I encourage you to read Eric Eldon's piece on InsideFacebook about how Facebook's most popular game, Farmville, now defaults to Facebook Credits and Payments. As location and geo dominate the blog headlines (Twitter, Foursquare, Gowalla), Facebook Credits has managed to stay relatively under the radar... but Facebook's payments platform is important as it is going to be very big. And, despite being young, Facebook Credits is now exposed to Farmville's 84,000,000 monthly actives... that's quite the launchpad.
H&M Launches MyTown Integration & Ads; Facebook Sponsored Campaign
Earlier this week, MyTown released version 2.1 of their wildly popular mobile gaming app (unfortunately there is still no level 41). In addition to some very slick UI enhancements and clever game mechanics (such as scratch lottery tickets that are rewarded every 30-minutes) - they released integrated local ad campaigns. ... and they timed that launch with a Facebook sponsored ad campaign that echoes the same messaging and products as the MyTown focus: "The Blues":
Previously, MyTown ran ads for local franchises like Red Mango: the stores were highlighted in local listings and discounts were provided to those who either owned the property or checked-in. In version 2.1, MyTown released a far more integrated campaign for clothing store H&M. In addition to features used with Red Mango, they fully integrated H&M in the gameplay ... using the same functionality and game-mechanics that make MyTown so popular to lift H&M's brand. Here are a handful of examples.
1. Location awareness. H&M products and integrations only appear when the store is relatively close.
2. Once you check-in, you can get discounts and dynamic ads:
3. When you check-in to H&M (and other locations), you can earn H&M bonuses and virtual goods:
4. Integrated gameplay. Every so often, you unlock functionality that is branded H&M - like this scratch card:
Happy Island Promotes Facebook Credits in Marketing
It was a big week for Facebook Credits:- Facebook Apps that Exclusively Use Credits Now Featured on Games Dashboard (Friday) - Facebook’s Increasing Focus on Credits Prompts Developer Speculation (Thursday) - PayPal Integration Shows Facebook Wants to Play in Currency, Partner for Payments (Thursday)
Today I noticed a premium Facebook ad from the popular game Happy Island (I believe) that specifically focuses on Facebook Credits. Interesting because the marketing is entirely around Facebook Credits - which suggests that Credits themselves are effective at clickthroughs and conversions. Of course it might also be that Credits give the appearance of more direct Facebook integration or support and therefore garner more user interest:
When you click through, you land directly on the Happy Island page and realize how hard developers must fight for user actions. Much of the viewable screen is taken over by a request for your email address and then for a positive review (particularly common in iPhone Apps). Considering Happy Island has 12,000,000+ actives, you have to believe they are savvy enough to have determined that these placements are more effective upfront than after a player has become engaged in the game:
Booyah's MyTown: Reach Level 40 & Win
My recent 'strategy guide' on Booyah's wildly popular mobile game MyTown is strangely one of my most popular blog posts. Like the 1,000,000 other users who are actively using MyTown, I am addicted and believe that they are among the best example of game mechanics in mobile and local. CrunchBase covered them recently and announced the following stats which demonstrate a mix of engagement and virality: -1 Million+ Registered Users -Averaged 100K new registered users a week since launching in December -40 Million+ Virtual items consumed each week -25 Million weekly check-ins -Daily engagement over 65 minutes
The last line is the most staggering... an hour of engagement per day. Wow.
Well, once you hit level 40, the game pretty much ends. You reach "max" points and there is little gameplay incentive to 'check-in' and accumulate points. It is strange to think that the game has an end - Farmville, for instance, doesn't end because the leaderboards and social mechanics don't allow it to. MyTown isn't quite there yet. Perhaps I would be motivated if I realized where my town's value lay in comparison to my friends'... or perhaps I was motivated to reach level 40 (and accumulate points along the way).
Either way, it gives me closure and hopefully more time... though I was NOT spending 65 minutes a day!
Zynga's 6 Core Values Help Create a Culture of Success
In a recent New York Times article, Zynga CEO Mark Pincus said that all employees need to "be a CEO of something." Its a terrific mantra and speaks to the importance of ownerships, responsibility and incentive structures. It turns out that it - specifically "Be CEO: own outcomes" - is just one of Zynga's six core values. Here is a picture of Zynga's core values, all of which speak to culture (ownership, responsibility, growth, people) and success (innovation, speed, gameplay).
At eBay, each employee was awarded a "core values" badge card that was worn atop the security card... and therefore all the time. It was a simple, constant reminder of company-wide behaviors and themes. Consequently the values were engrained in everyone's head and that's a powerful driver of culture.
Checking-In: The Geo-coded Status Update
Two excellent posts on the current status of geo-location companies by Robert Scoble and Hunter Walk (both bloggers are great and their blogs are must reads). Scoble argues that industry-first Foursquare is being squeezed by Gowalla (best UI) and Booyah's MyTown (best gameplay and my personal favorite!).
Hunter argues that, considering their rapid growth, there is room for Foursquare assuming they move beyond 'utility' and into an experience:
"If they get reduced to being a utility ("publish location") or end up focused on too narrow a group of users, they'll get passed by general purpose geo services or social networks on one side and out innovated by gowalla, mytown, etc on the other. [read more]" Both Hunter and Scoble are spot-on: Foursquare, Gowalla and others need to build social and/or finding experiences beyond the 'check-in'. Consider that Foursquare has 1,000,000 weekly check-ins. That's significant size and growth. But when Facebook and Twitter turn geo-coding on, they will dominate by volume (and I have written about this before): on Facebook, 40,000,000 users update their status each day.... and 20% of Facebook users are on their mobile platform. "Check-ins", whether passive or active, will be massive. Between Facebook, Twitter, and the development on their platforms - the "check-in" will be commoditized (and that doesn't include Google, Yelp and other big players).
That is why I believe that the gameplay is so critical: it creates an experience beyond the 'check-in' that is part social, part gaming and part finding. Booyah's MyTown is a terrific example: in an interview with Scoble, CEO Keith Lee said that the average MyTown user (and there are 850,000+) spends 50 minutes per day. Clearly there is more to it than 'checking in'... and the Booyah team's background is in traditional gaming: Blizzard, EA, etc.
Another way to think about it: Facebook's power is in the social graph and the experience they have created... not in the 'status update' itself. Surely statuses are a core part of Facebook, but status updates exist on numerous websites and in various forms. The conversation is powerful in part because of where it sits, the network it is in and the responses that it generated. The act of checking-in should be thought of similarly... after all, in its simplest form, it is a status update with a geo-code appended to it.
Tapulous' Tap Tap Revenge: A Top Grossing App Despite Being Free
A week ago, I wrote that only three of Apple's top twenty grossing iPhone Apps feature in-app purchases. I wondered whether developers have determined that direct sales were more dependable and profitable than relying on user-engagement to derive revenue. Proof it can be done the other way: Tapulous' hit iPhone application, Tap Tap Revenge, is a free application... and it has now cracked the top twenty-five grossing apps - purely through the in-app downloads / purchases. Tap Tap Revenge went free just before Christmas and had over 2,000,000 downloads in the subsequent week:
Tapulous, developers of the popular Tap Tap Revenge series, check in with good news. They’ve pulled down over 2 million installs of Tap Tap Revenge 3 since going free last Wednesday, 700,000 of which came on Christmas day. Between Tap Tap Revenge 1/2/3 and the Metallica/Lady GaGa editions, Tapulous now has 5 applications in the Top 100 grossing apps. (More on TechCrunch from Daniel Brusolovsky)
Tap Tap Revenge's top in-app purchases are all 'packs': nine of the top ten are either two or six-track downloads. Two-packs are $0.99 and six-packs are $2.99. Interestingly, the only individual track is the Avatar theme song (Avatar also has the #22 top-grossing app at $6.99). The paid applications are in addition to the weekly free apps released each Thursday:
Tap Tap Revenge comes with more than 40 free songs! Best of all, we offer Tap Tap Thursdays: every Thursday we feature a FREE hot new or exclusive track from top artists. So far we've featured songs by Katy Perry, Anberlin, Everlast, Michael Franti, Lady Antebellum, Lee Perry, 3OH!3 and Bitter:Sweet, to name just a few. Check out the full list here.
Not that it is directly related to the their revenue success, but Tapulous also does a great job communicating with their users through their outstanding blog. It is regularly updated with status updates, contests, new music, etc. But despite having over 4,000 Facebook Fans, their Fan Page is totally empty:
Farmville + Monopoly = Settlers of Catan
I am late the Settlers of Catan rage, which according to the Wall Street Journal, swept Silicon Valley in December. But I uploaded a photo of Catan to Facebook (shown below) and got a great comment about it: Why does this look like Monopoly and Farmville combined?
Funny how accurate this comment is and how Farmville has become a common way to describe / compare products (I recently did the same with TownMe).
MyTown Social Gaming Strategy
MyTown is best described as Zynga meets Foursquare. Take the best aspects of social gaming (Zynga) and combine them with location based networking (Foursquare, Gowalla, Yelp) and you have MyTown: a game that awards points based on live social game mechanics built atop location-based check ins. You can own real properties (akin to being the mayor) and then collect rent (similar to Mafia Wars, Farmville) based on popularity and live activity (again like Foursquare).
MyTown's point structure is particularly clever and powerful because it creates an incentive structure predicated on routine usage and social sharing. Two great examples that were perfected by Zynga:
1. Deprecation. Farmville is the master of this: because rents cap out at a specific amount, users must collect rent regularly (ie hourly) to maximize potential revenues. As a proxy, if you do not return to harvest your crops in Farmville, they actually deprecate. 2. Social Sharing. Check-ins are rewarded with points (ie 150 points). But large bounties are provided for social actions like: connecting the MyTown account to Facebook Connect, broadcasting your location via Facebook and/or Twitter, and adding commentary on the location.
Below is a strategy to MyTown from town billionaire Kirk Nguyen. Fascinating stuff:
Try to maximize your points payload with multipliers. It's a combination of using multiple multipliers, obtaining the multipliers that yield the most return, and holding out until your base check-in worth is substantial enough (think long-run diminishing returns).
Upgrade as soon as you can, but it starts to get costly after level 5 or 6. Once the upgrade cost got to $7+ million, I bought free upgrade power-ups to maintain my cash for purchasing properties padding my towns total worth.
Finally, keep an eye on trending, number of owners, and popularity - ESPECIALLY popularity: it determines the maximum property value and maximum rent cap.
And if you want to stay on top of the leaderboards for your properties (and other non-owned properties), only keep local properties in your stable. I was in SF last night and bought some high-value properties, but then realized that I couldn't buffer my leaderboard weight for them when I got back into San Jose. I'll probably sell them sometime soon. Oh well, see ya Adidas Concept Store!
All in all, I try for check-ins worth between 45k-60k points, single-ownership of long-lasting, high-popularity businesses, and I collect all 20 of my level 11 property rents with one click.
Once you start rollin', you'll see how ingenious Booyah!'s micro-transaction business is. They made it very accessible and compelling.
My town is worth $2.5 billion, but I feel I could be doing better.
Good luck and happy hunting!