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

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

Social games and quizzes

Messaging and Gifting

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

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!!!

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!!!

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

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!!!

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

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!

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)

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

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)