Our presentation at Media'08 event in Sydney in March 2008. A world premiere comparing Facebook with Cyworld, Mixi and QQ. Result: Facebook is #4.

1. New business models
in online communities
Benjamin Joffe
Managing Director | Plus Eight Star Ltd

2. Innovation in Asia?

3. General assumption #1
Everything from USA is great

4. General assumption #2
Everything from Asia is weird
(and sometimes funny)

6. Japanese like texting on mobile
Because they have small fingers
Anonymous manager at a telecom company in 2000

7. Asians like avatars
Because they read mangas and watch animes
Anonymous manager at an Internet company in 2005

8. Chinese like ring-back tones
Because they go to karaoke a lot
Anonymous manager at a foreign media company in 2006

9. Giving the
wrong explanation
to the
right question

10. Not-invented-here
spiral
of oblivion

11. Make fun
Oblivion Stereo
type
Self-
Re-invent
evident
Adopt

12. Why look at Asia?

13. 1
Because some Asian markets
are strategically important

14. #2 economy
#1 population
#1 digital society

15. Broadband connections in Japan and Korea are up to
10 times faster than the OECD average.
Japan also had the lowest relative monthly
broadband charges/Mbps
OECD Report, July 2007

16. Consequence #1
Internet penetration and
speed

17. Consequence #2
Internet literacy

18. 2
Because some great ideas
have already been
proven there

19. 2002
2005
2005

22. 1999 2003+

24. How about those concepts?
Meta-blogging
Content scrapping
Trust-based information sharing
Personal Resource Planning (PRP)

25. Alexa School of Investment
Quiz

26. Global China Japan South Korea
1 Yahoo!
2 Google
3 YouTube
4 MSN
5 Windows Live
6 MySpace
7 Facebook
8 Wikipedia
9 Hi5
10 Orkut

27. Global China Japan South Korea
1 Yahoo! Yahoo Japan
2 Google Yahoo
3 YouTube Google Japan
4 MSN Google YouTube
5 Windows Live
6 MySpace Google
7 Facebook YouTube
8 Wikipedia
9 Hi5 Yahoo Wikipedia
10 Orkut

28. Global China Japan South Korea
1 Yahoo! Baidu Yahoo Japan Naver
2 Google QQ FC2 Yahoo
3 YouTube Sina Google Japan Daum
4 MSN Google YouTube Cyworld
5 Windows Live Netease Mixi Nate
6 MySpace Taobao Rakuten Google
7 Facebook Sohu Nicovideo YouTube
8 Wikipedia Tom Livedoor Empas
9 Hi5 Yahoo Wikipedia Gmarket
10 Orkut 56.com Goo Auction

29. Global China Japan South Korea
1 Yahoo! Baidu Yahoo Japan Naver
2 Google QQ FC2 Yahoo
3 YouTube Sina Google Japan Daum
4 MSN Google YouTube Cyworld
5 Windows Live Netease Mixi Nate
6 MySpace Taobao Rakuten Google
7 Facebook Sohu Nicovideo YouTube
8 Wikipedia Tom Livedoor Empas
9 Hi5 Yahoo Wikipedia Gmarket
10 Orkut 56.com Goo Auction

30. SNS are a new media

32. Genetics of SNS

36. Parameters
Visitors Personal URL
These figures reflect
/ Add to my favorite
Today / Total user’s various statistics
Updated contents
- Content copies
Emotional
(scrapping)
status
- Registered
number as a
My photo favorite
Music Player
Bought by user
Comment
Name & [Main menu]
Gender Configured by
user
[Neighbors]
View this
person’s
neighbors
Skin
[Mini-room] Comment by Purchase new skins for a
Cyber residence of user neighbors coordinated background,
icons, etc.

38. Q Bi: cyber $
Secretary
E-mail Multi-person chat
Online status Game/Music
QQ buddy list SMS/MMS
Weather File transfer
Online disk Voice/Video
Friend name:
Wireless service
Cathy
Mini portal Ad
Music
Chatting with Cathy
Game
Cathy’s QQ Show
Interaction Take a group photo with
Panel admin Cathy’s QQ Show
Making friends Cathy’s QQ Zone
E-magazine Background
Screen shoot
C2C e-commerce Send pic
Stock info Active emotion
Address list Emotion
Group list Font
Last contacts My QQ Show
Input area
SMS
Main menu
Tencent browser
History IPTV
Chat rooms
Search QQ Pet

40. Metrics
Pageviews
Number of users
Revenues

41. Social
Network
DNA

42. Starting date
2004 1999 2004 1997

43. Active accounts
60 mln 20 mln 14 mln 300 mln

44. Reach (Internet users)
200 mln? 35 mln 90 mln 200 mln!

45. Revenues 2007 (USD)
150 mln {200 mln} 100 mln 520 mln

46. Operating Profit 2007 (USD)
(50 mln) {100 mln} 35 mln 224 mln

47. Valuation (USD)
?
MSSE TSE HKSE
15 bln? n.a. 1.8 bln 11 bln

48. Main business models
Ads (Ads) Ads (Ads)
(Digital goods) Digital goods Digital goods
Games
Mobile VAS Mobile VAS
Jobs

49. Ads or Digital goods?
1. Who is the client?
2. Not incompatible
3. There is more!

50. Other business models
Targeted Ads
Storage
Monthly fee
Personalization
Alerts…

51. Key features
Invitation system
Closed/Open/Semi-closed
Sticky features
Payment solutions
Mobile
Online/Offline connection

52. Social design
Focus
Values
Atmosphere
Demographics

53. Psychological design
Identity / Identities
Trust

54. The missing blocks

55. 1
Payment infrastructure

56. 2
Trust system

57. 3
New value chains

58. To remember

59. 1
Are you the target?

60. 2
Resist the temptation
to stereotype

61. 3
Look for concepts
Adapt the rest

62. Thanks!
benjamin@plus8star.com
Published research
Inside Cyworld
Inside QQ
Free sample | www.plus8star.com