GMB - You will be present at the BGC this month in São Paulo, in the panel on new trends for the game market and examples for Brazil. Tell us about how the invitation came about, what are the main topics you should address and your expectations for the event...
Daniel Xavier - I was very pleased with the invitation made by the organization of the event, it will be a great opportunity to promote Social Gaming in Brazil, an industry that has grown continuously since 2010, following the increase in the use of smartphones and mobile Internet coverage. I will bring to BGC comprehensive content on the Social Gaming market, including product and players, raising points related to acquisition and retention.
The starting point will be our experience with the Pipa Studios applications, especially Bingo Beach, the most played social Bingo game in Brazil and where more than 200,000 clients from dozens of different nationalities spend every month. Our expectation for the event, in addition to discussing Social Gaming, is to actively participate in regulatory discussions and strengthen our network of contacts in Brazil.
Talking about Pipa Studios, tell us a little about its trajectory in the games market. What is your main niche, which are your main clients, how you have reached your current level of growth and what goals do you have for the future?
Pipa Studios was established in 2012 as a development and operation studio specializing in social Bingo and Casino games. We have a headquarters in São Paulo with 50 people, and we have employees in five other countries.
The first app we developed was Praia Bingo, which fell in the taste of the Brazilians and soon became the leading game of the category in the country, which today represents 50% of our billing. Over the years we have translated the application into 20 other languages and, after adjustments in product and operation, we entered the top 5 of the Bingo category in Spain, Mexico, France and Italy.
The growth strategy involves the development of a customized product to the local cultures, relationship and attention to the retention of players. We have great passion for our project and this motivates us to move into new markets. The main goal is to expand presence in the North American market, through Beach Bingo and the recently launched Bingo Bloon app.
Pipa has its two main games in the application stores of the main systems of the smartphone market and also in Facebook. How did you plan to meet this audience and what has been the acceptance of Brazilians to these products?
An initial challenge was the choice of the technology of our games. Even though we started our activities on Facebook, from the beginning we looked at our future on the mobile, envisioning a future where the reach of smartphones with good processing capacity would increase and the culture of the mobile game would consolidate - a bet that proved to be true in the markets where we operate.
Being Brazil, we have been able to take advantage of a window of opportunity. When launching Bingo Beach in 2012, there was no comprehensive offer of applications in our segment looking at this region. We put on the market a product with adherence and totally localized, applying custom relationship practices for the Brazilian public, and the response of the customers was excellent from the beginning.
Watching the videos of publicizing the games and visiting the website of Pipa Studios we realize that the company works in a very young and relaxed language. How does the process of creating this material work and how important is this choice to reach the target audience of the company? Has it succeeded in its goals?
We want to pass on to our clients values that we believe. Pipa is young and laid back, and we love what we do. Artists and developers work with creative freedom, which encourages innovation, which is perhaps one of the secrets to the success of our games. We understand that there is little innovation in the market for bingo and casino games, and one of our goals is to break the monotony of this sector. By having the innovation as a goal we also try to expand the universe of players, seeking to operate in a wide age group of both sexes.
Among the themes of the panel in BGC is the question of the relationship of young people with gaming. In Brazil, youth is a consumer of digital content, such as You Tube, blogs, social networks, among others. Based on this fact, what is the potential of this public in Brazil and what investments should be made to serve it well?
It is a great challenge to bring young people into the bingo and casino games, there is still a long way to go. It is in our work plan for the next 12 months to offer a product more adherent to the range between 18 and 30 years, probably in another segment with greater potential. It is essential to tailor communication to succeed in this range. It is imperative to explore other channels of communication, such as WhatsApp, and offer content with an informal language and connected to social networks.
Speaking about Brazil, do you believe that there will be very strong competition between physical gaming places (bingos, casinos) with online gaming and social gaming? Is it possible for these strands to work and grow together?
There is definitely room for everyone. The legalization of gaming will increase the general population's interest in the activity, which helps in the renewal of players. There will be cross-selling between the segments.
Regarding the legalization process in Brazil, what is your evaluation of the progress of the processes and the last decisions of the legislators regarding the gaming market in the country? Do you think we'll soon have a comprehensive law for all gaming offer?
We have already overcome the discussion about the need to have regulation of this activity in Brazil. We are late, most Western countries have already put that issue on the table and have defined their strategies. The question is when will this happen. There is a reliance on exclusively political factors in this decision. As we live in a time of great political turmoil in the country, the analysis of the future of regulation is subject to many uncertainties. Pipa is a studio that develops and publishes social games and, therefore, without betting on money. However, I hope for the adoption of a comprehensive, clear law that satisfies the interests of all the actors involved.
What are your prospects for the gaming industry in Brazil after the legalization of the activity, especially regarding to online games? Considering that many Brazilians already play on sports betting sites, what will be the potential of national public consumption after regulation and the possibility of other options to play?
On the sports betting market, I understand that there is a pent-up demand and a large market to be exploited. Legal insecurity reduces investment in the sector. Clear regulation has the ability to greatly extend the current size of the online gaming market.
Source: GMB Exclusive
