The Indirect Push Strategy

Wolf in Sheep's ClothingIn the early days of the Internet, back when the network was mainly popular in universities and in the government, the businesses that discovered the Internet welcomed the opportunity to send e-mails to all the addresses they could find. Surely, they argued, people would like to know about the service they offered. To their surprise, the recipients would respond in anger to commercial e-mail and usually complained to the Internet service provider. As the Internet became more commercialized with individuals and businesses flocking to the network, the unsolicited messages became something to live with. Although some people actually like getting messages about services and offers, most people hate directly pushed messages. But now a new form of sending messages is appearing. What if somebody else, someone you known uses a service and you get informed about it? This is what I call the Indirect Push Strategy.

The strategy works as follows. When a person uses a service, for example, buys something from a business (preferably something electronic), you get the person to inform his or her friends on a social network. Now all the friends will see what the person bought or did and everything relevant to the purchase.  So the friends get the message indirectly.

Let’s take an example. A company sells audio books on the Internet. When I register on their web site I choose the social network that I use. The audio book company must ask me to approve that this information will be posted the network. It might even give me discount or promotional stuff in return. So, when I buy an audio book it will post to my news feed on Facebook saying, for example: “Ólafur Andri just bought the audio book Predictably Irrational by Dan Ariley”. This would also go to my Twetter feed.

Now all my friends see this message. The audio book company pushed the message indirectly to my friends. The key point is that the company did not push this directly to them. They just see what their friend was doing. And if they don’t want to see this, they need to find new friends.

Of course this is a well know strategy in the Facebook world. When you play a game or take a survey, all your friends get informed. This is what makes it a social network. People share their activities.

The audio book example is just one example. Think about online concert tickets, movie downloads, phone apps and so on. The social network is powerful and someone will take advantage if it.

The Icelandic Gaming Industry

Icelandic Gaming IndustryThe Icelandic Gaming Industry forum was formed on May 6th. The forum consists of people working on creating and designing games. With a short notice the people got together and met at a downtown Reykjavík bar and held their first meet up. What brought them together was their shared passion for gaming and everything game related. Although the meeting was informal with light discussions, the tone was very serious and the message is clear: a new industry is rising in Iceland, the Icelandic Gaming Industry.

The companies behind this forum held presentations at the Ministry of Ideas (hugmyndaraduneytid.is) on May 9th.

It turned out to be an interesting state of the industry with eight companies presenting. Presentations are here.

My presentation on Betware is here:

In my presentation I introduced the company and presented some games. Betware is not well known in Iceland and often mistaken for a betting company of similar name. However, Betware is a software company not a betting company. We sell games to state Lotteries. The company has over 100 games in its portfolio, which run in four Lottery data centres. We also run our own multiplayer social network site, CertusGames.

What is interesting is about the IGI is the enthusiasm and passion for games. And this is not an industry to be ignored. The gaming companies are real professional companies. Almost 600 people work for the Icelandic gaming companies, with more then 320 people working in Iceland. So Iceland is not doing badly when it comes to the gaming industry and it is likely that the industry will continue to grow.

Unfortunately, gaming is not considered a specific field of industry by the authorities. The Icelandic Gaming Industry will change that.

Social Networks and how to Make Money with them

Picture from Soffia on http://www.flickr.com/photos/soffia, work titled COTU 2007
Picture from Soffia on http://www.flickr.com/photos/soffia, work titled COTU 2007

In April, I read about 40 papers on technology issues for my New Technology course. I plan to post some of these papers here. The first one is by Christine Leypold and is about social networks. In this paper she tries to answer the biggest question about this emerging past time: what is the business model?

Abstract from the paper: This paper deals with the business aspect of social networks. Social networks are full of structured information and this paper tries to figure out how this information can be used to make money. The focus of this paper is on business ideas for individuals, companies and social networks themselves. Business ideas for individuals represent also one-man companies, where the business is dependent on one individual, as well as employees who want to enhance their network. Furthermore the paper figures out what kind of new marketing strategies are available for companies through social networks. The paper also points out the questions whether it is possible for social networks themselves to make profit or not. In addition to this, the paper focuses on future trends of social networks.

Social Networks and how to Make Money with them