hi5 Case Study: Leveraging Virtual Goods for Virality

1,800 views

Published on

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.

Published in: Technology
  • Be the first to comment

  • Be the first to like this

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 />

×