The Future of Virtual Currencies | Summary and Q&A

TL;DR

Virtual economies in online games are not about making money directly, but rather creating situations where players feel invested and willing to spend money.

Key Insights

• 🤑 Creating a successful virtual economy requires designing psychological moments for players that encourage them to spend money.
• 😒 Advertisers are recognizing the potential of virtual economies to engage with consumers and use virtual currency as a reward system.
• 🌍 Virtual economies are not isolated but can be integrated with real-world purchases and interactions.
• 😀 Advertisers face the challenge of convincing players to interact with advertising in a way that is not intrusive.
• 🥺 The success of a few experiments in merging virtual economies with advertising will likely lead to a wave of similar attempts.
• 👶 Advertisers can tap into virtual economies by offering virtual currency rewards for actions such as purchasing products or spreading the word about new products.
• 🥹 Virtual economies hold value for players who invest hours building up virtual currency, making them a valuable asset for advertisers to leverage.

Transcript

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Questions & Answers

Q: How do virtual economies in online games work?

Virtual economies in games rely on microtransactions and creating situations where players feel invested in the game. Players are motivated to spend money for better gameplay or additional features.

Q: How do successful online games create psychological moments for players to spend money?

Successful games design moments where players are engaged and excited, and then offer opportunities to enhance the gameplay by spending money. This can be through buying in-game items or upgrading features.

Q: Why are advertisers interested in virtual economies?

Advertisers see the potential in virtual economies as players spend hours building up virtual currency. They want to engage with players by rewarding them with virtual currency for actions like purchasing products, spreading the word, or giving reviews.

Q: How can advertisers tap into virtual economies in the real world?

Advertisers can partner with physical stores or online platforms to offer virtual currency rewards tied to real-world purchases. By linking a store's unique barcode system or customer information to the player's game account, they can reward players for their purchases.

Summary & Key Takeaways

• Virtual economies are important in online games, especially those on social networks, as they rely on microtransactions and need players to feel invested.

• Successful online games create psychological moments where players are motivated to spend money for a better gaming experience.

• Advertisers are starting to realize the potential of virtual economies and are finding ways to tap into them to engage with consumers and promote their products.