2. 2
What is myYearbook?
• Social Platform for Meeting New People on Web or Mobile
o Social games and applications “break the ice” and drive retention and
monetization
o Location-based stream with 1+ million updates per day drives content discovery
• Top 30 Property in the US in Total Time Spent1
o Ranked one of the Top 25 engaging web sites in the US1 (by min/user/month)
o The #1 Site for Teens in the US1
• Fast-Growing Revenue
o $25 million revenue run rate; Profitable since March 2010
o 62% revenue growth since January 2010
• Innovative Social Media Team
o 100 employees, including 50 engineers and 20 in advertising sales
(1) - comScore US
Confidential – myYearbook 2010 – Not for Distribution
3. 3
Revenue Growth Driven by Advertising
and Virtual Goods
Confidential – myYearbook 2010 – Not for Distribution
-
500,000
1,000,000
1,500,000
2,000,000
myYearbook Historical Revenue
4. 4
People Make Games Social
Confidential – myYearbook 2010 – Not for Distribution
Source: Information Solutions Group. 2010 Social Gaming Research Report
“Through social
gaming I have
met new friends
who will
hopefully be my
friends for life.”
“I have met
people from all
over the world
and am in touch
via email, phone,
etc.”
“I met my love
of 6+ years on
an online
game.”
5. 6%
8%
13%
13%
15%
20%
30%
37%
56%
62%
0% 10% 20% 30% 40% 50% 60% 70%
Current classmates
My children under 18
My children 18+
Spouse
Co-workers
Former classmates
Other relatives
Online strangers
Online friends
Real world friends
5
People Like to Play Games with Others They Don’t
Know in Real-Life
Confidential – myYearbook 2010 – Not for Distribution
Source: Information Solutions Group. 2010 Social Gaming Research Report
6. 6
People Mostly Play with Others of the Same Age
• The ability to find people your age is very important to social game players
Confidential – myYearbook 2010 – Not for Distribution
14%
6%
11%
18%
22%
76%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Don't know
People my
grandparents' age
Children (less than
18 years old)
People my
parents' age
People my adult
children's age
People my own
age (+/- 10 yrs)
Source: Information Solutions Group. 2010 Social Gaming Research Report
7. 7
People Like to Make New Friends in Games
• More than 70% agree that that they have made friends online as a result of
playing social games
Confidential – myYearbook 2010 – Not for Distribution
Strongly agree
27%
Somewhat
agree
47%
0%
10%
20%
30%
40%
50%
60%
70%
80%
I have made new friends as a result of playing social games
Source: Information Solutions Group. 2010 Social Gaming Research Report
8. 8
Synchronous Games Encourage Meeting New People
and Making New Friends
• Real-life board games, card games and pool are all synchronous games
Confidential – myYearbook 2010 – Not for Distribution
9. 9
Facebook Games are Almost 100% Asynchronous
• Only 5 of the top 100 Facebook game apps are synchronous:
Confidential – myYearbook 2010 – Not for Distribution
Asynchronous dominates Facebook apps Synchronous not yet developed
#3 #46
#76 #83 #89
Okey -
Turkey
10. 10
So What are Facebook Users Playing?
• Mostly they are playing different versions of the same game
Confidential – myYearbook 2010 – Not for Distribution
11. 11
Farmville, Petville, and Café World – Like Most
Facebook Games – Share the Same Mechanic
• Users perform a set of actions which take a certain amount of
time to complete. Then the user will perform another action in
sequence to gain cash and experience:
– In Farmville, a user plows land, chooses seeds, plants, waits
for seeds to grow and then sells vegetables.
– In Café World, a user cleans the stove area, chooses a dish,
waits for the meal to cook and then serves the meal to
customers.
– In Petville, a user cleans the pet, waits for it to get hungry
and feeds it and claims a reward.
Confidential – myYearbook 2010 – Not for Distribution
12. 12
Not Only the Same Mechanic, but Also the Same
Game Over and Over Again
• Many Top 100 social games have a popular Top 100 largely identical rival:
Confidential – myYearbook 2010 – Not for Distribution
Farming:
Restaurant:
My
Farm
Pets:
Zoo:
13. 13
These Games are Not Optimized for Human Interaction
• There is nothing social about “Plowing Crops”
• So what are they optimized for? Two things: “Virality” and Monetization
• Get 2% of your users to pay you and the other 98% to spam their friends
– Guess which part is the trick?
Confidential – myYearbook 2010 – Not for Distribution
=Not
Social
14. 14
Why Are Game Mechanics the Same?
• Because it works….For now.
– It makes money and gets users
– Why do anything else when you can create another farm game or
zoo game and make some money?
– Why invest in anything that doesn’t start with: “It’s like Farmville
but it’s about something even more interesting than farming”
• These games grew by spamming Facebook viral channels and
can not survive without them
• Just this week got a Farmville post on my Wall from some
“friend” I went to school with 20 years ago
Confidential – myYearbook 2010 – Not for Distribution
15. 15
What Happens without Viral Channels?
• It ain’t pretty: LOLapps traffic drops by 2/3 when viral
channels are suspended by Facebook.
• These games can not exist without the viral channel
Confidential – myYearbook 2010 – Not for Distribution
16. 16
Why is This Unsustainable for Games Developers?
• Facebook is constantly restricting viral channels
• It’s supply and demand. Facebook signs up everyone. Page view
growth flattens out, demand for advertising continues to grow,
advertising rates go up, cost of new user acquisition goes up
• Facebook knows its games are derivative – modeled on getting
2% of users to pay and turning the other 98% into a spam
engine – and it doesn’t want that
• Facebook needs to own the discovery mechanic – imagine an
App Store-like experience disrupting the entire ecosystem
• Look for new viral channels from Facebook
Confidential – myYearbook 2010 – Not for Distribution
17. 17
So Does This Mean Facebook Will Win Synchronous
Games When It Chooses To?
Confidential – myYearbook 2010 – Not for Distribution
• Facebook has the wrong social graph for synchronous games
• The Facebook Social Graph is based on your real-world
connections – i.e. people you already know
• Facebook doesn’t want you cluttering up its core asset with
people you don’t know, which is what would happen if they
exposed a way to discover people based on games
• Facebook is not about meeting new people
• Changing the paradigm will lead to more significant
privacy concerns than have been seen to date
18. 18Confidential – myYearbook 2010 – Not for Distribution
The Facebook Social Graph
• 130 friends on Facebook (per
Facebook statistics)
• 5-10 friends online right now
• 2-5 online friends want to play
a game right now
• [0-2] online friends want to
play a game with you
All Friends
Friends Online Now
Want to play
a game
With me
Few, if any, friends are ready to play
a game with you
Facebook Has the Wrong Social Graph for Synchronous Games
19. 19
Finding People to Play Games With on myYearbook
Confidential – myYearbook 2010 – Not for Distribution
The myYearbook Social Graph
• 30 million registered myYearbook
users
• 100,000 users online right now
• 10,000 users filtered by
age/gender/location
• 5,000 users online, filtered that
want to play a game right now
• [2,500] users that want to play a
game with you right now
Registered Users
Users online right now
Filtered by age/gender/location
Filtered that want to play
Want to play with you
More game partners on myYearbook than
your total list of Facebook friends.
20. 20
Predictions of the Future of Synchronous Gaming
• Expect innovation. Synchronous gaming is wide open.
• People make games social. Current games do not emphasize human
interaction. Future successful games will.
• People like to play games with strangers, but not just any stranger. They like
to play with people of a given age, gender, skill level, etc. In short, they like
to play against people they may want to friend. Expect to see innovation
around game matching.
• Synchronous games require different viral channels and discovery. Expect
new viral channels and app store like interface for game discovery.
• The squeeze on developers will continue with increased marketing costs and
reduced asynchronous viral channels. Development will follow the new viral
channels.
Confidential – myYearbook 2010 – Not for Distribution
21. 21
Questions?
Want to Develop for a Synchronous Platform?
Want a Great Job in the US?
Geoff Cook
gcook@myyearbook.com
23. 23
Active, Gaming-Oriented Community
Are myYearbook Members Playing Social Games?
Source: myYearbook Member Survey. 10,154 Respondents. April, 2010.
Yes
78%
No
22%
Confidential – myYearbook 2010 – Not for Distribution
24. 25%
34%
25%
12%
5%
ExtremelyImportant
ModeratelyImportant
Somewhat Important
Slightly Important
Not Important
Meeting New People Through Social Games
Source: myYearbook Member Survey. 6,302 Respondents. April, 2010.
24Confidential – myYearbook 2010 – Not for Distribution
How important are these relationships in
your life?
41%
31%
23%
6%
Casual
Dating
Online Only
None
What kind of relationships have you formed
on myYearbook?
25. 25
Game Play Behavior – Length of Game Session
• 81% of social game players sessions are longer than 16 minutes
• 2/3 of all game players play for more than 1 hour every week
Confidential – myYearbook 2010 – Not for Distribution
Source: Information Solutions Group
2010 Social Gaming Research Report
1%
6%
12%
23%
27%
22%
6%
3%
0%
5%
10%
15%
20%
25%
30%
<5 min 5-10 min 11-15 min 16-30 min 31-60 min 1-2 hrs 3-4 hrs 5 hrs +
26. 26
Logging in Specifically to Play Games
• Almost half of people who log in to play social games are there just to play
games
Confidential – myYearbook 2010 – Not for Distribution
Source: Information Solutions Group
2010 Social Gaming Research Report
2%
34%
24%
13%
27%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0% 1% - 25% 26%-50% 51% - 75% 76% - 100%
27. 27
So Does This Mean Facebook Will Win
Synchronous Games Once It Chooses To?
• It doesn’t have much of a head start. Top Facebook synchronous games and
their monetization model:
Confidential – myYearbook 2010 – Not for Distribution
#3
#46
#76
Drive revenue through chip and gold purchases. Chips and gold
spent on game play, tourney buy-ins, gifts and other items.
Drive revenue through purchase of ‘Saga Tokens’ and ‘Ninja Emblems’
(upgrade status). Also runs a selection of offer walls to earn tokens for
completed offers. Sink Tokens on Weapons, Body Armor and other
items.
Drive revenue through purchase of ‘Treats’ through various payment
methods. Can also upgrade to Membership level by buying enough
Treats. Sink Treats on weapons, pets, combos and accessories.