Recently I was asked to give a presentation about the Korean avatars market, trying to understand the craze and predict other mobile markets’ behavior. Knowing it might interest some of you, I’ll be publishing the content of the presentation at this blog. Due to the length, I’ve been posting it in a few parts every Thursday. If you missed the opening, here’s the link to the first part, second part and third part.
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Mobile Avatars Offerings
The medium of avatars is naturally focused on community, since users need an audience to present their character. As such, avatars can increase operator's attractiveness using its viral affect to mobile operators. Also, operators can use avatars in order to utilize the loyalty established by online communities.
However, the mobile industry had stumbled upon barriers to provide a mobile avatars offering: the mobile internet hasn’t reached the web’s speed, latency, and user interface. Also there’s a big difficulty in implementation.
Having said that, there are already some players in the Korean mobile avatars arena. The first player was NEOWIZ which began supplying mobile avatars to KTF in August 2001, to LG Telecom in April 2002, and SK Telecom in August 2002. According to company’s reports, mobile avatar sales grew to over 2 billion won per month in 2004 (which are about $1.5 B).
The second player was NATE. SK Telecom's Nate launched its avatar service in October 2002 and provides avatar service similar to those provided by web portals. This move was the result of the wired-wireless convergence with SK Telecom’s acquisition of a Korean web portal. Nate offers clothing brands for avatars, providing its users with replicas of the genuine clothing lines. The fashion and consumer brands companies enjoy the advertising by increasing actual product sales, while NATE profits from avatar sales.
What avatars demonstrated to the mobile industry is that mobile phones are a strong extension of self for many users. By personalizing the mobile with avatars, the mobile becomes much more than a communication tool. It has become an extension of either how the user views himself\herself, or would like to.
To summarize, avatars should be linked with other services and not just be a cute application to play with. Avatar service has been generating sales related to community-based services like gaming, forums, chats, IM, and minihomepies. Integrating the web and mobile increases the usage of avatars provide the ability to use the digital identity created practically everywhere.
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