LESTER CHEN: So my name is Lester.
I'll be talking about the hyper growth of mobile gaming
on YouTube.
So when people have conversations
around mobile gaming, they often talk about the amount of users,
the amount of revenue generated.
But rarely do to talk about the amount of content
that's actually consumed on video.
So on YouTube, mobile gaming content
comprises around 1.6 billion hours
watched in last year, 2016.
Now it's from some of these games mentioned here,
but many others, some of which you guys developed.
Now this is huge mainly because in 2015 mobile gaming really
wasn't a category that we were paying attention to.
With the advent of hardware, better software, better
graphics engines, it's become more available
for people to actually want to go on YouTube
and watch more robust content from these games.
So in comparison to all the rest of the gaming
corpus on YouTube--
that's Call of Duty, League of Legends, any MOBAs, Minecraft--
mobile gaming as a category-- these games--
actually grew at a clip of around 110%,
which is what we consider hyper growth.
In July, we saw a huge spike in hours consumed with Pokemon Go,
obviously, being released.
But even after the months following Pokemon Go,
we saw huge uplift in mobile game consumption.
This is mainly aided by games such as Clash Royale, Pokemon
Go, and two indie titles-- slither.io and Agar.io.
We think that as far as Clash Royale goes,
Supercell has done a great job releasing content
as far as cart updates, balance and patch notes, which
makes the game really sticky for audiences
and the broadcasters of this game company
to really produce more and more content for their audience.
With the case of Pokemon Go, the game
was just so explosive with so many millions
of registered users.
Obviously, it is going to create a desire from audiences
to want to watch, whether that's where the next Poke Stop is
or someone falling into a lake, tripping over something,
or whatever have you.
And with slither.io and agar.io, these
are both very simplistic games with high replayability.
You can just pick it up and play.
I think if any of you guys have seen "House of Cards,"
even Kevin Spacey in that game was playing it.
So the concept there was kind of a vehicle through which
creators on YouTube could create their commentary
and do game play over.
So you can't talk about all the games
without also talking about the creators.
Last year, these are just a handful
of the creators who are publishing mobile gaming
content exclusively on their channels.
There's over 350 more of these guys
just like the ones you see here.
But combined, the audience that they have
is around 20 million total subscribers.
So the question really is--
now setting the stage of how big mobile gaming is--
how do you really use all these content
to influence game decisions?
And vice versa, how can game decisions
really help spur content creation on a video platform?
So in the case of YouTube, this is our first Foray.
We created an event called the King's Cup, which we partnered
with Supercell and Google Play to create
a really unique tournament.
We used the top 8 live streamers and content creators
of Clash Royale and got them to a one day Los Angeles-based
tournament location where we're going to live stream
the whole tournament.
Now, that's simple.
It's just creating a live event.
It's a very competitive game, of course.
That's going to be pretty attractive.
But we also parroted with an in-game feature--
and this is the first time Supercell
had released an in-game heavily discounted bundle of discounted
chests and gems as well as an in-game challenge mode.
I think since now, they've released three or four
other game challenge modes, but this was the first one.
And this is really influenced by the fact
that we were producing and executing
a live event that was big enough with as many creators
as they have that really pushed them
to create an in-game solution.
So obviously, the chests and discounts was an awesome offer,
but within the King's Cup Challenge itself,
players at home during the live stream event
could play with decks pre-selected
from the top gamers, the top YouTubers,
and the top pro players.
So they kind of got to have a shared experience.
And since this event was so big, there's
also a sense of scarcity, right?
Where people want to tune in and watch this high profile
event, and also at home feel like they
are part of the experience.
And when they're seeing the best decks being played
at this tournament, they're also incentivized to, of course,
buy cards and buy chests to play more.
So this is a concept we kind of played around with.
We really had no idea how this was going to do--
just kind of producing and executing a concept like this.
But at the end, we had around 63,000 people
watching the live event--
over eight and a half, nine million views
generated on the video itself.
We had Korean and English feeds.
And the event was kind of an in-person one day event where
we invited--
it was the most bizarre--
call it e-sports-- competitive event
where there was 400 people in a room
all heads down, quiet for about four hours,
just grinding out Clash Royale game play.
I've been to a lot of gaming events
and that is by far the most eerie/surreal one.
But it was amazing seeing so many people connected
playing a mobile game in a physical location in one place.
Imagine if all of you guys were all on your phones
right now competing against one another.
It was a really unique experience.
On the left, we basically drummed up a lot of excitement
by sending the creators special Clash Royale chests, which
the top eight creators kind of, Willy Wonka style,
got invited to this tournament or they came.
And these guys were kind of like the Iron Chegs
of the whole broadcast, where the 300 people kind of had
to face off in order to play against these guys
in the finale.
So in the end, there was one winner.
It was a very unique idea that we just
want to prove out a concept.
As far as YouTube gaming goes, we
saw huge amount of uplift of people downloading the app
and activating with YouTube Gaming.
For the publisher as well as Google Play,
we saw a huge multiplier on day-of revenues.
And in total, we created a big experience--
a high profile unique experience--
where almost 8.5 million people tuned in.
So kind of the recipe for success that we learned
she was really using influencers.
I'm sure none of you guys are new to leveraging influencers.
But really, tying that to kind of a triangle where you create
a live opportunity where there's a high profile event--
where it's so exciting and everyone wants to watch this
one event--
and also tie that to a live ops opportunity where people--
the millions of registered users at home-- can also participate.
Whether it's purchasing or downloading in-game content
and also having an ability to play a challenge mode,
much like what they can see on the YouTube content.
It really created an ecosystem where
it was really sticky and really attractive
to both audiences, Google Play, and the game publishers.
So-- up next is Dan.
Thank you so much for your time.
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