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Study names top ten states for “app economy” jobs

Wednesday, February 8th, 2012

TechNetWASHINGTON, DC – A new study showing that there are now roughly 466,000 jobs in the “App Economy” in the United States, up from zero in 2007.

The study, sponsored by Illinois-based TechNet and conducted by Dr. Michael Mandel of South Mountain Economics, also found that App Economy jobs are spread throughout the nation.

Two-thirds of app economy outside CA and NY

The top metro area for App Economy jobs is New York City and its surrounding suburban counties, although together San Francisco and San Jose together substantially exceed New York. And while California tops the list of App Economy states, more than two-thirds of App Economy employment is outside of California and New York.

The results also suggest that the App Economy is growing quickly and that the location and number of app-related jobs are likely to shift greatly in the years ahead.

“America’s App Economy — which had zero jobs just 5 years ago before the iPhone was introduced — demonstrates that we can quickly create economic value and jobs through cutting-edge innovation,” said Rey Ramsey, president and CEO of TechNet.

Creating jobs in every part of America

“Today, the App Economy is creating jobs in every part of America, employing hundreds of thousands of U.S. workers today and even more in the years to come.”

“The App Economy, along with the broad communications sector, has been a leading source of hiring strength in an otherwise sluggish labor market,” said Dr. Michael Mandel, the report’s author and President of South Mountain Economics and former Chief Economist forBusinessWeek.

“As the technology industry and in particular software evolves, the app economy is becoming a critical new area of development and growth,” says Fred Hoch, President, Illinois Technology Association. “Illinois, with rich resources in data, development, advertising and design, is poised to take a leading role in this newly evolving ecosystem and related job creation.”

The full study, entitled “Where the Jobs Are,” is available at: http://www.technet.org/new-technet-sponsored-study-nearly-500000-app-economy-jobs-in-united-states-february-7-2012/

Top U.S. Metro Areas With Highest Percentage of App Economy Jobs

   
New York-Northern N.J.-Long Island 9.2%
San Francisco-Oakland-Fremont 8.5%
San Jose-Sunnyvale-Santa Clara 6.3%
Seattle-Tacoma-Bellevue 5.7%
Los Angeles-Long Beach-Santa Ana 5.1%
Washington-Arlington-Alexandria 4.8%
Chicago-Naperville-Joliet 3.5%
Boston-Cambridge-Quincy 3.5%
Atlanta-Sandy Springs-Marietta 3.3%
Dallas-Fort Worth-Arlington 2.6%
   

Top Ten States for App Economy Jobs (Percentage)

   
California 23.8%
New York 6.9%
Washington 6.4%
Texas 5.4%
New Jersey 4.2%
Illinois 4.0%
Massachusetts 3.9%
Georgia 3.7%
Virginia 3.5%
Florida 3.1%
   

The research shows that when it comes to employment impacts, each app represents jobs — for programmers, for user interface designers, for marketers, for managers, for support staff. Conventional employment numbers from the Bureau of Labor Statistics are not able to track such a new phenomenon because this economic ecosystem is so new. The research analyzed detailed information from The Conference Board Help-Wanted OnLine® (HWOL) database, a comprehensive and up-to-the-minute compilation of want ads, to estimate the number of jobs in the App Economy.

The total number of Apps Economy jobs includes jobs at ‘pure’ app firms such as Zynga as well as app-related jobs at large companies such as Electronic Arts, Amazon, and AT&T, as well as app ‘infrastructure’ jobs at core firms such as Google, Apple, and Facebook. In addition, the App Economy total includes employment spillovers to the rest of the economy.

Preparis helps firms meet 21st century’s complex threats

Tuesday, February 7th, 2012

Armistead Whitney

Armistead Whitney, CEO, Preparis, one of 60 firms presenting at the upcoming Southeast Venture Conference.

By Allan Maurer

When jets plowed into the World Trade Center towers on Sept. 11, 2001, Armistead Whitney, now CEO and founder of Preparis, was president of a New York City-based media firm.

Along with many other company executives based in the city on that fateful day, Whitney was faced with questions about how he and his 200 employees should react to the terrorist attacks.

“I was immediately faced with some critical issues,” he says. “What should I do to ensure my employees will be safe? How will my operations, revenue, shareholder value, and brand reputation make it through? I simply had no clue.”

He and his staff made it out of the city safely, but Whitney writes that he made it his mission to find out what he would do differently if faced with such a situation again. He met with leaders form emergency preparedness and response organizations, then with CEOs of companies of various sizes. Whitney wrote about how it all on the Preparis website.

Guidance on what to do

After considerable research, he started the Atlanta-based company Preparis Inc., a startup selling an SaaS-based platform that delivers expert information, response protocols, communications and training to help businesses meet unpredictable threats from terrorism, pandemics, and natural disasters.

Preparis is one of 60 innovative showcase firms that will present business plans to venture capitalists and angel investors representing billions in capital at the 6th Annual Southeast Venture Conference in Tysons Corner, VA, Feb. 29-March 1.

Companies face 21st century threats

In today’s world, terrorist attacks are only one threat among many that can disrupt global businesses, Whitney tells us. “Threats of the 21st century have become more complex, especially as companies outsource more. They have operations globally, in third world countries, and clients in places impacted by local troubles.”

Nowadays, then, a business has to face pandemics, cyber terrorism, nuclear meltdowns, natural disasters from hurricanes and floods to earthquakes and wild fires. Floods in Asia can hamper production of electronics parts made there from hard drives to tablets.

Yet, Whitney points out, the only preparations for meeting such disasterous business interruptions is “A plan that sits on s shelf. It can be challenging for that to be effective.”

While most larger Fortune 1000 firms do have plans in place – policies, procedures and teams, they want tech to automate it all, Whitney notes.

They need a way to automate plans

“They need a way for tech to automate it, bring it all together so that it can be accessed from any place on any device, how to protect the workforce from threats, response instructions if you receive a bomb threat, an anthrax letter.”

Technology can take those stale plans on a shelf and make living breathing programs, he says.

Downstream at smaller organizations such as a law firm, “We become their entire ecosystem with everything they need, even an emergency notification system (such as Virginia Tech installed following deadly shootings on its campus).

The Preparis system knows who do what with the product at each level and everyone from the CEO to employees can use it.

“We’ve sold to about every industry, Fortune 1000 companies, banks, attorneys. Every industry at every size has an appetite for it,” says Whitney.

In the past, most such disaster preparedness was done through consultants Preparis does it through its SaaS product that a company can download from the web and being using immediately. “We’re creating a new category,” Whitney says.

Dealing with cyber threats

Looking ahead, the company is getting into how to deal with cyber threat issues. “As new threats evolve – the pandemic fears of a few years ago for instance – we quickly add guidance for our clients.”

In the recent “Trifecta” of an earthquake, tsunami, and nuclear meltdown in Japan, for instance, the Japanese government was telling its citizens it was ok to eat the food grown in Japan. But the Preparis product told its clients, “No, it is not ok to eat the food from Japan at this time.” Later tests showed that much food was contaminated with radioactivity.

“We also had a lot of our clients use the emergency messaging system when trying to find their employees.”

It must be doing something right. It has a 100 percent client renewal rate. How many software firms can say that?

The 20 employee company has raised $5 million in Series A funding. Whitney says the company is looking at a B round for growth.

“We signed a strategic alliance with Wells Fargo, which is bundling it with their products for their insurance customers. It’s a huge opportunity. Its the fourth largest insurance broker. We don’t need money for the product, but we need to hire more people to facilitate meeting increased demand for the product. That’s the main reason we would raise a B round.”

The company’s growth plan also includes mobile and social integration. Already clients can log in to the product with Facebook, Twitter, or LinkedIn names and passwords.

 

Meet.com wants its mobile app to eliminate online dating woes

Thursday, February 2nd, 2012

Ian Jones

Ian Jones, founder of Meet.com

By Allan Maurer

In the ten years Ian Jones, founder of mobile app company meet.com, marketed online dating sites from Friendfinder to Match.com, he tried most of them out – without success.

“I didn’t have one successful meeting,” Jones says.

His complaints about the online dating sites echo those of many others – he would discover that the photos the women he contacted had posted were a decade old. Or they sounded great online but didn’t come across so well in subsequent phone conversations.

So, in 2010, Jones decided to do something about that and created meet.com, a mobile app set to launch in March that already has 700,000 pre-joins acquired through affiliates and marketing.

Presenting at SEVC

The company, which has about 20 employees and currently has a single angel investor, will present its business plan at the upcoming Southeast Venture Conference in Tysons Corner, VA, Feb. 29-March 1. The 6h annual SEVC highlights both early and later stage investment opportunities from: Alabama, Delaware, Florida, Georgia, Kentucky, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia and Washington DC.

What makes it different?

Jones tells us that one of the biggest surprises in setting up his startup firm was the “overwhelming support for the meet.com brand and the growth in the smartphone and mobile app markets.”

The brand name is one of the things that differentiates meet.com from its competitors, says Jones. “It has a much higher response rate than ‘Scout,’ or ‘Blender,’ or ‘Grinder,’ based on our research, he notes.

Another differentiating feature is the way the app will work with Facebook. It allows users to connect via Facebook and even communicate with Facebook friends for free after downloading and installing it.

Jones assures us that the app will have strong privacy and security settings and users will be in control of who they connect with.

Once users communicate with people outside their network, however, a $4.99 a month charge begins via the iTunes or Android market stores.

Jones says the app is initially going to work with the iPhone and Android operating systems with Blackberry coming along a bit later.

There are other mobile apps out there that connect people on the go, but Jones says “Our matching technology is superior, our look and feel is superior, and our privacy settings are superior.”

Jones says he thinks we’ll all be experience a “mobile bubble” that will be much more significant that the dot com boom was in the next few years.

Mobile advantages

Mobile has advantages. People are more willing to pay for mobile apps than they ever seemed to be for online services, for instance. “There is much more acceptance from consumers,” Jones says. “It’s much more common for people to push a button and buy a 99 cent or $5.00 app than it is for them to pull out a credit card and charge $19.95.”

Part of the reason for the increased acceptance on the part of consumers is that it’s more secure than online purchases, he suggests.

“People have their credit cards on file with the iTunes store or Android and there are no charge back issues.”

In terms of dating itself, the immediacy of the way the meet.com app works when people are actually on the go and out and about is a major difference from the stale photos and descriptions on online services.

The U.S. dating services market is a now a $2.1 billion business, with online dating services soaring in popularity since 2001 and representing 53% of the market’s value, according to a recent report from Market Research.  But, dating website revenues are expected to grow only 7.5% this year as the U.S. market becomes saturated with 1,500+ sites and free dating sites and competition from popular social networking sites attracts cost-conscious singles, the report says.

In the not too distant future he thinks the prices on smartphones will fall even further, greatly reducing or eliminating any price barriers to consumer adoption.

Meet.com is seeking under $500,000 in an angel round and will present the details of its business plan to investors representing literally billions in capital at the SEVC.

Here’s the company’s video description of its product:

Southeast Venture Conference names first round of presenting companies

Wednesday, February 1st, 2012

Sevc 2012The Southeast Venture Conference has disclosed the first round of companies selected to present at the upcoming conference scheduled for February 29th – March 1st at the Ritz Carlton in Tysons Corner, Virginia.

Sixty showcase companies from around the Southeast and Mid-Atlantic regions will present at SEVC 2012. Showcase companies will range from pre-IPO firms to earlier stage high growth firms.

The presenting companies are the present and future of the region’s innovation economy, representing some of the most promising technologies from a diverse range of industries, including energy, mobile, health, security and Internet among others.

The first round of announced presenting companies include:

Seattle No. 1 for online giving, Alexandria, Arlington, DC in top five

Thursday, January 26th, 2012

SeattleConvio, Inc. (NASDAQ: CNVO) has released of its fourth annual ranking of Most Generous Online U.S. Cities. 2011 saw a change at the top with Seattle, WA, earning the #1 spot, followed by Alexandria, VA and Washington, DC finishing second and third respectively as the nation’s most generous large cities based on 2011 online giving data from Convio customers.

The biggest movers in the top ten from the 2010 annual ranking are Seattle rising three spaces to number one; Cambridge, MA falling three spaces from number two to number five; and Ann Arbor, MI moving up three spaces from number nine to number six.

The report ranks the 273 cities with total population of more than 100,000 based on per capita online giving and total amount donated through Convio’s online marketing and fundraising suites.

The average gift size remained steady in 2011 compared to 2010 at $65, as more than $435 million was donated by people who reside in the 273 major cities. The donors in the most generous cities increased their total online contributions by more than 11 percent over 2010.

The 2011 rankings are based on the almost $1.355 billion in total online donations generated through the Convio online marketing and fundraising suite that powers the online efforts of thousands of the nation’s leading nonprofit organizations. The current rankings come from donations processed between Jan. 1 and Dec. 31, 2011.

The top ten most generous large cities (population > 100,000) in 2011, based on per capita giving are:

1. Seattle, WA

2. Alexandria, VA

3. Washington, DC

4. Arlington, VA

5. Cambridge, MA

6. Ann Arbor, MI

7. Berkeley, CA

8. San Francisco, CA

9. Bellevue, WA

10. St. Louis, MO

“According to a May 2011 study by Pew Internet, 96 percent of American adults with annual incomes greater than $75 thousand are online,” said Gene Austin, chief executive officer of Convio.

“The Internet is a key component of a comprehensive, integrated constituent engagement and fundraising strategy. Our 2011 U.S. online giving data reinforces that nonprofits are increasingly leveraging the Internet to generate more meaningful relationships, raise more money and maximize the lifetime value of every individual they touch.”

From a regional perspective based on the U.S. Census grouping of states, the top 25 large cities have the South achieving the #1 spot (three cities in the top ten), followed by the West, then the Midwest and lastly the Northeast. To view the complete rankings of large U.S. cities, visit www.convio.com/onlinecities.

Cyberstates report: Tech industry job losses declined in 2010

Wednesday, October 5th, 2011

Tech America FoundationThe U.S. high-tech industry lost 115,800 net jobs in 2010, for a total of 5.75 million workers. This two percent decline in tech industry employment was less than half of the 249,500 jobs lost in 2009, which followed several years of sustained growth, according to the TechAmerica Foundation’s 14th annual Cyberstates report.

Over the longer term of 2007 to 2010 – the span of the economic downturn – the tech industry fared better than the private sector as a whole, with a four percent decline in employment versus a seven percent decline in the private sector.

“Of the four high-tech sectors highlighted in our report, only software services added jobs in 2010 – 22,800, a one percent gain,” said Robert F. Bennett, chairman of TechAmerica Foundation.  “Of the jobs lost, 72,100 were in communications services, 53,600 were in tech manufacturing, and 12,900 were in engineering and tech services.  Fortunately, the initial numbers for 2011 look more promising in terms of job growth.”

Job growth occurred in all four tech industry sectors

TechAmerica Foundation also today released a midyear jobs report for 2011 based on a different monthly data set from the U.S. Bureau of Labor Statistics.  This report shows that between January and June 2011, the tech industry added a net 115,000 jobs, a two percent gain, not adjusted for seasonality.

During this time period, job growth occurred in all four technology industry sectors, with the fastest growth in engineering and tech services.  A 12 month review of June 2010 in comparison with June 2011 also shows growth in three of the four tech industry sectors, with job losses occurring in communication services.

“Tech jobs were down in 2010, trending with the rest of the economy, but we have fared better than the private sector as a whole over the course of the economic downturn and there are some positive signs for 2011, said Dan Varroney, acting President and CEO of TechAmerica.  “We are poised not only to grow our own industry but to support the growth of the economy as a whole.  The key to growth is to support what we call the Four T’s: technology, talent, tax, and trade.”

“Technology: We need robust federal investment in basic research to create the scientific base that companies can use to produce new products and innovations.

“Talent: We need to invest in STEM education to provide our children with the foundation in math and science that will prepare them for high paying careers while allowing highly skilled foreign nationals educated at our universities to remain in the United States and join American companies instead of returning to their home countries and competing against us.”

Tax system needs reform

“Tax: We need to reform our tax system to make capital welcome.  We are competing against countries that are aggressively implementing tax policies that lower the cost of business.  We need comprehensive tax reform that attracts investments in technology and creates a framework that encourages repatriation of profits made by foreign operations of U.S.-based corporations.

“Trade: We need to open new markets to U.S. products and services by finishing the pending Free Trade Agreements with Panama, Colombia, and South Korea and continue to pursue other opportunities to expand trade.”

Eight states added tech jobs in 2010

The state-by-state data reveal that eight states added tech jobs in 2010.  The largest gains occurred in Michigan (+2,700), the District of Columbia (+1,400), West Virginia (+400), Utah (+400), and South Carolina (+300).  On a percentage basis, the District of Columbia saw the fastest job growth in 2010 at 4.3 percent, albeit at a small base.

For the sixth straight year, Virginia led the nation with the highest concentration of tech workers – 98 of every 1,000 private sector workers in the state were employed in the tech industry.  Massachusetts and Colorado ranked second and third, respectively.

Cyberstates 2011 relies on data from the U.S. Bureau of Labor Statistics. The report provides 2010 national and state-by-state data on high-tech employment, wages, establishments, payroll, wage differential, and employment concentration. All data are the most recent available at the time of publication.

Cyberstates 2011 may be purchased for $150.  The 2011 midyear report may be freely downloaded. Both reports can be accessed at: www.techamericafoundation.org/cyberstates.

Jobson to demo new video job interview tech at Digital East

Monday, September 26th, 2011

Digital East 2011Traditional job searching, interviewing and hiring is a backwards process that is undergoing a transformation, a certainty that will be demonstrated at the Digital East 2011 conference September 28-29 at the Sheraton Premiere Tysons Corner hotel. It is one of a dozen innovative firms to demonstrate new tech at the conference, which includes dozens of top digital media experts offering the latest tips, techniques and best practices at the event Wednesday and Thursday.

JobOn co-founder and CEO Jody Presti will show how his company’s technology is changing the way that retailers, restaurants and food service companies hire hourly employment.

One of a dozen DEMO firms

JobOn is one of only a dozen selected to present at the conference’s DEMO Showcase, which will be heard by 800-plus attendees including interactive marketers, senior Internet executives, online strategists, web entrepreneurs, bloggers, designers, usability experts and other new media professionals. (See links below for interviews with participants on SEO, Killer Facebook ads, phone apps for low income groups, web analytics tricks, deploying company video successfully, and creating excitement around a brand.)

JobOn combines employment listings with the ability for applicants to submit a recorded video interview. They answer a few common interview questions via a webcam or smart phone, and then click to send the responses to employers with jobs to fill.

For job seekers, this saves the time and cost of going to each employer to fill out a paper application and then scheduling an interview. At the same time, for less than the cost of a classified ad, employers get to pre-screen applicants before calling them for a second, face-to-face interview. JobOn hosts the videos, which are free for job seekers.

Says Presti, “Employers know within a few seconds if someone is a good fit, so we put the interview first to prevent employers from wasting time on paper applications and inappropriate interviews.”

The market for this technology is significant: there are 80 million employees and nine million workplaces that hire for retail, restaurant and other food services. Turnover ranges from 70 to 200 percent each year, which often leads managers to make “panic hires” that don’t last.

For a look at what some of the other digital media experts will be discussing at Digital East see:

Are you missing these web analytics tricks?

The right marketing mix creates search demand

Want to monetize social media? Hook users on achievement

Should app developers put more focus on low income groups?

Get the most from deploying video in a company

Four tips on search engine optimization from AOL’s SEO director

Killer Facebook ads: target more than the bullseye

Create a halo effect of excitement around your brand

Are you missing these tricks in Web analytics?

Friday, September 23rd, 2011

By Allan Maurer

Ted McDonald

Ted McDonald - Web Analyst, Verisign

One of the things Ted McDonald, Web Analyst for Verisign noticed at both his current and his last position, was the amount of junk traffic cluttering up reports with misinformation.

McDonald, who managed the web analytics program at Carfax before joining Verisign and managed web analytics at National Geograpic before that, will be discussing a few unusual tricks of the web analytics trade at the Digital East conference in Tysons Corner, VA, next Wednesday and Thursday (Sept. 28-29).

He is an expert at using Omniture products, like Discover and TestandTarget, and assessing the ROI of SEM and social media marketing efforts McDonald will be joined by dozens of experts, executives, and entrepreneurs in digital media, e-commerce, and the web world at the event.

Traffic that mucks up your data

One of the things he’ll discuss is how to detect that junk traffic and what to do about it.

At Verisign, he says, he has to deal with “A large number of people trying to hack us.” Seeing a lot of Eastern European traffic might be one clue that is happening, he notes.

Another problem he deals with is that of registrars hitting the site dozens of times a day. So to solve that and filter other traffic that isn’t relevant to the company’s consumer report, he looks at IP addresses and domain names.

He has triggers set up in the company’s web analytics program, Omniture, to alert him if a certain IP address is looking at the site’s Whois information a number of times a day and so on.

An allied problem to be on the watch for, says McDonald, is that for some reason, a number of site cruising bots – whatever they are – start visits on a site’s order confirmation page. That can seriously distort results if hits to the confirmation page are being used to count transactions. “It mucks up your data,” McDonald says.How

How many visits result in a transaction?

We asked if there are any metrics people should be looking at they might not be aware of. Mostly not, he says, but added, “There is one metric I like to look at that most analysts don’t: the impact of your pageviews on transactions. What you don’t know from a lot of standard reports – the top pages report, bounce rate, all of that – is of how many of the say 1,000 visits to a page resulted in a transaction five or six steps down?”

That is information that’s not readily apparent and “It’s something I look at that most folks don’t even know is an option,” he says.

McDonald says he’ll elaborate on these topics and others at the conference next week.

Right marketing mix creates search demand, expert says

Thursday, September 22nd, 2011

Kevin Lee

Kevin Lee - Founder & CEO, Didit

By Allan Maurer

People don’t get up at 3 a.m. and search for cruise vacations, says Search Engine Marketing expert Kevin Lee, CEO of Didit and first chair of SEMPRO.org. “Marketing initiatives – including paid advertising – stimulate search,” Lee says.

Getting the right marketing mix to drive search interest and harvest the resulting demand requires some “high level communication between search marketing, public relations, paid marketing and social media teams,” Lee adds.

Otherwise, “You can end up shooting yourself in the foot.”

If a company ships a million product catalogs, for instance, “Search goes through the roof,” says Lee. If the people doing the catalog were not part of a wholistic campaign, he notes, “The company may not have enough staff budget to harvest the demand created by other marketing activity.”

Speaking at Digital East

Lee will be discussing how to create media mix models, given any size budget, to create demand and interest the way traditional media does at TechMedia’s upcoming Digital East conference in Tysons Corner, VA, Sept. 28-29.

Lee’s Didit was part of the 2007 Inc 500 (#137), and has received a #12 position on Deloitte’s Fast 500 for 3 years in a row. Kevin authors a “Paid Search Strategies” column for ClickZ and has written several books, his most recent is Search Engine Advertising. Kevin was recognized as an Ernst & Young Entrepreneur Of The Year 2008

A set of strategies and tactics for a marketing media mix “Boils down to applying economic theory to media and advertising,” Lee explains.

Strategic thinking required

In the end, though, he says, “Trying to allocate a marketing budget across options is a mathematical challenge, although it is more of a process than a formula. You may end up with a formula that does a good job for each marketer, but the way you arrive at it is different depending on what business you are in. The way a person makes a decision to buy flowers is different from the way they decide to buy an automobile.”

So, he says, “Someone in charge of the media mix model needs to understand the buying triggers and the processes people go through for each purchase. You can’t build a buying crescendo to get someone to buy a dozen roses. It’s an impulse decision made in the hour of purchase. But the process of buying a car or deciding where to go on a honeymoon may take a month or more.”

It requires a lot of strategic thinking, Lee says.

He adds, however that companies with smaller marketing budgets – under $4 million a year or so – may not have enough resources and data to accomplish that, but “If you have a couple million a year in your marketing budget, you need to figure this out.”

Want to monetize social media: hook users on achievement

Wednesday, September 21st, 2011

Rogelio Choy

Rogelio (Ro) Choy - COO, Formspring

By Allan Maurer

A few years ago, the idea of paying for virtual goods online with real currency seemed outlandish to some. “It blew people’s minds,” says Rogelio (Ro) Choy, COO of the question & answer social site Formspring. But game companies such as Zynga, creator of Farmville, among other popular Facebook games, are successfully using that model.

Choy is one of dozens of Internet mavens, social media experts, marketing gurus, venture capitalists and entrepreneurs participating in the upcoming Digital East conference in Tysons Corner, VA, Sept. 28-29.

He’ll be discussing how to monetize social media efforts. He’ll address display advertising, brand advertising, performance advertising, social currency, mobile advertising and virtual currency. He’ll discuss each in some detail based on what he’s learned in a career packed with social media experience.

Choy was previously the CEO of Peerpong, a Q&A service using NLP/semantics for identifying interests and knowledge from social streams. Prior to Peerpong, Ro was Chief Revenue Officer for RockYou and responsible for leading all the business efforts for the company and Director at eBay Motors, leading the online parts business. Prior to eBay, Ro co-founded Cima Systems, a leading VOIP software provider for auto dealers.

Advisor on social media

Choy serves as an advisor to a number of social media focused startups including Applifer, Nanigans, Wildfire Interactive, Project Slice, Adnectar, 500 Friends, Guestmob, Facepad, Replybuy, J2Play, GamesthatGive and Groupcard.

We asked Choy to elaborate on using virtual currency to monetize social media.

“It’s a completely different way of imagining how people can make money on the web,” Choy says. It works because making social media platforms such as Facebook an intrinsic part of the game dramatically reduces the cost of acquiring customers.

In 2011, according to eMarketer, Choy notes, “27 percent of all Internet users were social gamers of some sort and 42 percent of all social networkers play games. In all 62 million people are playing social games of some sort. So a lot of people are playing games in a social network and buying certain types of virtual products.

Those virtual products are consumables tied to achievement in the games, not permanent objects, usually, Choy says.

Hooking people on achievement

“It’s the concept of hooking people on achievement within the broader concept of gamification. You get people used to making short goals,” Choy says. Then you present them with a longer, more difficult goal they may wish to attain, but they may lack the time to complete and want to speed up the process. “That’s where you monetize.Once they’re hooked on achievement, then you charge.”

The concept can be applied to anything, content, e-commerce, any experience that’s social in nature and involves friends, Choy adds.  “Where people want to surpass time or material constraints, that’s where you monetize. Build achievement into how you think about offering your products or services on social media platforms.”

Choy says there are compelling opportunities in brand and performance advertising, social commerce and mobile marketing as well. Social commerce, for instance, “Is probably the least developed, but potentially the most compelling,” he says. We could tell from our interview that you’ll be hearing practical ideas that will get the gears of your mind cranking.