAL GAMER VS. GAMIFICATION USER 2012 - 2017 155
25.15 SPENDING ON GAMIFICATION START-UP 2011 - 2017 156
25.16 IN-GAME AD VS. GAMIFICATION SPENDING 2012 - 2017 157
25.17 ENTERPRISE GAMIFICATION ADOPTION 2012 - 2017  157

26.0 CONCLUSIONS AND RECOMMENDATIONS 159
26.1 RECOMMENDATION FOR BRANDS 160
26.2 RECOMMENDATION FOR VENDORS AND CONSULTANT 160
26.3 RECOMMENDATION FOR INCUMBENTS AND INVESTORS 161