The power of the Internet to enhance both the quality and quantity of human interactivity is staggering. The recent successes of MySpace and Facebook, among many others, are testaments to the innate human desire to connect with one another. From the time the umbilical cord is cut, eliciting a powerful separation anxiety response, we strive to reconnect with those around us. It is this power of human bonding that is at the forefront of the Fuego Nation business. So, while we speak to the power of status, second generation interactive interfaces, customized user experiences and the like, the value of creating an underlying functionality that provides the best opportunity to make invaluable connections is at the heart and soul of our mission at Fuego Nation. Everything we do serves to shore up this singular purpose. What is the value to you of a product that results in finding a lifetime partner?
What is the value of finding a job that not only leverages an area in which you are most passionate but also provides an upside many times greater than the dead end job in which you currently find yourself mired? The answer is, in many cases, priceless and that is why the Connection Business is such a great one to be in. Couple that with the financial mechanics and low capital requirements of web-based businesses and you have one of the greatest business opportunities in the 21st century.
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Over the course of a long career in and around videogames, one of my deepest passions has been to engender an ‘interactive experience’ that would engage not just the geeky types that have made World of Warcraft a billion dollar business but everyone- both gamers and non-gamers alike.
At EA, we referred to this effort as the Holy Grail of gaming… [John Riccitiello’s recent pronouncements at EA that their games are too complicated and difficult to play are an example of both the hope and challenge of attaining this elusive milestone.]
The game-inspired aspect of Fuego Nation online showcases a highly engaging and interactive experience with a core play dynamic, ubiquitous reward/feedback system and utility that were universally intuited (both by region and age). The seeds of addiction sown by the control mechanics would be founded on the premise of status (one of the key motivators in all off our lives everywhere in the world).
In other words, in Fuego Nation, while members ‘apply’ to get in and whereas admission is based on a democratic vote of one’s peers (similar to the Digg model) through a combination of viral participation in the community and profile voting/enhancement members can elevate their status to VIP levels and beyond. ‘Leveling up’ results in not only unlocked core functionality but better product opportunities from our luxury/lifestyle ad sponsors.
The utility would be grounded in core communication functionality that would be more advanced than any other social network and eventually would be used by Members as a hub for all of their contact-based communication (web and mobile). So, as their status leveled, Members would be motivated to sustain participation via the quality of communication technology and the promise of high ’signal to noise’ connections (be they personal or professional in nature).
If successful here, then users would not have to scurry to multiple sites to manage multiple contact types (as is the protocol now). Furthermore, we refer to our ‘Face the Nation’ interface as ‘The Game of Life.’ Just as in real life, when we interact with anyone new, we begin to make judgments based on a very limited set of information. This is reflected in the Passion Cards in our interface (which are abstracts of a full profile and look like baseball trading cards). In other words, the ‘game’ one must play to get into the exclusive community is a direct reflection of real life (only set in a digital universe). And while our target audience may be Gen X adults, the core principals of ‘a community of human excellence and endeavor’ works well reset for other age groups, etc. (e.g. Fuego Nation Kids).
I’ve always struggled with the concept of avatars in online gaming because the nature of the ‘avatar’ conceptually and psychologically is inherently niche oriented (e.g. not mass market). In Fuego Nation, we create the capability, using RIA tech from Adobe and Microsoft to create ‘real-life avatars’- that is photo/video-realistic representations of our core with graphical depictions set in our virtual environment. For example, on the Leaderboard section (which will evolve into FN search over time), depicted members might have floating icons above their heads (photos) indicating their primary passion. They can then change these passion icons as their mood, focus, and intensity changes (on whatever time basis). They will also be able to change those ’status indicators’ remotely via their mobile phones. So while I may have a skiing icon during the winter months, I might change that to a climbing graphic which is my preferred activity in the spring. Then a user can initiate a search based on primary motivator/passion by simply clicking on that icon. The Leaderboard then resets with only those Members that share the same passion at that specific time.
The end result is a dynamic, addictive and compelling social experience that simulates the richness of more traditionally geeky fantasy role playing environments in a way that is accessible and meaningful to a mass audience.
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Several folks have likened the Fuego Nation entry process to that of coaxing your way into an exclusive nightclub. Though the parallel at first escaped us, we’ve come to adopt the simile over time and believe the power of the nightclub experience is indicative of the compelling nature of our online product. To draw the parallel, we’ll point to Duvet in New York City and Vessel in San Francisco as examples. At both nightclubs, exclusivity is generated by having 1) a popular concept; 2) a quality product to back it up; and 3) an admissions requirement (AKA The List).
Let’s focus on the ‘exclusivity factor’-the dreaded List. The List assumedly attracts a high caliber of city dwellers while repelling the less desirable. If you’re not on the ‘List’, well then, you’re not getting in. Having said that, even at places like Duvet, there are always ways to get into the club even if you’re not on the list. That’s what makes the process so exciting and the psychic benefit of figuring out how to get in so much fun. You might literally find a back door where a friend inside can let you in, you might pay off the bouncer with a cool 20 dollar bill or you might just create a beautiful enough first impression on the bouncer that he pulls the velvet rope as he admires your short skirt floating by. If, ultimately, you succeed in getting in via one of these ‘back doors’ your actual experience having figured out a way to get in is much more powerful and rewarding from an emotional standpoint.
Once in, there are VIP levels (often table service) for those willing to shell out more cash for the added privilege and prestige. This scenario is actually quite similar to the ‘Face the Nation’ admissions process at Fuego Nation Online. The parallels, components of what we refer to as ‘The Game of Life‘ follow below:
1. As an applicant to FNO you play both the bouncer and the bounced. Similar to American Idol, the voting process is entirely democratic; so, while we set the parameters for admission (e.g. total approval votes required to attain Basic membership) we do not determine who does, or does not, get in; The process is entirely both automated and democratic which is what distinguishes our product from every other ‘closed network’ and allows us to make our basic membership pool as large as we want
2. Since there is no list, no one is on it; This means everyone needs to ‘earn’ his or her entrance thus generating the exclusive component of our brand
3. Applicants must generate the best first impression they can via our Passion Cards, then figure out how to supplement that impression with clever ambition; This is why we refer to this process as ‘The Game of Life’ because it is designed to mimic the ‘connection’ process in the real world
4. So while physical attractiveness may help you get in (via the photo component), this isn’t necessarily the case; it depends on what the community determines is ‘cool, talented and desirable;’ good looks might actually backfire if enough applicants focus specifically on core talents
5. Since charter applicants will help ‘arbitrate the definition of cool’ we anticipate that this might trigger viral activity as friends recruit other friends to help define the basic membership trends in the club; If you have a friend who is already a Basic member, they can get you a Club Pass which essentially gets you around the ‘bouncer’ by generating a huge boost of points to help you gain admission; In this case, both the person giving the pass and the receiver of the ‘gift’ feel better about the product experience as a result
6. Although we won’t launch with the opportunity to ‘pay off the bouncer’ the opportunity for us to create a micro-transaction (i.e. a cover charge) is an opportunity for us to generate more revenue down the road
7. Now that you’re into an exclusive hot spot with a quality product to back up the ‘hype’ (and feel that much better about the product because you had to ‘get in’ vs. ‘just walking in’ at a place like Facebook, MySpace, LinkedIn, etc.) you’ll notice that there are levels of service, mainly a VIP section; If you want, you can purchase the added benefit, prestige and status of this product or aspire to do so some other time; this, functionally is how status levels work in FNO
This brings us to a revenue opportunity unique to Fuego Nation-that is, offline events. Getting back to the DNA of Data, if we successfully generate a tighter grouping of ‘cool, talented and ambitious people’ coupled with a brand that indicates ‘human excellence and endeavor’ we’ll be able to export that database into a collective community. This collective community might end up being an offline nightclub experience, professional networking event, climbing expedition, etc. Staying with the nightclub example, we might find a proud venue with poor traffic long past its prime. I’ll use The Ramp in San Francisco to illustrate this point. The Ramp could have tumbleweeds running through its dance floor one night and teeming throngs of talented, higher income Fuego Nation members the next. In other words, we can make a formerly dead club hop in a matter of days and collect 15% of gross receipt for the simple process of redirecting an existing database to a specific offline event. The event itself would be a Fuego Nation VIP member-only affair with an exclusive guest List. There’s the dreaded list again…only, this time, you’re on it. If you’re not on the list, you’re not getting in. Members might be attracted to this opportunity because of the power of brand association and because they KNOW that the general quality of attendees will be higher than anywhere else. Offline events are just one example of leveraging the high-end database of users we’re generating through our online product and only hints at the many revenue-generating opportunities in front of us.
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Good consumer businesses solve real-world consumer problems. Really good consumer businesses solve really big real-world consumer problems. We believe that Fuego Nation Online is an example of the latter. So while we might delineate between specific micro-problems inherent with the current generation of social networks, and how we’re going about solving them in a wholesale manner, let’s focus on the big picture for a moment.
In acknowledging the challenge inherent in the second point above, creating a Fuego Nation Events business was a key component of our business strategy from the outset. We wanted to enable a community where people could meet each other in the environment, virtual or otherwise, of their choosing. In doing so, we could solve the problems associated with ‘chemistry’ that plague the existing crop of online dating sites. If there is really no substitute for ‘face time’ then why not create a revenue-generating product line that solves this market need. Fuego Nation is in a unique position to do this because its members are pre-screened to be of a particular caliber.
Being Proud of Who You Are
As anyone knows who has participated in social networks to date it is rather easy to meet misidentified, undesirable people. The facts that open networks like MySpace are havens for predators of all sorts should not be surprising because the raw architecture of the site encourages this behavior (via self-expression). In other words, the temptation to pretend I’m someone else, in one facet or many, is almost too tempting to resist. When discussing this with a trusted friend he said, “Oh yeah, when I built my MySpace page I said that I was 99 years old.” In contrast, we wanted to create a community where talented folks (or the aspiring talented) could meet others with varying or similar passions in a safe, secure environment. The whole point of our community is to be proud of who you are (not who you are not). This is partly why your public facing Passion Cards indicate one’s user name while each Member profile features real names. And from an aspirational vantage point, if you’re not proud of who you are, then we will provide the atmosphere, tools and support to change your life for the better. In doing so we will win you over as a customer for life.
Our critics might point to the fact that one can easily game the system and get into the club by providing fake biographical/passion-based data and photos. While technically true, why would someone do this for the honor of paying a subscription rate when they could more easily game open networks like MySpace which have no such ‘cover charges’? Secondly, we will ‘lock’ the photo you use in your application so that it will always be available to those accessing your profile down the road. Furthermore, in order to move from a Basic membership to a VIP level membership one MUST recruit friends to the community to garner enough points to move up to the next level. Who is going to go invite their friends to their profile where they feature pictures of someone else? Finally, because there exist consequences in our community, if you are ever caught you will be expelled anyway…so what’s the point? In evaluating the current state of social networks we clearly identified a need for the post-collegiate crowd and custom designed an experience that is better tailored to the tectonic shifts that occur in one’s life once they finish school:
Stage 1 College Graduate
Fuego Nation was built for the ‘jobs and credit cards’ audience. This ‘older demographic’ while familiar with social networking technologies (like MySpace and Facebook) have dramatically changing needs (problems that need solving). After one graduates from college there are two fundamental changes in the way they look at life. The first is social. “Hmm, they say, maybe I’ll start a family some day.” That’s not a driving need of a typical college student. The second is professional. “Hmm, they say, I’ve got to get a job and support myself now.” Though they sound simple, these mark massive psychic shifts in the way people approach and interact with the world around them.
Stage 2 Established Career and Relationships
Many of us, particularly the ambitious amongst us, start our careers with an idealism that the harder we work and the better our results, the higher our career trajectory. We soon discover a unique reality in the maxim ‘It’s who you know, not what you know.’ As you start a family and become more successful in your life, available time for leisure diminishes but your keen awareness of the power of connections does not. This is why we’ve designed a product with a very high ’signal to noise’ ratio. This means that while it may take you dozens if not hundreds of contact points on other social networks to make a lasting connection our target goal at Fuego Nation is only a few. This results from the combination of our FuegoConnect Engine technology buttressed by the type of people attracted to the brand in the first place. At Fuego Nation we leave nothing to chance.
When we designed our system we dissected every current problem in social networking that would either detract from the experience of current users (young demographic) or prevent those outside the early adopter set (mature demographic) from feeling the psychic comfort of a community that protects their privacy while fostering ‘extremely high value’ connections. Below is a matrix we created that delineates the micro-problems Fuego Nation set out to solve in an effort to create the best online social/community experience anywhere on the globe. From the outset, our intent was to revolutionize social networking by solving monumental problems endemic to the current generation while providing a safer, secure and emotionally bonding experience with consumers.
Also, be creating a discreet branded top layer to the community, no one would know the reasons why you were using the site (e.g to get a job, to date, to climb a mountain, etc.). Knocking out the stigma associated with online dating, for example, was a key target benefit of our core user experience architecture.
was to revolutionize social networking by solving monumental problems endemic to the current generation while providing a safer, secure and emotionally bonding experience with consumers. Also, be creating a discreet branded top layer to the community, no one would know the reasons why you were using the site (e.g to get a job, to date, to climb a mountain, etc.). Knocking out the stigma associated with online dating, for example, was a key target benefit of our core user experience architecture.
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Every social networking site is basically an interface to a database. From a technical standpoint they are fundamentally the same. The core value of their product, the DNA if you will, is represented by the quality of the data created by users themselves. Data can be refined, repackaged and tarketed in myriad ways to brand stakeholders the world over. Direct marketers and ad agencies have always paid a premium for quality data about potential customers. Our first rule of success at Fuego Nation, ‘Data Rules’ is based on this market reality.
There is a fundamental difference in the way we approach data collection and mining than legacy social networking products. The difference is like that of mining for gold by panning in Sierra streambeds or blowing mile-deep veins into gold-laden mountainside with millions of tons of TNT. So whereas our competitors collect billions of pieces of data and then write expensive programs in an effort to make sense of it all, we developed a strategy that couples sophisticated interface and user design to engender clean data from the outset then leverage the community and brand affiliation of our users to further refine the data to an even greater degree.
The data mining process at FNO begins only seconds after a visitor lands on the site while the end result is a database that opens up new revenue streams not available to other sites. (e.g. offline event promotions and management, direct marketing to high-income individuals, hyper-targeted advertising, luxury brand product testing with key market influencers, ‘in-game’ advertising, etc.).
Peering into our design helix and comprehending the depth with which we’re piecing together this perfect data storm is an efficient way to get to the heart of the FN opportunity. It may be interesting to note that the design elements for which we have received the most interest including exclusivity, interactive interface design and status-based leveling systems were not end goals in and of themselves but rather tactics used in the execution of our overall strategy of attaining the ‘highest quality set of data of any social networking product anywhere in the world.’ So instead of embracing the small-minded worry about whether exclusivity will restrict the size of the overall membership, one should worry more about how we use exclusivity as a simple tactic to generate better, cleaner data about our member base.
What follows below is a simple process flow that articulates, at a high level, our ‘Data Rules’ founding principal:
Goal: Maximize Market Valuation
Market Reality: Better Data Results in Higher Revenues
Strategy: Create a system that ensures the collection of high-value data from the outset then leverage membership to help scrub the data
Tactics:
1. The Brand Voice- In our marketing, the voice as communicated via copy is aspirational in nature and aggressive in tone. This is done intentionally to attract ambitious, talented people and repel those for whom this message would not be naturally appealing.
2. The Game of Life Carousel- From the outset, we use the visual metaphor of the carousel and the spinning trading card profiles to begin honing the database. By voting we begin the process of data cleansing.
3. Being Proud of Who You Are- Once a member, users display actual names not usernames. The point of the brand experience is to be proud of who you are so pretending you’re someone else doesn’t make sense and is not rewarded. This mitigates against the biggest hurdle in open networks which will always limit the value of their data, that is, a large percentage of their data is fictionalized by users.
4. Passion-based Data- We collect data only about those things that motivate action in user’s lives. When it comes to data we believe that ‘less is more’ especially when the data is related to one’s driving passions in life.
5. The Hidden Value of the VIP Level- Since you need to recruit friends in order to accumulate the points necessary to move up to a VIP level, the likelihood of members inviting friends to a place with a fake name and fake picture is reduced exponentially.
6. Status-based Leveling- Each level in FN requires more confirmation of the member’s talent, skill and relationships indicating to advertisers a pool of folks worth paying added premiums to gain access to them.
7. A Power Community - When users adopt a community in which they have helped to create, and around which they place high psychic value and ego attachment, they are typically more motivated to police against those who do not consistently represent core community values. In the end, by creating a system that ensures that Fuego Nation has the best data we are ensuring that we will create an environment most likely to result in a stronger market opportunity.
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Unlike every other major competitor, Fuego Nation is a closed network. Well, sort of….to be a member, an applicant must essential ‘apply’ to get in. The basic premise is that this approach creates an ‘exclusive cache’ that is unique to Fuego Nation in the social networking world. Since not just anyone can sign up to be a member but rather must be ‘accepted’ by other applicants/members, the sense of a real-world community is harvested. The mechanism by which this is achieved mirrors our actions in the offline world where we choose to associate with people like us and for whom we have respect. The net result is that Fuego Nation is a better online representation of how we connect in the real world.
In contrast, sites like Facebook and MySpace are open networks, essentially allowing anyone who wants to get in to the club in. This, not surprisingly, has the ultimate effect of diminishing any ’special feeling’ associated with membership, prevents the creation of an aspirational brand and tends to foster very low brand loyalty (which is why so many kids dump MySpace for Facebook the day they enroll in college). The benefit of open registration is that advertising page views are typically increased. However, because the data regarding individuals is not monitored, and therefore not particularly reliable, advertisers discount the value of the membership. If you don’t know who your members REALLY are, then how do you represent this base to advertising partners let alone provide a safe environment for new relationship formation between members? Our approach mitigates this problem plaguing many open networks right out of the gate.
The number one criticism we’ve received regarding the closed network/exclusive strategy is that it limits the total size of the community which current thinking suggests results in lower advertising revenue. This thinking is erroneous as higher targeted, cleaner data regarding customers always results in higher per user advertising revenue. So, while both MySpace and Facebook struggle to get effective CPM rates of $1, the targeted userbase at CBS Marketwatch, has effective CPMs nearly 50X that of Facebook and MySpace. As a result, our challenge is to maximize the targeting capability of our membership while ALSO maintaining size. In other words, we’re creating a system to generate the best of both worlds. Below is a list of common concerns/criticisms regarding our strategy and the reality behind our approach:
Criticism: If you have to be voted in then huge numbers of people won’t be able to get in.
Reality: While we don’t control the voting itself (voting is done by the public as it is on American Idol) we do control the underlying apparatus and math that stimulates membership. As a result, we can let in as many people as we want as long as we can maintain an ‘exclusive feel’.
Criticism: You’ll get bogged down by managing the added admission steps of applying to Fuego Nation.
Reality: This process is completely automated and showcases our ability to engage community members in monitoring their own Nation and taking pride in doing so creating further affiliation and attachment to our brand.
Other components of our approach enable the following:
The process of ‘getting in’ is epected to be fun, addictive and viral
Having to ‘prove yourself’ (albeit with minimal effort) creates a sense of belonging to a special community of ‘cool’ people which is a powerful component to creating a ’sticky’ site
Exclusivity, from a marketing standpoint, has been proven successful countless times (including in the original Facebook)
Extrapolating on the last point above, the fact that Facebook required users to have a .edu address is widely considered to be the core reason for its initial popularity over open sites like MySpace. Once having established its core base of users, Facebook opened up to a wider audience. When Google first launched its email service, Gmail, members had to be invited by other members. And though this ‘exclusivity’ marketing was also widely attributed to its booming success, Google engineers had claimed that the reason for exclusivity was somewhat inadvertent, having done so only to mitigate against worries that their servers would be overwhelmed by an open sign up process. For many of the same reasons, we believe that Fuego Nation’s launch exclusivity has a potential to excell rather than repel audiences.
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Web 2.0 applications have traditionally been designed and coded by engineers without the benefit of input from consumer marketing experts. As a result, most content sites end up ‘bolting on’ poor quality off-the-shelf ad systems (as demonstrated in oft-ignored banner ads, annoying pop ups and irrelevant ad links). This stands in stark contrast to the approach taken by Fuego Nation which was originally designed by consumer branding and marketing experts and is now being implemented by a core team of talented engineers. In a sense, our advertising system was built ‘by marketers for marketers.’ The result is a system that we believe will generate the highest ad rates in the industry and open up entirely new sources of revenue and profit unique to Fuego Nation. The Fuego Nation architectural design team was determined from the outset to shatter the existing record of poor quality, largely ineffectual advertising by building an interactive, highly addictive and functional product around the most discerning advertising requirements possible. The end result is a comprehensive advertising and direct marketing system we call FuegoFusion. FuegoFusion represents a revolutionary approach to web-based advertising. Perhaps the best way to understand the potential impact of FuegoFusion is to review the market problems and inefficiencies identified by our design experts and the solutions generated from their passionate commitment to solving these issues for the first time.
Problem: Online advertising is either ignored or annoying
Solution: The standard for advertising on social networking sites, and on the web generally, is Google text-based links, banner ads and pop ups. The problem this standard creates is that similar to newspaper advertising, these ads are largely ignored by users. Further, users on social networks are typically deeply involved in communicating and sharing with other users and are therefore not attentive to even highly targeted advertising. Rather than simply trying to ‘break through the clutter’ by using bigger/flashier ads that often detract from the overall user experience, we are building an integrated advertising experience that seamlessly integrates with the user experience. Take for example, our graphical display paradigm as seen in the rotating carousel. As ads rotate front and center, they cannot be ignored by users. Additionally, our ad serving engine leverages the information we know about our users to serve ads that are demographically, contextually and behaviorally relevant. This innovative solution to what has been to this point largely ineffectual advertising is unique to Fuego Nation and has never been deployed effectively on the web.
Problem: There’s no proven, online ad destination for high-end luxury brands
Solution: Most of the products on the web today, particularly those with roots in social networking, are static, utility-based products designed and built with an engineering mindset. This reality does not dovetail well with brands that are built less around utility and more around status, quality, experience and emotion (e.g. high end luxury brands). We created Fuego Nation to offer a unique product pairing for these high-end advertisers. To do this, the product had to be experiential in nature, of a high graphical acuity, enshrouded by a brand that signified high quality and paired with an emotional brand voice that was both aspirational and intense. We believe that this approach will help brands like Hugo Boss, Tag Heuer, W Hotels and Mercedes Benz find a home for their brands on the web, in many cases, for the first time.
Problem: Data about users is not credible
Solution: While advertising on social networks is expected to boom in the coming years, open networks are plagued by the problem of ‘dirty’ data. That is, users can pretend that they are anyone (especially when self-expression is the primary use case on those networks). Additionally, we intentionally limit the initial data inputs required of our members to only those bits of information relevant to either making a connection or indicating a purchasing pattern. Over time, our FuegoFusion ad serving technology will not only target users based on what they say (e.g. data inputs from their profile) but what they DO (e.g. based on actual behavior in the community). In the end we will deliver targeted data to advertisers that indicate ACTUAL consumer behavior patterns not SUGGESTIVE behavior patterns.
Problem: Users are not in the ideal demographic
Solution: There are several key reasons why companies most open networks generate such low ad rates (measured by CPM, or cost per thousand views). Outside of the ‘dirty’ data issue previously mentioned, the most significant problem is that users have not traditionally fallen in the ideal Gen X demographic. While most social network traffic remains dominated by teenagers (who do not have credit cards) and college students (who do not have jobs), Fuego Nation was designed for an older, more mature, higher income demographic from the outset.
Problem: Advertising isn’t integrated into the product experience
Solution: Truly integrated in-product advertising (e.g. in-game ads in videogames or product placement ads in movies) have proven effective in building brand recognition and affinity. Yet there exist few opportunities on the web to conduct this type of branding activity. Fuego Nation, in contrast, built a graphical display system that includes both photos and videos that allow the imbedding of products within the context of the ads themselves. Considering that many of the higher status members of our community would be expected to exert undo influence on others in the community and amongst guests to the site, having product placement ads within the context of their graphical profile will be very appealing to advertisers. So after rolling through a dozen passion trading card photos, for example, a Hugo Boss apparel ad may rotate through the carousel presented in a context of another visual display of a person (thus integrating nicely into the overall experience). In fact, we will also offer advertisers the option to ’sponsor’ elite community members who wear their apparel in their primary profile photo.
Problem: Advertising isn’t reinforced in multiple venues/facets
Solution: Most social networks offer a limited supply of banner ad inventory…and that’s it. From the outset we wanted to enable a multi-faceted approach that offered a menu-based selection process from which a campaign could be customized to the tastes and needs of the advertiser. On the menu would be flow-through ads in the carousel, contextual ads on the dashboard page, mobile phone sponsorships attached to text messages, content sponsorships (e.g. Leaderboards), offline promotions (e.g. signage at nightclub events); in-product promotions, etc. Great brands require triangular reinforcement to successfully penetrate the minds of consumers and take up permanent residence in their minds. The result of our problem solving endeavor has been a host of new advertising features and products yet to be deployed on a grand scale on the web including:
HD-capable display technology
Complete transaction processing within the framework of a single ad unit
Data and behavioral tracking of user base
In-product ad placements
Ability for advertisers to test-market ad campaigns via our voting/reputation system
From the outset, shattering the current standards, protocols and effectiveness of online advertising stood as a cornerstone in the foundation of our company. Over time, we stand committed to offering both advertisers and members alike an integrated and experiential branding opportunity that works to benefit both constituencies from the outset.
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Report: U.S. mobile web growth triples
| June 5, 2007 According to a new study issued by mobile content platform developer Bango, U.S. mobile web usage grew threefold over the past year. Bango reports that the U.K. market leads all mobile web usage at 27 percent, followed by the U.S. at 21 percent, South Africa at 11 percent, India at nine percent and Indonesia at three percent. “We see that wherever flat-rate data charges are pervasive in a country then there’s much more web browsing,” said Bango SVP of marketing Anil Malhotra in a prepared statement. “We expect to see more competitively priced flat-rate data plans in the U.S. which will stimulate further web browsing.”
Mobile is a powerful buzzword in the startup community. But while buzzwords might move the VC community, real consumer buying behavior moves us. Consumer buying behavior generates revenue which begets profits which boosts corporate valuations and that is the game we are playing for our shareholders. Furthermore, having most recently worked at building two entertainment-related mobile companies, we’re confident in our ability to discern fact from fiction in this soon-to-explode business environment. Literally hundreds of mobile gaming companies have been financed over the past five years to build products that oftentimes confound us. Few VCs have actually made any money on their investments and few have visibility into any near term profits. From our experience in the market there are several reasons why this is the case:
Poor Product Concepts: There is a dramatic need for a killer application in this space that is simple, intuitive and widely adopted by the 20-something set (and we’re confident that FN Mobile will be that killer app); A very small percentage of launched products have proven to be of material interest to consumers
Market Timing: Many products fail because they enter markets before consumers are widely ready to adopt new buying requirements and usage behavior; For the most part, only early adopters have bought data applications (e.g. mobile games) because they are virtually impossible to locate, difficult to purchase and download and of questionable value to the mass market
Distribution Friction: In the wireless world, the Big 4 carriers are king; They can make or break a product based on a whim by including it on their menu of phone options (called The Deck) or not and one oftentimes can’t control this process until a product is ready for launch
Solving the issues and concerns outlined above prior to the commencement of any development process is intuitive to us. That is why Fuego Nation Wireless is being designed using the same interface as the web-based product (establishes known familiarity), relies on photos (which everyone enjoys looking at) and leverages text/MMS-based messaging which everyone already does. As marketers we believe that the key to changing consumer behavior is to evolve the usage pattern by extending it while never requiring an entirely new one. Doing so creates market friction and is a key contributor to poor performance to date. One of the key criteria for us in building our next generation social community was to create an interface and product utility that was platform agnostic. This means that when it comes to making money we think ‘digitally’ not web or wireless. In other words, to us they represent two mechanisms to tailor deliver our branded community experience. This is why our mobile interface looks identical to that found on the web. From the outset, we designed our online product to seamlessly dovetail into the wireless world. We did this for several reasons but most particularly because we believe that mobile data services represent the next great opportunity in the digital universe. And though we believe our online products have enormous potential we have always believed that our mobile product line stands to have an even bigger market impact on a global basis.
There are several features of the online product that, when mobilized, extend the value of our product to users ‘on the go’ while others are unique to the mobile experience and create a distinct advantage over mobile products from the likes of our competitors. Similar to the online version of the product, users will be able to do the following:
1. Vote on applicants to the community
2. Browse member profiles
3. Contact other members through expanded search functionality
4. See member activity in their designated groups
5. Email their member friends
6. Check their scores and receive mobile alerts when a material change in status occurs
7. Upload mobile device photos and videos to their selected profiles
8. Meet and converse with other members using text messaging functionality
The wireless product offering also includes features that are uniquely tailored to the mobile experience including some that, as a result of our targeted, high end user base, can only be found in our product. A brief sampling of the proposed features follows below:
Data Export to Location-based Services. Because our database of talented, high-achievers is constantly culled and refined by our users, we have an opportunity to export that data to location-based services (LBS) companies like Loopt who will then be able to map, in your city, the hot spots for singles with similar passions. While these services classically use GPS-tracking to locate friends, children, etc. Fuego Nation Wireless adds a whole new dimension of value never seen before. So while Loopt might help you locate your friends, FN Wireless extends this capability to ‘where do we go?’
Mobile ‘Business Cards’- The ‘trading card’ metaphor was designed specifically to work equally as well in a mobile context; So, while it would be difficult to ‘sign up’ for Facebook or MySpace via a mobile device, the process is simple, quick and intuitive at Fuego Nation. Additionally, members will have their Passion Cards loaded onto their phones which they can then virally send via short-range communications, Bluetooth or MMS to any other phone; This is a much more secure and fun way to grant contact information to someone you meet in a bookstore or bar and acts, essentially, as an advertising/recruitment tool for the online product
Talent Scout- With Fuego Nation Wireless, members have the tools to become emissaries of our mission to compile the largest collection of talented individuals in the world; The talent scout feature allows one to make an otherwise awkward introduction to someone by recruiting them to the site (snapping a photo, adding six bits of information, etc.)
Spontaneous Act of Excellence/Heroism- User generated media has become a phenomenon amongst the young, early adopter crowd. Companies like YouTube and now Current Media have exploding valuations based on photo and video content taken by consumers ‘in the field.’ But only recently do mobile devices have both photo and video quality that allows them to capture, not just inane, silly videos which dominate YouTube but true acts of human excellence and heroism. The destination for those videos of interest we believe should lie with Fuego Nation and our video upload functionality will make it simple for anyone with a web-based connection via their phones to contribute to our community of excellence. Once videos are uploaded on the site (for which members gain participation points toward a higher status ranking) videos are voted on and displayed in Leaderboard format for viewing by members and guests around the world
VIP Club Passes- With a Fuego Nation VIP Club Pass on your phone, you will never HAVE to be on a list again; with participating Night Club sponsors, all you’ll need to do is flash your VIP Club pass on your cell phone to bypass the line at hundreds of clubs around the nation
Couponing- To advertisers, not all consumers is alike which is a key reason why we group our users into status levels. This enables us to deliver coupons on a more targeted basis to our users. So, for example, while we may know that two members are both Madonna fans, we might send a discounted coupon to the Basic Member and a Backstage VIP pass to the VIP member. We believe this form of targeted web to mobile, real-time couponing has big long term revenue potential.
In the end, we are big believers in the potential of the mobile web and in the expected explosion of data service usage on mobile phones generally. This realization, coupled with our intent to build a product with true global appeal from the outset will allow us to market our digital products not only here in America but around the world in places that have few computers but massive cellular device penetration.
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What is the value of finding a job that not only leverages an area in which you are most passionate but also provides an upside many times greater than the dead end job in which you currently find yourself mired? The answer is, in many cases, priceless and that is why the Connection Business is such a great one to be in. Couple that with the financial mechanics and low capital requirements of web-based businesses and you have one of the greatest business opportunities in the 21st century.
At EA, we referred to this effort as the Holy Grail of gaming… [John Riccitiello’s recent pronouncements at EA that their games are too complicated and difficult to play are an example of both the hope and challenge of attaining this elusive milestone.]
The game-inspired aspect of Fuego Nation online showcases a highly engaging and interactive experience with a core play dynamic, ubiquitous reward/feedback system and utility that were universally intuited (both by region and age). The seeds of addiction sown by the control mechanics would be founded on the premise of status (one of the key motivators in all off our lives everywhere in the world).
In other words, in Fuego Nation, while members ‘apply’ to get in and whereas admission is based on a democratic vote of one’s peers (similar to the Digg model) through a combination of viral participation in the community and profile voting/enhancement members can elevate their status to VIP levels and beyond. ‘Leveling up’ results in not only unlocked core functionality but better product opportunities from our luxury/lifestyle ad sponsors.
The utility would be grounded in core communication functionality that would be more advanced than any other social network and eventually would be used by Members as a hub for all of their contact-based communication (web and mobile). So, as their status leveled, Members would be motivated to sustain participation via the quality of communication technology and the promise of high ’signal to noise’ connections (be they personal or professional in nature).
If successful here, then users would not have to scurry to multiple sites to manage multiple contact types (as is the protocol now). Furthermore, we refer to our ‘Face the Nation’ interface as ‘The Game of Life.’ Just as in real life, when we interact with anyone new, we begin to make judgments based on a very limited set of information. This is reflected in the Passion Cards in our interface (which are abstracts of a full profile and look like baseball trading cards). In other words, the ‘game’ one must play to get into the exclusive community is a direct reflection of real life (only set in a digital universe). And while our target audience may be Gen X adults, the core principals of ‘a community of human excellence and endeavor’ works well reset for other age groups, etc. (e.g. Fuego Nation Kids).
I’ve always struggled with the concept of avatars in online gaming because the nature of the ‘avatar’ conceptually and psychologically is inherently niche oriented (e.g. not mass market). In Fuego Nation, we create the capability, using RIA tech from Adobe and Microsoft to create ‘real-life avatars’- that is photo/video-realistic representations of our core with graphical depictions set in our virtual environment. For example, on the Leaderboard section (which will evolve into FN search over time), depicted members might have floating icons above their heads (photos) indicating their primary passion. They can then change these passion icons as their mood, focus, and intensity changes (on whatever time basis). They will also be able to change those ’status indicators’ remotely via their mobile phones. So while I may have a skiing icon during the winter months, I might change that to a climbing graphic which is my preferred activity in the spring. Then a user can initiate a search based on primary motivator/passion by simply clicking on that icon. The Leaderboard then resets with only those Members that share the same passion at that specific time.
The end result is a dynamic, addictive and compelling social experience that simulates the richness of more traditionally geeky fantasy role playing environments in a way that is accessible and meaningful to a mass audience.
Let’s focus on the ‘exclusivity factor’-the dreaded List. The List assumedly attracts a high caliber of city dwellers while repelling the less desirable. If you’re not on the ‘List’, well then, you’re not getting in. Having said that, even at places like Duvet, there are always ways to get into the club even if you’re not on the list. That’s what makes the process so exciting and the psychic benefit of figuring out how to get in so much fun. You might literally find a back door where a friend inside can let you in, you might pay off the bouncer with a cool 20 dollar bill or you might just create a beautiful enough first impression on the bouncer that he pulls the velvet rope as he admires your short skirt floating by. If, ultimately, you succeed in getting in via one of these ‘back doors’ your actual experience having figured out a way to get in is much more powerful and rewarding from an emotional standpoint.
Once in, there are VIP levels (often table service) for those willing to shell out more cash for the added privilege and prestige. This scenario is actually quite similar to the ‘Face the Nation’ admissions process at Fuego Nation Online. The parallels, components of what we refer to as ‘The Game of Life‘ follow below:
1. As an applicant to FNO you play both the bouncer and the bounced. Similar to American Idol, the voting process is entirely democratic; so, while we set the parameters for admission (e.g. total approval votes required to attain Basic membership) we do not determine who does, or does not, get in; The process is entirely both automated and democratic which is what distinguishes our product from every other ‘closed network’ and allows us to make our basic membership pool as large as we want
2. Since there is no list, no one is on it; This means everyone needs to ‘earn’ his or her entrance thus generating the exclusive component of our brand
3. Applicants must generate the best first impression they can via our Passion Cards, then figure out how to supplement that impression with clever ambition; This is why we refer to this process as ‘The Game of Life’ because it is designed to mimic the ‘connection’ process in the real world
4. So while physical attractiveness may help you get in (via the photo component), this isn’t necessarily the case; it depends on what the community determines is ‘cool, talented and desirable;’ good looks might actually backfire if enough applicants focus specifically on core talents
5. Since charter applicants will help ‘arbitrate the definition of cool’ we anticipate that this might trigger viral activity as friends recruit other friends to help define the basic membership trends in the club; If you have a friend who is already a Basic member, they can get you a Club Pass which essentially gets you around the ‘bouncer’ by generating a huge boost of points to help you gain admission; In this case, both the person giving the pass and the receiver of the ‘gift’ feel better about the product experience as a result
6. Although we won’t launch with the opportunity to ‘pay off the bouncer’ the opportunity for us to create a micro-transaction (i.e. a cover charge) is an opportunity for us to generate more revenue down the road
7. Now that you’re into an exclusive hot spot with a quality product to back up the ‘hype’ (and feel that much better about the product because you had to ‘get in’ vs. ‘just walking in’ at a place like Facebook, MySpace, LinkedIn, etc.) you’ll notice that there are levels of service, mainly a VIP section; If you want, you can purchase the added benefit, prestige and status of this product or aspire to do so some other time; this, functionally is how status levels work in FNO
This brings us to a revenue opportunity unique to Fuego Nation-that is, offline events. Getting back to the DNA of Data, if we successfully generate a tighter grouping of ‘cool, talented and ambitious people’ coupled with a brand that indicates ‘human excellence and endeavor’ we’ll be able to export that database into a collective community. This collective community might end up being an offline nightclub experience, professional networking event, climbing expedition, etc. Staying with the nightclub example, we might find a proud venue with poor traffic long past its prime. I’ll use The Ramp in San Francisco to illustrate this point. The Ramp could have tumbleweeds running through its dance floor one night and teeming throngs of talented, higher income Fuego Nation members the next. In other words, we can make a formerly dead club hop in a matter of days and collect 15% of gross receipt for the simple process of redirecting an existing database to a specific offline event. The event itself would be a Fuego Nation VIP member-only affair with an exclusive guest List. There’s the dreaded list again…only, this time, you’re on it. If you’re not on the list, you’re not getting in. Members might be attracted to this opportunity because of the power of brand association and because they KNOW that the general quality of attendees will be higher than anywhere else. Offline events are just one example of leveraging the high-end database of users we’re generating through our online product and only hints at the many revenue-generating opportunities in front of us.
Good consumer businesses solve real-world consumer problems. Really good consumer businesses solve really big real-world consumer problems. We believe that Fuego Nation Online is an example of the latter. So while we might delineate between specific micro-problems inherent with the current generation of social networks, and how we’re going about solving them in a wholesale manner, let’s focus on the big picture for a moment.
In acknowledging the challenge inherent in the second point above, creating a Fuego Nation Events business was a key component of our business strategy from the outset. We wanted to enable a community where people could meet each other in the environment, virtual or otherwise, of their choosing. In doing so, we could solve the problems associated with ‘chemistry’ that plague the existing crop of online dating sites. If there is really no substitute for ‘face time’ then why not create a revenue-generating product line that solves this market need. Fuego Nation is in a unique position to do this because its members are pre-screened to be of a particular caliber.
Being Proud of Who You Are
As anyone knows who has participated in social networks to date it is rather easy to meet misidentified, undesirable people. The facts that open networks like MySpace are havens for predators of all sorts should not be surprising because the raw architecture of the site encourages this behavior (via self-expression). In other words, the temptation to pretend I’m someone else, in one facet or many, is almost too tempting to resist. When discussing this with a trusted friend he said, “Oh yeah, when I built my MySpace page I said that I was 99 years old.” In contrast, we wanted to create a community where talented folks (or the aspiring talented) could meet others with varying or similar passions in a safe, secure environment. The whole point of our community is to be proud of who you are (not who you are not). This is partly why your public facing Passion Cards indicate one’s user name while each Member profile features real names. And from an aspirational vantage point, if you’re not proud of who you are, then we will provide the atmosphere, tools and support to change your life for the better. In doing so we will win you over as a customer for life.
Our critics might point to the fact that one can easily game the system and get into the club by providing fake biographical/passion-based data and photos. While technically true, why would someone do this for the honor of paying a subscription rate when they could more easily game open networks like MySpace which have no such ‘cover charges’? Secondly, we will ‘lock’ the photo you use in your application so that it will always be available to those accessing your profile down the road. Furthermore, in order to move from a Basic membership to a VIP level membership one MUST recruit friends to the community to garner enough points to move up to the next level. Who is going to go invite their friends to their profile where they feature pictures of someone else? Finally, because there exist consequences in our community, if you are ever caught you will be expelled anyway…so what’s the point? In evaluating the current state of social networks we clearly identified a need for the post-collegiate crowd and custom designed an experience that is better tailored to the tectonic shifts that occur in one’s life once they finish school:
Fuego Nation was built for the ‘jobs and credit cards’ audience. This ‘older demographic’ while familiar with social networking technologies (like MySpace and Facebook) have dramatically changing needs (problems that need solving). After one graduates from college there are two fundamental changes in the way they look at life. The first is social. “Hmm, they say, maybe I’ll start a family some day.” That’s not a driving need of a typical college student. The second is professional. “Hmm, they say, I’ve got to get a job and support myself now.” Though they sound simple, these mark massive psychic shifts in the way people approach and interact with the world around them.
Many of us, particularly the ambitious amongst us, start our careers with an idealism that the harder we work and the better our results, the higher our career trajectory. We soon discover a unique reality in the maxim ‘It’s who you know, not what you know.’ As you start a family and become more successful in your life, available time for leisure diminishes but your keen awareness of the power of connections does not. This is why we’ve designed a product with a very high ’signal to noise’ ratio. This means that while it may take you dozens if not hundreds of contact points on other social networks to make a lasting connection our target goal at Fuego Nation is only a few. This results from the combination of our FuegoConnect Engine technology buttressed by the type of people attracted to the brand in the first place. At Fuego Nation we leave nothing to chance.
When we designed our system we dissected every current problem in social networking that would either detract from the experience of current users (young demographic) or prevent those outside the early adopter set (mature demographic) from feeling the psychic comfort of a community that protects their privacy while fostering ‘extremely high value’ connections. Below is a matrix we created that delineates the micro-problems Fuego Nation set out to solve in an effort to create the best online social/community experience anywhere on the globe. From the outset, our intent was to revolutionize social networking by solving monumental problems endemic to the current generation while providing a safer, secure and emotionally bonding experience with consumers.
Also, be creating a discreet branded top layer to the community, no one would know the reasons why you were using the site (e.g to get a job, to date, to climb a mountain, etc.). Knocking out the stigma associated with online dating, for example, was a key target benefit of our core user experience architecture.
was to revolutionize social networking by solving monumental problems endemic to the current generation while providing a safer, secure and emotionally bonding experience with consumers. Also, be creating a discreet branded top layer to the community, no one would know the reasons why you were using the site (e.g to get a job, to date, to climb a mountain, etc.). Knocking out the stigma associated with online dating, for example, was a key target benefit of our core user experience architecture.
There is a fundamental difference in the way we approach data collection and mining than legacy social networking products. The difference is like that of mining for gold by panning in Sierra streambeds or blowing mile-deep veins into gold-laden mountainside with millions of tons of TNT. So whereas our competitors collect billions of pieces of data and then write expensive programs in an effort to make sense of it all, we developed a strategy that couples sophisticated interface and user design to engender clean data from the outset then leverage the community and brand affiliation of our users to further refine the data to an even greater degree.
The data mining process at FNO begins only seconds after a visitor lands on the site while the end result is a database that opens up new revenue streams not available to other sites. (e.g. offline event promotions and management, direct marketing to high-income individuals, hyper-targeted advertising, luxury brand product testing with key market influencers, ‘in-game’ advertising, etc.).
Peering into our design helix and comprehending the depth with which we’re piecing together this perfect data storm is an efficient way to get to the heart of the FN opportunity. It may be interesting to note that the design elements for which we have received the most interest including exclusivity, interactive interface design and status-based leveling systems were not end goals in and of themselves but rather tactics used in the execution of our overall strategy of attaining the ‘highest quality set of data of any social networking product anywhere in the world.’ So instead of embracing the small-minded worry about whether exclusivity will restrict the size of the overall membership, one should worry more about how we use exclusivity as a simple tactic to generate better, cleaner data about our member base.
What follows below is a simple process flow that articulates, at a high level, our ‘Data Rules’ founding principal:
Goal: Maximize Market Valuation
Market Reality: Better Data Results in Higher Revenues
Strategy: Create a system that ensures the collection of high-value data from the outset then leverage membership to help scrub the data
Tactics:
1. The Brand Voice- In our marketing, the voice as communicated via copy is aspirational in nature and aggressive in tone. This is done intentionally to attract ambitious, talented people and repel those for whom this message would not be naturally appealing.
2. The Game of Life Carousel- From the outset, we use the visual metaphor of the carousel and the spinning trading card profiles to begin honing the database. By voting we begin the process of data cleansing.
3. Being Proud of Who You Are- Once a member, users display actual names not usernames. The point of the brand experience is to be proud of who you are so pretending you’re someone else doesn’t make sense and is not rewarded. This mitigates against the biggest hurdle in open networks which will always limit the value of their data, that is, a large percentage of their data is fictionalized by users.
4. Passion-based Data- We collect data only about those things that motivate action in user’s lives. When it comes to data we believe that ‘less is more’ especially when the data is related to one’s driving passions in life.
5. The Hidden Value of the VIP Level- Since you need to recruit friends in order to accumulate the points necessary to move up to a VIP level, the likelihood of members inviting friends to a place with a fake name and fake picture is reduced exponentially.
6. Status-based Leveling- Each level in FN requires more confirmation of the member’s talent, skill and relationships indicating to advertisers a pool of folks worth paying added premiums to gain access to them.
7. A Power Community - When users adopt a community in which they have helped to create, and around which they place high psychic value and ego attachment, they are typically more motivated to police against those who do not consistently represent core community values. In the end, by creating a system that ensures that Fuego Nation has the best data we are ensuring that we will create an environment most likely to result in a stronger market opportunity.
In contrast, sites like Facebook and MySpace are open networks, essentially allowing anyone who wants to get in to the club in. This, not surprisingly, has the ultimate effect of diminishing any ’special feeling’ associated with membership, prevents the creation of an aspirational brand and tends to foster very low brand loyalty (which is why so many kids dump MySpace for Facebook the day they enroll in college). The benefit of open registration is that advertising page views are typically increased. However, because the data regarding individuals is not monitored, and therefore not particularly reliable, advertisers discount the value of the membership. If you don’t know who your members REALLY are, then how do you represent this base to advertising partners let alone provide a safe environment for new relationship formation between members? Our approach mitigates this problem plaguing many open networks right out of the gate.
The number one criticism we’ve received regarding the closed network/exclusive strategy is that it limits the total size of the community which current thinking suggests results in lower advertising revenue. This thinking is erroneous as higher targeted, cleaner data regarding customers always results in higher per user advertising revenue. So, while both MySpace and Facebook struggle to get effective CPM rates of $1, the targeted userbase at CBS Marketwatch, has effective CPMs nearly 50X that of Facebook and MySpace. As a result, our challenge is to maximize the targeting capability of our membership while ALSO maintaining size. In other words, we’re creating a system to generate the best of both worlds. Below is a list of common concerns/criticisms regarding our strategy and the reality behind our approach:
Criticism: If you have to be voted in then huge numbers of people won’t be able to get in.
Reality: While we don’t control the voting itself (voting is done by the public as it is on American Idol) we do control the underlying apparatus and math that stimulates membership. As a result, we can let in as many people as we want as long as we can maintain an ‘exclusive feel’.
Criticism: You’ll get bogged down by managing the added admission steps of applying to Fuego Nation.
Reality: This process is completely automated and showcases our ability to engage community members in monitoring their own Nation and taking pride in doing so creating further affiliation and attachment to our brand.
Other components of our approach enable the following:
Extrapolating on the last point above, the fact that Facebook required users to have a .edu address is widely considered to be the core reason for its initial popularity over open sites like MySpace. Once having established its core base of users, Facebook opened up to a wider audience. When Google first launched its email service, Gmail, members had to be invited by other members. And though this ‘exclusivity’ marketing was also widely attributed to its booming success, Google engineers had claimed that the reason for exclusivity was somewhat inadvertent, having done so only to mitigate against worries that their servers would be overwhelmed by an open sign up process. For many of the same reasons, we believe that Fuego Nation’s launch exclusivity has a potential to excell rather than repel audiences.
Web 2.0 applications have traditionally been designed and coded by engineers without the benefit of input from consumer marketing experts. As a result, most content sites end up ‘bolting on’ poor quality off-the-shelf ad systems (as demonstrated in oft-ignored banner ads, annoying pop ups and irrelevant ad links). This stands in stark contrast to the approach taken by Fuego Nation which was originally designed by consumer branding and marketing experts and is now being implemented by a core team of talented engineers. In a sense, our advertising system was built ‘by marketers for marketers.’ The result is a system that we believe will generate the highest ad rates in the industry and open up entirely new sources of revenue and profit unique to Fuego Nation. The Fuego Nation architectural design team was determined from the outset to shatter the existing record of poor quality, largely ineffectual advertising by building an interactive, highly addictive and functional product around the most discerning advertising requirements possible. The end result is a comprehensive advertising and direct marketing system we call FuegoFusion. FuegoFusion represents a revolutionary approach to web-based advertising. Perhaps the best way to understand the potential impact of FuegoFusion is to review the market problems and inefficiencies identified by our design experts and the solutions generated from their passionate commitment to solving these issues for the first time.
Problem: Online advertising is either ignored or annoying
Solution: The standard for advertising on social networking sites, and on the web generally, is Google text-based links, banner ads and pop ups. The problem this standard creates is that similar to newspaper advertising, these ads are largely ignored by users. Further, users on social networks are typically deeply involved in communicating and sharing with other users and are therefore not attentive to even highly targeted advertising. Rather than simply trying to ‘break through the clutter’ by using bigger/flashier ads that often detract from the overall user experience, we are building an integrated advertising experience that seamlessly integrates with the user experience. Take for example, our graphical display paradigm as seen in the rotating carousel. As ads rotate front and center, they cannot be ignored by users. Additionally, our ad serving engine leverages the information we know about our users to serve ads that are demographically, contextually and behaviorally relevant. This innovative solution to what has been to this point largely ineffectual advertising is unique to Fuego Nation and has never been deployed effectively on the web.
Problem: There’s no proven, online ad destination for high-end luxury brands
Solution: Most of the products on the web today, particularly those with roots in social networking, are static, utility-based products designed and built with an engineering mindset. This reality does not dovetail well with brands that are built less around utility and more around status, quality, experience and emotion (e.g. high end luxury brands). We created Fuego Nation to offer a unique product pairing for these high-end advertisers. To do this, the product had to be experiential in nature, of a high graphical acuity, enshrouded by a brand that signified high quality and paired with an emotional brand voice that was both aspirational and intense. We believe that this approach will help brands like Hugo Boss, Tag Heuer, W Hotels and Mercedes Benz find a home for their brands on the web, in many cases, for the first time.
Problem: Data about users is not credible
Solution: While advertising on social networks is expected to boom in the coming years, open networks are plagued by the problem of ‘dirty’ data. That is, users can pretend that they are anyone (especially when self-expression is the primary use case on those networks). Additionally, we intentionally limit the initial data inputs required of our members to only those bits of information relevant to either making a connection or indicating a purchasing pattern. Over time, our FuegoFusion ad serving technology will not only target users based on what they say (e.g. data inputs from their profile) but what they DO (e.g. based on actual behavior in the community). In the end we will deliver targeted data to advertisers that indicate ACTUAL consumer behavior patterns not SUGGESTIVE behavior patterns.
Problem: Users are not in the ideal demographic
Solution: There are several key reasons why companies most open networks generate such low ad rates (measured by CPM, or cost per thousand views). Outside of the ‘dirty’ data issue previously mentioned, the most significant problem is that users have not traditionally fallen in the ideal Gen X demographic. While most social network traffic remains dominated by teenagers (who do not have credit cards) and college students (who do not have jobs), Fuego Nation was designed for an older, more mature, higher income demographic from the outset.
Problem: Advertising isn’t integrated into the product experience
Solution: Truly integrated in-product advertising (e.g. in-game ads in videogames or product placement ads in movies) have proven effective in building brand recognition and affinity. Yet there exist few opportunities on the web to conduct this type of branding activity. Fuego Nation, in contrast, built a graphical display system that includes both photos and videos that allow the imbedding of products within the context of the ads themselves. Considering that many of the higher status members of our community would be expected to exert undo influence on others in the community and amongst guests to the site, having product placement ads within the context of their graphical profile will be very appealing to advertisers. So after rolling through a dozen passion trading card photos, for example, a Hugo Boss apparel ad may rotate through the carousel presented in a context of another visual display of a person (thus integrating nicely into the overall experience). In fact, we will also offer advertisers the option to ’sponsor’ elite community members who wear their apparel in their primary profile photo.
Problem: Advertising isn’t reinforced in multiple venues/facets
Solution: Most social networks offer a limited supply of banner ad inventory…and that’s it. From the outset we wanted to enable a multi-faceted approach that offered a menu-based selection process from which a campaign could be customized to the tastes and needs of the advertiser. On the menu would be flow-through ads in the carousel, contextual ads on the dashboard page, mobile phone sponsorships attached to text messages, content sponsorships (e.g. Leaderboards), offline promotions (e.g. signage at nightclub events); in-product promotions, etc. Great brands require triangular reinforcement to successfully penetrate the minds of consumers and take up permanent residence in their minds. The result of our problem solving endeavor has been a host of new advertising features and products yet to be deployed on a grand scale on the web including:
From the outset, shattering the current standards, protocols and effectiveness of online advertising stood as a cornerstone in the foundation of our company. Over time, we stand committed to offering both advertisers and members alike an integrated and experiential branding opportunity that works to benefit both constituencies from the outset.
Report: U.S. mobile web growth triples
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June 5, 2007 According to a new study issued by mobile content platform developer Bango, U.S. mobile web usage grew threefold over the past year. Bango reports that the U.K. market leads all mobile web usage at 27 percent, followed by the U.S. at 21 percent, South Africa at 11 percent, India at nine percent and Indonesia at three percent. “We see that wherever flat-rate data charges are pervasive in a country then there’s much more web browsing,” said Bango SVP of marketing Anil Malhotra in a prepared statement. “We expect to see more competitively priced flat-rate data plans in the U.S. which will stimulate further web browsing.”
Mobile is a powerful buzzword in the startup community. But while buzzwords might move the VC community, real consumer buying behavior moves us. Consumer buying behavior generates revenue which begets profits which boosts corporate valuations and that is the game we are playing for our shareholders. Furthermore, having most recently worked at building two entertainment-related mobile companies, we’re confident in our ability to discern fact from fiction in this soon-to-explode business environment. Literally hundreds of mobile gaming companies have been financed over the past five years to build products that oftentimes confound us. Few VCs have actually made any money on their investments and few have visibility into any near term profits. From our experience in the market there are several reasons why this is the case:
Solving the issues and concerns outlined above prior to the commencement of any development process is intuitive to us. That is why Fuego Nation Wireless is being designed using the same interface as the web-based product (establishes known familiarity), relies on photos (which everyone enjoys looking at) and leverages text/MMS-based messaging which everyone already does. As marketers we believe that the key to changing consumer behavior is to evolve the usage pattern by extending it while never requiring an entirely new one. Doing so creates market friction and is a key contributor to poor performance to date. One of the key criteria for us in building our next generation social community was to create an interface and product utility that was platform agnostic. This means that when it comes to making money we think ‘digitally’ not web or wireless. In other words, to us they represent two mechanisms to tailor deliver our branded community experience. This is why our mobile interface looks identical to that found on the web. From the outset, we designed our online product to seamlessly dovetail into the wireless world. We did this for several reasons but most particularly because we believe that mobile data services represent the next great opportunity in the digital universe. And though we believe our online products have enormous potential we have always believed that our mobile product line stands to have an even bigger market impact on a global basis.
There are several features of the online product that, when mobilized, extend the value of our product to users ‘on the go’ while others are unique to the mobile experience and create a distinct advantage over mobile products from the likes of our competitors. Similar to the online version of the product, users will be able to do the following:
The wireless product offering also includes features that are uniquely tailored to the mobile experience including some that, as a result of our targeted, high end user base, can only be found in our product. A brief sampling of the proposed features follows below:
In the end, we are big believers in the potential of the mobile web and in the expected explosion of data service usage on mobile phones generally. This realization, coupled with our intent to build a product with true global appeal from the outset will allow us to market our digital products not only here in America but around the world in places that have few computers but massive cellular device penetration.