AOL Leverages ICQ for Friendster-like Play

By Christopher Saunders - March 5, 2004

America Online's ICQ unit -- best known as the first hugely popular instant messaging client, and credited with starting much of the IM craze -- is now poised to enter another hot area: social networking.

Now America Online's Israel-based ICQ, Inc. subsidiary is pushing its way into the crowded space, wagering that its new ICQ Universe site can leverage instant messaging -- not to mention ICQ's 175 million-plus registered user base -- to create a key competitive differentiator.

Among factors working in ICQ's favor is the sense of community already developed among ICQ users -- prompted in large part by ICQ, Inc. itself (and its forerunner, Mirabilis, which became ICQ, Inc. following the acquisition by Dulles, Va.-based AOL.) For instance, ICQ.com hosts presence-enabled chat rooms, discussion topics, ICQ Dating, and random chat -- a feature enabling ICQ members to meet others by beginning conversations with unknown, opted-in users.

"ICQ has been, since the beginning, the only instant messenger that has integrated the community and built a lot of Web communities," said Yael Givon, director of marketing at ICQ. "That's one of the strong features of the client. The ICQ Universe ... is an evolution of what we've done in the realm of public communities. We have 175 million registered users, and we know there are all these relationships between them," she added. "And, we thought, let's show that. Let's map them out. That's basically where this is coming from. It's a project that will show all the relations in the ICQ community."

Consequently, the Web-based ICQ Universe's visual interface resembles a wagon wheel, with a user at the center of their home screen, and links radiating out to their invited friends and colleagues. Clicking on another user shifts the animated display to their point of view, showing their links to contacts. Each contact has an presence indicator -- showing their availability to chat -- as well as a picture and other data.

ICQ also contends that the tight IM integration makes the ICQ Universe more immediately fun and productive for users.

"If you know the other social networks, there's not a lot to do there," Givon said. "Since ours is related to an instant messenger, you have all the functions of the instant messenger instantly within the social network -- anyone you meet you can write to them, exchange files, SMS them, launch games -- you can do all to these functions."

Privacy controls in the IM client also help ensure users' privacy in the ICQ Universe, said Ronen Arad, director of product management for ICQ.

"You can mark on your client if only people on your contact list can contact you," he said. "That way, you can really protect your privacy [on ICQ Universe]. We're keeping this as a safe place for users to engage each other. This is something very powerful in terms of this project."

ICQ differs from the major social networking players in another regard, as well. Similar to Orkut, membership is by invitation only (invites are delivered by e-mail or IM). However, ICQ users have the additional option of joining the network by meeting and receiving an invite from a new acquaintance they encounter in the system's Lobby. Established ICQ Universe members can elect to visit the Lobby and recruit new members.

"What we see ... on the other networks, is that at some point, it maxes out and people invite all the people they know, and they all tend to be from their same area," she added. "With the Universe, people are waiting in the Lobby for another member to invite them. This increases your chance to meet new people."

"It's like our random chat function on ICQ -- you click a button an a user comes up randomly who's ready to chat," Givon said. "On the site, we have 600 stories where people say, 'I just went on random chat and two years later, I was married.' We know people are looking for adventures, finding a new person, and the Lobby concept speaks to that."

A good deal has been written about the actual value that social networks have as businesses. For AOL, the ICQ Universe represents both a media play and a user-retention strategy.

"The Universe just fits into our business model," Givon said. "We don't have to invent how we are going to monetize this. Our general business model of advertising and partner integration applies to the Universe as well."

The effort marks the latest move by America Online to deploy new services that leverage its instant messaging empire. For instance, it recently launched an online dating site -- Love.com -- that integrates with its AOL Instant Messenger service. In months past, it also unveiled a certification program for third-parties to develop AIM applications for enterprise use; so far, at least two IM security and management companies have signed on.

The site launch also continues AOL's efforts to bridge its two IM communities, which last year began offering message interoperability with each other. In ICQ Universe, the company said it expects to offer integration with the AIM service in the near future.

"You can invite an AIM user to join the user by just sending them an invitation," Arad said. "When he comes and would like to join, he can use our easy, fast registration ... and becomes an ICQ user without even downloading the client. Furthermore, we will add in ... capabilities for AIM-enabled users to log into the service with an AOL Screen Name. And as we move forward with the service will invent probably ways to enhance interoperability with AIM, and AOL as well."

Added Givon, "We're bringing the two communities together. AIM users will have the privileges of ICQ users in the community."

Christopher Saunders is managing editor of InstantMessagingPlanet.com.