Thu, 19 Apr 2007

Everything You Do Gives You Gold

Session: Reality Bites: the Future of Gaming + Virtual Worlds 2.0

Participating:

Ginsu: last night, talked about how we'd do the panel, other people decided he had to go first, because SL is over-hyped, 5 minute limit. Spent 3 years understanding it, can now explain it in 10 minutes.

Ginsu: [puts up picture of Gutenberg press] It all started here, you've heard this before. Before it, media was tightly controlled, creation was sacred act. Had to be literally a monk to write and distribute media. Since that point, continuation of the idea of lowering the bar, making it cheap to produce mass media and market. Gutenberg press had a slow distribution time-line.

Ginsu: same stuff, but now it's faster, using technology, text, images, video, voice. Shared collaborative space. Not different from books, that much. Instead of it taking decades / centuries, it's now nearly real time. What do virtual worlds have to do with web 2.0? It's an extension of the same sharing, creating impulse

Ginsu: New topic, emoticons. Hate them, love books. Good writing is amazing. Write everyday, so do you probably, mostly for work, try to avoid emoticons, when dashing messages off, the emotional bandwidth is thin, constraining. Forced to use emoticons. But with Second Life, you get more emotional context, based on avatar choice, posturing, clothes, hairstyle. Susan says say something poignant, this is it: this cultural and emotional bandwidth that is available in a VR environment, is maybe a little different from the printing press.

Lane: Love to get into how everything was chosen. Reality is that it wasn't complicated. A group of parents who looked at what was available for kids and saw:

  • UN-entertaining, sterile
  • purely built on marketing and merchandising products to kids

Lane: Sat down and asked: can we do this better? For the most part, we think it did. Different paths, but we built this for our kids.

Club Penguin

Susan: Club Penguin is a VR with millions of users.

Lane: Built using Flash 6, so it would work in all the browsers. Looked at barriers to entry and looked at how to burst them. Demographic they looked at is not patient. Would rather have 2D graphics than long download times. Built to be easy interface, load up on "grandma's computer". Built around two things, fun + safety. Express that a lot, because it's still their values. Fun enough to keep kids hanging around, safe for them to be there. Big challenge to make it safer than anything out there.

Lane: asked what I hoped to express, good values, good ethics, good morals does work and you don't have to be controversial to sell. Safety is important, beyond just a marketing tool / pitchline. Has to actually work. Built to take months and months to explore. Lots of features which haven't even been found yet. Built by parents for parents.

Joichi: going to talk fast, assume everyone knows what WoW is. ( He wasn't kidding, I was barely able to keep up with him, typing, so several invisible gaps in the transcript of his words. ) [puts up a slide] Content is on one side, Context on another. Music is stuff you can put on a truck and ship around. When you used to feel lonely, you listened to music, knew others felt that way, too. Then video games, a little more interactive, Karaoke, much more interactive and now with Text Messaging, very much more interactive. Entertainment industry going from Content to Context and this is where it intersects Web 2.0.

Joichi: Similarly, Communication Technologies range from Mass Media, Magazines, Blogs, Social Networks, Email, Instant Messenger, Presence. It's like the US finally discovered SMS. Kids in Japan, SE Asia grew up knowing they had the internet in their pocket. Studies show kids forming intimate presence communities where they know where 5-8 people in their circle are at any given time. Twitter isn't boring, it's not about content anymore, it's context. A lot of people miss context when they think about games because they think it's about content. The whole notion of co-presence is an important part of the game / entertainment thing.

Joichi: A lot of WoW players have WoW full-screen, do everything through it. Blizzard allowed creation of Addons, using lua, brilliant thing. Now you can integrate all the information into one interface. It's all about real-time presence, not static web stuff. Web 2.0 is catching up with WoW.

Joichi: [Richard Bartle slide] "Not Yet, you Fools!" envisions game as immersive fantasy, considers voice immersion-bursting, reality-intrusive, ruins role-play. Reality is that voice is there, Western notion of the internet is logging in to cyberspace [closes laptop] and then you log out. Eastern notion is less binary. [shows South Park clip] A lot of people look at the surface of education. "Simulation" v. "Metaphor" Simulation is close likeness to real world. If you wanted to use a game to teach someone how to be a better manager, using simulation, you'd recreate the conditions of their job, same environment. But metaphor is a different way.
Metaphor is like a raid, where all aspects are different but it has a shared core of the idea. Uses the word "Ensemble". [Shows 40 person ensemble going after dragon] So it has nothing to do with your job, but you have exposure to the same core principles, managing large groups of people toward a goal. There's a zone you get into when everything works and you get a reward, not the same reward as getting a higher score than anyone, it's a reward from collaboration, easy in WoW, hard to get anywhere else.

Joichi: Where you have social software, social forums, you have tools to collaborate, shows Rupture

Susan: you were CEO of myfamily.com or whatever. Why Gaia?

Craig: I went to Benchmark with an EIR with one goal, building it up. Looked at consumer internet, only wanted something with an enormous consumer value, something that would sell without marketing. Looking for a product where founder has enormous grasp of end product. Someone building something for themselves. Looked at 250 startups over 14 months.

Craig: Gaia world's fastest growing hangout for teens. #2 forum, a billion posts, over 1M posts yesterday, 2M monthly unique visitors. Avg simultaneous users 64k. 3x growth since May 2006. Avg minutes per session: 48, beats myspace, facebook, habbo, runescape, puzzle pirates

Craig: why do they love it? basic concept, is building profile, then you build avatar, friendslist but a cute friendslist, can build a blog, they call it a journal, communicate and self express. Build a home, write fiction, poetry, join a club, draw art, submit creations to user-managed newspapers or just have users vote hotornot style on it. Or just play games. Free flash games. Hang out in towns. A little like Club Penguin, but for the older demographic of kids. Gold falls from trees in Gaia. In fact, everything you do there gets you gold, that's the basic metaphor. Use the gold to trick out your avatar, 11 stores, 5k+ items for avatar or house. There's an eBay marketplace, where you can [re]sell creations. 50k+ auctions daily.

Craig: behind it all, rich storyline, they build a lot of the content. Beginning of October, had a Tom Cruise doppelganger, jumping on a couch, yelling about aliens. Movie theater, like mst3k. The combination of content they create, plus user content. 7 banks, including one that is a result of a merger. Weddings online, with a wedding planner. Gaians throw their own parties where they perform plays. [shows screenshot of dress rehearsal] Got into this because it's a great value proposition. In a world where teens are constantly branding and packaging themselves, Gaia is where you go to get away from it all, and just be yourself...or who you want to be.

Susan: I get that game designers know more about UI than web 2.0 designers. Question: if that's true, why are all the successful online game companies, why don't they use game designers for their site design?

Raph: the Game Industry is oblivious. They're all big traditional content owners. The answer is they're completely clueless. They don't realize that's what's happened in virtual worlds is their lunch has already been eaten, by people from the outside. The people on this panel work for companies where games are part of the culture. The virtual world hasn't come completely to grips with the user-generation phenomena. Many game people have fled big media because they don't get it.

Raph: everybody but the game industry is rushing into this space. Everyone references WoW. WoW is a wild outlier. Viacom has published more virtual worlds in the last 6 months than any vw publisher. Game industry is being marginalized from games business as everyone rushes for the game space. Game design is not an arcane science.

Craig: having you in our office was amazing because everyone in our office is a huge fan. Why can't we make games free, why do people have to go buy in stores? People feel it started with Raph, with Ultima Online, etc.

Sue: Craig you showed a visual aesthetic style, which may appeal to teens but maybe not mass market, question in general, perception is that online gaming is very niche, hard-core audience. How respond?

Craig: first, we are mass market. 2M unique visitors last month, no money on marketing, PR. We only have one language. I think games which cost $20 and take four years to make are obsolete. 2-3M WoW players, but it's an enormous amount compared to previous gameplayers. Club Penguin is radically mass market because it's easy to get in and figure out what to do. Most games cost $20 or more, hard to understand; myspace and facebook are free, take seconds to figure out.

Lane: from day out set out to serve parents and kids, shun interviews and events like this. Put aside what we personally wanted to serve community which wanted more features, better features. Growing up in the game industry it was about what do I want, my friends want, no, it's about what kids want?

Ginsu: is this a fad? can't understand how people could ask this. Were you told growing up you would have a persistent online media, 15-20 years ago, that you would find spouse, be able to buy stuff, interact online like we do now.

Raph: manga and anime, if you think that isn't mainstream, you're old and out of touch. It's all over TV. Look at avatar, airbender

Craig: but tv is becoming a little niche... Virtual reality dwellers outnumber population Canada.

Question by Susan: expect future web to be visually rich, given that many virtual worlds require emotional commitment, how can you reconcile what will happen when people have many choices?

Raph: interoperability standards, OpenID

Question by Susan: people are being overwhelmed by choice now, what happens in 5 years? How compete for people's attention?

Raph: don't even understand the question. who watched buffy? emotional investment in buffy similar to WoW. Of course, there will be big sites and small sites. Good shows / worlds will get cancelled, people will gravitate to worlds that interest them.

Craig: if you're in the audience and you're wondering if it's too late, no, it's not. You still have time to build interesting worlds. In that space, there will be many, many, many winners. It's a mistake to look at where you fit in versus somebody now. It's time to put on blinders and build a world which fits your vision. When the question is asked, which world you go to? It's like the time you spent as a kid, going to school OR playing soccer OR hanging out with your friends? No, all of those.

Lane: cable channel analogy. 50 channels? how could they thrive against the big three broadcast networks!

Question by Susan: another way of asking it: look at social networks, thousands, majority of users concentrated on a very few of them. as we move immersive, are we going to see that? club penguin, gaia online, we see deep segmentation. what do you think the distribution of success will look like?

Ginsu: try but it's hard to not sound self-serving or be self-serving. at the point where we are, cost of virtual world creation is expensive. Easy to do a web site, channels are expensive. if you're going to create and experiment in a way that is open and extensible world where you don't have to hire 50 developers, spend millions of dollars. If you had a system like that which was open to everybody...that would be pretty cool. That's what we're chasing at Second Life. Vast majority of users are consumers. Small, powerful, minority are creators. Not just virtual shirts, shoes, things like that. It's about having a large virtual space to yourself, managing community, managing experiences of others.

Question by Susan: what metrics do you use to measure your site's success?

Craig: number of users, time spent, 4-5 secondary metrics: retention rate, revenue, etc. whole site is fundamentally free, revenue generation is not chief goal

Ginsu: several hundred dashboard reports daily, about 20 everyone looks at, other people look at specialized reports.

Lane: quite simple, put a lot of time and effort into listening to the audience. spends time reading blogs, looking at forums. users are very quick to say it's not fun and not safe. easy to quickly see where things are because they're a great vocal demographic. Have people on staff solely to keep an eye on blogs, find out what people like and don't. Working in real time means they don't have to wait for service packs, can roll out changes real time.

Lane: 70% of staff are doing customer service

Raph: conversion is an important metric which didn't get mentioned, uniques v. 30 / 60 day trailing revisits. Linden has now released stats showing users checking in every 3 months, used to be every other day. Need to know how many people are bouncing off their sites, how many sticking and core.

Joichi: drag it back from numbers, look at behavior. It's hard to change behavior. This co-presence thing is a trend but we don't control it. WoW is great because they figured out what was going on and added a little bit of value to it. It's rare to hit upon something new which is going to change everything. Flickr isn't successful because they don't have an e or because it's blue, it's because they spotted what people wanted and feed it. A lot of technical people think it's just feature add, we need to think about it more like sociological anthropology.

posted at 16:33 PDT (-0700)     (comments disabled)   permanent link   Technorati tagged as: , , ,
Islands in a Frothy Ocean

Session: Licensing User-Generated Content With: Fred von Lohmann, EFF

This was a fast-paced high-level look at some of the issues you get into when your company wants to encourage users to make stuff and distribute it through you. This is some of the hoopla around Web 2.0, right here. Crowdsourcing, community building, whatever you want to call it.


  • Licensing inputs
    • on the shoulders of giants
    • up-loaders who don't own content
  • Licensing outputs
    • reuse, recycle, re-mix

About inputs:

Posterchild for angry giant shoulders is Viacom v. Google.

Basic copyright problem, when it comes to copyright, big ocean of uncertainty. Statutory damages and personal liability because there's no shield, which can reach up to the officers, directors and the investors.

Four islands of certainty in the ocean. The tide-line moves, so you're never really sure where you are. These so-called "safe harbors" eliminate monetary damages and limit injunctions.

  1. Conduit Island
    • if you're an ISP
    • solely providing connectivity
    • it's not your fault
  2. Caching Island
    • "nothing grows"
    • designed for AOL's caching circa 1997
    • only works when user requests content
    • no forward caching allowed
    • doesn't help akamai
  3. Search Engine Island
    • indexing
    • searching
    • directories
    • linking
  4. Hosting Island
    • most important in web 2.0 world
    • designed for web-hosting companies
    • couldn't guarantee all pages by all users didn't infringe

You don't have to be an island to build a business, qv Bittorrent.

web hosting + search engine = eBay Now many more companies combine safe islands. MOG is an idea to improve music blogging [?!] and is a new-ish company using several islands.

Myspace and youtube and similar companies are betting that they're above the tide-line.

How to get on an island, the basics:

  • register a copyright agent
    • this costs $40
    • trivial to do
    • SO DO IT
  • notice and takedown
    • copyright owners have to follow some rules
    • if they jump through the hoops, you must comply or be cast off the island
  • infringer termination policy
    • user with lots of complaints (ie, more than 2)
    • you need to close their account

(Not) Staying on the Island:

  • "Red Flag" Knowledge
    • if you know a user is infringing
    • don't do anything about it
    • you get pushed off the island
    • if you had evidence indicating obvious infringement
    • perversely, the more you know about the uploaded content, the bigger your exposure and the more culpable you may be
  • Direct Financial Benefit + Control
    • if the infringing directly benefits you
    • "youtube loses because they have ads"
    • youtube segregates ads from the video pages, themselves
    • control is more than just being able to delete / takedown content

For more information, call your lawyer. Do it now. Don't wait too long because it may change your biz model, software architecture, employee policies.


About outputs:

How do you attract content re-users?

flickr is a use-case for this. Not only allowed upload, allowed users to get pictures. If someone is in the business of selling stock photo, they're already being obsoleted by flickr.

How does flickr make it easy to re-use content from their site? Creative Commons. That's the short answer. CC has a content curators page, making it easy to find content under CC licenses. Also a search facility which lets you search the whole web for CC content.

  • Attracting the re-users
    • Findable
    • Usable
    • Simple
    • flickr interface is pretty great
      • search by content license type
      • including refined CC license subtypes
    • flickr has a page showing CC subtype categories, lets you browse
    • attribution-nocommercial-noderiv most popular
  • Giving creators reasons to use CC licenses
    • vast majority of flickr users do not license using CC
    • explain the licenses
    • default
      • permissions for pictures
      • set in profile
    • batch changes make easy to relicense

Audience QA:

  • good examples of commercial license implementations?
    • CC has standardization
    • CC has internationalization
    • commercial context, much harder to achieve
      • more complicated
      • internationalization problem
      • can probably be done
      • Revver is maybe at the forefront on this
  • what happens if you're operating outside the US?
    • the DMCA harbors are part of the reason many ISPs are here
    • in many other countries, no islands, only the ocean
    • US has most articulate protections, legal principles
    • protected in US doesn't mean you're protected internationally
    • internet is international, copyright law is not
  • "I take a picture of you, upload it to flickr, license it attribution-only, can people do whatever they want without your permission?"
    • complicated question
    • simple answer: no violation of the photographer's copyright
    • complicated addendum: may violate subject's privacy rights
    • subject may have recourse to stop use of image if used commercially
    • depends on what subject and photographer are doing at the time and where they are but it's more likely some other legal problem, not copyright
  • what about a site devoted to video mashups? End-product might be legal but what about the raw material uploads?
    • easy answer: license the raw materials and you're fine
    • safe harbors/islands should shelter you if you obey the takedown stuff
    • but once you're doing the mashups, are you still on an island?
    • even if it's fair use for the end-user, might not be fair-user for the service provider like Kinko's photocopying and selling a textbook
  • what does non-commercial mean?
    • enormous debate in the CC community about this
    • many things we can agree are or aren't and many no agreement on
    • lots of discussion on the CC wiki / site
posted at 15:59 PDT (-0700)     (comments disabled)   permanent link   Technorati tagged as: , , ,
Cassandra Media

Hey, remember Indymedia? I first heard about it and visited it back in November, 1999. It was because of this site that I went to the WTO Protests. I followed the Independent Media Center for years but never felt like I had the time to get involved.

The last time I looked at their site, it had been overran by race-baiting hate-mongers for whom I had no respect and no desire to interact with.

Today I spotted an event on the web2open chalkboard about Indymedia. I went to it. It was fascinating. I had failed to realize just how strongly IMC had foreshadowed the rise of user-created, user-uploaded, user-annotated content. IMC was web 2.0 before there was such a thing.

So what's happened in the years since it started?

Well, companies and organizations and technologies sprang up to do what IMC had been doing but making money at it, because big companies spent big money on pushing this field. So now IMC is lagged, stuck, and hurting. They need volunteers, they need resources, they need content, they need software.

So maybe I'll finally pitch in and lend a hand.

posted at 15:23 PDT (-0700)     (comments disabled)   permanent link   Technorati tagged as: , ,
You Had to Be There

I didn't write anything about the keynote pieces because there were thousands of people watching them, many in person, and I didn't think I could add anything to them. I was most excited by the world-changing bits, like the Architecture for Humanity and the Potenco talks and I wish I could have had more time to ask the representative from Instructables about how the killings at Virginia Tech changed her presentation ... but not enough to have actually asked her when I saw her in the lunch space and again on the escalator.

Or at the Fred von Lohmann presentation. Man, she's everywhere.

OK, I had ten minutes so I went and asked her and she gave me a robot sticker!

robot sticker

Also, she superbly explained the impact and how it changed things. It's this: because the community on Instructables is all about building guns out of K'Nex, the point she wanted to make clear is that the valuable part here is that they're making stuff, that they're developing engineering and social skills. It's not chiefly about the guns. They're engineering guns because that's what teenage boys are in to.

Because they're building a community, each person involved is one less loner. So it can be a great liberator, giving people in isolated areas a sense of connection, of belonging, of making and doing and sharing and learning. When they develop new interests, they'll take those making skills with them. So now I (think I) know what she was saying and so do you.

posted at 07:12 PDT (-0700)     (comments disabled)   permanent link   Technorati tagged as:
Less Disgusting Than Anticipated

Session: Top 5 Do's and Don'ts for Measuring Web 2.0 (Yes, that's really how it was punctuated.)

With: Akin Arikan, Unica

I tried to branch out and go see some less technical presentations. This one turned out to be a really fun one and gave me the idea that I understood what was going on in the head of Marketing people. Yeah, that illusion won't last. What follows is an improvisational summary of what was said.


Who here likes to work with salespeople? Nobody? Why is that? Because they're pushy. But they're paying attention to you all the time, even reading your body language. So who should you hate? Right, us. Marketing people. Because who makes spam? We do. Cramming messages down the throat of prospects.

Web 2.0 != Spam 2.0

What is it? Build brand through amplifying customers. Give unique value through social intelligence. Create better user experiences.

DO WEB ANALYTICS. Don't Just Measure to Improve Usability and Conversion Rates -- there's much more you can do with it.

Unica sells software to marketing departments, campaign managing software, web analytics NetInsight.

Levels of metric analysis and use.

  1. Optimize Web 2.0 applications
    • for usability
    • for conversion rates
    • for engagement
  2. Market Insight
    • Capture Social Intelligence
      • watch how people use the tools
      • figure out what they really want
  3. Relationship Marketing
    • Build a Profile
    • Act on it
    • This is Marketing trying to be more like a good salesperson, listening

Case-study: Imagine a product review and participation site, where users can review, on feature level, respond to each other's review, score what matters most to the user. Overlay number collecting interface on the unstructured data.

How to proceed?

  • think of measurement from beginning
  • don't think of page views, it doesn't matter in web 2.0
  • don't use server log files

Business goals of Web 2.0 application

  • drive traffic
    • get more visitors
      • unique visitors
      • engagement metrics
        • session length
        • comments
        • uploads
        • invitations
    • viral buzz
    • repeat visits
  • drive revenue
    • convert visitors to buyers
      • revenue
      • conversions
    • up-sell & cross-sell
  • build brand
    • create customer relationships
    • get direct feedback

When page views won't cut it, use event tagging to record actions. ActionScript, Javascript, Pixel tag. Like page bugs, zero-size images.

Measure the contribution of web 2.0 applications to your revenue, conversion, things you want out of your site. Segmentation of data is your friend.

Click-stream analysis becomes event-stream analysis. What actions did the visitor take, since it's no longer tied to page views.

Use analytics to measure community, commerce and engagement. Segment, segment, segment.

Measure to learn about market & demand. Capture social intelligence.

Measure to serve individual customers. Crown jewel of web analytics. Funnel reports are the most important report in web analytics.

Don't ignore off-line effects of online activity.

Jupiter Research says more people are doing online research and then buying off-line. (The bastards!) Try to measure if the online stuff is influencing their off-line behavior. But how?

  • correlate trends, online + off-line
  • display & retrieve customer codes
  • display unique 800 numbers
  • buy online, pick up in store
  • promotional coupons, encode the source of the visit or a visit handle

How to measure individuals off-line conversions triggered by online marketing?

  • direct response
  • inferred response

    • match up contacts
    • loyalty cards
    • accounts
  • entice online registration

  • feed user activity into CRM or SFA
  • prioritize off-line treatment
  • entice identification in stores off-line

Audience Q&A

  • What about RSS?
    • unique cookies in the feed, that's the only nice thing
    • if you're syndicating through feedburner or something, read without information feedback, but feedburner provides some data back
  • How about widget?
    • dark spot in Akin's knowledge
    • no one stays at the same web site, need to be able to measure widget impact
    • think about tagging the widget
    • run into third-party cookie problem
  • How to make sense of user-generated content
    • don't stick to categories
    • inject ways of making data numeric
    • try to find heuristics to measure unstructured content
  • What to do about flash video
    • uniquely craft content to result in unique action
      • like a special URL
      • tagging
    • many providers for embedding video in many places
    • maybe set a cookie during video viewing
    • common wisdom is that reaction is 2-3 weeks lag
  • If you don't sell anything, and it's not commercial, how can you measure if a change is working? What's key performance indicator?
    • engagement: are people staying longer, reading more, scrolling down?
    • reach: unique visitors
posted at 07:04 PDT (-0700)     (comments disabled)   permanent link   Technorati tagged as: , ,
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