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Scott Brewster, Co-Founder, ThinkZone Games Mitch Weisburgh, Co-Founder, ThinkZone Games This presentation was given at the 2016 Serious Play Conference, hosted by the UNC Kenan-Flagler Business School. Who is the buyer for games that are to be used in schools? How do education buyers make decisions? How do they want to use games? How big is the market? What are the obstacles to reaching more students and teachers? What’s the potential market? You’ll find out in our session.
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Games&TheU.S.EducationMarket ScottBrewster ScottBrewster Mitch MitchWeisburgh Weisburgh scott@thinkzonegames.com mitch.weisburgh@academicbiz.com
Game-Based Learning (GBL) Market 2 Uses of Ed Funds (750B) CurrentK12GBL <$100M Instructional Purchases: 10% (7.5B) Student Support Services: 8% PotentialGBL $2B Operations: 20% Instructional Staff: 64%
US K-12 Content Sales Breakdown School Administration: 25% District Administration: 60% Teachers: 7% Other: 3% State: 5%
US K-12 Decision Makers Target Super- intendent District Admin School Principal DecisionMaker Teacher Librarian Semester, MultipleGrades, MultipleSchools Month+, MultipleGrades, SpecialPopulations AtLeast 1Grade, AFewWeeks Sizeof Problem AtLeast 1FullLesson AtLeast 1FullLesson $5,000– $50,000 $2,000- $10,000 Freeto $200 Freeto $500 ExpectedSpend $100,000+ ApprovalCycle 18Months 6-12Months 3-6Months 0-60Days 0-6Months BuyingPower 60% 25% 7% <3% U.S.Total Number 15,000 60,000 100,000 3,900,000 50,000
US K-12 Market Size 13,640Districts 115,062Schools(24kPrivate) 3.8MillionTeachers 54MillionStudents(5.9mPrivate)
2013-2014 District Size and Population % Total Districts 32% District Enrollment <600 %Student Population 2% DistrictCount 4,378 5,086 2,003 1,028 806 338 37% 15% 8% 6% 2% 600– 2,499 2,500– 4,999 5,000– 9,999 10,000 – 24,000 > 25,000 14% 15% 15% 20% 34%
2013-2014 District Size and Population % Total Districts 32% District Enrollment <600 %Student Population 2% DistrictCount 4,378 Small 5,086 2,003 1,028 806 338 37% 15% 8% 6% 2% 600– 2,499 2,500– 4,999 5,000– 9,999 10,000 – 24,000 > 25,000 14% 15% 15% 20% 34% 92% 46% Large 54%
World Wide Buying Patterns: 2013 - 2014 Ambient Insights 2014
US K-12 Education Game Market EducationGameMarketProjected1Year- USpreK-12 Total Market K-3 3-5 6-8 9-12 General/Other Math ELA Science SocialStudies Arts Social/Emotional 17.5 43.9 61.4 22.8 17.5 7.0 5.3 4.3 10.7 15.0 5.6 4.3 1.7 1.3 4.3 10.7 15.0 5.6 4.3 1.7 1.3 4.5 11.2 15.7 5.8 4.5 1.8 1.3 4.5 11.2 15.7 5.8 4.5 1.8 1.3 Total 175.4 42.9 42.9 44.8 44.8
The Big Addressable Problem EducationSystem:Industrialage&suboptimal Timing:TheTechTsunamiisnow Games:21stCenturylearningwithstudent engagement,learningincontext, andassessment
Timing & School Cycles Decision Budget Lead Acquisition P.O. Releases Selling Season Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Trajectory of Adoption Ramp Up & Market Penetration Early Adopters Product Champions Beta Testing Year 1 Year 2 Year 3 Year 4
How Do We Increase the Use of Games in Schools? IncreaseMarketAwareness Target PolicyMakersand DecisionMakers MakeGamesEasytoDeploy SupportTeachers Collaborate
Market Obstacles 15 District Administrators GameDevelopers Educators ü Individualgamescancreatechaos ü PasswordHell ü NoGroupandIndividual Assignment ü Nostudentprogresstracking ü Againstlotsofsmallpurchases ü Don’tnecessarilythinkgamesare whatstudentsneed ü Nosustainablebusinessmodel ü HighCustomerAcquisitionCost $500M By 2020 Potential GBL Market
US K-12 Spending Spending Decrease in Headcount & Purchases • Rebound in Tech Purchases vs Headcount • Digital Native Educators & Admins • Digital Distribution/Purchasing 2008 2014 2020: School Budgets Peak School Budgets Start Rebound Steady Increases
US K-12 GBL Projections $500M $500M GBL Spending $50M $50M DECREASE REBOUND 2008 2014 2020: School Budgets Peak School Budgets Start Rebound Steady Increases
Market Obstacles 18 District Administrators GameDevelopers Educators ü Individualgamescancreatechaos ü PasswordHell ü NoGroupandIndividual Assignment ü Nostudentprogresstracking ü Againstlotsofsmallpurchases ü Don’tnecessarilythinkgamesare whatstudentsneed ü Nosustainablebusinessmodel ü HighCustomerAcquisitionCost
Can Developers Unlock the Market? Provideaplatform tomakedigital game-basedlearningeasytoimplement Sellandmarketcollectionsofgamesinawaythat makessensetoadministrators&gamedevelopers Curate greateducationalgamesfrommultiplevendors intoastandards-basedcurriculum
Games&TheU.S.EducationMarket ScottBrewster ScottBrewster Mitch MitchWeisburgh Weisburgh scott@thinkzonegames.com mitch.weisburgh@academicbiz.com