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Show us the Money!
Casual Connect Europe, Hamburg - 11 Feb 2010
Volker Hirsch (@vhirsch)
Who is this guy?
Investment Opportunity: Little World Gifts (redeﬁning digital gifts)
Little World Gifts offers an appealing investment opportunity for investors seeking signiﬁcant returns from early stage investment in high growth markets. Little World Gifts is positioned to maximise returns through creating a new market for digital goods on mobile starting with the iPhone platform with deep web and social network (Facebook) integration. The opportunity builds on the exciting landscape of the booming (yet still early and undeveloped) mobile smartphone space, and the potentially enormous (and also early) digital goods space. With extremely low overheads and high margins, the company is set to turn over £2m in year 1, 50% of which is proﬁt. With a valuation of £2m (Year 1 proﬁt x2), Little World Gifts is seeking £150,000 Angel investment ahead of launch in exchange for 10% equity in the business. This is an opportunity to get involved early in a dynamic business at the very leading edge of both the digital goods, and the iPhone / mobile 2.0 sectors.
Enormous Market Potential
What is Social?
Social refers to the interaction of organisms with other organisms and to their collective coexistence [...]
Get a social network! There’s loads of them...
NOT the Right Answer!
1.! A “social network” is not a community!
2. Do you own one?
Where to find a Community?
Mobile is the most powerful digital medium to date.
Why? 1. It’s Big (numbers) 2.It’s Personal (nature) 3.It’s really personal (Identification of needs)
475,000,000 circulation of newspapers 825,000,000 registered cars 1,700,000,000 Internet users (PC, Mobile, Web Cafe) 1,800,000,000 unique credit card holders 2,250,000,000 tooth brushes in use 4,000,000,000 FM Radios 4,600,000,000 mobile phone subscriptions
Mobile is a 1st!
• • • • • • • •
Personal mass media Always carried Always on Built-in billing system Always present at the point of creative impulse Accurate audience identification Captures social context Enables Augmented Reality
Tomi Ahonen, Mobile as 7th of Mass Media, 2008; Alan Moore & Jonathan MacDonald, The Glittering Allure of the Mobile Society, 2008
Significance to Users...
91% of people have their mobile within arm’s reach 24/7. Morgan Stanley 2007
64% of Americans are not willing to share their mobile with anyone. 60% of married people will not share their mobile with their spouse!
Wired Magazine 2006
It takes an average of 26 h for a user to report a lost wallet but only 68 minutes to report a lost mobile phone.
8 out of 10 German men would rather lose their wife than their mobile phone.
Jonathan MacDonald; Survey of 10 German men at 1am in a bar...
OK, it’s big, we get it.
But How do I convert that into a community?
Concept: Object-Centered Sociality
Prof Dr Karin Knorr-Cetina, Sociologist Jyrri Engestrom, Founder Jaiku
Easy: make sure that mobile levers the Social Object (that is: your game) towards Your Users...
My game a Social Object?
Human Value Drivers:
Human Value Drivers:
Sex Hope Money Belonging Feeling Important Security Getting more out of Life
CwF + RtB = BM!
Mike Masnick, TechDirt
Nine Inch Nails
All Music free under CC license. All videos by fans aggregated on website. Free iPhone app: Fan Finder.
Double Album for $10
Deluxe Edition (Double Album + Photo Book + BluRay + DVD) for $75 2,500 limited edition signed luxury sets (with Vinyl + prints) for $300
Limited Edition sold out in 30 hours !!! $750k revenue in 30 hours, $2.3m in week 1.
Connect With Fans + Reasons To Buy = Business Model
Let’s recap: Social is interaction in context
Games are perfect for this!
Gamers Interact. The game is the social object! Turn Players into Fanatics! Interact with them IN context, i.e. in the game! Let them interact between them (they have a common object!)
Address the unique propositions only Mobile offers.
Value Levers: the 6 M’s.
Movement Me Moment
Source: Tomi Ahonen
Mobile is a 1st!
• • • • • • • •
Personal mass media Always carried Always on
Built-in billing system Always present at the point of creative impulse Accurate audience identification Captures social context Enables Augmented Reality
We need Tools
Create Fanatics. Provide avenues for players’ passion. Incorporate players’ strongest community: his friends! Allow them Choice: if, when and where to share. Just offer the path. Keep it in context, i.e. in the game.
High-Scores (Reward) but make them customizable (Relevant). Connect to the community (Avenues of Passion). Person-to-Person Challenges & Tournaments (Playful contextual interaction). Awards / Rewards (Fanatics). In-Game transactions & Virtual Currencies (Contextual Monetization).
General ads disregard the power of context & relevance (“SprayCan”). Players = Fanatics = Ambassadors. recommendations by friends: most powerful promotion (74% buy on a friend’s recommendation)*. Promotions by friends in context are genuine cross-promotions. The tools are there (e.g. Challenges).
* Source: Bain Consulting
One last thing: 123,296,966,069,453
The Law of Big Numbers
The Mass Market is here:
don’t forget the “other” smartphones!
Choose a tool that delivers all that.
Scoreloop does... ;-)
Scoreloop’s Core Social
Customizable High-Scores Player-to-Player Challenges Recommendations to Friends (using any source available) Awards & Trophies Full virtual currency (supports in-app purchases, item downloads, dual currency) iPhone, Android, BREW, Symbian, Maemo, RIM, Web
Deliver on the basics.
On the outside...
And on the inside...
1 - Permission
People decide what they see and engage with.
2 - Privacy
People decide what, when and where they share information.
3 - Preference
People decide what content is relevant to them and when. Don’t make assumptions!
So... Where’s the Money?
Where it always was: in your pocket...
Catchy phrase nicked from Jonathan MacDonald
• • • •
Engage, don’t lecture. Observe the 3 P’s. Offer avenues to activate the player’s passion. Deliver, and in big numbers.
Got all that? You have a winner!
And if the user wins, the rest (incl. $$
$) comes almost on its own...
http://upload.wikimedia.org/wikipedia/commons/8/85/Numbers_grid_in_NY.jpg http://gapingvoidgallery.com http://upload.wikimedia.org/wikipedia/commons/e/e0/Petanque_players_in_Cannes_(France)_2003.jpg http://upload.wikimedia.org/wikipedia/commons/5/56/Bhgs_crowd.jpg https://svn-create.freedesktop.osuosl.org/public/create/docs/logo/images/light_bulb_off3.jpg http://www.easy-access.com/garagelo/coloring/tools.gif http://www.scorpioshoes.com/accessories-42/shoe-care-44/dr-martens-shoe-polish-black-8128.htm http://picasaweb.google.com/lh/photo/f-4eoJyuiitoJIPDaqrMJQ http://img.wallpaperstock.net:81/car-mechanics-wallpapers_11816_1024x768.jpg http://www.mixedforyou.com/fineart/Renaissance/Flying%20Machine,%20Leonardo%20da%20Vinci, %201490.jpg http://blogs.fayobserver.com/faytoz/files/2008/10/davinci_toothed_gears_original.jpg http://www.adsinn.com/wp-content/uploads/2008/01/1100109100-1.jpg http://adsoftheworld.com/files/images/video-game.jpg http://www.thealarmclock.com/euro/images/flirtomatic.png http://img.glu.com/WSOP_Mobile/images/WSOP_header_logo.png http://villageshow.co.uk/assets/images/trophy.jpg http://images.internetsafety.com/www/images-pm/safe-eyes-mobile-logo.jpg http://www.foldingbikehut.co.uk/images/Toolbox%20Travel.jpg
+44 7843 599 678 @vhirsch email@example.com http://vhirsch.com/blog