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Lance Tokuda: Arch Viral: Creating Social Apps for Social Platforms

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Lance Tokuda: Arch Viral: Creating Social Apps for Social Platforms Powered By Docstoc
					Arch Viral
Creating Social Apps for Social Platforms

Market for Social Apps is Exploding
2005
1 2 3 4 5 6 7 8 9 10 (U.K.) 1 2 3 4 5 6 7 8 9 10 Wikipedia.org

2008

Alexa Global Traffic Rankings

2

Web 1.0 Website Growth

Year 0

Year 10

3

Web 2.0 Application Growth

Year 0

Year 10

4

Top Growth Categories
 Messaging and Gifting

 Social games and quizzes

 Other

5

Top Growth Categories
No channel for being notified when friends do something  Social games and quizzes

 Messaging and Gifting

6

Million User Applications on Facebook

FACT: only 1% of all applications reach 1M installs

7

Referral traffic is key for viral growth

Primary sources of referral traffic  Install flow  Engagement flow

8

Install flow example for Bumper Sticker

You don’t have to be grammatical to be a top 10 app!

9

Engagement flow example for Friends for Sale

10

Metrics for viral loop

User

Call to action to invite friends

x = invited friends

Yes Accept? y% = accept rate No

x * y > 1 gives you viral growth!
11

Typical viral numbers

 Install flow – x = 5 (friends invited on average) – y = 22% (acceptance rate for invites) – Viral factor = 5 * 0.22 = 1.1 VIRAL!!!  Engagement flow – x = 20 (friends invited on average) – y = 6% (acceptance rate for invites) – Viral factor = 20 * 0.6 = 1.2 VIRAL!!!

12

Use multiple flows and channels

 Install flow – x=5 – y = 10% – Viral factor = 5 * 0.1 = 0.5  Engagement flow, invite channel – x = 3 (invites) – y = 10% (acceptance rate for invites) – Viral factor = 3 * 0.1 = 0.3

0.5 + 0.3 + 0.3 = 1.1 VIRAL!!!

 Engagement flow, notification channel – x = 6 (notifications) – y = 5% (acceptance rate for notifications) – Viral factor = 6 * 0.05 = 0.3

13

Supplement with Ads

 Install flow – x=5 – y = 10% – Viral factor = 5 * 0.1 = 0.5  Engagement flow, invite channel – x = 3 (invites) – y = 10% (acceptance rate for invites) – Viral factor = 3 * 0.1 = 0.3  Paid ad for 30% additional flow – Growth factor = 0.3

0.5 + 0.3 = 0.8 NO GROWTH

0.5 + 0.3 + 0.3 = 1.1 GROWING!!!
14

Important tips

 Install flow should generate most of your referrals – everyone installing will use that flow so make it good – user test different calls to actions

 Engagement flows supplement virality – not everyone will engage, generally weaker than install flow – left nav and profile action should link to the primary engagement flow – consider having the primary engagement flow invite new friends – user test different calls to actions
 Decay – invite rate decreases as you saturate – acceptance rate decreases as you saturate – engagement tends to decay – continuous improvement required!

15

The End

Who is the fastest growing company ever?

50

Registered Users (MM)

40 30 20 10 0 1 3 5 7 9 11 13
(1)
(2)

15

17

19

21

23

Months

Source: eBay Investor Presentation, RockYou (1) eBay starts Q2 98, PayPal starts Q1’00, Yahoo! starts Q1’95, AOL starts Q1’92, Facebook starts Q4’04, and RockYou Starts Q4’05 (2) Facebook data represents active users, which was disclosed on 12/05 and 12/06. Undisclosed active user data is extrapolated by applying an average active user penetration to global Unique Visitors (per comScore Media Metrix)

17

RockYou is the fastest growing company ever!

50

Registered Users (MM)

40 30 20 10 0 1 3 5 7 9 11 13
(1)
(2)

Facebook platform launch

15

17

19

21

23

Months

Source: eBay Investor Presentation, RockYou (1) eBay starts Q2 98, PayPal starts Q1’00, Yahoo! starts Q1’95, AOL starts Q1’92, Facebook starts Q4’04, and RockYou Starts Q4’05 (2) Facebook data represents active users, which was disclosed on 12/05 and 12/06. Undisclosed active user data is extrapolated by applying an average active user penetration to global Unique Visitors (per comScore Media Metrix)

18

Revenue:
The Internet Wants to Be Free, but YOU Need to Get PAID. Andrew Chen, Futuristic Play http://AndrewChenBlog.com


				
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posted:10/6/2008
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Description: Facebook & MySpace are the largest social networks on the planet. Find out how to create a social application for these platforms that's so viral it's an epidemic.