Zino Gamification Presentation

An Introduction
to Gamification
April, 2011
© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

It’s Going to Be Big (Maybe)
 “As Social was the last five years; Gamification

will be the next five years.”
 By 2015, 50% of companies that manage
innovation and research will use gamification to
drive innovation and engagement
 Jane McGonigal (Reality is Broken) says WOW
players have spent 5.93 billion years solving
virtual problems. Imagine if you could harness
that time and effort solving real problems

So What the Heck is Gamification?
 “Gamification” describes the broad trend of

using game play mechanics for non-game
applications in order to encourage people to
adopt applications or engage in desired
behaviors.
 The technique can encourage people to
perform chores that they ordinarily consider
boring, such as completing surveys, employee
performance, training, remembering to take
medicine, shopping or social change.

Gamification Assumes Status > Cash
 Gabe Zichermann, a Gamification evangelist,

asserts that people respond to rewards in the
following order:
– Status
– Access
– Power
– Stuff
 Zichermann says that “cash isn't that good of a
reward. Status is a fantastic motivator for
getting people to do stuff."

What Does That Mean?
 In its simplest form, it’s about loyalty and

engagement:
– Leaderboards
– Badges
– Levels
– Being Mayor
– Embedding Games
– Progress Bars
– Virtual Points/Virtual Currencies
– Loyalty Programs

This Isn’t New
 We’ve had this for a long time:

– Frequent Flyer Miles
– Frequent Shopper Cards
 We’ve been engaging in it recently without
calling it Gamification
– Foursquare and “Check-Ins”
– Wii Fit
– Progress Bars in Social Media Profiles

Categories of Gamification
 Consumer Engagement (using game

mechanics to draw consumer eyeballs and sell
more goods and services)
 Employee Incentives (using game mechanics
for more employee productivity or to
encourage employees to go through training,
etc.)
 Social Change (using game mechanics to work
social change.

Examples of Gamification of Social Change
 U.K.'s Department for Work and Pensions Idea

Street
 World Bank: http://www.urgentevoke.com/
 U.S. military's "America's Army" video-game
recruiting tool

Idea Street

Idea Street
 Idea Street is an innovation game created by UK Department

of Work and Pensions to decentralize innovation and
generate ideas from its 120,000 people across the
organization.
 Idea Street is a social collaboration platform with the addition
of game mechanics, including points, leader boards and a
"buzz index."
 Within the first 18 months, the project had around four
thousand users, generated 1,400 ideas, 63 of which have
been implemented within the Department.

Gamification Advantages
 Accelerated feedback cycles. In the real world, feedback loops are

slow (e.g., annual performance appraisals) with long periods
between milestones. Gamification increases the velocity of
feedback loops to maintain engagement.
 Clear goals and rules of play. In the real world, where goals are fuzzy
and rules selectively applied, gamification provides clear goals and
well-defined rules of play to ensure players feel empowered to
achieve goals.
 A compelling narrative. While real-world activities are rarely
compelling, gamification builds a narrative that engages players to
participate and achieve the goals of the activity.
 Tasks that are challenging but achievable. While there is no shortage
of challenges in the real world, they tend to be large and long-term.
Gamification provides many short-term, achievable goals to
maintain engagement.

Risks of Gamification
 Poor execution
– It’s boring, it’s incompatible with your goal, etc. As a result,
at best it distracts your user; at worst it damages your
brand
 Mismanaging engagement
– In the “social” era, everyone believes that he or she is a
part owner of brands and content and they believe they
have a vested interest in the direction of the brand or
content
– And every user engaged through gamification has a free
non-legal remedy if the engagement was mismanaged.
 Legal risks

Legal Issues
 Ownership
 Privacy
 Endorsement Guidelines
 Virtual Currency/Gift Card Rules
 False Advertising
 Brand Risks
 Alternative Reality Games; Viral Marketing Issues

IP and Ownership Issues
 Most gamification is handled through consultants and small

specialty developers.
 Is it established who owns what in the development process?
– Are there work for hire and invention agreements?
– Are there ownership arrangements with consultants and other
non-employees?
– Are you using open source? Creative Commons? Participating in
any collaborative community?
 Do the underlying technology and agency agreements give
the parties the rights they need?
 Have you thought about reuse of the project? Does the
gamification vendor and the social change client have the
same goals in mind?

Virtual Currency/Gift Cards/ Contests and Sweepstakes
 Are the incentives/rewards that you offer

convertible into real goods and, therefore, run
afoul of virtual currency regulations
 Are the incentives/rewards effectively gift cards
and, therefore, run afoul of state gift card rules
 Are the games structured in a way so that they
are a legal contest or sweepstakes?

“Engagement” Has to Comply With Advertising Law
 Gamification that focuses on “engagement”

with customers needs to comply with the
standard advertising rules.
– Can’t be false or misleading
– Can’t make unsubstantiated claims
– Can’t misrepresent the capabilities of the product

Be Particularly Careful Of…
 Targeted/behaviorial advertising as part of gamification

– Collecting data based on gamification activity in order to deliver
advertising intended to appeal to that individual
– The next wave, but also the area that consumers are squeamish about
and regulators are thinking about
– Expect further regulatory and legislative activity
 Social media, “word of mouth” and other consumer-based
marketing methods
– Regulatory and consumer concern about disclosure of relationships
between advertisers and “real people” who promote the products
– Applicability of unexpected legal frameworks on gamification projects
(e.g. alternative reality games)
 The next frontiers
– Location privacy

FTC Endorsement and Testimonial Guidelines
 The key here is not to get “cute”; the problem is that a lot of
gamification is “cute.” It’s viral, its non-obvious, etc.
 FTC is concerned about transparent endorsements
 Any blogger or endorser has to reveal any benefits he or she
received in exchange for promotional posting, reviews, etc.
 Endorsements have to be honest and cannot be deceptive
 Both blogger and advertiser can have liability
 Advertiser needs a policy and some minimum enforcement

Employment Issues
 Gamification strategies with employees may run afoul of

employment laws.
 Are you monitoring off duty activity and making termination
decisions based information obtained through gamification?
 How are you using the information gained through the
gamification process
 NLRB Case re firing employee for employee post regarding
employer on Facebook (NLRB believes that FB is the new
water cooler and that posts are protected comments on
“working conditions”)
 Does using gamification for hiring decisions create a disparate
treatment issue?

Privacy
 Gamification offer providers an opportunity to

collect highly detailed information about their
users.
 No comprehensive privacy law in the United
States
 Tradition in the United States is that the data
collector, not the data subject owns and
controls the data
 And with consent, all things are possible…

So, What’s the Problem?
 Consumer Backlash; Unpredictable Consumers

 Privacy Policies; Privacy Defaults
 Proper Consents for Sale of Information
 FTC Action; Consumer Protection Issues
 Invasion of Privacy Claims
 International Issues (Are you collecting information from non-
US users?)
 Special Issues
– Corporate Issues and Establishing Corporate Policies
– Kids
– Location Based Services

Gamification of Sensitive Data
 Is the game involved in financial services (e.g.

encouraging savings), health care (e.g. pill
reminders), or education (optimizing
classwork)?
 If so, you probably have additional privacy
burdens because you’re handling sensitive
data.

Data Security
 Gamification may involve broader collection of

information from end users that could create security
obligations.
 Consumers are becoming more sensitized to companies’
handling of their data
 Operation
– Where are your servers located?
– Do you have a data breach plan?
– Have you audited partners’ security?

Kraig L. Marini Baker
kraigbaker@dwt.com
206.757.8007
@bakek


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An Introduction

© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

 “As Social was the last five years; Gamification

© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

 “Gamification” describes the broad trend of

© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

 Gabe Zichermann, a Gamification evangelist,

© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

 In its simplest form, it’s about loyalty and

© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

 We’ve had this for a long time:

© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

 Consumer Engagement (using game

© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

 U.K.'s Department for Work and Pensions Idea

© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

 Idea Street is an innovation game created by UK Department

© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

 Accelerated feedback cycles. In the real world, feedback loops are

© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

 Most gamification is handled through consultants and small

© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

 Are the incentives/rewards that you offer

© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

 Gamification that focuses on “engagement”

© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

 Targeted/behaviorial advertising as part of gamification

© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

 Gamification strategies with employees may run afoul of

© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

 Gamification offer providers an opportunity to

© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

 Consumer Backlash; Unpredictable Consumers

© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

 Is the game involved in financial services (e.g.

© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

 Gamification may involve broader collection of

© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

© 2011 Davis Wright Tremaine LLP. All rights reserved. 877.398.8417

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