Television Commercials


Acemace

 

Posted

I don't watch TV often. However, today whilst working out, I asked the attendant at the gym to change the channel on a TV over my exercise bike to Cartoon Network since I can't deal with any kind of reality programming and news is far too depressing. Both of them make me all table-flippy, and that's a bad thing to be at the gym.

(Said attendant offers to change the channel for me frequently since I'm usually there at non-peak times.)

During the commercial breaks, I saw not one but two commercials for F2P MMOs that I would categorize squarely as 'Crap 2D browser games'. One of these was published by a mousy company that very recently distributed as certain movie about super heroes. It can be safely assumed that they have an enormous marketing budget.

The other, and actually better looking game, IMO, was not by a big name studio. Today was the first I'd heard of them.

I have NEVER seen a CoH commercial in any time slot.

Paragon has produced some GREAT videos, but these never make it past Youtube, let alone afternoon cartoons on CN. Paragon's CUSTOMERS have created great videos.

Black Pebble or other marketing folks, will there ever be any CoH commercials on TV to draw new blood into our world? You guys already have all the talent, know-how, and production values to make one, and it seems like basic cable advertising slots would not be prohibitively expensive.

If not... why?


 

Posted

On tv? Don't bank on it happening ever.

Far to expensive for the return.

Those smaller F2P games, ala Wizards world and the like, can afford to for a few reasons.

Mainly the fact that they have FAR less capital invested in the actual product itself.
Far fewer developers working on the title, means more money not being spent on payroll and game resources.

With the vast majority of our games budget being allocated to true development, there just isn't enough left over for advertising on that scale. We've had numerous ad campaigns in print over the years, and the ever ubiquitous MMO website reviews.

Suffice it to say, there is a reason why the only 'real' MMO you'll see ads for on TV is WoW, as it's the only one with a budget large enough to justify it for the admitedly meager returns they'd generate. All other 'real' MMO's have to devote so much budget to the game itself well.. you get the picture.

This is why, anytime I see an ad for an MMO, I stop paying attention.


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Posted

CoH did run a few commercials back in late 2004/Early 2005... that is how I came to even know about the game

I saw the commercial...ran to WalMart..grabbed a box of CoH and have been here ever since. Sadly WalMart (at least mine) does not even carry CoH anymore.


Quote:
Originally Posted by Paladiamors View Post
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Posted

I know what you mean, here in the UK I've started seeing adverts for Runescape, all with fancy high resolution cartoon CGI to make it out it was some kind of light-hearted action-fantasy. But I've played that game years ago and remember the graphics of the browser game were all but pointy polygons.

After taking a quick look on their website now, it's nice to see they've advanced the graphics, I suppose my memory of the game when I used to play it threw me off a tangent.

Would I like to see a CoH TV advertisement? Maybe, but I think to make it a real eye-catcher it's going to need a bunch of work done to it to interest the glancing audience. I love the game myself but that may be my investment and sentimentality talking here.



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Posted

Quote:
Originally Posted by AmazingMOO View Post
I don't watch TV often. However, today whilst working out, I asked the attendant at the gym to change the channel on a TV over my exercise bike to Cartoon Network since I can't deal with any kind of reality programming and news is far too depressing. Both of them make me all table-flippy, and that's a bad thing to be at the gym.

(Said attendant offers to change the channel for me frequently since I'm usually there at non-peak times.)

During the commercial breaks, I saw not one but two commercials for F2P MMOs that I would categorize squarely as 'Crap 2D browser games'. One of these was published by a mousy company that very recently distributed as certain movie about super heroes. It can be safely assumed that they have an enormous marketing budget.

The other, and actually better looking game, IMO, was not by a big name studio. Today was the first I'd heard of them.

I have NEVER seen a CoH commercial in any time slot.

Paragon has produced some GREAT videos, but these never make it past Youtube, let alone afternoon cartoons on CN. Paragon's CUSTOMERS have created great videos.

Black Pebble or other marketing folks, will there ever be any CoH commercials on TV to draw new blood into our world? You guys already have all the talent, know-how, and production values to make one, and it seems like basic cable advertising slots would not be prohibitively expensive.

If not... why?
First, you have to look at what market you're reaching with those ads.

Those crapware 2d F2P games will run on the crap systems that most non/casual gamers use. I'm not talking "casual" as "I only log in 3-5 hours a week." I'm talking "casual" as. "Minimum system requirements? I have a PC. This is a PC game. I should be able to play it." It doesn't matter to these guys. Odds are that anyone that sees that commercial has a machine/tablet/device that could pull up the url and play the crap browser game.

The same can't be said of CoH for a good portion of its existence. It had requirements that were higher than the average PC out there. A "casual" player sees the ad, tries it out, and ******* out customer support over things they don't understand hoping for a refund. That's lost revenue (wages to the support staff, refunds, if you give them, credit card processing fees, bandwidth, etc). Hopefully, you attract enough good customers (paying, happy, non-support-intensive) to offset them. If not, you end up losing money by placing an ad that's too broad... or you find that a different kind of ad- more specialized-- targeting the areas that are frequented by fewer of those casual types-- might be a better source of your revenue.

Next, you have to look at the costs of hosting F2P

The big expense for most MMO's is hosting & bandwidth. You control these by making a product that doesn't require much traffic, memory, or CPU time to deliver the experience.

In traditional 3d mmo's, there are lots of techniques you can use to do this-- throttle back the number of updates per second, reduce the amount of data needed to describe a character to display (less customization-- saying "use asset a dressed in asset b is shorter than "hand asset a color 2, shoulder asset b color 9, etc), reduce the frequency of updates needed every second to make everything flow smoothly (get advanced "path prediction" to let you go longer without sending a positioning update, for example), reduce the number of assets that need to be tracked and communicated, reduce the computation cycles for combat AI, etc.

For all these techniques used by 3d mmos, they're still bandwidth hogs in comparison to the browser-based creations. We're talking orders of magnitude differences here. 2D browser based system need very little data transfer with very long waits between updates.

They're VERY cheap to host, per person.

... And that's critical.

Many of the people you attract with a broadly-targeted tv ad will NEVER pay a cent on your game. There are certain market segments that will just play what's free and never convert to paying customers. Since A 2d game doesn't see much of a per-person cost, t can afford to soak up several thousand freebie players to gain one paying customer. A 3d MMO (particularly one of CoH's generation) has substantially more costs-per-player, so it needs a better proportion between free and paying customers.

Gaining too many free players that have no potential to convert to paying customers means you're paying for ads that'll just make you lose money faster.

You need to again target your customers more intelligently. Hit the places where people that already play MMO's and historically have proven more likely to pay/subscribe frequent. This often isn't on television.

There are a lot of other factors that weigh against direct TV advertising, but I've written enough for now.


 

Posted

Quote:
Originally Posted by AmazingMOO View Post
Black Pebble or other marketing folks, will there ever be any CoH commercials on TV to draw new blood into our world? You guys already have all the talent, know-how, and production values to make one, and it seems like basic cable advertising slots would not be prohibitively expensive.

If not... why?
While I am not now, nor have I ever been Black Pebble, I also have some insights to apply here. The first is I believe you are looking at this from the wrong perspective. Rather than ask "We know this can be done, so why isn't it being done?" for example, it is more productive to ask "What would the return (new players that buy something) be on this investment?"

There is after all, only so much in the advertising budget. And presumably that ad budget is based on a % of total revenue. Thus for the ad budget to grow in future, the existing ad budget MUST be used as effectively as possible. Once you understand this context, TV advertising can be seen as the poor investment it is as it would have to take away from current advertising projects with better returns on the dollar.

TLR version.
The cost of TV ads would likely hurt much more than help.

Now I'm not meaning to discourage creative advertising suggestions. And if you think you have a cost-effective idea then PM it to Zwill and he will get it to the people that need to see it. (I did this with Lighthouse and we got those jetpack cards at Target as a result, so they listen.)


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Posted

Quote:
Originally Posted by Chase_Arcanum View Post


The big expense for most MMO's is hosting & bandwidth. You control these by making a product that doesn't require much traffic, memory, or CPU time to deliver the experience.

This actually isn't true. Bandwidth costs for modern MMOs make up only 3% to 4% of their actual expenditures. If you take a look at NCsoft's expenditures for their 2011 4th quarter:

http://global.ncsoft.com/global/ir/p...8-4CF93D33B397

particularly the 8th page, it lists the 4th quarter expenditures on bandwidth to be 4618 KRW in MN (I have no idea what that unit stands form). The total expenditures for that quarter are 122,317 KRW in MN, meaning that bandwidth made up only 3.8% rounded of the expenses for that quarter.



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Posted

Quote:
Originally Posted by Blood Red Arachnid View Post
This actually isn't true. Bandwidth costs for modern MMOs make up only 3% to 4% of their actual expenditures. If you take a look at NCsoft's expenditures for their 2011 4th quarter:

http://global.ncsoft.com/global/ir/p...8-4CF93D33B397

particularly the 8th page, it lists the 4th quarter expenditures on bandwidth to be 4618 KRW in MN (I have no idea what that unit stands form). The total expenditures for that quarter are 122,317 KRW in MN, meaning that bandwidth made up only 3.8% rounded of the expenses for that quarter.
I believe that KRW stands for South Korean Won, which is the main unit of currency in S. Korea since NCsoft is a Korean company.


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Posted

Quote:
Originally Posted by Blood Red Arachnid View Post
This actually isn't true. Bandwidth costs for modern MMOs make up only 3% to 4% of their actual expenditures. If you take a look at NCsoft's expenditures for their 2011 4th quarter:

http://global.ncsoft.com/global/ir/p...8-4CF93D33B397

particularly the 8th page, it lists the 4th quarter expenditures on bandwidth to be 4618 KRW in MN (I have no idea what that unit stands form). The total expenditures for that quarter are 122,317 KRW in MN, meaning that bandwidth made up only 3.8% rounded of the expenses for that quarter.
That actually IS a decent amount, relatively speaking. $3.9 million us dollars isn't anything to sneeze at. A 2d browser based multiplayer game might have 1% of that bandwith cost.

Look at it another way:

their total bandwidth costs was 6.9% of their total labor cost, which I assume would include the labor costs of all wholly-owned studios. IIRC, two of those are in late-stage development, and part of Paragon Studios has another project too, so a LOT of that staff represent projects using very little bandwidth.

That means that if you could actually extrapolate the costs of bandwith with the cost of labor for those already-launched titles, you'd see that its a painfully sizable chunk of their budget... one that can directly correlate to staffing availability.

(admittedly, there is a a personal bias here: Where I work (not a game company) our coders finally started to minify all code before release, reducing a batch of files from 500kb to 42kb. This savings in bandwidth costs alone let us budget in another graphic designer for the year. )


 

Posted

The bottom line is that this game has long since passed the point where additional advertising isn't realistically going to bring in new customers and additional revenue.

Going Rogue was probably the last big attempt to generate new revenue for this game, and now we've shifted to a hybrid model instead where whilst new revenue is going to be generated, it's unlikely at this stage the game was going to grow in terms of numbers. Wisely, the decision's been made to move to maximising the retention of the playerbase we do have.

I will say I'm not in favor of everything being done in that regard, but by the same token, it's the smartest thing to do for whatever lifespan the game does have in it.


S.


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Posted

Quote:
Originally Posted by SuperOz View Post
Going Rogue was probably the last big attempt to generate new revenue for this game, and now we've shifted to a hybrid model instead where whilst new revenue is going to be generated, it's unlikely at this stage the game was going to grow in terms of numbers.
It wasn't quite the case during (and a little before) Freedom's launch. Numbers not just in revenue but also subscribers and of course concurrency has all shown an increase.

Revenue went from approximately 2.5mil USD to around 3mil. They also said subscribers showed an increase (though they made sure there's no hint of the magnitude of that increase) in the graph in slide 8 of NCSoft's GDC presentation on the subject at least till early in 4Q 2011.

EDIT: No actual subscriber number given on the graph so just have to see the visual in that link.

Though i know what you mean about maintaining that growth down the line.



* Side note: There were a few 50% off sale on GR's box and digital form around that time but those promos ended before june (3Q) and a little before that graph started increasing.

EDIT: Oops, forgot to mention the $10 GR 1 day sale on 7/15/11 and the $1.99 CoX for new accounts only promo on 8/17/11.


 

Posted

Quote:
Originally Posted by Desi_Nova View Post
I believe that KRW stands for South Korean Won, which is the main unit of currency in S. Korea since NCsoft is a Korean company.
Correct.



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Posted

Quote:
Originally Posted by Hyperstrike View Post
Correct.
yes, and the "in MN" just means its measured in millions.


 

Posted

Quote:
Originally Posted by SuperOz View Post
The bottom line is that this game has long since passed the point where additional advertising isn't realistically going to bring in new customers and additional revenue.
Sure it has. Frankly, I think the whole concept of that "point" is a myth. This sounds like it might be a profound truth, but really it's just words about nothing.


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Posted

Side rant: I hate my computer's auto-correct. I'm not sure how to turn it off, but I am tired of words like "for" becoming "form". If I misspell or mistype a word, just give me the squiggly lines underneath so I can go back to correct my mistake instead of replacing the misspelled word with the incorrect one. Now, to deal with the topic at hand:




Quote:
Originally Posted by Chase_Arcanum View Post
That actually IS a decent amount, relatively speaking. $3.9 million us dollars isn't anything to sneeze at. A 2d browser based multiplayer game might have 1% of that bandwith cost.

Look at it another way:

their total bandwidth costs was 6.9% of their total labor cost, which I assume would include the labor costs of all wholly-owned studios. IIRC, two of those are in late-stage development, and part of Paragon Studios has another project too, so a LOT of that staff represent projects using very little bandwidth.

That means that if you could actually extrapolate the costs of bandwith with the cost of labor for those already-launched titles, you'd see that its a painfully sizable chunk of their budget... one that can directly correlate to staffing availability.

(admittedly, there is a a personal bias here: Where I work (not a game company) our coders finally started to minify all code before release, reducing a batch of files from 500kb to 42kb. This savings in bandwidth costs alone let us budget in another graphic designer for the year. )
Nevertheless it is a percentage of the total expenditures for bandwidth for... every single server for every game they manage for the entire network of high graphics and fast streaming action, along with all websites and downloads and services. I am not sure where 6.9% comes from, since it is 3.8% of their total expenditures. Of course, the labor costs for the game developers don't drastically rise and fall with whatever is going to be released soon. Developers aren't hired on the basis that they will have to find a project to work on or be fired, and likewise developers aren't fired immediately after the game is released. To say that the costs of the bandwidth for the game would extrapolate to be a huge fraction of the game once development stops ignores the fact that development never stops. The games are being improved upon, given weekly maintenance, and new game content is being made, and new games are being made, and new projects are being underwent. There is no point where the company goes to it's programmers and writers and says "O.K. you're done. You can go home now".

I have seen the financial reports of NCsoft spanning over two years into the past, and the same story can be said of the financial expenditures for that entire time. If you can find an example in NCsoft's history where they weren't working on any project and thus their bandwidth expenditures made up a large portion of their costs, let me know. I would say that NCsoft isn't too worried about the costs of bandwidth, since their newest launch title isn't going to have a subscription fee (Guild Wars 2).

There is a proportional growth with bandwidth costs. Smaller companies will make cheaper games that will take less bandwidth, so they'll be a small expense. Bigger companies will make bigger games that take more bandwidth, so they'll be a small expense. In the past when MMOs were new, bandwidth costs might have been quite large, but with how much data is maximized nowadays the actual cost of hosting an MMO is no longer a large portion of the costs of an MMO.



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Posted

The easy answer is that marketing feels that television advertisements draw in a disproportionately small amount of revenue and reaches a disproportionately small number of players versus other forms of advertising, such as going to conventions and working up cross-promotional deals with other companies, such as Dell, Apple, Antec, etc.

Keep in mind that the marketing budget is finite. If they were to advertise on television, that would necessarily mean that other avenues of advertising would be shut off. Would we rather have a television ad than, say, the Player Summit? Would we rather have a television ad than, say, a booth at Comic-Con? Those are the kinds of decisions that marketing has to make. Maybe you disagree with them, but if you really think about it, it makes sense. Personally, I see where they're coming from--it's likely that they do get more players and sustain their existing player base better through the activities they sponsor than buying a relatively expensive television ad.


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Posted

Quote:
Originally Posted by Blood Red Arachnid View Post
In the past when MMOs were new, bandwidth costs might have been quite large, but with how much data is maximized nowadays the actual cost of hosting an MMO is no longer a large portion of the costs of an MMO.
1) You and I just have huge differences in opinion on what "large portion" is. When you look at this cost on just the few games that NCSoft has active compared to the amount it has working on other projects, it IS huge.

2) As you suggested, newer games manage data better, but CoH isn't a new game. Its 8 years old, and its always very challenging to change the underlying systems without damaging something. They go unchanged unless absolutely essential.

3) The context of that post was demonstrating that there are costs associated with customers (support & bandwidth being the two hilighted), some kinds of customers are more expensive than others, and some kinds of platforms are better at managing these than others. Those that aren't built to minimize these risks need to target their marketing differently to mitigate them.

The are you disputed was the statement that bandwidth plays a role.

In essence, a game with a lighter bandwidth (and related) load can afford a rather scattershot advertising campaign, because if his costs for all the 'free' players that won't buy ANYTHING is low. A game with higher costs needs to try for more targeted advertising, going after the market segment with a greater likelihood of paying out.

I stuck with bandwidth because it IS directly scalable with the users (and user activity) so it can be more directly applied to the costs of attracting new players. (and... well, half my post was eaten by hitting the 'back' button.)

You mention labor costs, and yes, they're huge. They also differ dramatically between the game types. A 2D browser based game can simply produce more, faster, with fewer people, so it'll have this at much lower costs as well. This cost doesn't scale well, though, and there's not a direct-consumption-cost to it, so it didn't contribute to the section on "targeted advertising."

It IS a huge portion of the cost, agreed, but since it isn't directly scalable to the playerbase-- more free players doesn't suddenly mean more payroll expenses, so it didn't contribute to the conversation.

Note, though, that you are kinda wrong in "There is no point where the company goes to it's programmers and writers and says "O.K. you're done. You can go home now"." There very much is, as many that work in the industry will tell you. The months leading up to a launch will often see a surge in payroll expenditures as the production team scales into the hundreds, while maintaining a title may take a few dozen. Historically, even a 2-team system (1 working on expansions, 1 working on maintenance) has been dwarfed by a full-production team. NCNC's "reinvestment" in CoH after it was acquired is more the happy exception, rather than the norm.


 

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Quote:
Originally Posted by Acemace View Post
The game could use a CGI web-mercial for each issue release to build enthusiasm, but that costs money and with a product this old with it's quarterly numbers that's not likely.
I'll have to find the article, but it listed the $$ paid to the company that did the CGI videos that preceded the um... recently-released-laser-sword-y-mmo-with-hairy-humanoids-that-rhyme-with-nookie. According to that source, the total expenditure for those videos was around the ballpark of the total reported initial development costs for CoH.

And that wasn't even paying for airtime...


 

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Quote:
Originally Posted by I Burnt The Toast View Post
Here is a link to the commercial that I saw on tv:

http://www.youtube.com/watch?v=mxMlw12Okm0

That was kind of a horrible advertisement. It didn't tell you anything beyond 'there's a city...with heroes in it...'

It didn't tell you it was a MMO that let you create your own hero with an extensive costume creator. It didn't hype up playing on a super team with friends and thousands of others online. Heck, it wasn't even clear the ad was even for a game until the very end.


.


 

Posted

Everyone knows how a real commercial would go. Live action would see a normal city scene with people going about their business until an explosion is heard off in the distance. Then we see a rush of police and ambulances headed off in the direction of the commotion. Then we see everyone on the street look up at once to see a flying figure darting across the skyline, suddenly you see a mother hand her baby to her husband and then burst into flames and shoot into the sky, a business man look at his watch and then turn into a giant stone golem and run off with the ground shaking under foot. We see a street vendor mumble an incantation, turn into a wizard and vanish into thin air. The camera turns to show heroes appear from all walks of life, all headed to the commotion and then we see the CITY OF HEROES banner.


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Quote:
Originally Posted by Anti_Proton View Post
Everyone knows how a real commercial would go. Live action would see a normal city scene with people going about their business until an explosion is heard off in the distance. Then we see a rush of police and ambulances headed off in the direction of the commotion. Then we see everyone on the street look up at once to see a flying figure darting across the skyline, suddenly you see a mother hand her baby to her husband and then burst into flames and shoot into the sky, a business man look at his watch and then turn into a giant stone golem and run off with the ground shaking under foot. We see a street vendor mumble an incantation, turn into a wizard and vanish into thin air. The camera turns to show heroes appear from all walks of life, all headed to the commotion and then we see the CITY OF HEROES banner.
Damn you, now I want to figure out how to film that in-game.

*****

Actually, I remember a couple years ago, I saw THIS ad and right until the reveal thought, "OMG, did CITY OF HEROES actually get a SUPER BOWL ad?!"

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Posted

As cool as a TV spot would be, at this point in the life of the game I think it would be more for us, the players, than garnering a bump of new and returning players. It would be something we can point to and proudly tell your uninterested friends that's the game I play.


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