Increase Social Gaming Revenues With Hi5's Advanced Monetization Platform

Hi5 has recently announced their Ad/Commerce hybridization model called SocioPay that is designed to increase social gaming revenue by 200-300%.

Hi5 has recently announced their Ad/Commerce hybridization model called SocioPay that is designed to increase social gaming revenue by 200-300%. More after the jump.

SocioPay can be leveraged by developers to dynamically target players with alternative offerings from direct payments. These players are identified as those who are less likely to purchase virtual currency and triggered with ads and offers etc. These triggers are similar to the kind players see in games based on their behavior. For example, if one is idle for some while on Cityville, then she is prompted to invite her friends while the ‘dust collects’. Also in some cases, players who are identified as less engaged may be prompted with some sort of mini game etc.

“While results are still early, we expect SocioPay to increase revenue in social games by 200%-300% over traditional commerce and lead-generation offers found on other social networks,” said Monty Kerr, hi5 Vice President of Commerce and Advertising. “The key innovation is that SocioPay extends beyond the hi5 platform; allowing developers to see dramatically increased revenue wherever their social games are distributed — even on other social networks.”

SocioPay is designed to extend beyond Hi5 onto the open web. According to Alex St. John, developers have been requesting more services to help them increase player monetization. The release of SocioPay will complement the recently launched SocioPath – a viral acquisition system that lets user on-board games on hi5 without requiring registration. Hi5’s goal with SocioPath is to lure game developers away from Facebook by offering a clever way to spread games virally. When players join games with SocioPath integrated, Hi5 asks for permission to spread the word about the game through your email, IM, Facebook and Twitter accounts. Those contacts that receive these notifications can then join the game without registering – allowing them to test the game without being hampered down by registration requirements.

“By utilizing the SocioPath platform for our title, Bush Whacker, we’ve been able to take down the barriers to entry and acquire more new users directly into our game. hi5 is driving a new model for virally acquiring audience into social games that is effective and will be instrumental in helping us achieve our growth goals for 2011,” said David Whittaker, Co-founder of DJArts Games.

Hi5 has roughly 50-60M users but has done a good job of attracting top social game developers such as Playdom, Bigpoint, Digital Chocolate, Casual Collective, Portalarium, TheBroth, Sneaky Games and others by implementing its Facebook-compatible APIs. Hi5 raised $14M in July of last year as it announced a more strategic shift towards free to play social games and virtual goods. In the past we’ve seen many announcements from Hi5 and look forward to SocioPay’s launch during GDC.

Readers are encouraged to check out Hi5’s GDC session where Alex St. John will share a live demo of the new platform in San Francisco on Tuesday, March 1 from 11:15am-12:15 in Moscone Center’s North Hall, Room 122. Full details here for your reference: