13 Ravi Mehta -- igbos n_

REAL VALUE FROM VIRTUAL GOODS Ravi Mehta VP, Publishing - Viximo [email_address] - Email www.virtualgoodsinsider.com - Blog Proprietary & Confidential

WHAT IS A “VIRTUAL GOOD”?
VIRTUAL GOODS INDUSTRY
Proprietary & Confidential As virtual goods evolve, they’ll grow to include all digital media including music and video

VIRTUAL GOODS ARE GENERATING VERY REAL REVENUE FOR PIONEERING COMPANIES
Proprietary & Confidential China’s largest Internet portal generates 65% of its $500M revenue from virtual goods In 2005, this Korean gaming giant report ed $230 million in revenue with 80% generated by in-game items Korea’s Facebook generates $160M revenue annually – entirely from virtual goods Facebook’s Gifts service has generated $15M since February 2007 The youth oriented dating site generates 40% of its revenue ( $6-7M ) from sale of virtual flowers at up to $10 per flower This virtual world with over 75 million users globally generates $60M annually from virtual goods This niche social community for pet owners has had over 50 million giftings by its 500,000 users since its gifts program started 2 years ago NORTH AMERICA EUROPE ASIA MindArk’s virtual world, Entropia Universe, holds the 2008 Guinness World Record for “Most Expensive Virtual Object”, a space resort that was sold for $100,000

WHY DO PEOPLE SPEND REAL MONEY ON STUFF THAT ISN’T “REAL”?
Proprietary & Confidential
A $100 bottle of Diaka Vodka which is colorless, flavorless, and made from $2 in grain
A $97,500 Piaget watch that contains a few ounces of precious metal and tells time (less accurately than your cell phone)
A $100,000 piece of “virtual” real estate that can be traded on a highly liquid market and generates a 20% annual return (2x most stocks)
POP REALITY QUIZ Which of the following is most “ real” ? A Stanford University research study has shown that people aren’t wired to distinguish between “real” world stimuli and digital stimuli: Study participants showed the same tendency to smile back regardless of whether smiled at by a real person or a digital avatar. Study participants felt the same feelings of elation when receiving a physical gift and when receiving a “virtual” gift. Can’t relate? Put yourself in the shoes of someone who spends 20-50% of her waking hours immersed in an online community. How real and tangible would that community be to you?

WHAT VALUE DO PEOPLE GET FROM VIRTUAL GOODS?

VIRTUAL GIFTS PROJECT THEIR VALUE ONTO SOCIAL GESTURES AND ENRICH COMMUNITES
VIRTUAL GOODS AND SOCIAL NETWORKING

CASE STUDY: DOGSTER
VIRTUAL GOODS AND SOCIAL NETWORKING
Members spend between $0.25 and $4.00 to send virtual gifts
Dogster’s 500,000 mainstream members have sent over 50 million gifts in the past two years
Gifts sent for friendship, support of sick/dying pet, acknowledgement of community contribution, to reciprocate for gift given, “just because”

13 Ravi Mehta -- igbos n_

by Ignite Boston on May 31, 2008

Accessibility

Categories

Tags

Upload Details

Usage Rights

1 Embed 2

Statistics

13 Ravi Mehta -- igbos n_ — Presentation Transcript