Study: Console Gamers Buy Quickly And Millennials Prefer PS4

PayPal has released its Digital Goods Economy Survey, conducted by SuperData Research, observing the habits and attitudes of digital media consumers, including video games. While the results echo many common trends, such as the rise of mobile gaming, they also offer insight into the differences between console and PC gaming purchases, and why gamers prefer certain payment methods over others.

Smartphones Are The New Gaming Handhelds

When asked which devices they used to play mobile digital games, 78 percent of US respondents identified smartphones versus a tablet (59 percent) or laptop (47 percent). In fact, the smartphone is the most popular gaming platform in nine out of the 10 countries surveyed.

“Mobile is indeed still growing for games, especially as the phone increasingly becomes a multi-functional hub for entertainment and communication,” Stephanie Llamas, director of research and insights at SuperData told [a]listdaily. “It’s been less than 10 years since the iPhone debuted and the smartphone has become a single device that houses the capabilities of every major modern media: computers, TVs, music players, telephones and so on. So it’s no surprise that we are gaming more on smartphones, too—especially now that the mobile market offers titles for all gamer types who can play on the go.”

SuperData estimates that by the end of 2016, the mobile games market will be worth $37.6 billion, accounting for just under half of the total $77.3 billion worldwide games market.

Millennials: PS4 Over PC

The study explores what digital gaming platforms respondents prefer and divides them into groups according to age group and gender. Mobile gaming is the preferred platform across all groups, including smartphones and tablets. There is definitely a generation gap in console preference, however—consumers aged 18 to 34 prefer PlayStation 4 over all other consoles, while those 35 and up indicated a preference for PC. In case you’re wondering, women prefer PC desktops and Xbox 360, while men prefer the PS4 just slightly over a PC.

Gamers Spending Time And Money

consolesEighty-two percent of US respondents cited “ease of use” as the reason for why they preferred their most-used payment method for mobile gaming. PayPal was cited as the payment method used the most in the last three months by US respondents to purchase digital video game downloads or in-game content for their PC/Mac or laptop.

“As [smartphones] become the standard for games, consumers are more willing to spend and are comfortable spending more,” Llamas observed. “Efficient payments have a huge hand in this, particularly with the rise of eWallets. Eight of the 10 markets showed a preference for eWallets since they can house all your payment methods and do not require users to input their information repeatedly, which is both inconvenient and not as secure.”

Mobile may be the most convenient and therefore popular method for gaming, but when players sit down to the console, they plan on staying there for a while. Forty percent of respondents play their console video games one-to-two-hours for each session, with 34 percent playing for two-to-four-hours. This was greater than the time cited spent on PC/Mac or laptop games, mobile video games and eBooks, SuperData reports. For mobile games, 31 percent reported spending 30 minutes to one hour at a time.

Game Purchases: Now Or Later?

SuperData reports that console gamers purchase in-game content twice as fast as those on PC. AAA release schedules allow console gamers to plan their purchases accordingly, resulting in an average wait time of nine days between deciding to make the purchase and sealing the deal. PC gamers, on the other hand, tend to wait for sales and wait an average of 18 days to make purchases from the time they decided to buy content.

SuperData: Mobile And Free-to-Play MMOs Rule September 2016 Digital Sales

SuperData has just released its digital video game industry revenue data for September 2016, revealing that although revenue is up, what people are willing to pay for is a’changing.

September Digital Video Game Sales

Overall, September proved to be a successful one as the global market reached $6.2 billion—an increase of 5 percent over September 2015. Revenues were dominated by a growing mobile ($3 billion) and free-to-play MMO market that brought in $3 billion and $1.5 billion, respectively. Mobile game revenue enjoyed a growth of 11 percent over last September, largely due to the success of its number one game for the third month in a row . . . you guessed it, Pokémon GO. Mobile Strike holds its own at number two, followed by Clash Royale

Pay-to-play MMOs experienced a 12 percent year-over-year growth thanks to a successful August launch of World of Warcraft: Legion. The wildly popular game holds its number two spot on the charts for a second month in a row behind free-to-play online game, League of Legends. Unchanged from August, Crossfire holds the number three spot for PC in September. Despite growth within the MMO genre, overall PC sales decreased six percent to $334.8 million and those in the Social genre dropped four percent to $618.3 million compared to September 2015.

Thanks to its Rise of Iron expansion, Bungie’s Destiny topped the September console charts, followed by newcomer, FIFA 17 and Call of Duty: Black Ops III holding its numerical equivalent. Overall, the global console market fared better than its PC cousins at $493 million, although it suffered a 14 percent decline from the previous year.

League
League of Legends holds its #1 spot on digital PC sales.

The Power of DLC And Expansions

“Destiny highlights the importance of additional content releases for AAA titles,” noted SuperData CEO, Joost van Dreunen in the report, citing Activision-Blizzard as a leader in this strategy. “Since April 2016, Call of Duty: Black Ops’ additional content revenue has never dipped below 80 percent of total revenue.”

Legacy franchises like Call of Duty and Destiny can not only charge a premium upfront price,” van Dreunen added, “but continue to take the lion’s share of console spending for months or even years.” Destiny’s The Rise of Iron expansion skyrocketed the title’s revenue from $7.2 million in August to a whopping $59.1 in September, where it rests comfortably at number one for console games.

Monetization, The Twitch Way

Amazon is changing the way people watch, play and pay for video game programming through Twitch and Twitch Prime. The gaming video content segment has seen significant growth over the past year as Twitch continues to release new features aimed at getting online viewers to spend more while watching others play games. One such method of monetization includes Stream+, a virtual currency that viewers can use to bet in real-time during eSports events.

In addition to Twitch Prime, which offers significant benefits to Amazon Prime subscribers, users can now acquire a virtual currency called “bits” by watching ads or paying directly. “While this feature is new to Twitch,” van Dreunen commented, “Chinese streaming platforms like Douyu have already successfully monetized it [and] viewers frequently gift hundreds of dollars’ worth of emotes in a few minutes.” With Twitch getting a 30 to 40 percent cut of all revenue donated in this way, SuperData estimates that total donation revenue for gaming video content could exceed $1 billion worldwide by the end of 2017.

NPD: Sports Top September 2016 Digital Video Game Sales

NPD has released its monthly video game sales report for September 2016, and it was definitely the month for sports games with NBA 2K17, NHL 17 and FIFA 17 launching at number one, three and four, respectively. Despite these popular releases, overall software sales were down 23 percent over September last year. In fact, every category (hardware, software and accessories) saw a decline year-over-year except for PC software, which saw an increase of three percent.

Sony’s PS4 Slim released in September, but the new console, together with other video game hardware, brought in sales of just $234.3 million compared to $311.7 million in September 2015. Xbox One was the best-selling hardware for the month and accounted for 37 percent of all hardware units sold. Not surprisingly, Xbox One accessories experienced a surge thanks to the release of an Xbox One Elite controller and the new Xbox One S controller. Unfortunately, the new Xbox One S and its accessories were unable to offset declines in spending from other systems, with an overall decline of 10 percent over last year.

NPD’s video game industry analyst, Sam Naji notes that despite a drop in Wii U sales, Nintendo is experiencing renewed interest in the 3DS. “The 3DS experienced its fourth consecutive month of increased hardware unit sales compared to last year,” said Naji. “Since the release of Pokémon GO back in July 2016, the 3DS has experienced a resurgence in hardware spending.”

FIFA17_XB1_PS4_EAPLAY_JAMES_CORNER_WM_(1)

As predictedNo Man’s Sky experienced a strong launch in August but did not make the top ten following controversy over advertising practices. September was a strong month for 2K’s annual sports titles, and Madden NFL 17 still experienced strong sales in its second month. Amazingly, Rockstar’s Grand Theft Auto V remains in the top ten month after month, although it dropped three spots to number seven.

The NPD’s top 10 best-selling games for September 2016 are:

  1. NBA 2K 17
  2. Madden NFL 17
  3. FIFA 17
  4. NHL 17
  5. Bioshock: The Collection
  6. Destiny: The Collection
  7. Grand Theft Auto V
  8. Overwatch*
  9. Forza Horizon 3*
  10. Call of Duty: Black Ops III

Asterisks indicate that digital sales were not accounted for (or purchases made on Battle.net, in the case of Overwatch).

“Interactive gaming toy (IGT) accessory spending reached $13M, which is 75 percent less than a year ago,” Naji reported. “Last year, Lego Dimensions launched, Skylanders: SuperChargers released and there were 13 new Amiibos. This year, the new Skylanders accessory, Skylanders: Imaginators, is expected to release in October 2016 and no new Amiibos launched in September 2016.”

In fact, total accessory spending (excluding Point Cards) saw a decline of 30 percent compared to September 2015. With no new interactive releases in September, consumers spent $47 million less than they did last year.

VRTIFY Creates A New Space For Music Sharing

VRTIFY is the new virtual reality social network that gives its users a new way to experience and share music. That includes creating VR environments and channels, sharing concert experiences and playlists, and doing more with services such as Spotify, Pandora, iTunes, Instagram, YouTube and Google Street View. Users can choose to either stick with a free experience or they can upgrade to a premium version that removes ads and provides subscriber access to special pay-per-view events.

The app is currently in beta and will be launch for a variety of virtual and mixed reality devices in January 2017, including Oculus Rift, HTC Vive, PlayStation VR, iOS, Android, Microsoft HoloLens and Meta.

The company’s CEO and founder, Facundo Diaz, describes the VRTIFY as “the world’s first virtual and mixed reality (MxR) music distribution platform.” He talks to [a]listdaily about creating a platform that brings users together using music like never before.

Facundo Diaz
Facundo Diaz, VRTIFY CEO and founder

What inspired the idea to combine music, VR and social features? 

When we first started in the virtual reality industry five years ago, we saw that the emergence of technologies like VR, AR and MxR would change many industries (gaming, entertainment, tourism, education, cinema, etc.), so we directed all of our efforts into the music industry—in which we believe will be the most impactful in terms of experiences, adoptions, revenues and more. Music has always been an experience to share with others.

How does VRTIFY work to create a new market for the music industry?

By offering an end-to-end solution for each stakeholder, transforming music content into new virtual experiences using high-end technology and creating a new market for the music industry through our revenue sharing business model.

How is VRTIFY different from 360-degree videos and concerts that are found on YouTube and Facebook? 

In terms of content, we produce fully immersive 3D/360 stereoscopic videos and experiences. YouTube and Facebook only support 360 plain videos. And in terms of distribution, we offer high quality VR and MxR music content through our premium channels (like Netflix, but for music experiences) and allow users to socialize within the platform, share their favorite content, create their own playlists and groups and also provide them with the tools to create their own content and channels. User channels address our content quality requirements and our premium content can start to generate revenue for the channel’s creator.

Does VRTIFY support virtual reality live streaming for events?

Yes, we offer a live multi-camera 3D/360 streaming where users can move around during live concerts, changing the place from where they experience the concert. In our mixed reality app, the consumer could place the artist or the band in the middle of their living room and see the band visual playing just for them.

Are there any music artists that are helping to promote the platform?

VRTIFY has the world’s largest virtual and mixed reality music library to date and is in the process of increasing its content with additional artists by launch, making it an entirely new distribution destination for music.

In what ways can users discover music using VRTIFY?

VRTIFY offers users 4 immersive sections:

  • VR/MxR Music Experiences: users can upload, share and select 360-degree environments/videos and integrate them with any mood-type music from online streaming services like Spotify, Deezer, Soundcloud and others to be announced soon, or their own MP3, and create their own music experience in VR and MxR.
  • Music Videos: 3D/360 HQ produced concerts or video clips.
  • VR/MxR Livestreaming: multi-camera 3D/360 live streamed events.
  • VR/MxR Channels: exclusive custom branded channels for artists/music labels/events/brands/etc. to show exclusive content in an immersive way.

How can brands make use of the VRTIFY platform to promote themselves?

Brands can use the VRTIFY platform to promote themselves through:

  • Advertising: VR/MxR ad production services, targeted ad distribution over the platform, ad management system, CMP.
  • Sponsorship: Sponsor live events, premium content, artists, VRTIFY channels.
  • Value to Brand: Create a VRTIFY channel, offer VR/MxR experiences for consumers, show innovative tendency to the global market.

ESL Exec Discusses Impact New Sony Tournaments Will Have On ESports

ESL has integrated its competitive gaming systems and technology into the new Tournaments feature Sony Interactive Entertainment has launched on PlayStation 4. This opens up competitive gaming across Sony’s 46 million PS4s worldwide. Any gamer around the world can compete in online game competitions organized by ESL through the PS4, as well as the ESL Play and PlayStation apps.

The first tournaments start today and will feature NBA 2K17. Mortal Kombat X, and Project Cars, with other games joining the ranks in the future.

After sitting on the sidelines during the early days of console eSports, Sony partnered with Activision for last year’s Call of Duty World League. All Activision Call of Duty pro gaming events are now played on PS4. This ESL deal further solidifies Sony’s commitment to eSports, which Newzoo’s CEO, Peter Warman believes has a huge growth opportunity in the console space.

Marcel Menge, managing director of ESL technology, explains how this latest offering will impact the console eSports space in this exclusive interview.

How are you applying your past tournament knowledge to this new PlayStation 4 business?

Over the last 15 years, we have constantly improved the competitive experience on PC games, but as the core part of tournament systems and user interaction was always PC focused, console players had to use a PC as their second device to be able to participate on a console. Starting today, the integration with PlayStation 4 gives users the same intense experience and the same opportunities to participate, as if they were doing it from their PCs.

What does PS4 open up for the average gamer?

Tournaments on the PS4 will allow the average gamer to test their skills in tournaments and compete with similar-minded players. For some, it will open up a career path into eSports; for others it will be just an additional layer to experience the games they love and spend time with friends and the online communities.

How are you working with Sony in this endeavor?

We are working closely with Sony on the development and business of the offering around tournaments. Features and strategy alike are discussed together to find the best solution for the community.

Who’s selecting the games to partner with?

Sony and we are talking to game publishers and developers to select games and decide together with them on how to approach competitive gaming. In the end, the decision is of course with the game publishers to decide if tournaments are the right step for their community.

What has been the initial reaction from game publishers for tournaments?

The feedback has been very positive and interestingly, a lot of game publishers were already active in competitive gaming and see the new tournaments feature as a way to improve the user experience for their community.

What types of prizes will gamers be vying for across the first tournaments?

Most of the tournaments will be community cups without prizes, as the focus should be on having fun and enjoying the games. But there will also be weekly tournaments with small amounts of prize money, and some regions will have tournaments with hardware prizes. We have just launched, and depending on the interest of the communities in different regions, this might change from time to time. Like PlayStation announcing the PlayStation Masters in Germany, and there are several PlayStation Leagues running in various countries with higher prizes.

How do you see prizing evolving, given what you’ve seen on other platforms?

Our goal is to build up a large community of players who are interested in competitive gaming and eSports. When we reach that goal, we are certain that bigger prize money tournaments will start existing around PlayStation 4. There are tons of titles with a lot of potential, and we are looking forward to seeing where and how the competitive communities will grow.

What type of structure will these initial tournaments have in terms of length, and how are you handling different regions?

The initial tournaments will be single elimination bracket tournaments that will be run in one day over a few hours. We already have tons of local tournaments that only players from that country (or small country groups like the US and Canada) can see, but also tournaments for the European and Asian regions. Local tournaments will be handled in the language of the country and will be supported by local referees, while Europe and Asia will be handled in English.

Is there any difference entering these tournaments using ESL Play versus the PlayStation App?

The same tournaments can be entered through the event system on the PlayStation 4, the ESL Play website, the ESL Play and PlayStation mobile apps. It’s possible that in the future there might be tournaments that are exclusively available on the PlayStation 4 and PlayStation mobile apps.

How do you see this level of tournaments impacting the professional ranks, given games like NBA 2K and Mortal Kombat X have had eSports competitions?

It will be pushing the already established star players to new levels of play, but even more importantly: the amount of talent and level of play will increase consistently, as it brings fresh blood to the competitive communities when entering tournaments is now so much easier.

NPD: 77 Percent Of Gamers Are Willing To Pay For Microtransactions

The NPD Group has released a new report, PC and Video Games—DLC and Microtransaction Purchasing that explores just who is making additional in-game purchases and why some flat-out refuse. Downloadable content (DLC) and microtransactions are often the topic of debate among gamers, particularly when it comes to AAA titles that cost $60 or more up front. While some feel that they are being sold an unfinished product and being forced to buy the remainder, many more enjoy the additional content, as it keeps gameplay fresh or customizable.

16 percent purchase DLC as opposed to 23 percent for microtransactions.
16 percent purchase DLC as opposed to 23 percent for microtransactions.

First, we should differentiate DLC from microtransactions for clarity—DLC refers to an addition to existing gameplay such as new maps, quests, raids, etc. and may include cosmetic or other items as part of a bundle. Microtransactions, as the name implies, are small, easy-to-buy options that are the bread and butter of “freemium” titles, i.e. free-to-play with optional purchases. Microtransactions tend to be a one-time-use item such as extra moves, boosters or additional XP for a match.

Roughly a quarter (28 percent) of US males and females ages 13-to-54 have purchased additional video game content in the past three months, according to NPD, with males and teens being the primary purchasers.

Why Gamers Buy

Sixteen percent of those surveyed have purchased DLC. The top reasons indicated for breaking out the wallet include wanting to play online with friends, having all the game content and feeling the price for the extra content was reasonable. Over half indicate they would be influenced to purchase more DLC if the prices were cheaper. Bungie suffered a bit of controversy for a $40 Destiny expansion in 2015, with fans complaining about the hefty price tag and perceived lack of value compared to the Collector’s Edition. Call of Duty DLC can range anywhere from free to $15 or more—a price point that is determined by its publisher, Activision and not the developers.

In an interview with Gamasutra, Call of Duty multiplayer lead, Dan Bunting responded to the DLC pricing criticism. “If you look at how many hours—in some cases, hundreds of hours—for some players of entertainment they get, I think it’s an incredible value. With Elite, there’s a ton of completely free service that gets added on top of the game experience. I think that, if you look at the overall package, it’s an incredible value.”

Microtransactions are purchased more often among those surveyed by NPD, at 23 percent. Meanwhile, 77 percent of these buyers said that microtransactions allow them to extend their enjoyment of a particular game. While being able to earn virtual currency to buy items is preferred, 78 percent are willing to spend some amount of real money to purchase in-game items or power-ups. As with DLC, the price must be right.

Why They Don’t

A meme illustrates common gamer frustration with DLC content.
A meme illustrates common gamer frustration with DLC content.

Money seems to be the biggest factor that drives players to keep their wallets shut. Half of those who do not buy DLC stated that they were not worth the money and 16 percent believed the extra content should have been included in the full game price. Likewise, 48 percent of those who do not purchase microtransactions felt the content was not worth the extra expense. Sixty-eight percent believe in the “pay-to-win” aspect of microstransactions within gaming, expressing a concern that those who pay receive an unfair advantage.

These findings reflect the importance of player experience and a balance between incentive to buy and whether a player can still win if they don’t. “Spending on microtransactions and DLC is currently healthy,” said Sam Naji an industry analyst for The NPD Group. “But game publishers and developers must not lose sight of the importance of looking at areas that will stimulate spending growth without compromising real and perceived value of the content they’re providing,”

Resolution Games CEO: VR Is ‘The Next Big Platform Shift’

Resolution Games has emerged as a game studios to watch in the virtual reality market, with its fishing game, Bait! already nearly a million downloads as one of the early success stories on the Samsung Gear VR. That’s all the more impressive when you consider that Samsung has sold just over 1 million Gear VR units earlier this year. Part of the success story for Bait! is connected to the fact that it was an early title for the Samsung Gear VR, which helped the game gain publicity. Now, Resolution Games is looking to repeat its success by launching its VR game Wonderglade along with Google’s launch of the Daydream VR headset next month.

Wonderglade is a carnival-themed game that “allows users to magically teleport into a world of wonders to play new takes on traditional carnival games,” said Resolution Games. “We’re excited to make one of the first games for Google Daydream. Wonderglade is truly a game that anyone can enjoy and immediately pick up and start having fun with—whether experienced with VR and games or not,” said Resolution Games’ CEO Tommy Palm. “And, it’s the perfect introduction for those interested in trying Daydream. The game is optimized to utilize the Daydream motion controller, enabling users to experience the different aspects of the controller, while playing games that are familiar and can be played in small bursts or for hours on end.”

While at the Oculus Connect Conference, [a]listdaily spoke with Resolution Games CEO Tommy Palm about Wonderglade and the VR market ahead.

The VR market is expanding with the introduction of new hardware, and that’s something that Palm feels is helpful to all participants in the market. As you might expect, since Wonderglade is a launch title for Daydream VR, Palm is positive about Google’s introduction of a mobile VR headset. “We’re super excited,” Palm said. “We really like Samsung Gear VR, but it is a very limited platform because it only reaches people with Samsung phones. Whereas Daydream is a much broader initiative. We’re very happy to see that. I tried the headset, and it feels very good.” Part of what impresses Palm is the control scheme for the Daydream VR, which includes a motion-sensitive handheld controller. “It’s both a broader reach and the fact that you have something that works with three degrees of freedom in the 3D world,” Palm noted. “With Bait! now it’s a one-button game on the Samsung Gear. Two of the games we announced in Wonderglade, one is a mini-golf game, and putts are very intuitive with that type of controller. Another is a racing game where you tilt the entire board and race around the track.”

Achieving notable success in the VR market has been difficult so far because of the small size of the market, and thus Bait! is quite unusual. Palm attributes part of that success to the game’s basic design. “We’ve really aimed at making games so everybody can enjoy it, where it’s not violent and it doesn’t require a lot of imagination to play the game. You can quite easily understand what you need to do,” Palm noted. “Also, I think the fact that you are in beautiful scenery in nature is a really good place to go to in VR. Not everybody wants to be in dungeons or catacombs. It’s rather tricky as a developer to make a good nature scene with the limited capacity of mobile VR. We have 50,000 polygons or so, and that’s about 200 times less than what you would have in a PC environment. It takes a bit of effort to create a scene with palm trees.”wonderglade

Unlike Bait!, Wonderglade includes a number of minigames. That decision may broaden the game’s appeal, but the choice wasn’t marketing-driven so much as practical. “It felt like a path that was a good way to go,” Palm said. “With Bait! we recruited the team at the same time we developed Bait!, and we saw that was very hard for developers coming into the platform. It was difficult for the team to develop one big game as their first experience. It’s much better to do a bunch of different minigames so the team gets to try out different things. Plus, it felt like a very appealing concept to experiment and bring different types of experiences together. We always aim to make games that are very easy for people to get into and enjoy in a social setting. We haven’t done multiplayer stuff yet, because the target audience is so small and technical requirements to make multiplayer would take a long time.”

The best monetization model is still something that’s not settled in the VR market, but Palm will continue to use the method employed in their earlier game. “It’s a free game. Like Bait!, you can play the game without ever having to pay,” Palm noted. “There are in-app purchases you can buy. We haven’t announced any content yet for Wonderglade yet, but it’s a format we like to work in. People really like to see that we continue to develop for a title that they like.”

Marketing for Resolution Games has been mostly in the realm of generating press coverage, and to that end being a launch title for Google’s Daydream VR should be a solid boost. “I think it’s a very exciting opportunity,” Palm agreed. “There’s a lot of buzz around the new platform, and many people who saw Google’s talk had the opportunity to see our game there. Hopefully, that creates some buzz—it’s a very cheap type of marketing. I think it can be very good to be there from the early days, but it also sets a lot of requirements for game design. It’s not so easy to have a fixed deadline. One of the things I think Swedish developers have been good at is to plan, and not overpromise. We’ve been trying to be very sober in the amount of content we can have in a very short period.”

Looking around at the state of the market, Palm sees PlayStation VR as a worthy addition to the field. “I tried it myself, and I felt that it’s a really comfortable headset. That was a really striking thing,” Palm said. “I think it’s going to be very good initiative. Right now we want to grow the audience as much as possible, so any big initiative like that is good to see. I think it’s going to be very helpful to get them into the ecosystem as well. More people are going to try VR and you have a very unified base. As a developer, it’s much easier to target something like that than on the PC market. I haven’t tried any content yet that would sell it to me as a consumer of games.”

We’re at an interesting point in the VR market where there are many hardware choices for consumers interested in VR. As a consequence, this makes things harder to predict for developers and marketers trying to figure out where to place their bets. Palm sees a more complex VR market in the year ahead. “I think we’re going to have a few different choices,” Palm said. “I hope we’ll have a cross-platform environment. I’ve always been a fan of cross-platform games, where it’s so much easier for consumers to choose their device. I hope we’re not going to see these siloed experiences that we’ve seen on consoles.”

Palm also said: “I’d much rather have it that we all help out growing the VR market to what it has the potential to be, which is the next big platform shift in computing. Especially with AR looming around the corner as well.” The future looks bright all around for VR and AR, from Resolution Games’ viewpoint.

Smile: Expedia Uses Facial Recognition For ‘Discover Your Aloha’ Campaign

Can a smile determine what kind of Hawaiian vacation you’d like best? Expedia’s “Discover Your Aloha” campaign uses facial recognition software to do just that. A strategic partnership with the Hawaii Tourism Authority (HTA) seeks to inspire vacation goers, particularly millennials, with this interactive frontline marketing by using their own emotional response to custom-tailor a vacation experience–at a discount, no less.

The “Discover Your Aloha” microsite features brightly-colored images and video footage largely captured by drones via the land, sea and sky. With the viewer’s permission, custom-built facial recognition software identifies which footage evokes the most positive reaction from the viewer. The algorithm identifies the personal preferences of each viewer and pairs them with their ‘Aloha’ represented by an animal guide of significance to Hawaiian culture: ‘Iwa (Bird) Hawaii’s all-knowing guide; He‘e (Octopus), Hawaii’s loving spirit; or Pua‘a (Pig), Hawaii’s bold adventurer. After all, a trip to Hawaii could be anything from lounging on the beach to hiking a live volcano, and would-be travelers may not know where to start. Personalizing each vacation offer recognizes that not all travelers are the same, and thus honoring the desires of each individual.

Envisioning your next vacation destination is going far beyond the brochure, thanks to the adoption of new technology by companies worldwide. Carnival Cruise Line employs virtual reality to bring the curious onboard and has even added video game elements to their ships to entertain younger guests. Hilton Hotels uses interactive, 360-degree videos to encourage exploration of various destinations. “Virtual reality technology is here to stay and we will continue leveraging this exciting capability to create new experiences for travelers from the moment they begin thinking about their trip to when they’re ready to book that dream vacation,” Stuart Foster, Hilton Worldwide’s vice president of global marketing, told [a]listdaily.

With its “Discover Your Aloha” campaign, Expedia wants to connect with its audience on an emotional level. “By integrating the facial recognition technology to identify the content and guide that resonates most positively with the viewer, the experience and perception of the Hawaiian Islands as a travel destination can be even more personal and inspiring for the viewer,” Noah Tratt, Global senior vice president of Expedia wrote. “It’s not just about being innovative, but it’s using innovation in a strategic way to achieve the right results.”

The campaign will run in the US, Canada, Japan, Australia and New Zealand on Expedia, Hotels.com, Orbitz, Travelocity and Wotif sites throughout the year.

Chipotle Continues Its Fresh Ingredients ‘Love Story’ With A Tie-In Game

In July, Chipotle Mexican Grill released the animated short film A Love Story. The production, which has been viewed more than 61 million times, is a cautionary tale about two young entrepreneurs whose rivalry results in competing fast food empires that sacrifice quality for quantity.

A Love Story is written and animated in a style reminiscent of a Pixar film, and tells an emotional story set to music, without dialogue. Now the restaurant’s message of staying true to fresh, unprocessed ingredients continues with a card match memory game beginning Wednesday.

chipotle-a-love-storyPlayers must match cards depicting fresh ingredients like onion, jalapeños and brown rice but suffer time penalties should they choose an artificial ingredient. Those who play the game in the US or Canada will receive a buy-one-get-one offer via SMS text message and must provide a cell phone number and email address to redeem.

“A commitment to real, unprocessed ingredients remains central to our mission,” Mark Crumpacker, chief marketing and development officer at Chipotle, said in a statement. “This new game furthers the important themes in A Love Story while reinforcing our commitment to sourcing the very best ingredients and preparing them using classic cooking techniques.”

Thus far, audience reaction to A Love Story (the film) has been positive. Market researcher Ace Metrix noted that the film was the highest scoring quick-service restaurant ad it ever tested—”an accomplishment made more impressive by the film’s three-minute length,” Chipotle said.

The company’s own research showed that 71 percent of consumers surveyed would be more likely to agree that Chipotle uses high-quality, whole ingredients, and 65 percent said the film made them more likely to trust the company.

According to the Brand Keys 2015 Customer Loyalty Engagement Index, Chipotle was number one for customer loyalty. Chipotle operates under the promise of “food with integrity,” meaning it’ll supply meats free of antibiotics and hormones when possible. Last January, the company stood by its mission to only provide the best ingredients by removing pork from its menu for about a third of its stores after discovering that one of its suppliers wasn’t living up to its animal welfare guidelines.

Chipotle, which has seen its profits drop by 82 percent, has been on a continuous saving face mission with a variety of marketing plans in wake of the E. coli outbreaks that rocked the company to its core over a six-month stretch beginning last year. For example, the restaurant chain is making a big push for millennials with a weekly Snapchat show called “School of Guac.” The comedy posts are shown at 3 pm on Tuesdays—a type of appointment viewing that may become a lot more common now that Snapchat is wooing Hollywood for content.

A Love Story is the latest animated campaign in collaboration with Passion Pictures—previous campaigns include Back to the Start, a tale about industrial farming, The Scarecrow, about processed food and Farmed and Dangerous—that explored how perceptions are created in the industrial food sector.

‘BoutThat’ App Makes A Game Out Of Live Debates

Internet debates are as old as the internet, itself, but what if you could take them live and vote on the winner? BoutThat is a new app by the California-based developer, 1-800-N0TH1NG that mixes live video with gamification elements to create an interactive debate platform. BoutThat aims to turn online arguments into a live video game and users can debate about whatever they want in front of a live audience.

“Millions of flame wars happen every day on the internet—on social networks, comments sections, and forums, and all of us have watched,” said Matt Mason, head of 1-800-N0TH1NG in a statement. “But the way we argue online has been broken since day one. It’s like bare-knuckle fighting. It’s unregulated, it happens in spaces where it doesn’t belong, and is not pretty. However, it’s hard to look away. We asked ourselves here at 1-800 if there was a better way for good people to disagree on the internet. The answer is BoutThat.”

BoutThat, launching Tuesday on iOS, lets players pick any topic and challenge other players to a face-to-face debate via livestream. Viewers of “bouts” can then vote for either player in real-time. The winner is the player who has the most votes at the end of the debate. “Because you can see the person you are arguing with, and you know an audience is watching you, our hope is people will be able to feel more empathy here for the person they are talking with, and not resort to the name calling and mudslinging that happens so many text-based, anonymized comments sections,” Mason added.

The new app launches on the heels of Bbl, 1-800-N0TH1NG’s mobile app that invites users to post trivia challenges, using the device camera to record themselves asking the question. At launch, BoutThat‘s will have three debates available at a time, in an effort to “concentrate viewership around a small number of debates.” As the audience grows, players will be able to unlock new rooms and create more debates, the company said.

Although debating is what the app was designed for, BoutThat has endless possibilities. “It might be rap battles, it might be staring contests, it might be improv comedy,” says Mason. “We’re looking forward to seeing what people do with this engine. There has never been anything quite like this in the market before, which incorporates two livestreams with real-time feedback from viewers. It’s pushing the boundaries of this technology to create something that we hope changes culture for the better.”

Here’s hoping for some creative branded content like say, a belching contest between Coke and Pepsi, which is apparently not out of the question. “We’re hoping BoutThat sparks great conversations between groups that might not normally hear from each other,” Mason told [a]listdaily. “That could be people at different ends of the spectrum on any subject, or it could be a brand and its target audience. As we think about the road map for BoutThat, brand integration is something we are spending a lot of time on. There are so may ways you could things here that just aren’t possible on other platforms. As long as it’s fun to watch and a great experience for our users, we’re open to it. “