Announcing Inside Virtual Goods: Tracking the US Virtual Goods Market 2010 – 2011

With an up-to-$750 million acquisition of Playdom by Disney, an up-to-$400 million acquisition of Playfish by Electronic Arts, the acquisition of Tapulous by Disney, and hundreds of millions of dollars in venture investments, virtual goods are impacting businesses across the media landscape. Virtual goods, and the companies that create them, may be bringing the largest disruption entertainment, communication, and e-commerce infrastructure businesses have seen in years.

Inside Network is proud to announce a new original research report by Justin Smith and Charles Hudson that presents a comprehensive examination of the size and future of the virtual goods market in the United States, entitled Inside Virtual Goods: The US Virtual Goods Market 2010 – 2011. This is Inside Network’s second annual edition of the US Virtual Good Market report. It will be released on September 28, but is available for discount pre-order now.

Where will the virtual goods market go in 2011 and what are the biggest opportunities left unclaimed? How will existing players fare as Facebook continues to reshape the social gaming landscape, and larger and more sophisticated players enter the market? Inside Virtual Goods: The US Virtual Goods Market 2010 – 2011 provides deeper insight into monetization, development, and the key questions facing the space in 2011 than you’ll find anywhere else.

Get the Annual Membership
Get Annual Membership (Includes Report + 3 Additional Quarterly Issues): $2,495 $1,995 USD*
OR Buy Single Report: $995 $795 USD*
* Pre-order discount ends September 27, 2010. All pre-ordered reports will be delivered on September 28, 2010.

About the Report

Inside Virtual Goods is a new report researched and created specifically for entrepreneurs, investors, and analysts interested in the growth of this exciting new category of online commerce that is fueling the growth of games-as-a-service businesses. During a research phase spanning the last few months, co-authors Justin Smith and Charles Hudson have spoken with dozens of executives and entrepreneurs from all parts of the ecosystem in order to form what we believe are the most detailed estimates, analyses, and predictions for 2010 and 2011.

We focused and organized the report around the following areas:

  1. Social Networks, Applications, and Games - The explosion of the virtual goods market on social networks is one of the biggest stories of 2010. We delve deeply into the trends, stats, key players, opportunities, and challenges facing the space this year and next.
  2. Mobile Applications and Games – Mobile application developers that have been early adopters of the free-to-play model are now seeing significant growth in 2010. Our study breaks down the key opportunities and challenges facing this emerging space going into 2011.
  3. Casual MMOs and Virtual Worlds - Virtual worlds and casual MMOs continue to grow as a meaningful share of the virtual goods opportunity in the United States. Our study breaks down the key drivers for success in this segment, trends in monetization and engagement, and the prospects for the future.
  4. Hardcore MMOs and Free-to-Play Online Games – Developers in the MMO / MMORPG space have been among the earliest adopters of the free-to-play model. We explore why free-to-play MMOs are succeeding, revenue and user trends, and the key issues facing this space as we head into 2011.
  5. Emerging Areas: Console Games and Subscription MMOs – As the virtual goods business model becomes more well understood, it is beginning to show up in new and interesting areas of the games and entertainment landscape. We highlight a few of the more promising areas where virtual goods are emerging as a promising opportunity.

Each section contains:

  1. A brief history on the evolution and growth of this space in the US, including a description of key players.
  2. Estimates on the size of the US virtual goods market in 2010 in that area.
  3. A diagnosis of the key opportunities and issues facing the growth of that space, including our outlook and projections for 2011.

In addition, prior to delving more deeply into each market segment, we’ve provided an overview of the emerging payments ecosystem that is growing to serve these new businesses. Traditional e-commerce infrastructure providers only offer a partial solution, and the virtual goods payments layer is currently in a major state of flux. In the report, we describe the variety of solutions that have been brought to market to date, and the key challenges facing the industry from a payments perspective as a whole.

For more details, check out the full table of contents below.

The annual membership, which includes the report and three additional quarterly updates, is USD $2,495. Alternatively, you can obtain just this report for USD $995.

The annual subscription brings you a total of four comprehensive reports comprising months of original research. Recent reports have covered:

  1. The Future of Social Gaming. Social games make up over half of the US virtual goods market. This report provided detailed coverage of exactly how this industry has managed to thrive, who its most valuable players are, and deeper insight into monetization, development, and customer acquisition than you’ll find anywhere else..
  2. The Spending and Usage Patterns of the Social Gaming Audience. Who are the millions of users whose time, money, and engagement have made social games into household names and their developers into technology industry celebrities? This report presented the only independent, original research into user profiles, behaviors, and attitudes toward social games and virtual goods.

Although the report will not be released until Tuesday, September 28, we are offering a special pre-order discount for those who purchase now. The pre-order price of US $795 for this report or US $1,995 for a one-year subscription is now available until September 27.

We are looking forward to continuing to cover the evolution of the space over the coming year. We look forward to hearing from you!

Table of Contents

1. Introduction

  • How We Got Here: A Brief History of Virtual Goods Worldwide
  • Defining Terms
    • Registered users
    • Active users
    • Average revenue per user (ARPU)
    • Average revenue per paying user (ARPPU)
    • How do different developers manage their businesses?
  • Growing Virtual Goods Markets in the US
    • Social Networks, Applications, and Games
    • Casual MMOs and Virtual Worlds
    • Hardcore MMOs and Free to Play Games
    • Mobile Applications and Games
    • Emerging Areas: Consoles, Subscription MMOs
  • Methodology

2. The Virtual Goods Payments Ecosystem: An Overview

  • Large Payment Platforms
  • Mobile Payment Providers
  • Offer Providers
  • Direct Payments vs Offers
  • Pre-paid Cards
  • The Arrival of Facebook Credits
  • New Payment Providers
  • Managing Fraud
  • Related Companies

3. Social Networks, Applications, and Games

  • Introduction
    • The Global Rise of Facebook
    • The Virtual Currency Payment Ecosystem Explosion – and Migration to Facebook Credits
    • Increased Optimization for Virtual Goods
  • Social Networking Platforms Today
    • Facebook
    • MySpace
    • Twitter
    • Google
    • Others
  • Significant Changes to Facebook Platform Dynamics in 2010
    • Distribution & Engagement
    • Monetization
  • Social Application and Game Genres: How Do They Perform?
    • Role Playing Games and “Hardcore” Mini-MMOs
    • Simulation and City Building Games
    • Pet Games
    • Poker Games
    • Gifting Apps
    • Arcade Games
  • Who’s Buying Virtual Goods?
    • Gender Breakdown
    • Age Breakdown
    • Geographic Breakdown
  • How Are They Spending Money?
    • Item Type Breakdown
    • Payment Method Breakdown
  • Market Size Estimate
    • Total Number of Monthly Paying Users
    • Total ARPPU Per Month
    • Total US Virtual Goods Revenues from Social Networks in 2010
    • A Quick Look at Revenues for Top Social Game Developers
  • 2011 Outlook
    • Growth Rate
    • Major Risks that Could Hamper Growth
  • Leading Companies

4. Casual MMOs and Virtual Worlds

  • Introduction
  • Demographic Breakdown
    • Gender
    • Age
  • Payments
  • Analyzing the Market Opportunity
    • ARPU
    • ARPPU
    • Market Size Estimate
  • 2011 Outlook
    • Growth Rate
    • Key Challenges
  • Leading Companies

5. Free to Play MMOs / Hardcore Games

  • Introduction
    • History of free to play MMOs
    • Emergence of the free to play MMO market opportunity in the US
    • Major genres for free-to-play MMOs and hardcore games
  • Analyzing the Market Opportunity
    • Total Player Base
    • ARPU
    • ARPPU
    • Payment methods
  • 2011 Outlook
  • Leading Companies

6. Mobile Applications and Games

  • Introduction
    • History of virtual goods model in US
    • Major genres for free-to-play iPhone apps and games
  • Analyzing the Market Opportunity
    • Total Player Base
    • ARPU
    • ARPPU
    • Payment methods
  • 2011 Outlook
  • Leading Companies

7. Emerging Areas

  • Console Games
  • Subscription MMOs

8. Conclusion

  • Overview: 2010 Market Estimates
  • Looking Ahead: 2011

9. Appendix: Company Index

About the Authors

charles-hudson-headshotCharles Hudson

Former VP Business Development, Serious Business & Host, Virtual Goods Summit

Charles Hudson is the former VP of Business Development for Serious Business, a leading social games developer on the Facebook platform. In addition to his work at Serious Business, Charles Hudson organizes two of the leading conferences in the social gaming and free-to-play games industries, the Social Gaming Summit and Virtual Goods Summit.

Prior to Serious Business, he was formerly the Sr. Director for Business Development at Gaia Interactive, a leading online hangout for teens. Prior to Gaia, Charles worked in New Business Development at Google and focused on new partnership opportunities for early-stage products in the advertising, mobile, and e-commerce markets. Prior to joining Google, he was a Product Manager for IronPort Systems, a leading provider of anti-spam hardware appliances that was acquired by Cisco Systems for $830 million in 2007. Charles holds an MBA and BA from Stanford University.

justin-smith-headshotJustin Smith

Founder, Inside Network

Justin Smith is the founder of Inside Network, the first company dedicated to providing news and market research to the Facebook platform and social gaming ecosystem. Justin leads Inside Network’s Inside Virtual Goods and AppData research and data services, and serves as co-editor of Inside Facebook and Inside Social Games.

Prior to Inside Network, he was formerly Head of Product at Watercooler, one of the leading application and game developers on the Facebook Platform. Prior to Watercooler, Justin was an early employee at Xfire, the largest social utility for gamers, which was sold to Viacom in 2006. Justin holds a degree in Computer Systems Engineering from Stanford University.

Get the Annual Membership

The annual membership, which includes the report and three additional quarterly updates, is USD $2,495. Alternatively, you can just download this report for USD $995. Although the report will not be released until Tuesday, September 28, we are offering a special pre-order discount for those who purchase now. The pre-order price of US $795 for this report or US $1,995 for a one-year subscription is now available until September 27.

Get Annual Membership (Includes Report + 3 Additional Quarterly Issues): $2,495 $1,995 USD*
OR Buy Single Report: $995 $795 USD*

* Pre-order discount ends September 27, 2010. All pre-ordered reports will be delivered on September 28, 2010.

Facebook Launches Places in Japan

Facebook has officially launched its location service Places in Japan. Only 1.1% of Japan’s population  is on Facebook, but the user base has grown 21.6% in the last 3 months. Facebook may have chosen Japan as the first country outside the U.S. to gain access to Places to further spur this growth. It could also be because the country has sophisticated mobile phones able to access Places, and Japan has been quick to adopt both the iPhone and Foursquare.

Those in Japan with the Facebook for iPhone app or a mobile browser which can access touch.facebook.com will now be able to check in to Places and see where their friends are. The Japanese have historically been seen as aggressive early adopters of new technology, making the country a good fit for the relatively complicated Facebook feature.

Despite Facebook trying to keep Places exclusive the the United States, industrious users found a way to access it through U.S.-hosted VPN accounts. Now Facebook seems ready to roll Places out to new countries, but only those savvy enough to fully embrace it.

[The stats from this article are excerpted from Inside Facebook Gold, our membership service tracking Facebook's business and growth around the world. Click here to learn more about our complete data and analysis offering.]

Facebook’s Top 20 Gaining Pages: Megan Fox, Gaga, South Park, More Music and TV

Facebook’s Top 20 Facebook Pages this week were mostly related to musicians, most of whom were either nominated or performed at the MTV Video Music Awards on Sunday. There were a few TV shows, many from Fox, that were gearing up for their fall premieres later this month and a few random Pages including YouTube, Megan Fox and Facebook.

Our data comes from our tool PageData, which counts the number of Likes added to a Page each day. It took between about 523,800 and 310,000 new Likes to make the list this week.

Top Gainers This Week

Name Fans Gain Gain, %
1. Facebook 18,271,763 +523,755 +2.95
2. Lady Gaga 17,585,794 +514,495 +3.01
3. YouTube 12,881,264 +499,007 +4.03
4. South Park 12,433,232 +462,508 +3.86
5. Eminem 12,826,496 +457,497 +3.70
6. Family Guy 16,924,495 +425,884 +2.58
7. Justin Bieber 11,194,831 +423,552 +3.93
8. Lil Wayne 11,405,390 +411,762 +3.75
9. Shakira 8,278,681 +400,500 +5.08
10. Megan Fox 13,124,020 +371,413 +2.91
11. The Simpsons 6,879,257 +370,125 +5.69
12. Katy Perry 8,110,833 +364,863 +4.71
13. Rihanna 8,653,327 +361,779 +4.36
14. Linkin Park 11,942,864 +355,577 +3.07
15. Selena Gomez 8,926,753 +329,442 +3.83
16. Michael Jackson 19,695,814 +321,555 +1.66
17. Beyoncé 7,059,945 +317,545 +4.71
18. Taylor Swift 10,075,778 +315,832 +3.24
19. David Guetta 8,389,946 +312,045 +3.86
20. House 13,487,077 +310,099 +2.35

A group of Pages that were not TV- or music-related was small, but included Facebook in first place on our list this week. Facebook added 523,800 Likes to its Page to grow to 18.2 million. In third place was YouTube’s Page, adding 499,000 to reach a total of 12.8 million. Megan Fox’s Page took tenth place this week, adding 371,400 Likes to a Page 13.1 million strong; she posted an ad teaser for her Armani underwear campaign.

Onto the musicians.

Lady Gaga ruled the VMAs, both with her crazy outfits and her nominations/wins, and so took second place this week, adding 514,500 Likes and now boasts a total of 17.5 million Likes on her Page. Eminem also performed at the event, came in fifth place, added 457,500 Likes to grow his Page to 12.8 million. Justin Bieber was also on hand at the awards show, added 423,600 Likes to grow his Page to 11.1 million.

Lil Wayne wasn’t at the VMAs because he’s still in jail but his sporadic updates have helped his Page take eighth place, add 411,800 Likes and grow to a 11.4 million total. Shakira followed at number 9, adding 400,500 fans to a 8.2 million total by promoting her new fragrance and eminent world tour. Katy Perry, also a VMA presence, added 364,900 Likes to take twelfth place with a total of 8.1 million fans; she’s been touring, promoting her TV appearances, remixes and perfume. Rihanna was next at number 13, adding 361,800 Likes to a Page that now has 8.6 million fans; she’s premiered a new single on Sunday.

Fourteenth place Linkin Park was also a presence at the VMAs, the band has been promoting its singles and new album and setting up its current tour. The band added 355,600 Likes to grow to 11.9 million. Then there was Selena Gomez at number 15, who added 329,400 Likes to her 8.9 million-strong Page. Michael Jackson’s Page came in at number 16, adding 321,600 Likes to the Page’s 19.6 million fans.

Beyoncé came next at 17, adding 317,600 Likes to pass 7 million; she won an award at the VMAs and has been promoting her fragrance on Facebook. Taylor Swift was number 18, adding 315,800 Likes to pass 10 million; she also performed at the VMAs and had performed at a football game. Finally, DJ David Guetta was number 19, adding 312,000 Likes to reach 8.3 million.

TV shows rounded out the list, all of which have been heavily promoting their upcoming fall premieres.

South Park” was in fourth place, adding 462,500 Likes to grow to 12.4 million. “Family Guy” was in sixth place, adding 425,900 Likes to come in just under 17 million. “The Simpsons” was at number 11 on the list, adding 370,100 Likes to reach a total of 6.8 million. Finally, medical drama “House” added 310,100 Likes to grow to 13.4 million.

Fan Appz Launches Places Integration for Paid Subscribers

Fan Appz is launching a new Places integration for its paid clients today, that founder and chief executive Jon Siegal tells us that it will allow brands one more opportunity to reward loyal Facebook fans in addition to the company’s current software offerings.

Previously, Page administrators could create promotions specifically for Facebook fans, or make these promotions available to fans who took a particular action on Facebook. With the new Places integration, Page admins using Fan Appz can create discounts or rewards specifically for people who check in via Facebook Places.

Fan Appz’s integration also allows brands to build Places rewards in different ways, requiring fans to check-in a minimum number of times before unlocking a discount, for example.

Siegal tells us Fan Appz’s Places integration is designed around the idea that brands want to reward their most loyal Facebook fans, who often tend to be their best real-life customers. This is Fan Appz’s first Places integration, but Siegal tells us it won’t likely be the last because the company has others plans for Places integration, but also hopes to evolve with Facebook’s changes to the platform.

If you recall, Fan Appz offers white label applications for a variety of brands, allowing them to create activities around these brands, including quizzes, polls, coupons and Top 5 lists and has a reach of 100 million Facebook and Twitter users. Siegal tells us the company currently works with the NBA, NFL, NBC Universal and Fox Broadcasting, in addition to tens of thousands of small and medium businesses.

Fan Appz offers several versions of its software – clients of the agency/enterprise version for big brands and professional version aimed at small/medium businesses will be able to utilize the new Places integration, whereas the users of the free version will not. When we profiled Fan Appz earlier this summer, we noted that the company’s roadmap aimed to help brands connect to customers wherever they were, in this case, that includes Places.

One example of how Fan Appz’s Places integration works can be found on the Page of the Santa Clara, Calif. Westfield Valley Fair mall. On the Promotions tab are two promotions enabled by Fan Appz: one for a 15% off coupon at Betsy Johnson for those who check-in via Places and another for free Jonas Brothers tickets.

As Developers Continue Adopting Credits, Facebook Tests Out New Payment Flow

Last week, Facebook officially announced that Zynga, the largest developer on the platform, was going to make Credits the exclusive virtual currency for all of its games — although most of those titles had already made the switch, as we examined then.

The Credits rollout is continuing quickly, though, and here are a few more updates on what’s happening.

The first is that most top social games on Facebook have already integrated Credits in some form — illustrating both the impact of Zynga’s Credits adoption, and the reach of Credits among other developers. Out of the top 100 titles we looked at from our AppData charts, 60 are using Credits at least as a payment option, and 33 are using the virtual currency exclusively. For more, check out our detailed write-up over on Inside Social Games.

The second point that Zynga is still using third-party offers and game card services. Expect those monetization services to change over to Credits, as well. Facebook has been developing equivalent services as part of Credits, that it will have Zynga and other developers use. For offers, it has partnered with Trialpay to provide offers from Groupon and a wide variety of other advertisers (incidentally, we’ve continued to hear rumors that Facebook is looking to buy Trialpay, which the companies have said are not true). For game cards and other retail options, it has begun selling its own version at Target, and running other in-store promotions through PayNearMe.

The third point is that Facebook is trying out new payment flows to make the process easier for users. We noted a flow last week that had users buy in-game currency, like Farm Cash in Zynga’s FarmVille, without any indication that their payments were going through Facebook. Today, the interface shows users a more streamlined view. If you have Credits, there’s now a check-box that asks if you’d like to apply part or all of your balance to the purchase. If you want to pay without using Credits, or if you don’t have any Credits, you can instead pay directly through Facebook. A link at the bottom right of the interface shows your current payment method (Discover, Visa, etc.) in parentheses, and if you click, you’ll see a menu letting you select other direct payment options. This interface change is intended to make it obvious that they’re buying the in-game virtual currency whether or not they want to use their Credits account to do so, while still directing them to use their Credits balance.

Facebook’s Profile Wall Settings No Longer Include Option to Import Stories from Third-Party Web Services

Facebook users no longer have the option in their wall news feed to import and publish stories from third-party web services. Users could previously manage importation from services like Google Reader, Flickr and Last.fm. Those currently importing stories now see an error message in the settings stating, “The Imported Stories feature is no longer available. Most of the sites supported by this feature now allow you to publish stories to Facebook directly from the site.”

This means that users must now manage importation on each site individually, assuming it is available. The changeover actually happened a month ago, but it seems that very few people have noticed.

Users can still import blog posts as Notes through the the Notes settings panel. And while some sites have their own system for syndicating content to Facebook, some like Google Reader don’t. The unannounced change is seemingly frustrating some users, especially professional content producers who rely on importing from other services to Facebook for distribution.

Those who never set any third-party services to syndicate to Facebook won’t see the error message or anything about importing content in the current wall  settings. There is a link to applications settings where you can control what apps and Open Graph-enabled sites can post to your wall, but you can’t set up syndication from there. Users seeking a new way to publish RSS feeds to their profile can try RSS Graffiti.

When used sensibly, publishing third-party content to the news feeds of friends can be a great way to share one’s output without redundantly uploading to multiple services. However, some misused the feature to easily spam the news feed with self-promotion, or haplessly clutter it with low quality content. This decreases the quality of the Facebook experience for everyone in that user’s network. By turning off third-party content syndication, Facebook prevents users from harboring ill will towards it simply because some of their friends were degrading the news feed.

Thanks to Julián Rodriguez Orihuela for the tip.

Swedish App Polls for Parliamentary Election Voting Plans

Riksdagsvalet 2010 is a new Swedish application that allows people to “vote” in the country’s 2010 parliamentary elections. The app is intended by its creators to be nothing more than an informal poll. It has you give it some basic data permissions, select your preferred political party, vote for a party as you would in the general election on September 19th — then, most interestingly, check out graphs of how the rest of the app’s users have voted.

More than 268,000 people have added the app and, although any Facebook user can access it, the votes could still be a telling indicator of how the elections will go.

Sweden has about 9 million people, around 4 million of whom are on Facebook, according to our Global Monitor service, and most of the Swedish speakers in the world live in the country — it’s likely that most people who have used this app are eligible to vote in the election. What’s more, the app usage numbers are about half the number of people who actually participated in early voting.

So, if the results so far are any indication, the Moderaterna party is off to a strong start.

One of the results from the app shows you the ranking of each party by percentage, with Moderaterna (Moderates) with about a quarter of the vote. The other results include a pie chart breaking down the Facebook votes by political party and a line graph charting the number of votes by the age group of voters.

So far AppData shows that Riksdagsvalet 2010 has about 20,000 daily active users and over 261,000 monthly active users, which is good growth, considering that a month ago the app only counted about 3,000 DAU and 30,000 MAU.

We’ve reported often about the different ways Facebook has become pertinent to politics all around the world, how mayors are using it to communicate with constituents or run their campaigns and how Facebook created a U.S. Politics Page to help mange this interest.

It would have been interesting to see how an app such as this fared during the U.S.’s 2008 presidential election when people were ostensibly more engaged than usual in politics. Such an app might serve as an example for pollsters conducting surveys in the U.S. on topics such as the president’s job performance or the importance of the economy. Although, Sweden usually has higher voter turnout than the U.S. and given that the country’s had high early voting this year, the app’s popularity may be due local circumstances as much as design.

City of Wonder, Phrases Both Gain Millions on This Week’s List of Fastest-Growing Facebook Apps

City of Wonder has continued its huge gains to once again end up at the top of our weekly AppData list of fastest-growing apps on Facebook, by monthly active users. However, it’s closely followed by Phrases, the user-generated quote app.

Here’s the list:

Top Gainers This Week
Name MAU Gain Gain,%
1. App_2_114335335255741_9738 City of Wonder 8,258,944 +3,090,907 +60%
2. Original Phrases 32,855,392 +3,019,064 +10%
3. Original Quiz Planet 9,568,840 +1,276,988 +15%
4. App_2_122353571139137_4163 The Price Is Right Game 1,820,953 +1,042,013 +134%
5. Original Texas HoldEm Poker 33,892,121 +773,118 +2%
6. Original MMA Pro Fighter 2,530,656 +673,668 +36%
7. Original Are YOU Interested? 7,919,490 +639,410 +9%
8. Original Millionaire City 7,103,233 +598,341 +9%
9. Original Nightclub City 8,508,084 +549,207 +7%
10. Original Ikariam – The free browser game 665,457 +520,049 +358%
11. Original Give Hearts 8,483,268 +500,687 +6%
12. Original Kingdoms of Camelot 6,177,127 +494,491 +9%
13. App_2_142598042438818_9416 Celebrity Birthdays 434,629 +434,517 +387,962%
14. Original Games 6,934,563 +433,118 +7%
15. Original Zoosk 6,281,530 +431,608 +7%
16. App_2_144320435592910_7250 Critter Island 542,369 +408,910 +306%
17. Original Kad Raya 595,718 +408,645 +218%
18. Original BandPage by RootMusic 3,752,898 +407,115 +12%
19. Original Gift Creator 3,120,496 +393,009 +14%
20. Original My Top Fans 4,916,952 +373,993 +8%

Playdom has some distance to go before City of Wonder tops the highest point achieved previous hit city building game, Social City, but it’s now within four million MAU of that point — so it’s also not too far, considering the three million MAU gain over the past week.

At number two, Phrases has caught on with international users, allowing it to become truly huge. Although the stated purpose of the app is user-generated collections of quotes, much of its actual growth appears driven by short quizzes.

At number three, Are YOU Interested? continues its steady march toward dating domination. It’s not alone this week, though; Zoosk is on its way up again, having just moved past six million MAU.

The non-game apps on this week’s list are rounded out by Give Hearts, which is now Facebook’s largest gifting app, and Celebrity Birthdays, which tells users which celebrities they share birth dates with.

This Week’s Headlines on Inside Social Games

ISG LogoCheck out the top headlines and insights this week from Inside Social Games – tracking all the latest developments at the intersection of games and social platforms.

Monday, September 6th, 2010

Tuesday, September 7th, 2010

Wednesday, September 8th, 2010

Thursday, September 9th, 2010

Friday, September 10th, 2010

Facebook Launches Page Discovery “Browser”

Facebook has launched a new way to “Discover Facebook’s Popular Pages” called Browser. It shows icons of Pages that are popular in a user’s country, but factors in which Pages which are popular amongst their unique friend network. When the Page icons are hovered over they display a Like button. Browser could cause popular Pages to get more popular, widening the gap between them and smaller Pages, similar to the frequently criticized and since abandoned Twitter Suggested User List.

Browser also shows a “Friends similar to you” leaderboard displaying with which friends you share the most most mutual Likes. It’s currently unclear how users can navigate to utility other than through the URL http://www.facebook.com/pages/browser.php

Browser joins existing Page discovery methods including news feed stories, profiles of friends, the “add interests” step of the new user flow, recommended Pages sidebar modules, and advertisements. Stimulating Page growth is important to Facebook. As Pages gain more Likes and show their ability to drive clicks, more businesses will choose to start Pages, and some will pay Facebook to promote them. Users gain a richer experience through access to relevant branded content when they Like more Pages, and Facebook strengthens their role as a portal.

Browser’s tab title reads “Find Interests”, and its header explains, “See something interesting? Roll over the Page and click Like to receive updates in your News Feed.” Users can view Pages from all categories simultaneously, or from specific categories including brands, media, games and celebrities. Users can quickly Like many Pages, turning their icons dark blue, since they’re not redirected upon Liking.

The “Friends similar to you” can be expanded to show your 25 most similar friends, and links pop-up a window displaying all the Likes you have in common with that friend. Similar to Facebook photo albums, Browser automatically loads more Page icons when you scroll to the bottom. Changing one’s country using the drop down in the top right of Browser lets users see what Pages are popular in other countries.

Browser is a sleek way to discover Pages those in your nation or your circle of friends Like. It will help users better align their Likes and actual interests since they can choose between many Pages and find those which best represent them. By increasing the influence of one’s existing Likes and those of their friends into Browser’s display algorithm, Facebook can keep this new feature from merely inflating already popular Pages.

Thanks to Eti Suruzon for the tip.

Update: Browser can no longer be found at http://www.facebook.com/pages/browser.php The feature may have only been a test since it was not formally announced by Facebook.

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