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Arch Viral: Creating Social Apps for Social Platforms (Lance Tokuda, Startonomics SF 2008)
 

Arch Viral: Creating Social Apps for Social Platforms (Lance Tokuda, Startonomics SF 2008)

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Presentation by Lance Tokuda, RockYou, on using social networking platforms and applications for viral marketing distribution.

Presentation by Lance Tokuda, RockYou, on using social networking platforms and applications for viral marketing distribution.

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  • I am trying to understand how you can claim to have viral rates when x * y > 1? For e.g. if x=20 friends are invited and y=6% is the acceptance rate then x*y = 1.2. I.e. about 1 person accepted the invitation. That is 1 more person than before the invites were sent out. So, are you saying that if each person is able to attract at least 1 other person to join then we have viral conversion?

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    Arch Viral: Creating Social Apps for Social Platforms (Lance Tokuda, Startonomics SF 2008) Arch Viral: Creating Social Apps for Social Platforms (Lance Tokuda, Startonomics SF 2008) Presentation Transcript

    • Arch Viral Creating Social Apps for Social Platforms
    • Market for Social Apps is Exploding Wikipedia.org Alexa Global Traffic Rankings 1 2 3 4 5 6 7 8 9 10 2005 (U.K.) 2008 1 2 3 4 5 6 7 8 9 10
    • Web 1.0 Website Growth Year 0 Year 10
    • Web 2.0 Application Growth Year 0 Year 10
    • Top Growth Categories
      • Messaging and Gifting
      • Social games and quizzes
      • Other
    • Top Growth Categories
      • Social games and quizzes
      • Messaging and Gifting
      No channel for being notified when friends do something
    • Million User Applications on Facebook FACT: only 1% of all applications reach 1M installs
    • Referral traffic is key for viral growth
      • Primary sources of referral traffic
      • Install flow
      • Engagement flow
    • Install flow example for Bumper Sticker You don’t have to be grammatical to be a top 10 app!
    • Engagement flow example for Friends for Sale
    • Metrics for viral loop User Call to action to invite friends x = invited friends Accept? No Yes y% = accept rate x * y > 1 gives you viral growth!
    • 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!!!
    • 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
      • Engagement flow, notification channel
        • x = 6 (notifications)
        • y = 5% (acceptance rate for notifications)
        • Viral factor = 6 * 0.05 = 0.3
      0.5 + 0.3 + 0.3 = 1.1 VIRAL!!!
    • 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
      0.5 + 0.3 = 0.8 NO GROWTH
      • Paid ad for 30% additional flow
        • Growth factor = 0.3
      0.5 + 0.3 + 0.3 = 1.1 GROWING!!!
    • 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!
    • The End
      • Source: eBay Investor Presentation, RockYou
      • 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
      • 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)
      (2) Registered Users (MM) Who is the fastest growing company ever?
      • Source: eBay Investor Presentation, RockYou
      • 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
      • 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)
      (2) Registered Users (MM) RockYou is the fastest growing company ever! Facebook platform launch