Startup Expenses
Startup expenses are defined as money that businesses spend before they even open their doors. They are the expenses that are incurred before the business is running. In the case of GameGo, our highest startup expenses will come from software development, advertising, and licensing fees.
Software Development Expense
The most important factor in the launch of GameGo is the software development. Bernard Kohan, a mobile app and web application development and technology analyst expert, wrote the cost of software development depends on the type class of company. GameGo is classified as a "Moderate Class" Custom Development Company because we are developing a web application and online interface with our average number of
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Specifically, we will focus on advertising through video game conventions and social media outlets such as Facebook, Instagram, and Twitter.
From the article How Much Does Facebook Advertise Cost? by Marc Prosser published on July 13, 2013 it states that,
“With Facebook, you get to choose what you want to pay for advertising. You will never pay more than the maximum amount that you bid to have your ad appear or be clicked on. However, the bidding process is competitive. If you bid too low, your ad will never be seen.”
On average, companies spend about $24.00 daily per site to advertising through Facebook, Instagram, and Twitter, which will let their ad be shown about 36,000 times a day (Prosser, 2013). To make sure our ad is seen efficiently throughout the day, we have set a daily budget of $27.00 per site equaling $29,565 per year. Having heavy and concise advertising has proven to be effective for companies when done right.
Another way that we wanted to advertise was by going to video game conventions and getting our product in the market. The average cost of having a 20X20 square foot booth would be $50,000 (Cost of Trade Show, 2014). We would have to have a budget of $70,000 for the trade show to make sure that we have enough for the booth and room and board for the team.
Our objective to this is spreading awareness of the services we
Because the advertising cost is deductible, its after-tax cost is $17,250 ($23,000 - [$23,000 × 25%]).
6.8 million dollars were spent. The money is spent by outside groups on the advertising and such example can be the outside group known as American Bridge 21st century corporation.
Facebook is one of the main social media sites that Oasis markets its business through. You can purchase ads that will populate while friends or friends of friends are browsing the website. The
Direct- In person marketing which is the main marketing strategy of our organization will cost us $ 500 per meeting. The set up fees is around $400-$600. This will be done in 3 months.
Advertising been around for as long as people can comprehend. It makes businesses or products standout to its viewers. Viewers usually pay attention to the ads that connect with them in a way. There are a substantial amount of ads out there that are false. There purpose are to only try and get money off of gullible people. One particular ad on Facebook caught my attention. The ad was a video about healthy eating and weight loss. This particular Facebook ad is reliable and a great one because the way it speaks to its viewers.
Facebook relies on ad advertisements in their business model. Facebook platform empowers developers to build applications and web sites that integrate with Facebook to reach its global network of users and to build personalized and social products.
Despite this fierce competition, there are also plentiful opportunities for entry into the online game market with forecasted trends showing huge growth. In 2007, online games generated $6.6 billion. They are expected to increase to $14.4 billion in 2012. The top 10 fast growth companies indicate that online gaming is a goldmine (Caron, 2009).
This year businesses and companies’ sales have boomed because of one game. The games name is Pokémon Go. This is a game based off of the game Pokémon. In this game you walk around outside and Pokémon will appear for you to catch. I know this because my sister and step-mother play this game. Many businesses sales have gone up because of this game. The reason why is because businesses can become Poké Stops or Poké Gyms. The businesses can make more money off of this game because people will come to your business to battle the gym leaders.
75% of the $7 million in advertising expenditures will be allocated to the costs of advertising for entry-level cameras in Latin America and 25% will be allocated to the costs of multi-featured cameras.
PLUS a normal rate of return on the $600,000 paid up front for advertising (600,000*(.10)) or $60,000.
First is the advertising. According to the case, we know that the major revenue of Facebook is advertising, which took up 98 percent in 2009, 95 percent in 2010 and 85 percent in 2011. Facebook uses all information uploaded by users to become the property of the firm. By analyzing database, Facebook provides advertisers target customized services and products based on users’ preferences and connections. In its view, the advertising which based on social
Facebook is estimated to have over 845 million users, mostly college-aged young adults. Its explosive growth and reputation in social networking have made it not only a market leader, but also a household brand name. The audience is global (excluding China) and the site has now been translated into 70 different languages.
Facebook has a specific page of helping the customer to refine your advertising to reach the people who matter most to your business. This indicates that most of advertisement appears on Facebook are well refined based on user’s trait.
Production costs can be high, there is a major learning curve, and access to distribution channels and inputs can also create challenges. In this technological advancement driven industry, the possession of proprietary technology, partnerships with the best but cheapest suppliers can be considered high barriers to new entrants. Once a game console is on the market, more money needs to be invested into games and accessories as well as production due to the fact that most of the profits come from game sales rather than console sales.
In recent years, we have received a lot of information from different search engines, and browsed related advertisements that showed up automatically as well. What we can do is to study the behavior of advertisers and the methods about posting advertisements. As Yahoo! has provided some datasets for studying, we decided to focus on the advertisers’ bidding price on specific time and frequency.