Playfish, the social network gaming company founded by wireless industry veteran Kristian Segerstrale, announced a series B round worth a very respectable $17m from Accel Partners and Index Ventures. Playfish boasts 10m monthly users and claims that 4 of its 5 games are in Facebook’s top 10. The company also said it recently joined Google’s in-game advertising solution and presumably banks on capitalizing on this success. No word on financials but they surely are getting their slice of it (just how thick that slice is, I’d like to know). No word either on any mobile activities (which might be coming given Kristian’s background as founder of Macromedia).
Tag: Facebook Page 6 of 7
Here‘s a really good piece of analysis of the landscape of mobile social networks. I will not recount the findings in detail here but they reckon that the Internet biggies Facebook and MySpace rule the mobile social networking world already. MySpace is said to have had 1.4bn visits last month alone. Facebook also is beyond the 1bn mark. Impressive numbers! The largest pure mobile-play, Mocospace, a predominantly US-focussed company, recorded 1bn visits.
The article does mention GoFresh (with their ItsMy service) and Peperonity but fails to point out UK company Yospace who power the combined O2/3UK community.
Whilst the mobile-only players all point out that they’re not worried because their offering was better (“he would say that, wouldn’t he, your Honour?”), but advertising muscle may well be an issue: MySpace recently said that they would expect about half of their total traffic coming from mobile within 5 years, and reaffirmed that mobile is one of the most important strategic initiatives for MySpace. I am sure there will be loads of niches in the sector but the bulk of 1.5bn visits (probably steeply rising) is a tough proposition to beat when it comes to ad revenues!
I’ve been a fan of those “bloggers on speed” of the likes of Jaiku, Twitter, etc for a while but I am not entirely happy with the interfaces yet: the services live of proximity and timeliness in that is then that they unfold their true power. Otherwise, the old-fashioned web accessed from an old-fashioned computer with 10x more bandwidth and a proper keyboard might actually be superior. Mobile blogging however is relatively clunky so far. There are a few guys out there who offer mobile little J2ME apps, (mobile) browser plug-ins, widgets, you name it (see for some solutions here) but, let’s face it, they’re not really as slick and seamless as they could (and should?!) be. Tellingly therefore, both Twitter and (now Google-owned) Jaiku use SMS as the prevailing interface to communicate with the world through their networks via your mobile phone. Is that really it? Look at the Facebook Blackberry app: so slick in comparison!
UI, accessability and discovery are the key drivers for mass user adoption – and this what all social media lives of (apart, perhaps of the institution of marriage, which seemingly works best in micro-communities of 2), so why do they not tackle this bit more aggressively? The answer might be that, whilst they realize that mobile is a major contributor to their value-add when compared to other web apps, they are not actually mobile companies; they are web companies.
The idea of utilising the power of web 2.0 and its wealth of widgets and applets contributed by a gazillion of independent developers and fan boys might all be very well but it slows adoption: Facebook apps only became successful after Facebook itself was such a huge community, they did not drive that growth (although they now arguably contribute significantly). Therefore, it would seem to me, it would be required that the originators/owners of those networks contribute more energy and resource into optimizing the user interfaces to use the actual service before falling back on third-party add-ons. Alas, it is impossible to find a Google widget (for iGoogle or Google Desktop) even for Jaiku, which Google acquired. Tellingly, the only available widget was produced by fans… There’s quite a bit to be done, I think…
And here’s a somewhat disappointing mobile debut: business network superstars LinkedIn announced the launch of their (beta) mobile “application”. However, the app is a mere WAP site with, alas, all the downsides of that: latency, onerous navigation and the whole info from the website only toned down in graphical appeal.
Now, whilst I am big fan of LinkedIn, this is sub-par. Have a look at what Facebook did for the Blackberry: a small downloadable app (yes, I know, it’s painful but probably for the time being the only way to enhance the user experience on mobile), information reduced to the key things one might want when accessing this from a mobile device and then the option (sic!) to access the full monty via WAP. The one piece of information I couldn’t access on the LinkedIn WAP site was the contact info. Hmm. Wouldn’t that arguably one of the key pieces of information I would want to have when I’m on the road (“well, I’m in London. Why don’t I drop John Doe a line. Don’t have him in my address book as we haven’t spoken in a while but we’re still ‘linkedIn’. Doesn’t work. Doh!”).
With all due respect, dear LinkedIn friends, you’ve got work to do!
It’s been the buzz for some time but no one had, with few exceptions, been seeing too much of it but now it seems to start taking off: cross-platform convergence of games. It is a bit of a holy grail: the network operators (or carriers) are not always the most creative and daring bunch when it comes to trying things out and they take a very healthy cut of the revenues from a tough, fragmented and still relatively small market. No wonder then that a lot of people are praying for alternative solutions. But, alas, it never really worked: every games publisher will tell you that, other than for music, wallpapers, etc, the direct-to-consumer model never really worked for games; the operators dominate the space as the, by far, most important distribution channels.
This could be, one thinks, overcome when more users would actually get themselves familiar with the games in a less constrained environment, the web being an immediate answer. Many have tried, many have failed (even the superstars of mobile games, Gameloft, stopped their in-house offering). But, hey, maybe it was just the wrong approach. Trip Hawkins‘ brainchild Digital Chocolate showed with their approach to their award-winning game TowerBloxx how it can also be done: they created a Facebook app and an online Flash version of the game that have been roaring successes: allegdely, the Flash game saw more than 10 million plays to date and the Facebook app has had 430,000 lifetime users. For a property that sprung from mobile, these are very respectable numbers indeed. And whilst I have no idea if it actually helped selling more games (300,000 clicked the “buy now” button but, for some odd reason, they don’t know how many actually bought it), it will have played its part to keeping the game in the front of people’s minds – and that’s half the work done, isn’t it?
Other players are onto it, too: online gaming giant Oberon Media bought mobile publisher I-Play last year in order to offer a more comprehensive line-up across media boundaries. Real is doing similar things. It is probably only a question of time before EA connects its pogo.com online destination with its mobile titles. I also know of quite a few smaller developers that start to very actively incorporate the multi-platform into their game design and development considerations. Very encouraging, that is!
And it makes so much sense of course: handsets get more and more powerful, the garden walles gardens start to come down with flat-rate data plans for mobiles becoming more and more the rule: all in all, a perfect runway for the ascent of convergent media consumption.
Now let’s add (mobile) Flash to the equation, and things could become very interesting indeed… (and, yes, I know, we may not yet have the install base but it’s getting there…)
A nice piece of rumour was brought out by the fine folks at MoCoNews: allegedly Nokia is in talks with Facebook to cooperate on mobile. And if this was not enough, there is also talk about the mighty Finns taking an investment in Facebook, and this would arguably be somewhat more significant (in cash terms at least) than the $10m stake the Samwer brothers of Jamba-fame acquired last week.
MoCoNews speculates that this could involve something as prominent as the YouTube button on the iPhone. This of course would appear to be a challenge given that most carriers will determine themselves what is and what is not on the handsets that are being sold through their retail outlets. But then Nokia has recently made strides on that front recently (as will be shown below).
A move with Facebook would fit in seamlessly with Nokia’s evolving strategy towards providing entertainment services rather than only being a hardware vendor (albeit the world’s largest by far with a whopping 38% market share globally): 2007 marked a year were Nokia acquired a number of companies and announced a number of initiatives and products that push the company way further down the service provision end than ever before: it acquired digital map specialist Navteq (Finland’s largest acquisition ever), bought the mobile marketing and advertising folks from Enpocket, it struck a content deal with Telefonica and another one with Vodafone, all gearing towards its comprehensive content offering Ovi (see here).
Anssi Vanjoki, Nokia’s multimedia guru, went on record in saying that the Internet will be the tool that will tear down the carriers’ walled gardens. He continues to preach his ongoing theme (I heard about this the first time 2 years or so ago) that carriers are no entertainment companies and should therefore not fiddle with content. That might well be true, I guess. Now, if it comes to the Internet opening those walls, well, Facebook ranks #7 on the Alexa traffic charts. And, distinct to the (few) higher-ranked sites, Facebook’s clean set-up and approach would seemingly make a conversion to (higher-end) mobile handsets easier than with, say, MySpace (#6).
Finally, Nokia tried to coin the phrase of “circular entertainment” (I blogged about it here where I mocked their “survey” approach) where they hold that, by 2012, 25% of all media would be created and consumed from within a circle of peers rather than from traditional media. If or if not the numbers were correct, the concept is very convincing (read e.g. Jaiku-founder Jyri Engstrom‘s rather insightful thoughts on object-centered sociality). Enter Facebook… ‘Nuff said, I guess…
What a title, huh? Following the hype on the Internet with Facebook, MySpace, Bebo and all the others, social networks started to see traction on mobile, too. Jaiku (acquired by Google) showed the way. Twitter‘s next move is waiting to happen. Plazes is waiting in the wings. And then there are all the others still flying under the radar (or, in Silicon Valley speak, operating in stealth mode). These would include people like French Mobiluck and German student-come-entrepreneurs from aka-aki. There is also Finnish venture Ironstar Helsinki whose MoiPal combines mobile, social networks and games.
Most of these companies attempt a rather wonderful thing, namely to bring the networks back into the real world by combining it with location-based (or should one better say: location-sensitive) components. Mobiluck scored early successes with a Bluetooth application that scans the immediate vicinity for other users; think Saudi girls quite literally under wraps having the opportunity to contact that OMG guy on the other side of the club… Mobiluck tells us they scored more than 750,000 downloads of their application, and all with the most basic of seed funding and without marketing. Impressive!
Unfortunately, very little is being published about the actual success of these initiatives. Facebook got some coverage over the release of their Blackberry client, Jaiku more or less went silent since the acquisition by Google (probably working hard to integrate with other Google goodies), Mobiluck and aka-aki is in closed betas, MoiPal continues to grow its proposition but doesn’t engage in much PR so far either (some coverage here though). Twitter seems to get their heads down and work (a brief evangelizing piece in the Guardian was about it). Plazes holds a “camp” in Berlin later this month to develop its propositions further but doesn’t tell us much more either…
On a strategic level, it may be expected that a couple of online and other media players without a footprint in the space might feel inclined to gobble up some of these guys: if Google leads the way (as they do with Jaiku), others may feel compelled to follow. So where’s the big thing?
Social networks are about interaction. Facebook started to gain traction because US college students had an opportunity to organize their social lives. In the US, the relative penetration of broadband is high, whilst advanced mobile use may have to catch up with some European (and Asian) countries. However, the links always are somewhere in the real world, and mobile phones offer the opportunity to actually link back to some real-world beacons, a simple yet incredibly powerful one being location (isn’t it so much more exciting to liaise with that hot someone if you know that he/she is within a couple of hundred yards from where you are?). Your mobile is always in your pocket (yes, check now), and it carries the inherent possibility to identify your geographical location right now. Simple, huh? However, simplicity requires that speed, ease of use and reliability of the service are a given. They are the match points – next to absolute reach of course.
The integration of currently existing tools, most prominently IM, is a given here, and most of the companies mentioned above provide for integration of MSN Messenger (or Windows Live Messenger as it is now known) already. And this makes a lot of sense as it is a convenient and now incredibly established way of communication between friends. The integration of IM into mobile social networks also promotes the convergence of the Internet as it is (or was?) known and mobile devices. People who use IM are normally always online whenever they are on their computers. Extending it to mobile is quite literally a no-brainer and moreover the easiest gate of entry: it is nothing new to users, and it adds a lot of convenience to mobile users.
Technically, triangulation (using signal strength with base stations) seemed to have been the game initially. However, as this was too tough to do (deep integration with every carrier, and for rather sensitive data), everyone from early leaders (remember ZagMe?) all the way to Jaiku, Twitter, etc relied and relies on the crudest of things, namely SMS. Facebook has a rudimentary WAP site and a rather cool Blackberry app but then? Mobiluck uses a combination: WAP site, web access plus Bluetooth (a downloadable app using the handsets’ Bluetooth functionality). This is promising as it utilizes handset-based features, which does away with long-winding negotiations with every carrier and a much easier available dataset of location data. Now, does it also experiment with a deeper integration with everyone’s new favourite feature, namely GPS (see here for the latest on the hype)? Let’s hope so! And let’s also hope that this will be only step 1 of many to make social networks truly social again — by interacting with real people in real life contexts.