Tyson Greer- Ambient Insight

Ambient Insight 2013

Mobile Edugame Market Innovations

Key Findings from Recent Ambient Insight Research

Tyson Greer, Chief Executive Officer

Ambient Insight LLC

Serious Play Conference 2013August 22, 2013


Partial List of Ambient Insight’s Clients

Adobe

Amazon

Amplify

Apple

BlackBerry

Blackboard

British Council

Chungdahm Learning

Dell

Deutsche Telekom

Disney

Hasbro

Houghton Mifflin Harcourt

IBM

John Wiley & Sons

McGraw-Hill

Macmillan

Microsoft

Oxford University Press

Pearson

Qualcomm

Rosetta Stone

Ambient Insight is an integrity-based market research firm that uses predictive analytics to identify revenue opportunities for suppliers.


Agenda

Introductions & Ambient Insight’s Research Taxonomy

Key Findings from Ambient Insight Research

Innovations in Packaged and Custom Content Products & Services

Everybody’s Got Game

Innovative Revenue & Distribution Models


Ambient Insight’s Learning Technology Research Taxonomy

Have Eight Buyer Segments

From Six Types of Suppliers

That Buy Eight Types of Digital Learning Products

Packaged Content

Consumer PreK-12Corporations - Businesses

Higher Education

Federal Government

State - Local Government

Associations & Non-Profits Healthcare

Custom Content

Cloud-basedTools & Platforms

Value AddedServices (VAS)

Installed Tools & Technology

Learning Devices

Digital Video, Text, & Audio

Reference

Self-paced eLearning

Courseware

Collaboration-based

Learning

Simulation-based

Learning

Cognitive Learning

Mobile Learning

Social Learning

Game-based Learning

These six supplier types map directly to the six subcategories of learning technology products

Seven International RegionsNorth

AmericaLatin

AmericaEastern Europe

Western Europe

Asia Africa The Middle East

Pilot Fish Media Inc


Six Types of Mobile Edugame Learning Products

Knowledge-based games

Skills-based games

Brain trainers and cognitive fitness games

Language learning games

Location-based learning games (emerged in 2009)

Mobile augmented reality games (emerged in 2010)

Ambient Insight forecasts revenues for six types of Mobile Edugames:

Ambient Insight’s 2013 Learning Technology Research Taxonomy

Kid Genius All in 1

http://www.ambientinsight.com/Resources/Documents/AmbientInsight_Learning_Technology_Taxonomy.pdf





Key Findings from Ambient Insight

Research


Key Findings from Ambient Insight Research - The Market

The growth rate for the global Game-based Learning market is 8.3%

In North America: growth rate for all Game-based Learning is 10.1% but for mobile edugames is 15.3% - and from 2012 to 2017 mobile edugames revenues will more than double

Mobile edugame investors were bullish in 2011, showed a spike of interest in 2012, but have held back in first half of 2013

Brands partner with edugame suppliers to increase interaction with the brand via gaining attention on the small screen

Telecoms, device-makers, & NGOs provide Mobile Learning value added services (VAS), except rarely in North America, so far

New suppliers continue to flood the market, and product visibility becomes more difficult. Accelerators continue to proliferate

Although augmented reality (AR) browsers are not yet standard on new mobile devices, AR edugames growth rate is high

Cross-platform products (web & app on device) are increasing.


Key Findings from Ambient Insight Research - The Buyers

Consumers are the top buyers worldwide of edugame packaged content

Top “selling” (or downloaded) apps are for young children; edugames that offer parental involvement are on the rise

There is a plethora of personal learning devices (PLDs)

Cultural institutions continue to invest heavily in edugames, with a mix of in-house and custom content services

Emergence of easy-to-use mobile game-building tools supports cultural shift towards using game-creation as an educational experience

Suppliers capitalize on consumers’ interests: early childhood education, tourism, health, fitness and wellness, cognitive fitness, nature, and sustainability

Consumer expectations for Mo-So are now a given; Mo-Lo-So continues to grow


Innovations in Packaged and Custom Content

“I’ve found that my students are most engaged when they are fighting monsters.”


Knowledge & Skills: Math and Literacy Games Dominate PreK-2 on Smartphones, Tablets, & Game

Consoles

22Learn Abby Sight WordsWeWantToKnow

PopCap Book Worm

Go Go Kiddo

KidsZone Studios GuruCool PlaySchool

12 Fingers Studio


“The 2012 Content Trench” – Percent of Total Paid Mobile Learning Apps by Target Demographic

0%

5%

10%

15%

20%

25%

30%

35%

40%

31%

9%

3%

6%5%

8%

12%

26%

What’s on the Store Shelves?Consumer-facing Paid Mobile Learning Content

Across All Major Application Stores, Platforms, and Devices

The vast majority of PreK-2 Mobile

Learning content is game-based


Knowledge & Skills: Edugames Engage Middle School and High School Students in Class and Anywhere

Filament Games GoCivics Mobile Congress

Benesse America StraightAce

Hakitzu: Code of the Warriors teaches kids to code with JavaScript by customizing their robots via an adaptive learning “Smart Tutor” platform


Knowledge & Skills: Health & Wellness for Consumers CME Edugames for Healthcare Students &

ProfessionalsFor healthcare professionals and nursing, dental, and medical students, suppliers create custom reference content, exam prep, skill development content, and packaged content

For consumers, health & wellness

topics cover alcohol consumption, allergies,

anatomy, asthma, brain fitness,

cardiovascular health, cognition, dental

health, diabetes, emergency response,

environmental risk, exercise and fitness,

eye health, food and nutrition, pet care,

obesity and weight loss, pain, smoking

cessation, substance abuse, and safetyACLS Wiz flash cards

Mango Health


Language Learning: Edugames Teach Languages on Smartphones, Tablets, and Game Consoles

KunCha Globetrotter (Happy Neuron)

Play & Learn Chinese (Selectsoft)

Babbel entered US market by acquiring PlaySay March 2013

“Education is going Mobile.” Babbel CEO Markus Witte


Language Learning: Two Global Market Trends Converge and Boost Edugame Sales

• Learning Edge (US): For $7.95/month, TDS subscribers receive access to content from iknowthat, BTP (Boston Test Prep), Nick Jr, Hoopa, Encyclopedia Britannica.

• Spelling Mobile (Brazil): Based on a TV game, for $2.99/week users practiced then competed for £ 3000 to £ 15,000 in prizes from Global Brands and Vivo. One month: 230,000 users.

• Fun Park (China): The Smartfun Digital joint venture between Chungwa Telecom (75%) and United Daily News Group (35%) offers edugame content

Telecoms, nonprofits, and third party suppliers are delivering Value Added

Services (VAS) directly to consumers.

Market is expanding rapidly for digital Language Learning products,

particularly English fluency and literacy.


Language Learning: Converging Product Types Boost Engagement (and Sales)

Sesame Workshop added augmented reality using Qualcomm’s Vuforia platform to power Big Bird’s Words text recognition game.

Mindsnacks gained $6.5 million from

Sequoia to create

personalized learning

experiences for kids

(DreamIt Ventures accelerator grad)

Top selling apps across the planet are: Edugames for young children & language learning apps. Add in AR!

Elmo’s AR Alphabet Challenge


Language Learning: Using Music and Rhythm

Learn to read Japanese characters by learning patterns in time to a

chip-tunes soundtrack with Hiragana Pixel Party

Microsoft Research’s Tip Tap teaches tonal subtlety and proves viability of mobile micro-training of Mandarin


Location & AR: Museums Create Digital Media Departments and Also Buy Content Services

Visitors to these 29 Canadian museums play

an interactive quest mobile game

Asian Civilizations Museum, Singapore, claims to be the 1st to combine AR, location-based game, and interactive features in this iPad app about the Terracotta Warriors: First Emperor and His Legacy exhibit.


Location & AR: Museums Create Digital Media Departments and Also Buy Content Services

Asian Civilizations Museum in Singapore claims to be 1st to combine AR, location-based game, and interactive features in this iPad app for the Terracotta Warriors exhibit


Brain Trainers and Cognitive Fitness Apps: Typically Target Older Adults, But Not Always

Devilish Brain Training, the latest version of Brain Age, addresses digital distraction with a game to

improve concentration on Nintendo 3DS

• Vivity Labs’ adaptive FitBrain app launched in iOS store December 2012 – 1 million copies in first 60 days (free or subscription)

• Sparky’s Adventures, by Vivity Labs, released 2013. Subscription per child 3, 6, or 12 mos, or lifetime

Sparky’s Adventures


Everybody’s Got Game

User-generated content and the “Creator Economy”


Tools: Trend Towards the Creator EconomyUser Generated Content and User Generated Games

• ARTLAB+ Game Design – at a four-day camp at the Hirshhorn Museum in Washington, DC, teens made location-based mobile games and learned art interpretation and game design

• Global Kids - a New York City in-school and after-school program, where kids learn game design skills and global issues; and built location-based history edugame with New York City Library

“When students become producers, they engage in active, critical and committed learning, experience visual and textual literacy and

understand semiotics”James Paul Gee, 2006


Tools: Easy-to-use Tools Are Available for Students to Create Their Own Games, and Learn from Doing It

Gaming the classroom: Scratch - free game-building tool from MIT enables students to create

and share games. ARLearn Toolkit – Cloud-based suite for learners and educators that

combines field trips, RPG, and classroom response systems Games MOOC III: MOOC teaches educators about resources needed

to create a game or game project using apps, AR, and ARGs

Putting yourself into the picture: Disney Infinity Toolbox

create video with Disney characters

Digital Infinity Action! – engages players in creating a virtual world and adding real-life people to the videos they create

Players customize Appa Apps’ photo-based language and numeracy learning edugames with their own photos, video, and voice; then share


Changing the “Learning-game-as-babysitter” Model, Before It Backfires

• AppyZoo (Stickery) apps collect usage data to create progress reports for parents. October 2011, Google Ventures and 500 Startups awarded the company $350K in seed funding

• KidZone Studios’s GuruCool PlaySchool provides a centralized view of a child’s progress and suggests “strategies and activities” to parents

• PBS brand released free PBS Play & Learn math & literacy skills edugame “specifically for parents,” to play with toddlers and reported 162,000 downloads in the first month

Fingerprint Digital’s in-app Mom-Comm system, provides a built-in sharing platform and daily news feeds for parents. Raised $7.7 million in September 2012 from Corus Entertainment


Explosion of Medical Sensors Creates Opportunities for Knowledge & Skills Game-based Mobile Learning

Irish startup Galvanic created the Relax & Race app that use a Bluetooth-enabled galvanic skin response sensor as a game controller to teach stress reduction.

Humana Innovation Center collaborated with Tellart to build web-connected interactive objects and environments such as Dancetown, Humana Fishtank, and Yoga Game Ball, which transforms a yoga ball into a game controller “that takes the classic fun of arcade games and gives it a twist.”

http://mobihealthnews.com/wp-content/uploads/2013/07/RelaxRace.jpg


Personal Learning Devices Proliferate Across the Globe

Telecoms partner with 3rd party content providers and NGOs to deliver learning directly to consumers and to institutions with Mobile Learning Value Added Services (VAS). SK Telecom has gone further with an educational robot, Atti

Atti demo at GSMA Connected Living Summit 2013, Shanghai

OLPC XO3 Tablet

FuHu’s Nabi


Innovative Revenue and Distribution Models

New Opportunities

New Challenges


Incubators and Accelerators are Proliferating Providing Financial Support and Connections to Experts & Capital

May 2013, Zynga.org commits $1 million for “Edtech Game Accelerator” to focus on learning games in partnership with NewSchools Venture Fund.

Motion Math is one of three startups in Zynga.org’s 2013 cohort.

Kaplan EdTech Incubator, powered by TechStars, offers $20K investment, June – September co-location in New York City, market insights, mentorships, access to Kaplan’s Learning Science group…

Rock Health opens in 2013 and claims to be “The first seed accelerator for digital health startups”

Motion Math


Innovative Revenue and Distribution Options

Revenue Models:

In-app purchases - virtual goods

Sponsorships nonprofits & commercial

Partner with telecoms and device-makers

Ads

Subscription services

Micropayments - virtual items

Free, lite, and premium

Real-world goods

Distribution Channels:

Amazon Appstore added in-app purchasing (2012) and HTML5 apps (2013)

Digitization trend

Submit products to commercial digital libraries adding mobile content, e.g. OverDrive

Partner with home school suppliers, device makers, publishers, and telecoms

Proliferation of specialty app stores

Personal Learning Devices

The price of mobile apps is dropping. The revenues are rising.


Playsourcing and Business Models

Duolingo: “no fees, no ads, no gimmicks” – supplies players “free” translations to paying clients

XEOPlay: uses “playsourcing” in a virtual world game to plant trees in the real world via NGO WeForest.org


End of the Day Thoughts: Where Is Mobile Edugaming Going?

S.M.T.H. a “sport” game for measuring

distance


Q & A

Ambient Insight’s Free Resource Library at:

http://www.ambientinsight.com/News/PublishedContent.aspx

This presentation, the “Mobile Edugame Market Innovations 2013,” past presentations, and our Learning Technology Research Taxonomy can be downloaded from

http://www.ambientinsight.com/News/PublishedContent.aspx