Monthly Archive for July, 2006

Steve Wozniak laser-signed my Macbook!

Steve Wozniak laser-signed my Macbook!
We were interviewing Steve Wozniak (the original co-founder of Apple with Steve Jobs, who actually built the first Apple machines) after his speech at the AlwaysOn conference. Being a Mac fan and user of old I asked him to sign my Macbook. He tried a ballpoint which didn’t work. The next thing I knew he’d whipped out what appeared to be a portable laser (it was damn bright to look at) and proceeded to attempt to etch his name into the plastic. I half thought I’d end up with a huge, smouldering hole in my Mac. But after a few seconds he said, with a shrug, “No, I don’t see any smoke rising,” and gave up. But at least I got the photo… (P.S. I’m now in Los Angeles and will write up the conference later)

Tags: Wozniak

The young consume content from eachother

Here’s an interesting statistic: “62% of the content that the average 21 year old consumes is produced by someone they know” – Pew Institute. YouTube streams 100 millions video clips a day. Get it yet?

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Are you going to San Francisco?

So I arrived in San Francisco on Saturday only to be met with another heat-wave to replace the one I’d left behind in London. Oh joy. At least my hotel in Palo Alto, off El Camino Real, turned out to have air conditioning that worked! The Sunday morning was cooler when I met tech writer Mark Haas, (pictured) who had been introduced to me by old friend Steve Carlson, whom Mark met in Budapest in the 1990s. It’s definitely a small world. After breakfasting at the excellent Bette’s Oceanview Diner Mark and I proceeded to re-enact the broad plot of Sideways, with him definitely playing Miles to my Jack (minus the philandering bit I hasten to add). We drove up into the hills near San Francisco, into the Russian River vineyard region to taste a few wines and take in the scenery. Noticeable stops included the Roshambo winery which is attempting to demystify wine with some tres moderne events like a Rock, Paper, Scissors Tournament. Monday I met with Yahoo!, Guba and Mobi TV, of which more later. Tuesday is the start of AlwaysOn@Stanford, when more blogging begins in earnest…

Off to Silicon Valley and LA

So I’m off to San Francisco/Palo Alto to meet some contacts and attend the Always On conference at Stanford this week. After that it’s on to LA to chat to a few ‘digital hollywood’ execs and mobile people…

The Mouse and the MMORPG

First published, Future Media, June 2006: Disney launched its first massively multiplayer online role-playing game back in 2003, the success of which has inspired the company to devise similar propositions around Lost and Pirates of the Caribbean: Dead Man’s Chest. Just what does the Mouse see in the MMORPG? Mike Butcher reports.

You can imagine the scene. Having recorded that must-watch show on the PVR, you are now painstakingly slow-mo-ing trough the ad-breaks for those tell-tale clues to the next steps in the game. Forget the show – this is the entertainment!

Incredibly this is virtually the scenario being played out around the world right now, as viewers stop fast-fowarding the ads inside hit show “Lost” and start paying attention.

So how did we get to this idealistic – but apparently real-world – situation?

It’s not possible to ignore the enormous success of Lost, which in the UK alone attracted six million viewers for its first episode on Channel 4 (it’s biggest-ever audience for a U.S. series launch), and has polled consistently well ever since.

Along with the clearly ground-breaking drama and non-linear nature of the plot, came some innovative marketing. Part of the original viral marketing for the show included a full-blown web site for the Oceanic Airlines upon which the hapless Lost passengers flew.

That site’s success in part lead Disney and ABC to launch the Lost Experience – a so-called Alternative Reality Game (ARG) in April this year. The move was preceded by Disney’s history in setting up similar online gaming communities around other brands using Massive Multiplayer Online Role Playing Games (MMORPGs).

But what exactly are these games?

The difference between a MMORPG and an ARG, is that the latter is not built as a virtual world. Instead, it is more like a detective game with clues appearing anywhere online, and the players must collaborate to hunt them down. ARGs were first linked to media brands in 2001 when pre-promotion for the WarnerBros film A.I. spawned an ARG called The Beast, designed ultimately as a marketing vehicle for Microsoft.

A MMORPG is an online computer role-playing game in which a large number of players interact with one another in a virtual world. Both MMORPGs and ARGs are immensely popular online, with several commercial games reporting millions of subscribers, especially in South Korea.

Now these games are changing from games purely designed for hardcore gamers to entertainment tools that appeal to more casual gamers and as such have a wider audience. Disney launched the MMORPG Toontown Online in 2003, and Virtual Magic Kingdom last year in order to build relationships between Disney characters and the audience.

Toontown Online (Toontown.com) was the film industry’s first three-dimensional MMORPG designed for kids and families. Launched in 2003 Toontown combines elements of traditional video games, online community and strategic role playing games. It success has lead to an expansion, with the addition recently of greater functionality for more intense gameplay.

Virtual Magic Kingdom is a free chat-based game run by Disney Parks and Resorts with the intention to allow people to experience the fun of a theme park online. It’s more a social game based on chatting and small mini games.

But the Lost Experience dwarfs other Disney projects to date – outside of its plans for Pirates of the Caribbean (of which more later).

The Lost Experience is not one web site or media platform, but a drip-feed to clues mostly seeded online but often triggered by fake adverts aired during the show. These link to mysterious web sites which might contain odd sound files and cryptic email newsletters.

Sometime the content is more overt. “Bad Twin” a novel supposedly written by one of the passengers on the doomed Lost plane is currently among the top 50 best-selling books on both Amazon.com, and published by Hyperion (owner: Walt Disney).

But far from being an exclusive game, inhabited by Lost obssesives and online geeks, the Lost Experience follows a parallel storyline not featured in the TV broadcast and is designed – says Disney and ABC – so that both fans and outsiders can join in. Clues first appeared during broadcasts on May 2nd in the UK, May 3rd in the U.S. and May 4th in Australia.

At the Experience launch ABC, Channel 4 and Australia’s Seven Network described it as “a revolutionary interactive marketing endeavor” which was “designed to further enhance viewers’ relationship with the program.” Over twenty other broadcasters are also signed up to participate.

Steve McPherson, president, ABC Entertainment said the initiative was driven by the fact that “audiences are demanding greater depth of content and more creative ways of storytelling”.

“The ‘Lost Experience’ gives the mystery, intrigue, twist and turns that ‘Lost’ provides as a television series,” said Mike Benson, senior vice president, Marketing, ABC Entertainment. “It’s like a giant, mysterious jigsaw puzzle that will come to life for all the world to solve, whether you are a fan of the TV series, or not.”

Tracy Blacher, head of New Media Marketing at Channel 4, said: “We wanted to find a way of allowing ‘Lost’ viewers to engage with Season Two in a genuinely innovative and creative way.”

Now Disney’s experience in those innovative online game communities is set to extend into film this year with “Pirates of the Caribbean: Dead Man’s Chest” also employing an MMORPG.

Launched at the E3 gaming festival, Disney Online’s Pirates Of The Caribbean MMORPG is slated for release in 2007. Players will be able to create and customise their own pirate, form a crew, interact with the film characters, forge alliances with thousands of other players and even hunt for buried treasure. To access the game players will need to pay a monthly charging monthly subscription fee, making it a useful revenue stream when the film itself has long since closed at the box office.

The games also need not be limited to the darkened rooms of PC players. mDisney, a mobile publishing unit of the Walt Disney Internet Group, is to launch a Pirates of the Caribbean “Multiplayer” mobile game enabling players to interact with eachother make friends and form guilds.

And if you get the game right, any subscriptions fees are not trifling. “World of Warcraft” (WOW), currently the most popular MMORPG, recently hit 6 million players who must each buy the game for $50 and then pay a monthly fee of about $15. Game researcher DFC Intelligence estimates that WOW brought in about $300 million last year in sales and subscriptions for Vivendi Universal. Other business models for MMORPGs include offering the game for free, but selling both advertising and virtual items inside it, such as different tools, weapons or even clothes for the player’s character. Some are even spawning their own currencies, creating secondary markets where real-world money is traded in exchange for virtual world currency.

Although MMORPGs are just 7% of the $28 billion game market, they may be the most addictive niche according to research from Stanford University. It found that while the average console gamer might spend seven to eight hours playing, players in MMORPGs spent 20 hours a week, potentially rivaling TV viewing figures.

But while an ongoing online presence – with subscription fees – seems like a no-brainer for a film, what are the benefits of MMOs to TV brands? Can MMORPGs help programme brands hang on to straying TV viewers or can they really help build communities around brands?

Michael Smith, CEO of Mind Candy which has launched it’s own ARG Perplex City (PerplexCity.com) says: “TV networks are increasingly adding depth to their shows to enhance the experience for the viewer but also to generate additional revenue streams. This might take the form of an MMO or something more akin to an Alternate Reality Game where part of the universe is fleshed out via websites, emails, phone messages, podcasts and so on.”

He says blogs, fan sites, and discussion forums already provide a venue for fans where they can spend time at when the show isn’t on. “It makes the whole experience far more engaging and immersive than a traditional TV show,” he says. Add an ongoing game which also plays out when the show is not airing and you have a heady cocktail which cost a fraction compared to traditional marketing, both among fans and newcomers to the show.

This seems to be the case with Lost Experience. In the US, Lost has already ended its second season leaving plenty of questions were unanswered, with viewers having to wait until September for new episodes. Meanwhile the game will undoubtedly act as the carrot to keep the core viewers interested and new viewers can be attracted outside of the promotional window – an aspect confirmed by Disney’s Benson.

Indeed, a reviewer on the ARG News web site said the Experience was “giving players the sense that the game is something they should be watching every day “.

It’s hard t by that kind of word-of-mouth-marketing, and Disney knows it – and, according to sources, is even telling broadcast partners not to talk too much about the game, lest the punters awake from their slumber in this alternative reality.

But how do you measure success with this kind of project? A Disney spokesperson in the UK says: “This is difficult as it’s still relatively early days for a lot of these initiatives. But using web traffic measurement to see how many people are visiting sites/playing games, how often they do, how long they play for etc is something we do. Tracking media migration is more difficult and might need specific campaign metric tools in place.”

But this game is more than just a way for Lost nerds to keep busy. It’s also keeping viewers from fast-forwarding through commercials.

Adverts for the fictitious Hanso Foundation – linked to the show via one of the characters – featured phone numbers and Web sites which viewers needed to visit for more clues about the game.

On closer inspection, links with marketing campaigns are starting to appear. Hanso “commercials” feature small print saying they are paid for by well-known brands including (in US shows) Coca-Cola’s Sprite, DaimlerChrysler’s Jeep, Verizon Wireless and Monster.com.

One of the “Lost Experience” sites is called subLYMONal, which is a reference to the so-called lemon-lime (hence lymon) taste of Sprite. Once on the site, the word “Obey”- as in “Obey Your Thirst with Sprite” – is surrounded by glowing blue TV screens that the user must turn into glowing green TV screens to unlock a message.

The Hanso commercial shown during the US episode on May 17, 2006 contained a Jeep copyright message and directed players to a Jeep video commercial hosted on YouTube, which contains game clues at the end.

And during the May 24 US episode The Hanso Foundation advert was shown with a disclaimer indicating that it was “paid for by Monster.com.”

Indeed, Benson recently admitted that the Lost Experience is – at least in part – also a marketing vehicle for marketers who are looking for need new methods to reach viewers.

The ideas in Lost Experience have already caught on. AOL recently announced a promotion called Gold Rush this Autumn will feature a game where viewers can find clues during CBS shows and commercials, to help them identify where more than $2 million’s worth of gold is hidden in the U.S.

And in the US Imagine Entertainment, the company that created “24”, is among a group pf firms developing a sci-fi reality show called Xquest. Contestants will occupy a cramped “spaceship” for a month, following a rough plot while online gamers follow the action on the TV and in a shared, simulated space online. The best gamers then get to go on the next season’s show.

If the Lost Experience is anything to go by, it looks like we’ll be seeing a lot more of MMORPGs.

Social Call

Published in New Media Age 15.06.06: Gustav Söderström is sitting in a hotel bar in Stockholm looking at the profile of a 23-year-old woman. This isn’t some seedy chatroom on his laptop, though. He’s taking part in a social experience entirely on his mobile phone, updating live as he talks and allowing him to instant message his friends and contacts, writes Mike Butcher

Söderström is a founder of Kenet Works, a mobile application developer in Sweden that has come up with an impressive Java-based application which works alongside a MySpace-style community in Sweden called Playahead.

Playahead is one of a number of online social networking sites in Scandinavia, many of which pre-date MySpace, the noted US community that has become a byword for online networking. Playahead has been a hit among the 18-24-year-old demographic, reaching over 1m members.

Part of the success of these online communities has been down to their use of mobile social software, dubbed ‘MoSoSo’. The mobile application for Playahead’s community lets you to do almost everything you can on a PC. It’s even ‘presence aware’, letting your friends see if you’re online.

The capability of the service is now allowing for content creation by members. “A more general trend right now is user-created content sites, where users upload photos and videos of themselves,” says Söderström. He thinks user-generated content on mobile has a lot of potential.

Closed community

It’s this desire among the young to network, chat and create content that has seen sites like MySpace grab headlines in the last year. The most popular of the social networking sites in the US, MySpace has over 67m members, with about 250,000 joining every day. According to ComScore Media Metrix, it accounts for 12% of US online advertising.

In February, MySpace announced a deal with US MVNO start-up Helio to offer rich mobile access to the MySpace community from Helio phones, including mobile blogging. Now MySpace, Bebo and Faceparty are all planning mobile services in the UK (NMA 01.06.06).

Alfie Denan, co-founder of Moblog UK, says, “There’s real authenticity and intimacy in this.” Moblog works with bands like The Automatic to allow them to moblog photos of their touring exploits as well as fans to join in, creating buzz.

But creating a branding effect on the mobile screen is a new world. Even Denan admits it’s hard to create community feeling on mobile.

One of the few case studies in marketing to mobile communities has been Absolut Vodka’s partnership with Dodgeball.com, which uses SMS and MMS messaging to allow users to connect with friends at nightspots in US cities. In the summer of 2004, Absolut sent opted-in subscribers a message asking them to send in their location to get information about the closest place where they could enjoy outdoor drinks.

Dodgeball was bought by Google in May 2005, but the marketing model it pioneered is still very much in its infancy. Location-based services have been largely unsuccessful for mobile operators, but it’s location-relevant advertising that’s making the mobile industry and marketers sit up and take notice. At this year’s CTIA conference, the buzz was about the $20 to $50 (£11 to £27) CPM being touted for mobile advertising.

This is also the view of Justin Davies, founder of Ninety Ten, a London-based mobile consultancy that has launched BuddyPing. Text your location to BuddyPing and it will text you back with the location of your friends (if they’re BuddyPing members), what they’re doing and events in the vicinity. It also has a Java client that runs on most phones and allows members to instant message each other. So far it has 3,000 users.

“The business model for BuddyPing is to provide brand affinity,” says Davies. “We can use location information to pick up an ad or sponsor message that’s relevant to a person there and then.” This could include offering discounts to declared gadget fans close to an electronics shop.

But to be successful, mobile location-based advertising requires a critical mass of users, something which, Davies says, can’t be achieved without the draw of keeping in touch with relevant local events and people.

Andrew Scott, founder and CEO of Playtxt, agrees. “Mobile marketing is about to enter its maturing period. We’re on the cusp of major brands embracing mobile,” he says. At three years old, Playtxt is one of the UK’s oldest mobile communities. It plans to relaunch in July with targeted opt-in location-based advertising.

“Brands are only interested it you can get a critical mass of users. So our model is like Google AdWords but linked to location,” says Scott.

While social networking based on location is the idea behind BuddyPing and Playtxt, gaming perhaps holds the most potential for marketing.

Last year Future Platforms built a mobile Java-based Sudoku game for Puzzler Media that allowed users to register their scores in a league. “We thought we’d get maybe 5% of people reporting their score,” says founder Tom Hume. In fact, a massive 40% of players entered their scores. “There’s a latent demand for community among people doing mobile gaming already,” he adds.

Congesting charges

One thing remains in the way of real mobile social communities developing, however: data charges. Fear of being hit by unknown bills for using WAP sites or Java portals is clearly holding back the development of communities.

One way around this would be for brands to pick up the costs on behalf of customers. Indeed, Masterfoods sweets brand Skittles is already sponsoring a BuddyPing sub-site (buddyping.com/ skittles), offering users a free BuddyPing account under the ‘Skittles Big Summer’ promotion.

Brand sponsorship of mobile communities isn’t going to be a golden bullet, however, says Helen Keegan, a mobile marketer who runs BeepMarketing. “It’s not about the channel, it’s about the community and user experience,” she says. “It will probably be a blend of mobile, Web and offline events designed to build these communities that will be key to their success.”

For now, mobile communities look likely to remain stymied by data charges and even the simple step of getting users to use a service. But it remains an area where brands could benefit by meeting consumers literally where they stand.

Published in New Media Age 15.06.06

YelloWiki denies ‘passing off’ as Yell

YelloWikis may capitulate to Yell over their recent legal action due to lack of funds to fight a prolonged court battle. In an email interview with tbites, YelloWikis’ Paul Youlten said (words in bold are tbites’ emphasis): “We have to reply to their charges by next Monday and we are planning to deny the charges of “passing off” – though some solicitors seem to think that we will win quite easily, others think Yell have a very strong case. So our objective is to resolve the whole thing as quickly as possible – just because we can’t afford to fight them. We might have to agree to all their demands in order to avoid damages. It would be a sad to hand over the domain names…. Shetlopedia would seem to have just a good a claim to them too.” Youlten also said he had “had an offer of help from Jimmy Wales” Wikipedia founder.

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MySpace goes into orbit

HitWise has the drop on MySpace today:

“Myspace.com has surpassed Yahoo! Mail as the most visited domain on the Internet for US Internet users. To put MySpace’s growth in perspective, if we look back to July 2004 myspace.com represented only .1% of all Internet visits. This time last year myspace.com represented 1.9% of all Internet visits. With the week ending July 8, 2006 market share figure of 4.5% of all the US Internet visits, myspace.com has achieved a 4300% increase in visits over two years and 132% increase in visits since the same time last year.”

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New web magazine for online retail boom

Ian Jindal, lately publisher of EUBusiness.com, is now launch Editor at InternetRetailer.info (looks like they couldn't get the dotcom domain. The site is owned by Retail Events who cannily seem to be getting into Blogging as well. The folks over at subscription only web site/mag Retail Week will be pleased…

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Yell yells at YellowWikis

The world's biggest yellow pages publisher, Yell, has threatened to shut down Yellowikis, the wiki-based yellow pages directory, accusing it of of "misrepresentation", "passing off" and suggests that using the name Yellowikis could "constitute an 'instrument of fraud'. It's contacted Yellowikis co-founders Paul Youlten and Rosa Blaus (his 15 year-old daughter) demanding they shutter the website, transfer the domain names to Yell and agree to pay damages to Yell for loss of profits. Yell made $2.4bn in 2005. Yellowikis had a loss of $500 last year. Youlten is contesting the action, and, somewhat reasonably, argues that people find small businesses via Google these days, not Yell. Perhaps Yell should sort out it's search engine marketing, rather than picking on tiny Internet starups. Yellowikis has reportedly been growing at 8.7% month-on-month and has 494 editors and about 5,000 articles listed – Yell, by contrast has classifieds running into the hundreds of thousands, if not more. Yet when was the last time you saw a search result with Yell in the URL? Perhaps that deal with Google Maps in April last year wasn't so great after-all…

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