Audience Monetisation: American Express Buys Sometrics
- American Express has acquired Sometrics, a US-based company specialising in the monetisation of online gaming websites. Founded in 2007, it proposes targeted offers to Internet users based on their location, conversion history, their use of social networks as well as on demographic data. Its platform includes several banking and private payment options, including telecom operator billing and even Facebook Credits.
- Its 450 online games have reached an audience of more than 225 million gamers worldwide. It has processed 3.3 trillion units of virtual currency within four years. American Express plans to eventually integrate this offer into its own e-payment platform Serve.
- Until recently, American Express had to catch up with its rivals MasterCard and Visa, which heavily invested in diversification projects. In search of strong growth relays, Visa purchased Playspan (specialising in virtual currencies for social media), Fundamo (m-payment) and CyberSource (e-commerce payment provider). Likewise, MasterCard acquired the British DataCash (e-commerce payment provider). Both giants are taking part in ISIS, the US mobile operators’ payment consortium.
- American Express used to rely on partnerships to strengthen the exclusivity granted to its customers: discounts on Foursquare (social geo-location) and Facebook, conversion of customer rewards into bonuses with Zynga (online games, including Farmville). Analysts were expecting an intensified external growth in the payments sector along two axes: either a company in a Southeast Asia countries or an innovating company in the Silicon Valley. The latter option has been chosen first.
- With Sometrics, American Express is now positioned as currency converter on both sides and closes the loop. It is able to top up online accounts through payments in the real world (via its MembershipRewards®) and to convert virtual currencies into legal tender money.