This document summarizes a presentation given in Macau in 2010 about lessons learned from social networks in Asia. It discusses how social networks in Asia diverged from Western models, with each country developing its own unique social networks focused on different revenue models. Japan focused on mobile innovation with Mixi and Gree, Korea led in web innovation with Cyworld, and China has the largest user numbers led by Tencent. Overall, social networks in Asia are viewed more as media companies than just social platforms.
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• “Innovation Arbitrage”
• Internet & Mobile Digital strategy
• Best practices from China, Japan & Korea
• Published reports
• Inside Cyworld (2007)
• Inside Tencent (2009)
• Inside Alibaba (upcoming)
• Contact
• benjamin@plus8star.com
10. Common Assumptions
1. Social Networks
1. The definition of “social network” is clear
2. All social networks are variations of Facebook
2. Asia
1. Asia is homogeneous
2. Asia is all about copy
3. What happens in Asia stays in Asia
24. Facebook
• Real-name
• Revenue models
– Advertising (90%)
– Some digital gifts (10%)
• Application platform
– Leverage social graph
– Mostly games
• Text games
• Flash games
• (3D games)
– All for developers!
35. Conclusions for Korea
1. Convergence of SNS, gaming & virtual worlds
2. Cyworld still dominant, but young users
3. Branded pages main way to advertise
4. Social apps growing
43. From PC to Mobile
Unit: 100M PV Unit: 10K Users
Application platform
introduced
PV (mobile) PV (PC) Users
Monthly PV 27.6B
– Mobile (80%) 22.5B
– PC (20%) 5.1B
2007.12 2008.12 2009.12
44. Demographics
Total
Mobile
Total
Mobile
Most active social life?
45. Mobile Platform since Oct.09
(330 apps as of February 2010)
City Building Harvest Moon Shopkeeper Furauni
By Liveware By Liveware By Geisha Tokyo By Konami
46. Parenthesis
How is this Possible?
1. 3G everywhere (>95% users)
2. Unlimited data widespread (>50%)
3. Flash on all mobiles
47. Web Apps
• Over 500 titles
– Tougher selection than FB
– Farm & Pet games leading
• Usage & Monetization
– 4.6M users for #1 (~25%)
– 800K USD in 1 month for #1
– Revenue share with Mixi
• Top developers are Chinese!
49. Mixi
(New model)
• Saturation of user base
– Need for new revenue models
• Full throttle on mobile
– Mobile 4 times more active than web!
• Tapping into digital goods revenue
– Mobile & Web social apps
– Revenue share on apps
54. Mobile Open Platform
• Launched January 2010
– 40 partners
– 92 games
– Virtual goods, ads, avatars
– Leverage expertise from in-
house games
– Some games also released
on Mixi Mobile!
• Target: Become the #1
Social Entertainment
Platform
66. Results
• Spent millions of USD on ads!
• Users skyrocketed
– 15 million! (15% of mobile users)
– Mostly thanks to 2 games titles!
(fishing & pet games)
• Opening mobile platform too
67. Conclusion for Japan
1. Mobile SNS is a Business
– Facebook makes $0 on mobile
2. Mobile SNS is a Media
– Not only for kids!
– Various FMCG already on it
3. Mobile Social Games
– In-house vs. Third-party
– Ecosystem getting more complex
77. Main Model
• Advertising is not enough!
• Social games
– First farm game was in China!
– Advertising in games
78. Demographics & Users
• Young
– 70% of Internet users in China < 30 y.o.
– Urban white collars (have PC)
– University students
– Many women!
• Average income
– Avg. salary 500 USD / month
80. Conclusion for China
1. Tencent dominates with IM
– BUT other SNS competing
– Huge ad inventory for all
2. Social games = major revenue model
– Social games are media too!
82. International Expansion
• Korea
– Cyworld early mover! China, Japan, USA, Europe, etc.
– Most operations closed by now.
– Online game companies growing globally.
• Japan
– DeNA (Mobile Game Town) acquisition in China, subsidiary in US.
– Gree at home.
– Mixi office in Shanghai but no traction so far.
• China
– Tencent: partnerships & investments (including US).
– Kaixin001, RenRen, 51.com busy at home.
Social networks are cultural products!
83. DeNA Buys TX.com.cn
(July 2009)
• 9M members
• Leverage expertise in
– Avatars
– Games
– Content
85. SNS in Asia
1. Social networks = media
2. Japan = mobile innovation
3. Korea = web innovation
4. China = leads by all numbers
86. How do you think?
1. Social Networks
1. The definition of “social network” is clear
2. All social networks are variations of Facebook
2. Asia
1. Asia is homogeneous
2. Asia is all about copy
3. What happens in Asia stays in Asia
87. Thanks!
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