South America 2008: Open Social For Brand Advertising and Media

OpenSocial is Open for BusinessOpenSocial South America Tour 2008

Google APIs Evangelist: Patrick Chanezon

Paris - San FranciscoAPI Evangelist - OpenSocialCheckout, AdWordsSoftware plumberJava geek… in scripting rehab: Ruby, JavaScript, PHP, PythonOpen Source: ROME, AdWords (Java, C#, Ruby)Sun: Blogs, Portals, eCommerceNetscape/AOL: LDAP, Calendar, App Servers, CMS, MyNetscape (RSS)More on my blog http://wordpress.chanezon.com

Links and slides at http://del.icio.us/chanezon/

Google APIs

Why are we doing do it?Our mission: “Organize the world’s information and make it universally accessible and useful”

We can’t organize it all ourselves14 Google APIs on http://code.google.com… and counting!

Google Data API

Calendar API

Maps APIAdWords APIBlogger APIData APIsDesktop SDKEarth (KML)

Enterprise APIs Homepage APIRelated LinksSitemapsTalk (XMPP)Toolbar APIWeb Search API

(Circa November 2006, Mainz)

Google APIs


We can’t organize it all ourselves32 Google APIs on http://code.google.com… and counting!

Checkout APIData API

8 servicesMaps APIAdWords APIAjax Search APIAjax Feed APIDesktop SDK

Enterprise APIs Homepage APIYouTube APISitemapsTalk (XMPP)Toolbar APIGoogle Web Toolkit…

(Circa May 2007, Buenos Aires)

Google APIs


We can’t organize it all ourselves37 Google APIs on http://code.google.com/apis… and counting!

Checkout APIData API

8 servicesMaps APIAdWords APIAjax Search APIAjax Feed APIDesktop SDK

Enterprise APIs Homepage APIYouTube APISitemapsTalk (XMPP)Toolbar APIGoogle Web Toolkit…

(Circa September 2007, San Francisco)

Google APIs Today (Circa April 2008, Redwood City)

wget http://code.google.com/more/ -q -O - | grep products-short-desc | wc -l55

Including 3 Platforms

Why are we doing do it?Our mission (it has not changed): “Organize the world’s information and make it universally accessible and useful”

We can’t organize it all ourselvesN Google APIs on http://code.google.com/apis… and counting!Let’s script it so that I can reuse this slide

Making the web betterby making it social

Why?

What does Social mean?

Eliette what do you do with your friends?

This work by Eliette Chanezon is licensed under a Creative Commons Attribution-Share Alike 3.0 License

Raoul: a social object for Charlotte (3 year old)

Jaiku’s Jyri Engeström's 5 rules for social networks: social objects

1. What is your object?2. What are your verbs?3. How can people share the objects? 4. What is the gift in the invitation?5. Are you charging the publishers or the spectators?http://tinyurl.com/yus8gw

How do we socialize objects online

without having to create yet another social network?

Brands are Social Objects

Borges on Walled Gardens

"To enclose an orchard or a garden is common, but not an empire"About Chinese emperor Shih Huang Ti and the great Wall of ChinaJorge Luis Borges, "The Wall and the Books", Selected Non Fictions

Google APIs Guide: Hal Varian

OpenSocial is a straightforward application of chapters 8 and 9 of his 1998 book "Information Rules"“Standards change competition for a market to competition within a market”

Network EffectsLock-In and Switching CostsStandards

OpenSocial

A common open set of APIs for building social applications across

multiple sites

Standards-based

html+javascript

Open: OpenSocial Foundation

OpenSocial Foundationhttp://opensocial.org/Keep the specification Open

Specifications discussed on Public Google GroupWill probably use the IETF process

Why should you care about OpenSocial?

Developers/Brands: Distribution >200 Million usersSocial Sites: FeaturesUsers: More applications

Gartner Technology Hype Cycle

OpenSocial Hype Cycle

OpenSocial Trends: Yahoo!

Creating a Standard like OpenSocial is a Social endeavor


Integrating Community Feedback


A standard for everyone


How does it work?

10 minutes to an OpenSocial app

One API, Many Websites

One APIclient-side JavaScript - version 0.7 ready for production

standard Web development tools: HTML + Javascriptserver optional

server-side REST (initial proposal under review)Google proposal based on Atom Publishing ProtocolAtomPub and JSON

Many Websitesevery OpenSocial website exposes the same API

==> more users for every app==> more apps for every user

Core Services

People ("who I am", "who are my friends")Activities ("what I'm doing")

Persistence (state without a server)

Demo

OpenSocial Online ResourcesSpecificationhttp://opensocial.orgTechnical demohttp://code.google.com/p/opensocial-resources/

OpenSocial ApplicationsOn Orkut, hi5, MySpace

Social Applications Monetization

Several business models possible (cf Dave McClure Web 2.0 Expo 2008 presentation)

AdSenseBrand the App (brand advertising)Free -> FreemiumRefferalsSell virtual or real goods (ex: MixBook)

Brand Advertising on Social Applications(See RockYou's Ro Choy Web 2.0 Expo 2008 presentation)

OpenSocial for Brand Advertising

Has started on Facebook already

Many brands planning for OpenSocial now

Leverage viral channels offered by Social Platforms

Companies that can help agencies create these appsRockYou: leader on US marketMentezGlobant

Bling Bling: Marketing and Monetizing Through Social Applications April 2008

Slides from Ro Choy, RockYou

Presented at Web 2.0 Expo

Marketing Opportunities with Social Applications

Successful marketing for social media should focus on social applications:1. Application content integration

Integrating brand or product as part of user experienceExample: Likeness quiz, virtual gifts, greeting cards, virtual actions, etc

1. Sponsorships or branding of applicationsApp takeover or skinning w/ possible promotionExample: Skin application w/ sweepstakes or contest

1. Custom social application building & distributionBuild a social app for advertiser and/or distribute it through social network specific ad networksExample: Build, viral tune, launch, and seed an app recruiting users from RockYou’s leading ad network jumpstarting viral spread of app

1. Rich Media

Application Integration & Application Takeovers

Social Networks (1) Web (1) Average RockYou

Ads

Click-Through Rate

BestRockYou

Ad Campaigns

(1) Business Week (2/7/2008)

Application Development and Promotion

Frictionless: simple, less is moreAudience: on Facebook for their friendsCommunication: integrate into the viral channelsEngagement: hook users to return regularlyBusiness model: design with monetization in mindObjective: establish goals and success metricsObvious: make each page’s purpose clearKeep working: develop, test, repeat

Some rules of thumb from Context Optional.

Online Advertising Growing

Source: eMarketer

CAGR: 22%

Global Online Media Advertising($Bn)

Global Social Networking Advertising($MM)

CAGR: 65%

Social Advertising Growing 3x Faster

Context is the key to social application monetization

Virality /Hyper-

targeting

Contextual targeting

High contextLow virality

Search is not viral

Low context High virality

Low context from photo browsing

High contextHigh virality

Apps add context to social networks.

Social apps are viralSocial Applications

Monetizing Social Media

Application Cross-promotionCPI (Cost per Installation) = $0.30-$0.50 Selected Customers:

Agency-sourced Branded AdvertisingCPM (Cost per Impression) = $2.00 - $10.00Type of Ads Using CPM: Branded Ads, Takeovers, App IntegrationSelected Customers:

Direct Response and Lead GenerationCPA (Cost per Action)Type of Ads Using CPA: Mobile Offering, Education, FinanceSelected Customers:

Virtual Goods, Micro-transactions & Subscription

Agency-Sourced Branded Advertising

Agency-Sourced Branded Advertising

Direct selling is required - work with ad rep companies to help source agency relationships

Alloy Media & MarketingClearspringAppsavvy

Agencies are looking for new, materially impactful experiences for their clients (same as the regular web)

Application takeoversNiche demographic reach or custom contentPerformance

Productize the offerings of your application/siteAgency-sourced campaigns range from $30K to $150K spendInternational brand marketing can be significant

UK/EuropeCanadaSouth America

Internal resources are needed to support agency workAd operationsReporting

OpenSocial for Publishers/Media

Socializing Content: Problem and Opportunities

Problememail + password protected urls -> Hard to socialize around content

OpportunityTribune de Geneve example: viral adoption, fun, branding

OpenSocial for Publishers: Distribution

Distribute your content to 200+M usersMove your content to where users spend their time

Get users more engaged with your content

Leverage the viral channels while staying in control

OpenSocial for Publishers: Monetization

Social sites determine the monetization policy

Hi5, MySpace, you can monetize on canvas page

A lot of experimentation needs to happen in the next 6 months: YOU should experiment!

OpenSocial for Publishers: Socialize your siteLeverage Social Networks directly from your siteYou need a REST API for that

Proposal in public Forum: comment on it

You can leverage MySpace proprietary REST API now to experiment

Conclusion: OpenSocial is a great opportunity for PublishersOpenSocial is an open standard to make the web more social

The whole webDifferent types of sites: mainstream, professional, enterpriseInternational

Publishers should leverage this new opportunity to distribute their content, make it more engaging, and monetize it.

Google OpenSocial PlatformsOrkut and iGoogle

2nd social network in the world>60M usersBig in Brazil and IndiaUse case: self expression, communicationStatus:

OpenSocial available for users in India since last weekDirectory limited to 19 applications for now

Orkut Statshttp://www.orkut.com/MembersAll.aspx

Orkut PoliciesViral Channels

Only ActivityStream for now

SecuritymakeRequest uses RSASee PHP sample to validate signature

MonetizationAdvertise on Canvas PagesUse any Advertising NetworkKeep proceeds for yourselfRespect the T&Cshttp://code.google.com/apis/orkut/docs/orkutdevguidelines.html#monetization

iGoogle UsersiGoogle was the fastest growing Google product in 2006 and 2007iGoogle has tens of millions of users worldwide.More than 20% of visits to the Google homepage in the U.S. are to iGoogle.iGoogle is available in 42 languages and over 70 countries.Approximately 50% of iGoogle users are in the U.S., with large user bases in the U.K., France, Japan, Germany, Canada, Spain, Italy and the Netherlands.

iGoogle DevelopersUsers have added more than 100,000 unique gadgets to their iGoogle pages.Currently there are over 47,000 gadgets (up from 9,000 in Q3 2007) and 200,000 feeds available in our public directory for users to add to their own webpage, in addition to their iGoogle page. All gadgets are free.http://www.google.com/ig/directory?synd=openOur top developers include a Database Specialist from the University of Southern Maine, a stay-at-home mom from Utah, and a computer science major from Puerto Rico.

iGoogle SocialSandbox launched yesterday 4/21For developers, Friends manager gadgetSocial Content Platform as opposed to a social networkHelping you filter your information consumption: using friends to help you discover and filter as opposed to communicate and self expressUse Cases: media, commerce, gamesgames and twitter should work well, throwing sheep won't work

iGoogle SocialIn iGoogle Viewer=Owner, main difference with Orkut "I talk about social networks as performance spaces- Orkut is Karaoke, iGoogle is watching a concert. You want it to be clear which one you are doing."

Kevin Marks, OpenSocial Developer Advocate

iGoogle Policies

Viewer = OwnerKey difference between iGoogle and Orkut

AppData10Kb

Viral ChannelssendMessage soon

MonetizationAds on the Canvas pagesHome/Dashboard view is private

Conclusion: OpenSocial is open for BusinessOpenSocial is making the web more social

The current version 0.7 is in production

Developers can start creating social applications todayOrkut, Myspace, Hi5 open to consumers now

Orkut in India now: Brazil real soon!

Social sites: implement OpenSocial get Shindig and start planning

Advertisers: create brand advertising Apps now

Media: get your content more social

Hackathons

Hacker’s Marathons: Pizza, Beer and CodeWorldwide: Bangalore, Mexico, Buenos Aires, London, Mountain View,…With partners: OpenSocial hackathons with MySpace, Hi5,SixApart, …Hackathon in Buenos Aires in May - Mentez contest in Brazil

A two day developer gathering focused on pushing the boundaries of web applications.

May 28-29, 2008San Francisco

Learn more and register at http://code.google.com/events/io

Globant and OpenSocial

Globant worked on Google Checkout: excellent tech work, we became friendsInvolved in OpenSocial Trusted Testers: created cool appsCreated an OpenSocial practice: build apps and containers for social sites

Questions

South America 2008: Open Social For Brand Advertising and Media

Business

Transcript of South America 2008: Open Social For Brand Advertising and Media