Posts Tagged ‘virtual gift’

Little World Gifts partners with WWF – location based virtual gifting

Tuesday, March 2nd, 2010

Liverpool, UK based mobile virtual gifting startup Little World Gifts has announced it’s partnership with global animal and wildlife charity the WWF (UK). And while signing a charity of this magnitude is certainly a score for any organization, it’s what Little World Gifts has in mind with the partnership that makes things particularly interesting.

little world giftsLittle World Gifts will soon be adding three WWF branded items to it’s inventory. A virtual replica of the WWF’s ‘iconic’ panda logo will take a seat as a virtual collectable box, as well as a ‘wooden tiger toy’ and an animated Adelie penguin. These virtual gifts are slated to run between $3.99 and $4.99, and may be purchased using Apple’s microtransaction mechanism. Little World Gifts reports that 36 percent of the revenue generated will go directly to the WWF.

Now if $3.99 – $4.99 sounds a bit steep, you’re not alone. To me, a virtual gift, even if a portion of the proceeds are going to charity, priced at $4-$5 is not exactly igniting that ‘impulse buy’ factor some microtransactions rely upon. Part of this may have to do with the now increased revenue split – Apple (as with all it’s apps) will take a 30 percent cut, and then Little World Gifts and the WWF will split the remaining revenue, with Little World Gifts taking 1 percent less (34 percent) and the WWF gaining 36 percent.

Coming soon to the company’s iPhone app, users will be prompted to receive, as well as purchase of course, virtual gifts. Ok, nothing particularly ground breaking here…until you add the iPhone’s GPS functionality to the mix. Users will be able to send and receive virtual gifts based on their location. Hmmm…virtual gifts based on location…ringing any bells yet? Well, if you’re a user of Foursquare or Gowalla this should sound remarkably similar.

mzl.htejstnz.480x480-75This kind of virtual gifting very well may have tremendous potential. Instead of picking up a handful of postcards with images shot years ago, a visitor to Vienna, for example, might be able to pick up a virtual Riesenrad, or a Tour Eiffel in Paris. They could then keep this virtual souvenir, or send it as a gift (a “Wish You Were Here”, if you will) to a friend or family member back stateside.

Likewise, the potential remains for advertisers, i.e. visit xyz coffeshop, and have a virtual (branded) gift be pushed to your phone if you’re using Little World Gift’s application.

According to Little World Gifts, social networking (read:Facebook) integration is in the works, and will appear later this year. Particularly good news to Little World Gifts was Facebook’s recent announcement that they plan on making implementing microtransactions easier for developers.

Little World Gifts is a 6 person operating out of Liverpool, UK, and has received seed funding from Northwest Vision and Media’s Regional Attractive Fund, and are currently pursuing a Series A round of funding.

 

New Study: Women competitive, social, brand engaged, loyal casual gamers

Wednesday, November 11th, 2009

There was a time when the term ‘gamer’ held a certain negative connotation to it. Past studies have shown that this once held preconception is vastly different today. With the advent and popularity surrounding casual gaming, the gaming landscape has changed dramatically. Just how dramatically? A new report released by Q Interactive and Social Media World Forum has found that female gamers are highly engaged with brands and virtual currency consumption.

QinteractiveWhile the sample size is still relatively small, approximately 2000, the results are enough to make any marketer or developer of casual games jump for joy. The study found that female gamers are passionate and competitive about Green Patches and Happy Aquariums, and often stock up on virtual currency. The study also found that women are highly engaged in branded virtual goods, and are much more likely to acquire virtual currencies through winning more, or accepting a branded offer, as opposed to paying for it with “real world” money.

“As brands seek relevant and natural ways to shake hands with women via social media, the gaming and application marketplace holds tremendous potential to integrate in a consumer-friendly, meaningful way,” said Matt Wise, President, Q Interactive. “Women seek a partner to support their entertainment, which is exceptionally important given their busy lives.”

A closer look at female gamers

  • 85 percent of those surveyed use five or less games and/or apps regularly, indicating an inclination to be loyal to a handful of favorites; approximately 15 percent regularly invest in six or more games/apps at a time
  • More than half (57 percent) are earning/spending virtual currency daily
  • Introduction to new games and apps rest heavily on word-of-mouth: Nearly three-quarters (74 percent) got involved in a game or app due to “a recommendation” by family or friend or because they “noticed a friend or family member’s score”
  • 95 percent utilize virtual currency primarily to “gift” and/or advance games
  • In interacting with games and apps, 57 percent feel virtual gifting – for example, giving a bag of virtual makeup from Sephora – is as meaningful as real life gifting

How Brands and female gamers interact

  • All but six percent (97 percent) of women prefer to earn virtual currency through either winning more or accepting a branded offer – versus paying for it with “real” money
  • While they game and app quite regularly, only one in ten women have actually used “real” money to purchase virtual currency; of that, 85 percent have spent under $100 in their gaming and aping activities – ever
  • Of women who have signed up for branded offers to get more virtual currency, 67 percent found the offer useful
  • 37 percent of those women chose the branded offers based on “content”; 17 percent went for offers with free products or services

“Applications and games are quickly becoming part of everyone’s daily lives,” said Ian Johnson, Director, Social Media World Forum. “This provides a terrific opportunity for brands to serve as a trusted, valued partner to them. By having a presence in the game and app space, brands get the benefit of reaching an influential consumer set. With the support of brands, advance in games and apps and we’re finding also get information from brands they value.”

 

Facebook’s 2008 virtual goods sales between $30M-$40M

Monday, January 12th, 2009

Back in September, Insidefacebook.com revealed that Facebook has brought home somewhere in the neighborhood of 30-40 million pounds of bacon.  If this wasn’t a good enough sign for the virtual goods world, it looks like Facebook is now on target to get even more cupcakes and wrapped presents trading on the platform.

Facebook is starting to eyeball all those birthdays happening across the site as potential virtual gift sales, and is gearing up to make sure those options appear before friends eyes.  It breaks down like so; when facebook friends visit your page on your birthday, the facebook gifts application does an auto launch and presents you with a wide variety of virtual gifts to send to the birthday boy/girl.  Each of these virtual gifts costs around 100 credits, or approximately $1.

Not a bad plan, and hey, who can fault fb for offering a service, and turning a decent profit at the same time?  Certainly not me…until they flub the interface.  The Industry Standard reports that users have been a bit confused as to the new feature.  Upon visiting a friend’s page on their birthday, instead of being able to leave a ‘Happy Birthday’ message straight to the friends’ wall, facebook automatically defaults to the gifts tab.  Trying to post birthday greets results in a pop-up stating that the user must select a gift (see below).  D’oh.  Naturally, users can click away from this tab to close the gift app and then click back to the wall to leave their birthday greetings, but it does seem a bit dubious to the unschooled user of facebook.

No doubt, if this birthday pilot program goes well for facebook, we’ll surely be seeing a heckuva lot more virtual gifting options during holiday and special events (send Pete a handful of bottle rockets?).

Now here’s where things get really interesting.  You might remember that we reported on facebook’s apparent shelving of a platform-wide microtransaction system.  With $30M-$40M of real world cash circulating through the platform, facebook is obviously a very valid mechanism for hundreds of developers to monetize their applications – what gives fb?  Is this a blatant snub to 3rd party developers, as they’ll certainly have a harder uphill climb selling their wares if each app requires a different form of currency?  Granted, Facebook has not officially said that the microtransactions platform is done and dusted, so perhaps they’re just brewing up something mind blowing in a sub terrainian bunker?  Guess we’ll have to wait and see…

 

MySpace to release microtransaction platform – perhaps beating facebook to the punch

Sunday, November 9th, 2008

MySpace COO Amit Kapur revealed at last week’s Web 2.0 Summit that MySpace is indeed working on it’s own microtransaction monetization platform.  Given the current state of advertising rates and associated revenue generation, both developers and social networking platforms are looking for a new way to monetize.  A casual glance at the gaming industry makes this a no brainer for Kapur and Zuckerberg.

While Facebook has it’s own virtual gifts system in place, they’ve yet to open it to developers (although 3rd party developers currently power a massive slice of facebook’s virtual gift economy).

We’ve already seen proof that the second a social network begins charging for an application or virtual gift, usage drops.  However, the overall value of the app is in direct correlation to the number of people using it (and their friends, and their friends of friends using the app).  Obviously, a high profile, well-developed application or virtual gift with a large number of users, will fair well in a microtransaction economy, and hopefully lead to elevating the entire industry.

Whether Facebook and/or MySpace users are already used to, or have already used some form of microtransaction is up for debate, but given the overall general demographics of both platforms, I’d be willing to make the bet that 75-80 percent of these users have made an iTunes song or iPhone application purchase within the last 12 months.

If either MySpace or Facebook manage to get their microtransaction payment systems houses in order, they could be set to revolutionize not only the social networking platform, but also the microtransaction industry as a whole.  This development has a number of positives for the free-to-play; microtransaction based gaming economy as well, thereby predisposing a much larger audience to the concept.  Exposure leads to understanding.  Understanding leads to acceptance.  Acceptance leads to interest.  Interest ultimately leads to development and creation of better and better products.

Oh and MySpace and/or Facebook…if you’re listening…fatfoogoo has already been down this road, and we’re here to help.  Zuckerberg and Kapur…call me.

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