1Click2Fame encouraging revenue generating behaviour

Presentation overview Aim: To define, specify, implement and review a loyalty program for 1click2fame.com to encourage deeper daily engagement with 1click2fame.com, and promote the distribution of content online Building a base for a loyalty program through social games How can we make money online What user behaviour do we wish to encourage to propagate this Social Games Landscape What makes a good social game Our game Virtual Currency Introducing Virtual Currency Potential Revenue Valuing the currency Proof of Concept Overview

Aim: To define, specify, implement and review a loyalty program for 1click2fame.com to encourage deeper daily engagement with 1click2fame.com, and promote the distribution of content online

Building a base for a loyalty program through social games

How can we make money online

What user behaviour do we wish to encourage to propagate this

Social Games

Landscape

What makes a good social game

Our game

Virtual Currency

Introducing Virtual Currency

Potential Revenue

Valuing the currency

Proof of Concept

How can we make money online? The current business model allows for online revenues generated through: Content distribution + sponsorship on player Platform licensing Virtual currency? Examples of successful distribution of “content” through platform licensing: Mass market: Search - Google Search (Adwords) / Adsense (technology / relevance) Niche: Dating - Match.com / DatingDirect.com (technology / community) Bingo / Poker / Casino - Cryptologic / Gamesys (technology / community) 3 pillars of effective content distribution through platform licensing seem to be: relevance technology community Building a base for a loyalty program through social games How can we make money online?

The current business model allows for online revenues generated through:

Content distribution + sponsorship on player

Platform licensing

Virtual currency?

Examples of successful distribution of “content” through platform licensing:

Mass market: Search - Google Search (Adwords) / Adsense (technology / relevance)

Niche: Dating - Match.com / DatingDirect.com (technology / community)

Bingo / Poker / Casino - Cryptologic / Gamesys (technology / community)

3 pillars of effective content distribution through platform licensing seem to be:

relevance

technology

community

Improving Relevance 1Click2fame is currently a push rather than pull site TV (push media) – broadcast your content Internet (pull media) – users want to personalise their experience We need to know more about 1click2fame users to make their experience more relevant and therefore encourage relevant distribution Problem: Long registration forms + fraud = low registration numbers Solution: fully implement Facebook Connect We don’t need users to make profiles / connections / share their interests again on 1click2fame – these have already been white labelled We need to concentrate on making / showing good relevant content (where we make our money) and distributing it relevantly (also where we make our money through technology) Building a base for a loyalty program through social games How can we make money online?

1Click2fame is currently a push rather than pull site

TV (push media) – broadcast your content

Internet (pull media) – users want to personalise their experience

We need to know more about 1click2fame users to make their experience more relevant and therefore encourage relevant distribution

Problem: Long registration forms + fraud = low registration numbers

Solution: fully implement Facebook Connect

We don’t need users to make profiles / connections / share their interests again on 1click2fame – these have already been white labelled

We need to concentrate on making / showing good relevant content (where we make our money) and distributing it relevantly (also where we make our money through technology)

Improving Relevance Using Facebook Connect we can store the user Facebook ID and build up a profile based on viewing history Tag all existing and new content (transcription of all video content) and serve new content based on interests / favourite music Serve content based on what friends have watched FB Connect : 1 click login Finding friends Invite more friends Publish To Your FB Page Building a base for a loyalty program through social games How can we make money online?

Using Facebook Connect we can store the user Facebook ID and build up a profile based on viewing history

Tag all existing and new content (transcription of all video content) and serve new content based on interests / favourite music

Serve content based on what friends have watched

FB Connect :

1 click login

Finding friends

Invite more friends

Publish To Your FB Page

What is good behaviour and how do we propagate it? Audience: Good behaviour is distributing our content – it’s how we and our partners make money and it’s how talent gets noticed Performer: Good behaviour is feedback to the audience to encourage them to continue to complete good behaviour. However this is not part of the game. We will encourage performers to perform an audience role. If our content is good then the audience will comment / create groups / become fans etc if we allow them How do we promote this good behaviour? Talent Manager game - a viral game for “judges” to manage talent and grow their TalentMan Camp. Performers are encouraged to play as well. The chief aim of this game is to get our content out to new audiences Audience Message: You found them, now make them Performer Message: Support them showing off your talent Building a base for a loyalty program through social games How can we make money online?

Audience: Good behaviour is distributing our content – it’s how we and our partners make money and it’s how talent gets noticed

Performer: Good behaviour is feedback to the audience to encourage them to continue to complete good behaviour. However this is not part of the game. We will encourage performers to perform an audience role.

If our content is good then the audience will comment / create groups / become fans etc if we allow them

How do we promote this good behaviour?

Talent Manager game - a viral game for “judges” to manage talent and grow their TalentMan Camp. Performers are encouraged to play as well.

The chief aim of this game is to get our content out to new audiences

Audience Message: You found them, now make them

Performer Message: Support them showing off your talent

Social Games Landscape Social Games Social Games Landscape Social Games MMO GaiaOnline Habbo Premier league Fantasy Football (2 million UK) Console Wii Xbox Gaming Bingo Casino Poker Social Applications Farmville (52mm MAU Facebook) Mafia Wars (25mm MAU Facebook) Mafia 140 (38,000 Twitter) Zynga Poker (6.4MM Myspace) Mobile Booyah

It’s a growth industry Social Games Social Games Landscape

What makes a good social game? ie: what should we include in our game Social Games What makes a good social game? User functionality Publisher functionality Friends interacting online Virality (as many options as possible to share / interact with friends / send gifts) Compete against friend groups (league tables – potentially more than 1) Stickiness – incentivising users to come back very day Competing against universe (league tables) Reward audience for interacting with friends Easy to access Creating new connections Easy to learn Introduce levels to promote aspiration Helping friends complete levels (ie get friends to post your link for you / send to your friends) Long term value to user (new content) Facebook: Posting to feeds as much as possible Facebook: Bookmarking Facebook: Adding a box to profile Encourage repeat usage

ie: what should we include in our game

Friends interacting online

Compete against friend groups (league tables – potentially more than 1)

Where should this game take place? Social Games What makes a good social game?

TalentMan Game (Talent Manager) The Talent Manager (audience) chooses their favourite talent to start the game. They have a limited choice of talent to choose from at this point, this is based on who is (not) popular If the Talent Manger has not been invited by a performer then the Talent Mangers are recommended a talent based on their interests and favourite music Talent Managers complete actions to collect “Talent points”. The aim of the game is to get the most Talent points. Talent Managers strive to build a Talent Camp. Their Talent Camp starts with 1 performer and can add 1 more Talent to their camp for every level up to 10 they progress Having more than 1 Talent means they have more opportunity to collect Talent points as they can diversify who may be interested in the video. Every month the game is reset. Scores exist for previous months (all time Hall of Fame) Social Games Our game

The Talent Manager (audience) chooses their favourite talent to start the game. They have a limited choice of talent to choose from at this point, this is based on who is (not) popular

If the Talent Manger has not been invited by a performer then the Talent Mangers are recommended a talent based on their interests and favourite music

Talent Managers complete actions to collect “Talent points”. The aim of the game is to get the most Talent points.

Talent Managers strive to build a Talent Camp. Their Talent Camp starts with 1 performer and can add 1 more Talent to their camp for every level up to 10 they progress

Having more than 1 Talent means they have more opportunity to collect Talent points as they can diversify who may be interested in the video.

Every month the game is reset. Scores exist for previous months (all time Hall of Fame)

TalentMan: Earning Points Social Games Our game

More about the game Entry points for Performers into the game are: suggestion to invite Talent Managers (friends) once you’ve uploaded a performer video Entry points for Talent Managers into the game are: receive a gift from friend invite from 1click2fame when you view talent invites from talent managers to rate their TalentMan Camp talent battle invites from a Talent Manager (vs competition) Extra Functionality: Talent Manager gets to choose their appearance Before the 15 th of the month each Talent Manager can choose a performer outside their camp they tip to win that month (this is called the Star Performer) Talent Manager can “sell” their talent and buy talent in the same or lower level Talent Managers can have more than 1 Talent Camp Social Games Manager game

Entry points for Performers into the game are:

suggestion to invite Talent Managers (friends) once you’ve uploaded a performer video

Entry points for Talent Managers into the game are:

receive a gift from friend

invite from 1click2fame when you view talent

invites from talent managers to rate their TalentMan Camp

talent battle invites from a Talent Manager (vs competition)

Extra Functionality:

Talent Manager gets to choose their appearance

Before the 15 th of the month each Talent Manager can choose a performer outside their camp they tip to win that month (this is called the Star Performer)

Talent Manager can “sell” their talent and buy talent in the same or lower level

Talent Managers can have more than 1 Talent Camp

TalentMan: Manager game Talent Battles: Talent Managers can wage a Talent battle with a Talent of their choice outside their Camp. They wage a battle by selecting a Talent of the same category and requesting a friend compare them. The friend receives a notification that they’ve received a talent battle request. They click on the notification, accept the app if they haven’t already and are then served the 2 videos. The friend has to view 15 seconds of each video before they can vote vs Social Games Manager game win win

Talent Battles:

Talent Managers can wage a Talent battle with a Talent of their choice outside their Camp. They wage a battle by selecting a Talent of the same category and requesting a friend compare them.

The friend receives a notification that they’ve received a talent battle request. They click on the notification, accept the app if they haven’t already and are then served the 2 videos.

The friend has to view 15 seconds of each video before they can vote

Gifting – viral feature As soon as managers / performers open the game they’re offered the chance to send a gift. They’re shown a gift wall from which to pick 1. by default gifts are sent to all friends on Facebook (creates virality) they can also choose friends on TalentMan / choose new FB friends When the user is at level 1 they can choose a selection of simple gifts, as they progress through the game more gifts are unlocked (the player can see what gifts are available at what level on the gift wall) These gift are shown on their profile page as a status symbol and can be also posted to their Facebook / updates to their Twitter pages. These gifts are reset every month Social Games Manager game

As soon as managers / performers open the game they’re offered the chance to send a gift. They’re shown a gift wall from which to pick 1.

by default gifts are sent to all friends on Facebook (creates virality)

they can also choose friends on TalentMan / choose new FB friends

When the user is at level 1 they can choose a selection of simple gifts, as they progress through the game more gifts are unlocked (the player can see what gifts are available at what level on the gift wall)

These gift are shown on their profile page as a status symbol and can be also posted to their Facebook / updates to their Twitter pages. These gifts are reset every month

Manager Actions Not rewarded but encouraged: sending videos of their talent to their friends using FB connect status updates about talent Social Games Manager game Action Points Sign up to TalentMan 10 Login (not given the first day and capped 1/day) 100 Viewing a talent video )15 seconds of content (can we embed FB connect on the player, if so this could be anywhere on the internet) 50 Generating a video view of your talent through embedded link - 15 seconds of content 50 Receiving a positive review of your talent – when can a user rate video? 20 Winning a talent battle against a talent scored above you 100 Losing a talent battle against a talent scored above you 0 Winning a talent battle against a talent scored below you 50 Losing a talent battle against a talent scored below you -100 Star performer points - each manager can give 1 per month before the 15 th . (The Talent Manager gets points for giving as well as receiving) 200 Referring a new Talent. Talent Managers get points if when a Talent uploads their first video they say a certain Talent Manager introduced them to the game. 100

Not rewarded but encouraged:

sending videos of their talent to their friends using FB connect

status updates about talent

Points system Easy Very Hard Social Games Manager game Level Talent points required to reach next level Talent Access Talent Camp 10 6,000+ All talent 10 Talent s (from any 4 categories) 9 4,000-5,999 98% of talent 9 Talent s (from any 4 categories) 8 2,500-3,999 97% of talent 8 Talent s (from any 3 categories) 7 1,500-2,449 95% of talent 7 Talent s (from any 3 categories) 6 950-1,499 92% of talent 6 Talent s (from any 3 categories) 5 550-949 87% of talent 5 Talent s (from any 2 categories) 4 300-549 77% of talent 4 Talent s (from any 2 categories) 3 150-299 65% of talent 3 Talent s (from any 2 categories) 2 50-149 48% of talent 2 Talent s (from any 1 category) 1 1-49 29% of talent 1 Talent (from any 1 category)

For you non believers Social Games Manager game 52 million people play Farmville every month That’s 1 in 6 on Facebook There is NO prize to win Farmville 2 million people in the UK have an official Fantasy Football Team through the FA. Winners win tickets to a football match There were 8 million votes in the X factor final 2009 at a minimum 35p /call That’s £0.19 for every person who watched the final or £0.19 ARPU as we call it online Most people voting have no vested interest

TalentMan: Talent game / experience Social Games Our game

Introducing Virtual Currency “ Users aged 14 to 29 together make up 91.5% of the total userbase for the virtual goods industry.” – the virtual goods industry was valued at $2.1 bn in 2007 QQ.com, the biggest virtual goods site generated revenues of $716m from virtual goods in 2008 – this is more than Facebook will turnover in 2009 A virtual currency is an economy existing in a virtual world, usually it can be exchanged for virtual goods How to get virtual currency? Social Games Introducing Virtual Currency BUY WITH REAL MONEY TAKING A PARTNER OFFER IN EXCHANGE FOR VC FILL IN PARTNER SURVEYS

“ Users aged 14 to 29 together make up 91.5% of the total userbase for the virtual goods industry.” – the virtual goods industry was valued at $2.1 bn in 2007

QQ.com, the biggest virtual goods site generated revenues of $716m from virtual goods in 2008 – this is more than Facebook will turnover in 2009

A virtual currency is an economy existing in a virtual world, usually it can be exchanged for virtual goods

How to get virtual currency?

Introducing Virtual Currency 3 rules for the correct implementation of virtual currency: Progression – Virtual currency/good help you gain an advantage Talent Managers can buy virtual currency Managing good Talent allows users to increase Talent points (as you’re more likely to win Talent battles and get more video views, this assists in leveling up (e.g. better Talent that enable more wins) Socializing – Virtual currency/goods help you express yourself Talent Manager / Performers can pay for gifts for their Performers / Talent Managers profile to express how they feel or how they feel about the Talent Manager / Performer they’re working with Status – Virtual goods help you stand out from the crowd A talent manager can pimp their profile. Social Games Introducing Virtual Currency

3 rules for the correct implementation of virtual currency:

Progression – Virtual currency/good help you gain an advantage

Talent Managers can buy virtual currency Managing good Talent allows users to increase Talent points (as you’re more likely to win Talent battles and get more video views, this assists in leveling up (e.g. better Talent that enable more wins)

Socializing – Virtual currency/goods help you express yourself

Talent Manager / Performers can pay for gifts for their Performers / Talent Managers profile to express how they feel or how they feel about the Talent Manager / Performer they’re working with

Status – Virtual goods help you stand out from the crowd

A talent manager can pimp their profile.

Potential Revenue This chart does not make any allowances for sponsorship of the player site advertising revenue as a result of banner impressions / site sponsorship video views in outside UK IP’s Social Games Potential Revenue

This chart does not make any allowances for

sponsorship of the player

site advertising revenue as a result of banner impressions / site sponsorship

video views in outside UK IP’s

Valuing our currency We need to make users want to buy Talent points if they’re close to completing the next level (levelling up) but struggling to get there. There’s a fine balance between making the currency too expensive people don’t want to buy it and making it too cheap and devaluing our proposition. The value of our currency is dependent on the demand for the video content. If we find users / new users to the game watch much more video than I have accounted for then we will need to adjust the points scale to account for this. The best way to determine demand for the currency is to run proof of concept tests which I have detailed later. Therefore we will delay valuing the currency until these tests have been completed Social Games Valuing our Currency

We need to make users want to buy Talent points if they’re close to completing the next level (levelling up) but struggling to get there.

There’s a fine balance between making the currency too expensive people don’t want to buy it and making it too cheap and devaluing our proposition.

The value of our currency is dependent on the demand for the video content. If we find users / new users to the game watch much more video than I have accounted for then we will need to adjust the points scale to account for this.

The best way to determine demand for the currency is to run proof of concept tests which I have detailed later. Therefore we will delay valuing the currency until these tests have been completed

Proof of Concept What do we want to prove and what should we measure? Talent sharing video / friend viewing video If we prompt a Talent, they will send their performance (video) to a friend (s) / embed the video (you don’t need to embed a video on FB) “ most people who audition on 1click2fame find that when they send their video content to their friends they get better ratings” That if a friend receives a video from a Talent they watch it Talent Manager sharing a friends video That a friend of a performer will, with an incentive offered by 1click2fame, send a performance to their friends / embed the video That if we repeat 3 but suggest how and where they can share this video, it provides incremental views. That if we repeat 4 and introduce a competitive environment with several different friends of different performers (an anonymous online table) . They are told they’re competing against other people for the same prize we see an increase in activity Repeat 5 but with different prizes Social Games Proof of Concept

What do we want to prove and what should we measure?

Talent sharing video / friend viewing video

If we prompt a Talent, they will send their performance (video) to a friend (s) / embed the video (you don’t need to embed a video on FB)

“ most people who audition on 1click2fame find that when they send their video content to their friends they get better ratings”

That if a friend receives a video from a Talent they watch it

Talent Manager sharing a friends video

That a friend of a performer will, with an incentive offered by 1click2fame, send a performance to their friends / embed the video

That if we repeat 3 but suggest how and where they can share this video, it provides incremental views.

That if we repeat 4 and introduce a competitive environment with several different friends of different performers (an anonymous online table) . They are told they’re competing against other people for the same prize we see an increase in activity

Repeat 5 but with different prizes

Proof of Concept Talent Manager sharing a random Talents video (chosen by them) That a Talent Manager will, with an incentive offered by 1click2fame, send a performance to their friends a performance selected by them out of a selection suggested by 1click2fame. This performance must have a low rating. That if we repeat 6 but suggest how and where they can share this video , it provides incremental views. That if we repeat 6 and introduce a competitive environment (an anonymous online table) where they are told they’re competing against other people over a specific game time for the same prize we see an increase in activity. Adding more Talent to the Talent Camp That if we ask a person from (6-9) to repeat the process with +1 people will repeat the processes from (6-9) with both Talents Talent Battles Judging a Talent Battle: That if we provide a competitive environment for a Judge to view other Judges performances they will vote on one of the performances. (we will make it clear this doesn’t not make a difference to the contest) Social Games Proof of Concept

Talent Manager sharing a random Talents video (chosen by them)

That a Talent Manager will, with an incentive offered by 1click2fame, send a performance to their friends a performance selected by them out of a selection suggested by 1click2fame. This performance must have a low rating.

That if we repeat 6 but suggest how and where they can share this video , it provides incremental views.

That if we repeat 6 and introduce a competitive environment (an anonymous online table) where they are told they’re competing against other people over a specific game time for the same prize we see an increase in activity.

Adding more Talent to the Talent Camp

That if we ask a person from (6-9) to repeat the process with +1 people will repeat the processes from (6-9) with both Talents

Talent Battles

Judging a Talent Battle: That if we provide a competitive environment for a Judge to view other Judges performances they will vote on one of the performances. (we will make it clear this doesn’t not make a difference to the contest)

Proof of Concept Sending a Talent Battle Invite: If we ask a Talent Manager to ask one of their friends to rate who is the better Talent between 2 they will send an invite to their friends Testing when people enter the game: If we take point 9 and enter a new user into the competitive game halfway through the game time they will take up the challenge to beat the other players given the time constraints left in the game What will we measure for POC? Basic Variables Time & date stamp Geo location Performer Variables Performer category Performer demographic data (age gender) Performer interest data from Facebook Video Variables IP of video viewer Traffic source of video view Total view time of unique video Video views per unique / video Rating each video view gets Social Games Proof of Concept

Sending a Talent Battle Invite: If we ask a Talent Manager to ask one of their friends to rate who is the better Talent between 2 they will send an invite to their friends

Testing when people enter the game:

If we take point 9 and enter a new user into the competitive game halfway through the game time they will take up the challenge to beat the other players given the time constraints left in the game

What will we measure for POC?

Basic Variables

Time & date stamp

Geo location

Performer Variables

Performer category

Performer demographic data (age gender)

Performer interest data from Facebook

Video Variables

IP of video viewer

Traffic source of video view

Total view time of unique video

Video views per unique / video

Rating each video view gets

Where next? How can this spill into real life? – integration with pods / TV? iPhone version Get more points if your Talent has logged in in the last day Introduce a Narrative, incentivise the performer more Mini games within the TalentMan game (Quizzes / Dancing / Lyrics / Guess the song) Prediction game (fantasy team) Social Games Proof of Concept

How can this spill into real life? – integration with pods / TV?

iPhone version

Get more points if your Talent has logged in in the last day

Introduce a Narrative, incentivise the performer more

Mini games within the TalentMan game (Quizzes / Dancing / Lyrics / Guess the song)

Prediction game (fantasy team)