Beyond Facebook Gifts: Virtual Currencies 101

Reposted from Mashable

Anu Shukla is the Founder and CEO of Offerpal Media, the leading monetization solution for social applications and online communities.

The word on the street is that social networks, as popular as they are, can't make any real money. After all, who's going to click on an ad while they're in the midst of socializing with their friends?

While there's a grain of truth to this rumor, it's fast becoming an out-of-date perception. What's changed? A new economy based on social web properties that use virtual currency to capture users' imaginations.

By creating a demand for premium content such as virtual gifts or upgraded features, savvy social publishers are finding that at least a portion of their users will gladly fork over real cash in order to pay for, say, a pretend peony on (Lil) Green Patch or to buy the latest toys for their virtual babies on Make A Baby. Even better, plenty are willing to wade into the world of online surveys and advertising offers in exchange for these "must have" items in their games.

Though no one knows yet the exact size or potential of the market for virtual goods and services, conservative estimates put it at over $2 billion for this year alone. Not bad for a marketplace that barely existed a couple years ago. Even better, all signs indicate that the growth is just beginning.

As more and more social web publishers catch on to virtual currency as an incredibly effective way to not only monetize their traffic but also engage and motivate their users, the trend will only pick up steam. And as advertisers understand the channel better and realize that it is ideal for both performance-based campaigns as well as branding efforts, don't be surprised if virtual currency becomes the most sought-after ad channel on the web.

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What is virtual currency?
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Virtual currency, as you might imagine, is what you use to buy virtual goods or virtual services. It is essentially as good as real currency. The only difference is that it only applies within the realm in which it was issued. This currency has all kinds of names in the online world: it may be called "bucks," "coins," "points," "dollars," "tokens," "jewels," "rewards," "chips," "treats," "vouchers," "boosts," or "credits" (all of which we've seen), but whatever their name, virtual currencies have a definite value and can be redeemed in a number of ways.

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What are virtual goods and services?
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Ever noticed the little gift icons on Facebook lately that urge you to send a present to a friend? Virtual gifting is a reportedly $50 - $60 million a year business for the company, and that doesn't include any of the gifting that takes place on third party applications. But beyond Facebook's own virtual gifting, it's also built into a number of applications, offering revenue opportunities for the developers of these games.

Virtual worlds and avatar-based communities have been charging people for decorative types of goods like fancy upgrades for their avatars or special backgrounds for their profile pages for some time now. At WeeWorld, for example, where you can create your own personalized WeeMee and take it with you around the web, you can spend WeePoints to pimp out your avatar with just the right hair, right clothes and right accessories.

Virtual goods can also be more functional than decorative, such as the case when virtual currency is redeemed to unlock hidden features or advance within a gaming scenario. This type of virtual good is especially prevalent in MMOGs or other types of social games. For example, at Mobsters, the number one app on MySpace, users can redeem virtual currency to help them grow their mob and level up faster towards the top of this underground world.

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How is virtual currency earned?
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We've already mentioned that virtual currency can be earned by either buying it with real currency or by taking part in ads, but there are several other ways that publishers can allow their users to earn virtual currency. One is by inviting other people to the property, a tactic that also encourages viral success and growth. Another way is by simply coming back and logging in every day, which helps increase stickiness and loyalty. And yet another way is by rewarding them for completing certain tasks or quests, thereby helping build engagement and activity.

But the most monetizable way to let users earn virtual currency, by far, is for completing ad offers.

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How can advertisers tap into virtual economies?
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As advertisers know only too well, so-called "banner blindness" has become an increasing fact of life, but especially so on social networks. Wise application developers know to integrate advertising offers into their app in a way that contributes to, rather than distracts from, the overall user experience.

For example, participants in the (Lil) Green Patch application need what are called "GreenBucks" in order to choose the types of plants they want to send to friends. By signing up for Blockbuster, for example, or by participating in any number of advertising offers such as completing surveys, requesting insurance quotes, downloading ringtones, etc., they can get a hold of that foxglove they planned to give to their aunt Agatha, or a lily they hoped would brighten the day of a friend.

By tapping into the user's social activities and motivations—in this case, sending a virtual gift—advertisers' offers essentially provide the fuel that enables consumers to interact with each other within an application. The key to success, from the advertiser's point of view, is using all of the juicy demographic and behavioral data on hand in order to target their audience strategically. Do that, and they will generate new customers far more effectively than through any other channel.

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Anu Shukla is the Founder and CEO of Offerpal Media, the leading monetization solution for social applications and online communities. A serial entrepreneur, Anu is also the founder of Mybuys Inc., a venture-backed company in the eCommerce personalization market. Prior to Mybuys, Anu pioneered the category of Internet Marketing Automation as founder and CEO of Rubric, Inc. Rubric was acquired in 2000 for $366 million. Prior to Rubric, Anu held a variety of executive roles including Vice President of Worldwide Marketing and Product Management at Compuware/Uniface Corporation (CPWR).

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NetDragon Announces "Disney Fantasy Online" [Netease]

Reposted from Kotaku

It's been one hell of a week for Chinese company NetDragon, who announced (along with EA) the development of a Dungeon Keeper MMO. In addition, they've announced the development of Disney Fantasy Online.

The game is to be launched in China in Spring '09; full release after the jump.

NetDragon and Disney to launch first MMORPG "Disney Fantasy Online"

[2 December 2008, Hong Kong] NetDragon Websoft Inc.("NetDragon" or the "Company", and its subsidiaries collectively called the "Group"; Stock Code: 777), one of the leading online game developers and operators in China, together with The Walt Disney Company's Interactive Media Group today announced their first Massively Multiplayer Online Role Playing Game (MMORPG) "Disney Fantasy Online" will be launched in Spring 2009. This fun and dynamic game is set to be the most highly anticipated game for the season.

Gamers of "Disney Fantasy Online" are immersed in a uniquely Disney-themed central world, created based on themes of magic, adventure and romance with non-playing Disney character hosts such as Mickey and Friends, preparing and training the gamers for the vast adventures that lie ahead. As gamers explore, complete quests, and level-up, they have the opportunity to acquire virtual items to personalize the gaming experience and enable them to explore additional worlds more extensively. Expansion packs with new adventures and maps will be constantly added to the game, providing endless opportunities for gamers to uncover new content and secrets.

"Disney is committed to providing gamers in China with the ultimate digital entertainment destination. Our characters and stories endure across generations, platforms and now immersive online experiences," said Mr. Stanley Cheung, Executive Vice President and Managing Director, Walt Disney Greater China. "We are very pleased to be cooperating with NetDragon, to create a unique, fun, and brand-new entertainment experience for gamers".

Key game features include:
Gamers will explore vast fantastic lands, and can show off their skills in turn-based battle mode
Fully customizable player avatars, premium accessories, and other in-game items
Players will be able to "raise" Disney-themed companions or "Pets" throughout the game. Companions can be won, purchased, and/or discovered and will have various attributes that enhance the gaming experience. Companions are expected to be nurtured and will grow and mature through game play
Players can build their virtual castles within the game world, which will act as the player's virtual personal space. These virtual castles can be upgraded, assembled, traded, and shared
Leveling-up, team-play, raising companions, and building virtual castles provide endless gameplay and community activities
NetDragon, renowned for its leadership in online gaming development and operating experience, is responsible for developing "Disney Fantasy Online". The Game consists of many virtual worlds based on some of Disney's most famous stories, providing an exciting environment for endless adventure.

Mr. Liu Luyuan, Chief Executive Officer and Executive Director of NetDragon said "We have 9 years of rich experience in online game development, and operations in multiple international markets. Creating and sharing great entertainment experiences are common objectives of NetDragon and Disney. I'm very excited about being able to work with Disney's rich content to develop this exciting game".

"We assigned the best creative and production teams to this project and the end result is the creation of a totally unique gaming experience around unique stories that will delight gamers," said Mr. Liu Luyuan.

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Petroglyph Takes Strategy Online With Mytheon [Mytheon]

Reposted from Kotaku

Real-time strategy developer Petroglyph and True Games have just announced Mytheon, which promises to combine the best elements of action, strategy, and RPG gameplay into one massive online game.

Mytheon is an online game that lets players explore a fantasy universe based on real-world mythology, beginning with ancient Greece and expanding into other mythologies via planned expansions. The game will feature real-time combat, extensive PVP, and a collectible element in the form of Power Stones, which players can gather and customize to cast spells or summon minions. The game will be free to play, supported by micro-transactions.

And that's really as much as we know so far. The release goes on and on about how they are creating an entirely new genre, so I suppose being vague can't be helped. It's like trying to describe a flavor no one has tasted before. Hit the jump for the official release.

TRUE GAMES AND PETROGLYPH ANNOUNCE MYTHEON - AN INNOVATIVE NEW ONLINE ACTION STRATEGY GAME

Mytheon Breaks New Ground, Combining Action-Strategy and Role-Playing Into an Online Micro Transaction Game

ORANGE COUNTY, Calif., (December 2, 2008) - True Games Interactive, an international multi-player online game publisher, in conjunction with renowned game developer, Petroglyph, today announced their new online action strategy game, Mytheon. Developed by the team best known for the award winning Star Wars: Empire At War and Universe at War real-time strategy games, Mytheon is Petroglyph's first online micro-transaction game. Several members of this prestigious developer also played a key role in creating the original Command and Conquer series while at Westwood Studios. Mytheon will launch in Fall 2009. For more information, and to register for news updates on the game, visit www.Mytheongame.com.

Mytheon is an online micro transaction game that uniquely combines the best elements of action, strategy and RPG game-play with a heavy emphasis on collectability and combat. This visually stunning title is set within a fantasy universe steeped in unique mythologies from across the globe. Players will first embark on a rousing journey through the extensive lore of ancient Greece; with ongoing expansions to follow that will delve into exotic mythologies from the far-flung corners of history. With real-time combat and extensive customization features, Mytheon will offer infinite replayability through group, PVP and solo play as well as an integrated social networking feature set.

"There really isn't a game on the market today that someone could compare to Mytheon," said Jeff Lujan, Founder and Chairman of True Games Interactive. "The game truly creates an entirely new genre offering a combination of features that gamers would normally have to play several different games to get. There is no doubt it is an ambitious project, but Petroglyph has routinely delivered AAA quality, genre-defining games and Mytheon continues that pedigree."

In the game, players will collect and customize a vast assortment of "Power Stones" which are used to conjure devastating spells and summon faithful minions in climactic battles against monsters and other players. Mytheon will offer three distinct character classes, each specializing in a specific "Power Stone" type, such as summoning or healing.

"The passion and energy behind Mytheon has been tremendous at Petroglyph. This is exciting new territory for Petroglyph to explore" said Chuck Kroegel, CEO and General Manager of Petroglyph. "We are making a compelling and addictive new genre that will have you fully immersed and entertained. We couldn't have asked for a better partner than True Games to take this journey with us and I'm certain that together we'll deliver a long-lasting new franchise."

For additional details on Mytheon and for continuous updates on the game, please visit: http://www.Mytheongame.com

http://feeds.gawker.com/~r/kotaku/full/~3/_uLqTSFdNms/petroglyph-takes-strategy-online-with-mytheon

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Joystiq interview: NCsoft talks about updating City of Heroes, keeping it relevant

Reposted from Joystiq

It's been more than four years since MMO faithful were asked to put on skin-tight suits and defend the bustling metropolis of Paragon City in City of Heroes. Since that time, however, numerous other titles have emerged with their bid for players' massively multiplayer affections, from recent efforts like Warhammer Online to the juggernaut that is Blizzard's World of Warcraft.

Of course, the now wholly NCsoft-owned super powered MMO has released updates of its own to keep from becoming stale, including everything from the libertine City of Villains to this week's latest addition, dubbed Issue 13. We recently caged Matt "Positron" Miller, and spoke to the senior designer for NCsoft NorCal at length about the unluckily numbered update, as well as a number of other topics, including the availability of City of Heroes on the Mac and the superhero MMO's relevancy in today's overcrowded market.

Joystiq interview: NCsoft talks about updating City of Heroes, keeping it relevant originally appeared on Joystiq on Mon, 01 Dec 2008 14:30:00 EST. Please see our terms for use of feeds.

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