The monetization promise and pitfalls of Pokemon Go–Catherine Tucker

 

MIT Sloan Professor Catherine Tucker

MIT Sloan Professor Catherine Tucker

From TechChrunch

Pokémon Go has been downloaded more than 100 million times since its July debut, making it the biggest-growing mobile game ever.

Naturally, the phenomenon has drawn much commentary about what this means for marketing, but I am more interested in what it teaches us about making money.

It’s not easy to make money in an ecosystem from unrelated parties. In spite of all the press purporting that Pokémon Go offers local businesses unique marketing opportunities, there are, in fact, many limitations. The claim is that small businesses can gain new customers from being a Pokémon “Gym” or “Pokéstop” — physical locations that players visit to collect rewards or battle virtual monsters.

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Google Plus losing to Facebook: what it says about Internet privacy — Catherine Tucker

MIT Sloan Professor Catherine Tucker

MIT Sloan Professor Catherine Tucker

From Fortune

When Google joined the social networking space in 2011 with Google+, more than 25 million people joined in the first month. Now the number of true users on Google+ is less than 1% of the total 2.2 billion users on Google, according to a report by Stone Temple Consulting.

What happened?

Some of the decline may be explained by the fact that a Google+ profile was created automatically when people registered for Google. That alone would generate an impressive number of profiles, but wouldn’t necessarily lead to active use of the social media platform. According toForbes, just 6.7 million users have 50 or more posts ever, and only 3.5 million have 50 or more posts in the last 30 days.

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When selling virtual products abroad, don’t put prices on autopilot — Joey Conway and Catherine Tucker

MIT Sloan Assoc. Prof. Catherine Tucker

MIT Sloan Assoc. Prof. Catherine Tucker

From TechCrunch

If you have a physical product that you want to sell in more than one country, determining the price in different markets can be challenging. You might have to open an office in each country, or at least hire a consultant to assess local demand and analyze the competition.

But if you have a virtual product — say an app for a mobile phone — setting the price for it in different countries is easy. Using the individual exchange rate, the app store instantly will convert the price from your home country to any of the world’s many currencies.

This is, very likely, how prices are set for most smartphone applications sold in different countries. As developers prefer to spend time solving technical challenges, it is all too convenient to leave the responsibility of currency calculations and pricing to Apple or Google or some other virtual marketplace.

But is this the best approach when sellinginternationally? Is there a more profitable way to price virtual products sold in different currencies?

We explored these questions in an experiment that was both a real-world business trial and an academic exercise. We wanted to see whether we could boost revenue for a virtualproduct, Root Checker Pro, an app that helps Android users customize their phones. The app is sold through Google Play — the app store for Android devices — in more than 130 countries.

For our experiment, we selected six different currencies — Australian dollar, Canadian dollar, British pound, Mexican peso, Malaysian ringgit and Saudi riyal. Over six months, we charged various prices for the app in each of the currencies to see how sales and revenue would respond.

Read the full post at TechCrunch.

Joey Conway is creator and owner of Android app Root Checker Pro. He received his MBA from the Sloan School of Management in May 2015.

Catherine Tucker is a Professor of Marketing at MIT Sloan.  She is also Chair of the MIT Sloan PhD Program.

Why the ice bucket challenge proved such a runaway success — Catherine Tucker

MIT Sloan Professor Catherine Tucker

MIT Sloan Professor Catherine Tucker

From Yahoo! Tech

As social media sensations go, this one had it all: Emotion, social currency, money, and a sense of derring-do. It involved your social network and mine, but also celebrities, professional athletes, and even a former president. It was, on one level, silly and tapped into our deep-seated can’t-look-away tendencies, but it was also on a deeper level inspirational and supported a worthy cause.

I am referring, of course, to this summer’s social media phenomenon: the ALS Ice Bucket Challenge.

For the uninitiated, the Ice Bucket Challenge involves dumping a pail of cold water over your head, posting photographic evidence of the pour on Facebook, Twitter, or Instagram, and then challenging friends to do the same within 24 hours or give $100 to A myotrophic l ateral sclerosis (ALS), or Lou Gehrig’s disease. Many did both.

As a fundraiser, the Ice Bucket Challenge continues to be, in the words of Forbes magazine, a “philanthropic blockbuster.” Not only has it raised more than $100 million for ALS, the progressive neurodegenerative disorder that affects nerve cells in the brain and the spinal cord, but it has also heightened awareness for a disease that many Americans knew little about.

The challenge has been such a success that every professional fundraiser in America is no doubt thinking: “How can we start our own Ice Bucket Challenge?”

Trying to imitate the Ice Bucket Challenge, though, is a mistake. A winning social media campaign is not about tweaking an existing idea; it’s about coming up with something colossally original. And a bucket-esque challenge that requires participants to do something distasteful but that won’t kill them — drinking a bottle of vinegar water, say — isn’t going to cut it. Perhaps the first onslaught of copycats might be able to piggyback on the idea — the Rice Bucket Challenge, where participants donate a bucket of rice to someone in need and click a picture of it to share online, got some brief attention in India because of its cutesy name — but on the whole, marketing mimicry is doomed for failure.

Read the full post at Yahoo! Tech

Catherine Tucker is the Mark Hyman Jr. Career Development Professor and Associate Professor of Management Science at MIT Sloan.

The challenges of using social media for marketing purposes — Catherine Tucker

MIT Sloan Professor Catherine Tucker

MIT Sloan Professor Catherine Tucker

In an era when marketers spend billions on managing social media, is that investment worthwhile? Should firms actively guide, promote and shape online conversations, or leave them to grow organically?

To investigate this, my colleague Amalia Miller from the University of Virginia and I recently studied what happens when hospitals started to actively manage their profiles on Facebook. We focused on Facebook because it’s the most visited media site in the U.S., accounting for 20% of all time spent on the Internet. We also chose it because the Facebook Places initiative created a page for every single hospital in the U.S., allowing organizations to choose whether to actively manage their pages or not.

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