comparison of-leading-sns

New business modelsin online communitiesBenjamin JoffeManaging Director | Plus Eight Star Ltd

Innovation in Asia?

General assumption #1

Everything from USA is great

General assumption #2

Everything from Asia is weird(and sometimes funny)

Japanese like texting on mobile

Anonymous manager at a telecom company in 2000

Because they have small fingers

Asians like avatars

Anonymous manager at an Internet company in 2005

Because they read mangas and watch animes

Chinese like ring-back tones

Anonymous manager at a foreign media company in 2006

Because they go to karaoke a lot

Giving the

wrong explanationto the

right question

Not­invented­here

spiralof oblivion

Make fun

Stereotype

Re-invent

Adopt

Self-evident

Oblivion

Why look at Asia?

1Because some Asian markets

are strategically important

#2 economy

#1 population

#1 digital society

Broadband connections in Japan and Korea are up to 10 times faster than the OECD average.

OECD Report, July 2007

Japan also had the lowest relative monthly broadband charges/Mbps

Consequence #1Internet penetration and

speed

Consequence #2Internet literacy

2Because some great ideas

have already been

proven there

2002

2005

2005

1999 2003+

How about those concepts?

Meta-bloggingContent scrapping

Trust-based information sharingPersonal Resource Planning (PRP)

Quiz

Alexa School of Investment

Global China Japan South Korea1 Yahoo!

2 Google

3 YouTube

4 MSN

5 Windows Live

6 MySpace

7 Facebook

8 Wikipedia

9 Hi5

10 Orkut

Global China Japan South Korea1 Yahoo! Yahoo Japan

2 Google Yahoo

3 YouTube Google Japan

4 MSN Google YouTube

5 Windows Live

6 MySpace Google

7 Facebook YouTube

8 Wikipedia

9 Hi5 Yahoo Wikipedia

10 Orkut

Global China Japan South Korea1 Yahoo! Baidu Yahoo Japan Naver

2 Google QQ FC2 Yahoo

3 YouTube Sina Google Japan Daum

4 MSN Google YouTube Cyworld

5 Windows Live Netease Mixi Nate

6 MySpace Taobao Rakuten Google

7 Facebook Sohu Nicovideo YouTube

8 Wikipedia Tom Livedoor Empas

9 Hi5 Yahoo Wikipedia Gmarket

10 Orkut 56.com Goo Auction

Global China Japan South Korea1 Yahoo! Baidu Yahoo Japan Naver

2 Google QQ FC2 Yahoo

3 YouTube Sina Google Japan Daum

4 MSN Google YouTube Cyworld

5 Windows Live Netease Mixi Nate

6 MySpace Taobao Rakuten Google

7 Facebook Sohu Nicovideo YouTube

8 Wikipedia Tom Livedoor Empas

9 Hi5 Yahoo Wikipedia Gmarket

10 Orkut 56.com Goo Auction

SNS are a new media

Genetics of SNS

ParametersThese figures reflect user’s various statistics

[Neighbors]View this person’s 

neighbors

Emotional status

- Content copies (scrapping)- Registered number as a

favorite

Updated contents

VisitorsToday / Total

Personal URL/ Add to my favorite

My photo

Comment

Name & Gender

[Main menu]Configured by

user

[Mini-room]Cyber residence of user

Music PlayerBought by user

Comment by neighbors

SkinPurchase new skins for a coordinated background,

icons, etc.

QQ buddy list

Online status

Online disk

Wireless service

Mini portalMusic

Game

Interaction

Panel adminMaking friends

E-magazineC2C e-commerce

Stock info

SMS

Tencent browser

Chat roomsQQ Pet

IPTVHistory

Search

Main menu

Address listGroup list

Last contacts

Q Bi: cyber $Secretary

E-mail

Voice/VideoFile transfer

SMS/MMSGame/Music

Multi-person chat

Input area

Cathy’s QQ ShowChatting with Cathy

Friend name: Cathy

Weather

My QQ Show

Cathy’s QQ Zone

Take a group photo with Cathy’s QQ Show

Ad

Active emotionEmotion

Font

Send pic Screen shootBackground

MetricsPageviews

Number of usersRevenues

SocialNetwork

DNA

Starting date

2004 1999 2004 1997

Active accounts

60 mln 20 mln 14 mln 300 mln

Reach (Internet users)

200 mln? 35 mln 90 mln 200 mln!

Revenues 2007 (USD)

150 mln {200 mln}100 mln 520 mln

Operating Profit 2007 (USD)

(50 mln) {100 mln} 35 mln 224 mln

Valuation (USD)

MSSE15 bln? n.a.

TSE1.8 bln

HKSE11 bln

?

Main business models

Ads Ads

Digital goods Digital goods

Games

Mobile VAS

Jobs

(Ads) (Ads)

Mobile VAS

(Digital goods)

Ads or Digital goods?

1. Who is the client?

2. Not incompatible

3. There is more!

Other business models

Targeted AdsStorageMonthly feePersonalizationAlerts…

Key features

Invitation systemClosed/Open/Semi-closedSticky featuresPayment solutionsMobileOnline/Offline connection

Social design

FocusValues

AtmosphereDemographics

Psychological design

Identity / IdentitiesTrust

The missing blocks

1Payment infrastructure

2Trust system

3New value chains

To remember

1Are you the target?

2Resist the temptation

to stereotype

3Look for concepts

Adapt the rest

Thanks!

benjamin@plus8star.com

Inside Cyworld

Inside QQ

Published research

Free sample | www.plus8star.com