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

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)
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)
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)
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

http://startonomics.com	368
http://developer.yahoo.net	137
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http://crezard.textcube.com	18
http://500hats.typepad.com	8
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Arch Viral: Creating Social Apps for Social Platforms (Lance Tokuda, Startonomics SF 2008)

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