La Evolución de las Redes Sociales
Michael Trigg26 de septiembre 2009
Agenda
• Social networking history• hi5 early success
• hi5 in Peru
• How social networking is evolving• Communication vs. Entertainment
• Social use cases
• Business models and new opportunities• Advertising
• Direct user payments
• Leveraging social networking• Top tips
• Common mistakes
0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000
hi5 is a Top Web Site in the World
• Founded in 2003, 60 employees
• Over 60M monthly unique visitors
• #1 social entertainment site
• 3rd largest social site worldwide
• 8th largest site WW for age 15-24
• 11th largest site WW by page views
• Larger than any online gaming site
• Named as a top site by the media
Source: comScore, June 2009.
#1
#11
Top 100 Worldwide Sites Ranked by Page Views
Total Annual Page Views (Millions)
#35
#24
#40
#58
#76
Recent Press Coverage
Latest Chapter in Battle for Users’ Attention
Com
munic
ati
on a
nd C
onnect
ion
Time
IM
Social Networking
Web Mail
Portals•Blogging•Photo sharing•Video sharing•Micro-blogging•Voice over IP•Chat rooms•Virtual worlds• …..
Social Networking Use is ExplodingM
on
thly
Un
iqu
e V
isit
ors
(0
00
)
Source: comScore and Company Estimates.
•770 million monthly unique users worldwide
•Over 300 sites in social networking category
Founded$250K seed
financing
hi5 Evolution
Major Milestones
Profitable1M users
$20M Series A from MDV
OpenSocial
hi5 CoinsVirtual giftsPixverse
hi5 Gameshi5 VideoDirect user
payments + advertising
15 emps10M users
30 empsSpanish
translation
60M
38.3
23.9
19.216.3
2.00.0
Monthly Uniques Visitors (M)1
2003 2004 2005 2006 2007 2008 2009
1. Source: comScore and internal estimates
10M Gamers
18M Social Entertainment Users
Targeting the Spanish-Language Market
Source: Internet World Stats, Nov ‘07
Mill
ions
of
Use
rs
•Large addressable market•Third-largest language online
•Under-served by other sites
•Highly monetize-able
•Large addressable market•Third-largest language online
•Under-served by other sites
•Highly monetize-able
Worldwide Internet Users by Language
Early Growth Due to Localization
Over 50 Languages and Dialects WorldwideOver 50 Languages and Dialects Worldwide
English Español
Português
Français
Italiano
Ελληνικά Русский
中文
Deutsch
Nederlands Türkçe
Română
日本語
ภาษาไทย
Polski
Serving a Diverse Global Audience
Asia/Pac16.2M
LatAm16.4M
ME/Africa5.0M
North Am5.5M
Europe16.4M
hi5’s Top 5 Countries1. Mexico, 6.4M2. Thailand, 5.8M3. Peru,4.4M4. US, 4.4M5. Portugal, 2.4M
Source: comScore, July 2009 Source: Internal, July 2009
hi5 in Peru
0%
5%
10%
15%
20%
25%
13-17 18-24 25-34 35-44 45+
MaleFemale
• #1 social site in Peru
• #4 web site overall in Peru
• 4.4 million monthly unique visitors
• Over 1 million visitors every day
• Highly engaged users• Pages/Visit = 30.96
• Avg. Time on Site = 17:14
Age/Gender DistributionGeographic Distribution
Country Partner
How Will Social Networking Evolve?
SocialEntertainment
Communication Entertainment
Different Use Cases
Different Life Stages = Different Uses
Age
5-14 15-24 24+
• “Play”-based
• Self-expression
• Limited interaction
• Manage social contacts
• Keep in touch
• Be productive/efficient
• Meet new people
• Have fun
• Hang out
Audience PsychographicsHighly Engaged in Social Entertainment Activities
Gaming
Dating
Entertainment
Shopping
Source: US Nielsen @Plan Spring 2009
Adding Games to the Social Experience
• Launched hi5 Games channel in February ’09
• Hundreds of Flash-based games
• Challenge/invite friends to play
• Added download-able games
• Premium games
• Gamers now one-third of hi5 traffic
Adding Video to the Social Experience
• Partnership with Televisa
• Co-branded video site launched on hi5 in June ’08
• Extensive library of Spanish-language video content
• Worldwide distrib- ution (except US)
• Premium ad inventory
Social Networking Business Models
Global Social Networking Revenue Projections
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
2006 2007 2008 2009 2010 2011 2012
($ m
illio
ns)
Virtual Goods
Paid Services
Total Advertising
Source: Piper Jaffrey, September 2008.
Advertising1
Direct User Payments
2
Global Advertisers
Premium Creative + Viral Marketing
• Preserve brand identity
• Develop unique creative
• Deploy various formats
• Implement arresting visuals
• Build community for brands
• Enable brand interaction
• Spread message via viral hooks
• Foster users’ brand affinity
+
Social Networks Drive Word of Mouth
Branded Gifts
Joining Communities
Uploading Photos
Posting Comments
Installing Applications
Branded Skins
Building a Virtual Economy
hi5 Coins Virtual
Currency
Virtual gifts store
Premium games
Paid Features
• Direct payments are over 15% of total revenue• Top games generating $2-3K revenue per day• Over 17M monthly users of premium content• hi5 Coins payments are growing 80% per month
The New hi5
Interact
Meet
Play
Watch
Create
Give
Buy
Overview
● hi5 3D Engine basis for launch hi5 Stars
● Core engine leveraged to build immersive game experiences
Enhancing Fidelity and Interactivity
Source: comScore, November 2008.
stars
Top Tips for Social Marketing
• Create community around your brand
• Keep content fresh, new, engaging (usually funny)
• Make it participatory – have a point
• Create incentives for viral adoption/growth
• Use it to gather customer feedback – good and bad
• Experiment with different programs – learn/change fast
• Think globally
• Be willing to give up control
• Get clarity on goals/objectives
Top Marketer Mistakes
• Build it and they will come
• Promotion rather than relationship
• One-way pitch rather than two-way dialog
• Over-exploiting the social graph
• Interrupting the customer use case
• Pretending to be someone you’re not
• Ignoring limitations of your brand/category
Michael TriggVice President, Marketinghi5 Networks, Inc.
Email: [email protected]: http://mikemenlo.hi5.comBlog: http://hi5networks.com/blog/Twitter: http://twitter.com/mike_trigg
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