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Article

Title: I Just IM'd to Say 'I Love You'

Author: Sauer, Patrick J Article Type: Product Analysis
Source: FAST COMPANY, n125 p52(1) Publication Date: May 2008
  ISSN: 1085-9241
URL of Publication: http://www.fastcompany.com

The American Greetings store in Manhattan contains a sea of mylar balloons, heart-shaped trinkets and rows of paper greeting cards. The manager estimates 10 to 15 percent of greeting card customers are under 20 years of age, and most buyers are middle-age women. Christmas cards are the biggest seller, then Valentines Day cards followed by cards for Mothers Day. American Greetings generated $1.7 billion in 2007. The company acknowledges that 80 percent of its products are sold in the U.S. to women of an average age of 47, and that Facebook and gen-Y customers have relegated snail mail to antiquity. But, the chief technology officer of subsidiary American Greetings Interactive (AGI) said all ages require assistance to articulate emotions. AGIs emoticoms repository Kiwee.com offers tween-age video winks, postcards, graphics, widgets and glitter text. It is positioned to interact with major social-networking sites and instant-messaging services, and serves 1.2 million downloads per day. Trend analysis on colors and language provides the company with a compass for creating new greeting cards. AGIs CEO stated that access to shared information enables better content. The company tried new revenue models including pay-per-piece, which attracted only a small percentage of customers. AGIs subscription model attracts 3.4 million users, mostly middle-age women, of course, but legislation prohibits subscription authorization for customers under 18 years old. So, Kiwee uses an advertising model to generate revenue, attracting JCPenney, Verizon, Darden Restaurants and others. Kiwee launched a new toolbar six months ago that offers instant access to a zoos worth of smiling animals, providing AGI with a portion of search-advertising revenue. The product manager of Microsoft Windows Live Messenger said the new toolbars customer utilization has been amazing. Kiwee attracted 12 million visitors during February 2008.

Companies:
AG Interactive (AGI) Facebook Inc
Microsoft Corp Verizon Communications Inc

Products:
Facebook Kiwee
Windows Live Messenger

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