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: mtrigg@hi5.comhi5: http://mikemenlo.hi5.comBlog: http://hi5networks.com/blog/Twitter: http://twitter.com/mike_trigg