hi5 Case Study: Leveraging Virtual Goods for Virality


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hi5 presentation from the Virtual Goods Conference 2010 (Engage Expo) regarding driving engagement in games through gifting. Presentation led by hi5 Executive Producer Dave Selle.

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hi5 Case Study: Leveraging Virtual Goods for Virality

  1. 1. Case Study: Leveraging Virtual Goods for Virality<br />
  2. 2. About hi5<br /><ul><li>14th most trafficked site on the Internet by page views according to comScore
  3. 3. ~40 million monthly uniques worldwide
  4. 4. Send ~100m emails/day
  5. 5. Localized in 50 languages
  6. 6. Virtual currency with over 60 payment providers in 30 currencies</li></li></ul><li>It’s Zynga’s World, You’re Just Living In It<br />Top 200 App Developers on Facebook by MAUs<br />231M MAUs<br />You Are Here<br />And the long tail keeps going…<br /><ul><li>212 Developers with 100-500K MAUs
  7. 7. 772 Developers with 10-100K MAUs
  8. 8. 31,036 Developers with 0-10K MAUs
  9. 9. “Over 1 million” developers total!</li></ul>Source: AppData, September 2010<br />
  10. 10. The Holy Trinity of Social Game Promotion<br />Virality<br />Cross-Promotion<br />Advertising<br />Works great if you have huge audience and massive cash!<br />
  11. 11. For Everyone Else, it’s a One-Legged Stool<br />Virality<br />Cross-Promotion<br />Advertising<br />And Facebook is sawing off the last leg<br />
  12. 12. Facebook Decides Games Are Parasites<br />“Facebook Developers See Dramatic Drop In Traffic Following Removal Of Notifications”<br /> - AllFacebook, 3/2/10 <br />“Our Complete Rundown of Facebook’s Massive Platform Changes”<br /> - InsideFacebook, 10/28/09 <br />“Tough Week For Zynga Could Get Much Worse”<br /> - Silicon Alley Insider, 5/4/10<br />“Facebook Developers On Edge as Platform Changes Loom”<br /> - AllFacebook, 1/11/10 <br />“Zynga Gunning Up (And Lawyering Up) For War Against Facebook With Zynga Live”<br /> - TechCrunch, 5/7/10<br />10/28/09<br />3/1/10<br />12/30/09<br />2/25/10<br />5/7/10<br />Game Change Timeline<br />Attempts to force Zynga to adopt Credits via app shut downs<br />Announces policy changes to make games “less spammy”<br />“Expands Our Commitment” to Facebook Credits (& 30% tax)<br />Reduces ability for games to publish to stream<br />Shuts down notifications for games<br />Shuts down notifications for games<br />More to come...<br />
  13. 13. Impact of Facebook Changes<br />Media Presentation 00.00.00<br />Shrunk the overall number of users engaging in games<br />Most popular games are down<br />Farmville DAU down 40%<br />Date of FB<br />change<br />
  14. 14. A Different Approach: Super-Charge Virality by Leveraging Virtual Goods<br />Integrate games with virtual gifts<br />Enable gifts to act as invite to the game<br />Target prospective users with gifts<br />Expose virtual gift API to developers<br />
  15. 15. Case Study: World Futbol Challenge<br />Soccer pick ‘em game launched before World Cup 2010<br />Targeted new users in North America, Western Europe and World Cup qualifying countries<br />Customized gift to different countries/languages<br />Results:<br />Sent: 8,207,474<br />Open rate: 77%<br />CTR: 8.9%<br />Virtual gift invite drove 35% of game installs<br />
  16. 16. Case Study: World Futbol Challenge<br />
  17. 17. Multiplier Effect via Viral Channels<br />Friend Updates<br />Gifts on User Profile Pages<br />In-game Invites<br />
  18. 18. Phase 2: Premier Futbol Challenge<br />Leveraged World Futbol Challenge audience<br />Sent additional gifts to target users<br />CTR: 13.2%<br />
  19. 19. hi5 Virtual Goods API<br />