Widget Ecosystem and Widget Economy

Slide 1: Widget Ecosystem and Economy March 28, 2008 Jo, SanKu 조산구 차세대 개발 TFT @ KT

Slide 2: Contents I. Background II. What is Widget? III. Widget Usage IV. Widget & Personalization V. Open Ecosystem & Widget Economy VI. Summary

Slide 3: Widget New Story of Web Wild Widgety World Webpage vs. Widget Distributed Web Dynamic Web Open Ecosystem Widget Economy

Slide 4: Background

Slide 6: Decentralization & Atomization One Way Two Ways Limited Contents: Short Head Unlimited Contents: + Longtail Centralized Distributed Closed Open Provider Centric User Centric

Slide 7: Media: Mass Media -> Me Media , We Media Content: Web Site -> Page -> Micro Content Convergence and Divergence

Slide 8: Portable Web Widget Distributed Web Remixed Web Programmable Web Dion Hinchcliffe

Slide 9: Me As MEdia Creator Synthesizer Blog Mash-upper Editor Aggregator Distributor Consumer Google Technorati

Slide 10: Publishing2.0 Widget Do-It-Yourself Engagement Dion Hinchcliffe

Slide 11: Personalized Web Service Finds You HTTP RSS Widget People to Services Services to You

Slide 12: Seamless Experience on Multi Devices Widget Services Multi Devices

Slide 15: Viral Marketing and Network Effect

Slide 18: Widgets Badges Gadgets

Slide 19: Widgets  Highly interactive micro-applications  Widgets as a new way to reach a dispersed audience on millions of other sites across the Web: widgetized web  Offer users a rich media experience and a high level of engagement  Simple and ease of consumption and distribution  Easy sharing makes for viral distribution  Interoperability on more devices and Seamless User Experience  Business models: driving site traffic, content consumption, advertising  Slide.com now reaches an audience of more than 134 M through its widgets

Slide 20: Widget Types  Desktop  Web  Personal Web Widgets  Public Widgets  Mobile  Physical Widget Station

Slide 21: Desktop Widgets  Mac Dashboard Widgets  MS Vista Sidebar Gadgets  Linux Widgets  Google Desktop Gadgets  Yahoo! Widgets

Slide 25: Mobile Widgets Webwag.com, Zenzui  Nokia WidSets  300 Mobile Phone Models  4,500 Widgets “…in the U.S. marketing spending on m obile widgets will reach [US]$500 millio n by 2010, up from about $2 million [in March 2007]” [BusinessWeek]

Slide 26: Widgets are a Natural Fit for Mobile Devices  Use less bandwidth than typical browsing  Browsing not easy; usually need some select service fast; touch screen  Always running/instant on  Emerging Standards/Technologies: Mobile Flash and Flash Lite, Java ME and JavaFX Mobile, Mojax  PDA platforms (Palm, Windows Mobile)  Fring, ZenZui, BluePulse, Mobio, Widset, Mob ile Distellery/Celsius, Opera, iPhone

Slide 27: Widget Station WidgetStation

Slide 28: Widget Station Personal Internet Player Open Source Hardware Design + Simple + Internet + Widget + Toy + Private

Slide 30: SoIP lifestyle sports buddy friend connection a better wake-up music station (powers + streams) + photo sharing, video mash-ups, multimedia messaging, games, gossip, news …

Slide 34: Key Design Considerations  Scalability  Cost-Effectiveness  Reliability  Exploitation by others  Global reach  Security  Ease of Consumption  Leveraging Network Effects  End User Motivation Dion Hinchcliffe

Slide 35: Widget Engine Architecture

Slide 36: Widget Usage

Slide 37: Widget Usage  Digital Content Distribution Made Easy  Advertising  Social Widget  Enterprise Widget  Personalized Web  Website or Personal Profile Enhancement  Self-Expression and Publishing 2.0  Site Functionality Enhancement  Mash-ups and Deep Integration  Revenue Generation

Slide 38: Current State of the Widget  Nearly every Web 2.0 company includes a user- distributed widget in their viral-marketing strategy.  Large brands are beginning to build widgets for brand expansion into social networks and personal pages.  Widget-only companies are being funded and launched (slide, rockyou, etc).  Widgets have become so popular widget-aggregators have begun to launch Alok Bhardwaj, HiddenReflex

Slide 39: Widget Ranking World Wide USA June 2007 Total Unique Total Unique Items 1 to 100 % Reach Items 1 to 100 % Reach Visitors (000) Visitors (000) Total Internet : Total Audience 778,310 100.0 Total Internet : Total Audience 178,839 100.0 Top 100 Properties N/A N/A Top 100 Properties N/A N/A 1 [P] Google Sites 544,783 70.0 1 [P] Yahoo! Sites 133,093 74.4 2 [P] Microsoft Sites 529,156 68.0 2 [P] Google Sites 123,601 69.1 3 [P] Yahoo! Sites 471,924 60.6 3 [P] Time Warner Network 123,379 69.0 4 [P] Time Warner Network 266,368 34.2 4 [P] Microsoft Sites 116,824 65.3 5 [P] eBay 264,732 34.0 All Widgets 87,098 48.7% All Widgets 239,327 0.31 5 [P] Fox Interactive Media 83,598 46.7 6 [P] Wikipedia Sites 208,120 26.7 6 [P] eBay 81,224 45.4 7 [P] Fox Interactive Media 163,546 21.0 Slide.com 53,613 30.0% 8 [P] Amazon Sites 145,947 18.8 7 [P] Amazon Sites 53,285 29.8% Slide 134,046 0.17 8 [P] Ask Network 52,600 29.4 9 [P] Apple Inc. 123,554 15.9 RockYou 50,453 28% 10 [P] Adobe Sites 121,966 15.7 9 [P] Wikipedia Sites 47,031 26.3 11 [P] CNET Networks 116,579 15.0 10 [P] Apple Inc. 44,114 24.7 12 [P] Ask Network 115,655 14.9 11 [P] New York Times Digital 42,718 23.9 RockYou 101,028 0.13 12 [P] Viacom Digital 42,212 23.6 13 [P] Viacom Digital 88,655 11.4 13 [P] Weather Channel, The 39,865 22.3 14 [P] Lycos Sites 77,518 10.0 14 [P] Adobe Sites 36,441 20.4 15 [P] The Mozilla Organization 70,851 9.1 15 [P] CNET Networks 31,023 17.3 16 [P] Gorilla Nation 67,789 8.7 16 [P] Gorilla Nation 30,721 17.2 17 [P] New York Times Digital 66,230 8.5 17 [P] AT&T, Inc. 29,992 16.8 18 [P] Terra Networks 63,021 8.1 18 [P] Target Corporation 28,323 15.8 19 [P] TENCENT Inc. 61,970 8.0 19 [P] Expedia Inc 28,238 15.8 20 [P] France Telecom 60,847 7.8 20 [P] FACEBOOK.COM 27,965 15.6 Based on comScore Widget Metrix June 2007 http://marksilva.wordpress.com/2007/09/25/widgets-vs-ad-networks-rankings/

Slide 40: The Random House Book Widget  Showcase Random House books everywhere online  Market the Random House brand  Let users preview books  Let users buy books  Spread the widget virally

Slide 41: The YouTube Widget (Badge)  Highly viral with excellent end user motivation  Uses the Web as a content “billboard”  Consistently drives user growth, video views, and traffic back to the site  Didn’t take the user’s intelligence for granted  video Dion Hinchcliffe

Slide 43: The Google AdSense: Text to Image/Video  Probably the most successful widget in history  Drives an enormous amount of revenue for Google  Turns the entire Web into Google’s ad platform (The Long Tail of content/advertising)  Key aspects  Good user incentive  Extreme ease of use  Strong viral feedback loop

Slide 44: Widget Ads

Slide 45: Social Widget

Slide 46: Widget Users Are Social Network Users

Slide 47: Enterprise Widget (SAP) “2007: year of the Widget?” [Newsweek]

Slide 48: Popular Widget Category All Widgets 48.7% Slideshows/Photos 37.9% All Other 35.9% Music 24.6% Toys 17.3% Visitor Maps/Events 15.3% Video 8.8% Source: comScore Widget Metrix, June 2007

Slide 49: Widget & Personalization YouNiverse Participate, Linked, and Empowered Value & Attention Services Contents Business

Slide 50: Widget and Personalization (webwag.com)

Slide 52: Your Attention Only At Your Home Our digital life is growing out of control Focus your attention on what you care Tariq Krim, CEO

Slide 53: 268%

Slide 55: Age of Personalization

Slide 57: Personalization Market Share

Slide 58: Open Web Ecosystem Widget Economy

Slide 59: Widget Enabling New Open Web Ecosystem Brining More Values with Network Effect Publishers Advertisers Ecosystem Users

Slide 60: Open Web Philosophy, Policy, & Technology

Slide 61: Money  Driving visitors to your site with network effects (Brand- Extension/More Conversions)  Advertisement Widgets  Advertising-Supported Widgets  Selling Widgets (Premium Contents and Products)  Widget Gallery, Search, Distribution  Widget Platform  Widget Ad Network

Slide 62: Widget Ecosystem and Widget Economy Developers PC/Platform Power Users (Vista, Linux, Content & Browder, Android) Application Web Providers (Blog, Personal Web) Mobile Widget Gallery Users Widget Widget Creators Station (Platform) Advertisers Distributers Web, Desktop, Mobile, Station

Slide 63: Widget Creators (Platform Providers with Widget Gallery) define, design, develop, deploy

Slide 64: Widget Gallery

Slide 65: Netvibes Widget Ecosystem Based on UWA(Universal Widget Architecture Content & Application UWA UWA Users Providers Widget Widget Gallery Creators Advertisers Environment (Terminals, Containers)

Slide 66: Netvibes Widget Ecosystem Based on UWA

Slide 67: Chumby Widget Economy building and delivering your personal internet Content & Application Users Providers Widget Widget Gallery Creators Advertisers

Slide 68: Google’s Strategy for Widget with Open Social Open Social is a common APIs for building Social Application across many websites Easy development Social Apps are normally created in the same way that Google Gadgets are Google’s Plan for “Widget Standardization”

Slide 69: Widget Ecosystem PC/Platform Developers (Vista, Linux, Power Users Browder, Android) Platform Providers Web (Blog, Personal Web) Content & SoIP Application Wibro IPTV Users Providers Mobile Widget Gallery Widget Widget Creators Station Advertisers iPod/iPhone Environment (Terminals, Containers)

Slide 70: Content and Application Providers Communication, Personalization , Syndication ,Visualization

Slide 71: Distributers Channels, Walled Gardens, Consumers Terminals/Devices Desktop, pda, mobile, web-enabled

Slide 72: Web2.0 vs. Web0.2

Slide 73: Widget? New Web What is Next? When? X X ?

Slide 74: Widget as Open Ecosystem Enabler To Bring the Vitality of Innovation to Korea Market Size +70% +30% … … … … …

Slide 75: Widget Economy Changing Value Chain 1 Early Internet : Web site, HTTP, Contents Providers 1. CP Web Site Access http Access & Read 2 Web1.0 Service Providers: Web page, HTTP, Portal Access & Read/Write http 2. Sticky Syndication of All Contents, Centralized 3 Web2.0 People Cetric: Micro Contents, RSS, Widget, Personalization Widget Feed & Read/Write Personalization RSS 3. Light Syndication of Micro Contents, Distributed

Slide 76: Summary

Slide 77: The Future of Widget  Easy User-Generated Widgets (UCW)  Evolution to High Performance RIDAs (Rich Internet/Desktop Applications)  Cross-OS, Cross-Site, Web+Desktop Widgets  More Devices Supporting Widgets (Mobile, IPTV, PMP)  More Widget Stations  Widget Ad Networks  Real Money  Market Consolidation  Challenges: Mixed Design, Scalability, Uncertainty, Revenue Models, Time to Market

Slide 78: Opportunity or Risk  Naturally Web2.0  Distributed and Programmable Web  Personalization  Interactive and High Engagement  Viral Marketing through Millions of Other Pages  New Open Ecosystem Changing Value Chain  Widget Economy with New Revenue Models  Interoperability and Seamless Experience on Multi Devices  New Web

Slide 82: Together

Slide 84: KT IS PEOPLE JoSanKu@KT.Com