INFORM AUGUST 07 IT’S ABOUT INTELLIGENCE™

BIRTH OF A BRAND / HABBO HOTEL

WELCOME SIGN / FROM HOBBY TO HABBO: HOW A PET PROJECT GREW INTO A GLOBAL PHENOMENON / BY ALISTAIR WILLIAMS

The story of Habbo began back in Utilising experiences from the During 2004, Sulake as a company 1999, when two young Finnish guys, previous projects, the group of young and Habbo Hotel as a ‘game chain’ Sampo Karjalainen and Aapo Kyrölä, developers continued to build on the grew dramatically. By the end of the created an online application called concept of a multiplayer online game year, the company had launched 16 Mobiles Disco for their friends' rock and soon Sulake, the company, was hotels on four different continents band and their fans. Mobiles Disco founded and the first hotel, Hotelli and the number of employees had was always a hobby but once Kultakala (Hotel Goldfish), was increased to 160. It was at this time launched, the word about a new cool launched in August 2000. After the that Habbo started to attract multi-user online community started huge success of the virtual hotel teenagers from all around the world to spread quickly. In a few months launch in the company and the monthly user base grew the project had got thousands of aimed to expand internationally. from thousands to millions. users from around the world – from as far away as . After noticing Easy access easy play – free with an the thrill of such a concept, Aapo Growing the global community option to buy and Sampo decided to develop their idea of a new way to meet friends Habbo was officially born as a brand A simple definition of Habbo is a online a bit further. in February 2001 when the doors to virtual world, online community and the international community of social networking environment Jussi Nurmio, the CEO of a major Habbo Hotel opened in the UK. It aimed mainly at teenagers. It's an Finnish advertising company Taivas, quickly became apparent that our online hangout where community became interested in the idea and international presence would require members can meet up, play games Aapo and Sampo started to work in separate game environments for and develop their self-expression. the online company of the Taivas different language areas, because Habbo provides a rich and positive Group, Ego Taivas MediaLab. Soon the first international version mainly environment, but it's the teens they, with a few other developers attracted English speakers. It was themselves who write the script. and graphic designers from Ego, relatively straightforward to create used the same idea and technology local game environments and with to build a funny multiplayer online just a few modifications the concept BY THE END OF game Lumisota (Snowball game). can be adapted for any country. THE YEAR, THE Launched in February 2000, Sulake launched the next new Lumisota served also as a test for communities in and COMPANY HAD commercial usage, since players in 2001 and four more were could increase the effectiveness of opened in 2003. At the same time LAUNCHED 16 their snowballs by buying extra force the technical platform was re-built with SMS messages. and the concept further developed. HOTELS As ‘Habbos’, they create their own likings – analyzing afterwards it is Celebrity visits are an appealing virtual world by customising their clear that this decision was one of event for the Habbo users on a characters, their own rooms and the most important ones in making global scale. Hundreds of musical their Habbo Home pages. the international phenomenon artists, actors and athletes visit happen. Habbo each year. The most famous Playing Habbo is free and buying visitors include Gorillaz (who ‘toured’ premium services is voluntary; most The Habbo game environment is 12 Habbo countries), Pink, Pussycat of the users don’t use money in built on Java-based FUSE Dolls, Beastie Boys and Ashlee Habbo. The online communities’ technology, which has been Simpson. In the UK this feature has currency is Habbo Credits which are developed by Sulake specifically to been acknowledged as altering how used to pay for premium services support multi-user online artists engage with their audience by such as virtual furniture, game environments. The game client itself allowing Habbo users to ‘meet and tickets, mobile games and elements is programmed by lingo developers greet’ their music heroes. Since the for the user’s own homepage. Virtual and can be viewed with standard success of the Gorillaz tour, Habbo furniture and homepage gadgets are web browsers enriched with Adobe’s has been approached to create particularly important factors in most Shockwave Director plug-in. similar events and has played host to Habbos' lives within the community, various pop artists like McFly, allowing them to express themselves Jamelia and Faithless. through the creation of theme-styled Celebrity visits and goodwill rooms and homepages, game rooms cooperation Celebrity visits in the UK are based and places to chill out in. Users can on the community’s music tastes pay using a wide variety of payment The key to Habbo is social and favorite artists, which are methods such as SMS, IVR interactivity: meeting other Habbos collected from the results of telephone lines, credit cards and and having fun together. The Habbo numerous polls. All celebrity visits prepaid cards among others. community is always packed with are designed specifically to create fun events whether it is seasonal unique event every time. Jamelia, for events, competitions, campaigns, example, spent two hours in Habbo, Pixel-style like no other celebrity visits etc. arranged by the visiting numerous rooms to meet and Habbo staff or events prepared by talk to her hordes of fans, chose the The graphical design of Habbo dates the other community members. winner of a fashion design back to the first versions of Mobiles competition and opened a new room Disco. Originally designed by Sampo in the Hotel. After the mass Karjalainen, the ‘Habbo pixel style’ discussion Jamelia visited some of pays homage to the early computer THE RETRO STYLE the Habbo’s guest rooms, games, such as the world of HAS BEEN ONE OF commented on them and talked Commodore 64. Habbo’s about her latest album. This provides axonometric 2D environment, THE MOST an excellent stage for artists to unique design and wide colour publicise themselves and promote palette help the Habbo pixel style SIGNIFICANT their music to a hard to reach stand out from other international SUCCESS FACTORS audience. It also allows many multiplayer online games. Habbos to talk on a one-to-one basis FOR HABBO, with their role models in a way that The retro style has been one of the BECAUSE IT IS would not otherwise be possible. most significant success factors for Habbo, because it is simply never SIMPLY NEVER OUT Sulake also cooperates actively with out of date. The original style was youth and goodwill organisations chosen based on the creator’s own OF DATE around the world. Globally the company has Converting advertisers to content dedicated campaign area on the partnerships with over 30 different providers Habbo site were just some of the groups including Unicef in several tools used. Engaging the entire countries, the Red Cross and NSPCC In addition to pro bono activities, community in such a specialised in the UK. The InfoBus concept, a Habbo works with selected event is tough, but 12 Salon workers virtual space inside the community advertising partners that through were selected, tested and voted out where the specialist partners relevant and integrated messages, by the Habbo community itself. educate Habbos about topics add value to the user-experience Successful applicants were given a including dangers of drug abuse and and ultimately, to both the advertiser special Always Salon badge to safe Internet usage, is the most and the community. distinguish them from the visiting popular form of collaboration. customers and in the wider Habbo provides a strong branding community after the event. The The joint Habbo-FRANK project was environment that drives interaction community could write in their staff first piloted in Habbo UK in 2006. with millions of teenagers. As one of reviews and send in live feeds The ‘Infobus’ provides a close-knit the world’s fastest growing online offering words of support, enabling forum where Habbos can talk to a destinations for teens, Habbo offers us to engage not only the 12 staff FRANK advisor on drug related both an innovative and cost effective members but also the wider topics. It aimed to show the way to commence in a two-way community. usefulness of drug related dialogue. Furthermore, Habbo information provided in an online effectively builds brand loyalty and environment and gauge the the potential to modify consumer After ‘world domination’? response from the teenage behavior. Habbo pushes traditional audience. This provides a unique online marketing campaigns into a In April 2007 Habbo has local online and controlled forum, which, in live and virtual activity and identity communities in 29 countries and addition to Habbo’s high safety driven world, with advertisers as the Sulake has grown to a company with standards ensured that this was the providers. over 300 employees worldwide. service of choice to pilot such a Habbo has been ranked as one of project. Habbo UK has now been Detailed advertising campaigns are the world’s largest and fastest working with FRANK for nearly 2 devised for each client based on the growing online teen communities years following an extremely communications objectives and and Sulake as a company has won successful trial. Three 20-minute brand in question. Brands levering numerous awards for its outstanding sessions are run for three days a Habbo’s opportunities include Nike, work in creating and maintaining a week and to date the ‘FRANK Coca-Cola, Nokia, Procter & Gamble technically stable and user-friendly, Infobus’ has been full to capacity, and MTV. safe environment for teenagers to demonstrating the success of meet new and existing friends, play bringing a relevant dialogue into a In the UK, for example, Procter and games and have fun online. Sulake’s teenager’s environment. Gamble wanted Habbo to run an business model, which is based on engaging event that raised using micro payments to charge for awareness of the Always brand. premium services in the community, HABBO PROVIDES A Habbo created a month long event has proved to be extremely STRONG BRANDING called the ‘Always Salon’, which successful: the company has adopted the structure of the popular doubled its revenues almost every ENVIRONMENT THAT TV show at the time – The Salon. A year it has operated and in 2005 and DRIVES INTERACTION number of Salon rooms were built 2006 Sulake was among the fastest WITH MILLIONS OF specifically for the campaign. growing tech companies in Europe Numerous polling tools, live news (source: Deloitte Fast 500). TEENAGERS feeds, Always staff blogs and a Sulake aims is to build Habbo into a making contest, Habbowood, took Timeline: new type of youth brand, which is place in April 2006. Habbo users anchored in the world’s largest around the world created over 1. October 1999: Sampo online youth community. The brand 700,000 animated short films using Karjalainen and Aapo Kyrölä creates Mobiles will be extended to include mobile a moviemaking tool designed Disco, the early games and content, a possible especially for this campaign. These predecessor of Habbo animation series and merchandising films were sent to friends all over the 2. May 2000: the company products. Sulake also aims to world over 1,000,000 times and Sulake is founded broaden the company’s product viewed over 6,000,000 times. One 3. August 2000: the first community, Hotelli Kultakala portfolio with other kinds of game way to calculate the viral effect is the (Hotel Goldfish) is opened and community concepts for time spent with the Habbo brand – in Finland different target audiences. Sulake’s with Habbowood, users around the 4. February 2001: launch of existing international network of world spent over 18 years interacting the first international site in the UK – the name Habbo offices, payment and marketing with the brand. Hotel is first introduced partners will be utilised in launching 5. November 2001: over a these upcoming products. million registered Habbo Why is Habbo so popular? characters Currently teenagers around the world 6. 2003: four new Habbo communities are launched have already created over 75 million One of the main reasons why Habbo Japan, , and Habbo characters, and over 7.5 has become this popular is because . million unique users visit Habbo it gives users the freedom to be 7. 2004: nine new Habbo communities each month (source: creative. Thousands of simultaneous countries: The , NielsenNetratings). Eighty per cent users meet each other daily in , , , US, , , of Habbo users are between the Habbo communities, playing and and . ages of 12 and 18, with an equal chatting together, and making new 8. January 2005: Sulake’s divide between the sexes. friends. Habbos hang out together in investing round results in 18 ‘possies’, and run police million euros new capital. 9. April 2007: over 75 million departments and hospitals, often Habbo characters have Buzz and viral marketing paying their ‘workers’ with virtual been created in 29 localized furniture. You can find e.g. all sorts Habbo communities. Word-of-mouth and viral marketing of events, competitions and theme have been key to Habbo’s success. parties arranged by the users. Creating a vibrant teen community Almost every reality TV show has its requires a critical mass of own version in Habbo! The creativity trendsetters and early adopters to that you see in Habbo is just simply spread the word and make the amazing. This article appears in issue eleven community come alive. WOM is of Contagious. The issue also equally important in maintaining This fan culture also extends beyond includes case studies on JetBlue interest towards the community: in the boundaries of the Habbo and Axe/Lynx. Habbo it is the users who write the community, with hundreds of fan script and make the community sites worldwide reporting on Habbo For further information interesting for others. news and rumours. A handful also contact Richard Newman on operate their own radio stations, +44 (0)20 7575 1911 or email Sulake has always used a wide events and extends the fun that [email protected] variety of viral marketing tools in Habbo offers the community. This is addition to traditional marketing also an important reason why Habbo activities. Its global online movie- is so popular.