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hi5 NY Games Conference Presentation: "Virality: Infecting your friends for fun and status!"
 

hi5 NY Games Conference Presentation: "Virality: Infecting your friends for fun and status!"

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hi5 presentation from the NY Games Conference 2010 on virality in social gaming. Presentation led by hi5 President & CTO Alex St. John.

hi5 presentation from the NY Games Conference 2010 on virality in social gaming. Presentation led by hi5 President & CTO Alex St. John.

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    hi5 NY Games Conference Presentation: "Virality: Infecting your friends for fun and status!" hi5 NY Games Conference Presentation: "Virality: Infecting your friends for fun and status!" Presentation Transcript

    • Virality! Infecting your friends for fun and status!
    • Evolution of Viral Marketing Strategies
    • Overly “Aggressive” Viruses that Kill their Hosts Go Extinct
    • Virulance in online games is often a tradeoff between deep engagement and reach Too virulent (engaging) = Higher Engagement/Infection but less reach Low Virulence = Lower Engagement/Infection but greater reach
    • The “Social Network Discovery” in Virality Viral rebound is the phenomena in which a virus you infected others with and subsequently became immune to has time to mutate in others and return to re-infect you
    • Social Networks rely on “low virulence” to spread via content mutation
    • The people you invite to join your network result in new people who invite you to join theirs
    • New Economics of Virality
      • 4 Ways to Monetize Audience
      • Cash
      • Advertising
      • ?
      • ?
    • New Economics of Virality
      • 4 Ways to Monetize Audience
      • Cash
      • Advertising
      • Virality (referral value)
      • Engagement (content value)
    • How do you calculate the value of viral currency?
      • Each user during the viral growth phase is worth (roughly) the compound monetizable value of all future users they may invite minus the cost of serving them.
    • Which is? During an applications viral growth phase the viral value of a user can be 5x-10x the users retained value.
    • How do you calculate the value of viral currency?
      • A mature social graph has a virality coefficient that hovers around 1.0 which means that on average each user has a Viral + Engagement Value equal to one other user
      = Commerce + Advertising Value = Viral + Engagement Value
    • Viral Economics
      • A + B =
      The fact that content virality and engagement has some complex recursive relationship to the monetizable value of an individual has exciting business model ramifications because this relationship suggests that it is possible to transform virality and engagement into $$$
    • What is the monetary value of MajiNoir to a social network?
      • Romanian hi5 Member
      • Commerce value: $0
      • Ad value: $.0001
      • 34,199 friends…
    • For Example What is the monetary value of MajiNoir?
      • Romanian hi5 Member
      • Commerce value: $0
      • Ad value: $.0001
      • 34,199 friends…
      • Answer?
      • $238/mo in advertising
      • $162/mo in commerce
    • Viral Economics Continued… User with monetizable value ZERO engages a user with monetizable value $Y doubling the high value users engagement and therefore monetizable value to $2Y
      • Thus unmonetizable users value becomes = $2Y/2?
      • The effective CPM value of low CPM advertising can be increased many fold by converting low value users engagement into high value content for richer markets?
    • Viral Tenant Reward those you can’t monetize for (infecting) entertaining those you can!
    • Questions?
    • Enjoy Lunch!