Monetizing Social Media 6.11.08
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GSP East 2008

GSP East 2008

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Monetizing Social Media 6.11.08 Presentation Transcript

  • 1. Bling Bling: Marketing and Monetizing Through Social Applications April 2008
  • 2. Common Perceptions of Social Media
    • “ You can’t make material money through social media”
    • “ You can’t effectively promote yourself on social media”
  • 3. Who is RockYou?
    • Most popular applications/widgets across Facebook, hi5, Bebo, Orkut and MySpace
    • Over 700K RockYou apps installed daily and over 100 million apps live across social networks
    • Over 16 million registered users
    • Over 80 million monthly unique visitors across RockYou network
    • Over 800M pageviews a month on RockYou apps and 2.5 billion pageviews per month across our ad network
    Our mission is to engage the world with social applications 2.0B 16M 100M 70M 700k
  • 4. Most Million User Applications across Social Networks
  • 5. Successful Marketing on Social Media: Social Applications
  • 6. Why? Potential 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
  • 7.
    • 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) Viral Marketing is key to success
  • 8. Key Takeaways for Viral Growth
    • New User focus
    • Simplicity
    • Novelty
    • Universal Applicability
  • 9. Building Viral Engagement User
    • 3. Indirect friends => focus on messaging
      • Focus on messaging to invite/notification receivers to drive more friends invites
      • Deliver increasing AND simply understood value to app w/ every friend invited (Zombies)
    • 1. New users => build clean flows
      • New users absolutely key to viral engagement (vs returning user)
      • Focus on linear, one-action flows to maximize activation for new users
      • Forget registration
    • 2. Direct friends => deliver clear value
    • prop
      • Provide clear value proposition to new user for inviting friend network (Likeness)
      • Ensure invitation is first/second step of new user flow to maximize viral value of user (Superlatives vs Superlatives)
    • 4. Interested parties => allow universal use
      • Enable simple tools (comments, ratings, answers) that allow interaction w/o requiring full engagement w/ application (My Questions)
    Direct Friends Indirect Friends Interested Parties
  • 10. Marketing Opportunities with Social Applications
    • Successful marketing for social media should focus on social applications:
    • Application content integration
        • Integrating brand or product as part of user experience
        • Example: Likeness quiz, virtual gifts, greeting cards, virtual actions, etc
    • Sponsorships or branding of applications
        • App takeover or skinning w/ possible promotion
        • Example: Skin application w/ sweepstakes or contest
    • Custom social application building & distribution
        • Build a social app for advertiser and/or distribute it through social network specific ad networks
        • Example: Build, viral tune, launch, and seed an app recruiting users from RockYou’s leading ad network jumpstarting viral spread of app
    • Rich Media
  • 11. Application Integration: Custom Advertiser Quiz Custom size pop-up w/ additional info appears upon mouse rollover on relevant quiz choice 646x90 banner clicks through to advertiser’s website Text link clicks through to advertiser’s website
  • 12. Application Integration: Custom Advertiser Quiz Advertiser’s quiz promoted on Available Quizzes section throughout duration of campaign (100% SOV) Advertiser’s quiz featured and cycled through Brand New Quiz placement throughout duration of campaign
  • 13. Application Integration: Viral Impact & Spread News Feed Mini-News Feed on Profile pages Profile box Notifications Email Message An advertiser’s custom Likeness quiz virally spreads through the a social network platform’s communication channels.
  • 14. Application Integration: Sweeney Todd 0.01% CTR for banner alone 65x better 0.65% CTR with integration
  • 15. Application Integration – SuperWall Card Featured two custom-designed greeting cards on SuperWall for StepBrothers Results:
    • 8M impressions on application pages
    • 6M cards sent
    • Immeasurable viral impressions through newsfeed events and in-profile prominence
    Card appears in user’s profile Greeting cards in top placement, pre-selected, and expansion upon roll-over
  • 16. Application Sponsorship
    • Applications can be skinned or branded with prominent placement for an advertiser with additional opportunities for sweepstakes, contests, streaming video units, and other custom programs.
  • 17.
    • Resident Evil: Extinction sponsored the popular Zombies app for 3 weeks leading up to the theatrical release and users could enter the sweepstakes to win a weekend trip to Vegas by ‘biting’ their friends.
    Application Sponsorship 100 x goal 10K expected 1M achieved
  • 18. Application Integration & Application Takeovers Social Networks (1) Web (1) Average RockYou Ads Click-Through Rate Best RockYou Ad Campaigns (1) Business Week (2/7/2008)
  • 19. Application Development and Promotion
    • F rictionless: simple, less is more
    • A udience: on Facebook for their friends
    • C ommunication: integrate into the viral channels
    • E ngagement: hook users to return regularly
    • B usiness model: design with monetization in mind
    • O bjective: establish goals and success metrics
    • O bvious: make each page’s purpose clear
    • K eep working: develop, test, repeat
    Some rules of thumb from Context Optional.
  • 20. Application Development and Promotion
    • Over two months since launch, over 250K users have sent over 2M branded pokes generating tens of millions of branded impressions.
  • 21. Application Development and Promotion
    • 3 rd party ad networks on Facebook can radically accelerate Facebook application adoption
      • RockYou
      • SocialMedia
      • Lookery
    • From RockYou’s experience, advertisers can generate between 1000 – 20,000 installs a day
    • Cost ranges from $0.10 - $0.30 CPC and $0.15 - $0.60 CPI
    • Viral tuning is key to taking advantage of paid campaigns
      • 2x to 10x impact
    • Behavioral and interest based ad targeting forthcoming
  • 22. Application Development and Promotion Acuvue adjusted viral flow of Wink application and promoted the application on RockYou network— 200 installs grew to 150K users within a month . 646x60 Ad
  • 23.
    • Stylefeeder is the largest fashion/shopping Application on Facebook with over 1MM installs
    • StyleFeeder able to convert double digit percentage of Facebook users into StyleFeeder.com users
    • Based on high conversion, Stylefeeder drives app installs from RockYou to StyleFeeder app
    Application Development and Promotion Stylefeeder.com is successfully driving website traffic through marketing of a social application mirroring site functionality
  • 24.
    • Consider potential throughput of the ad network
    • Quality of ads => Requires constant tuning to maintain high CTR
    • Ad copy => Make it actionable and personally identifiable
    • Viral tuning => Work with a team that knows viral engagement/growth
    • Successful applications require ongoing investment
    Application Development and Promotion
  • 25. Rich Media on Social Applications 2x interaction rate, 2x activity rate
  • 26. Monetization Opportunity
  • 27. Online Advertising Growing Source : eMarketer CAGR: 22% Global Online Media Advertising ($Bn) Global Social Networking Advertising ($MM) CAGR: 65% Social Advertising Growing 3x Faster
  • 28. Context is the key to social application monetization Virality / Hyper-targeting Contextual targeting High context Low virality Search is not viral Low context High virality Low context from photo browsing High context High virality Apps add context to social networks. Social apps are viral Social Applications
  • 29. Monetizing Social Media
    • Application Cross-promotion
      • CPI (Cost per Installation) = $0.30-$0.50
      • Selected Customers:
    • Agency-sourced Branded Advertising
      • CPM (Cost per Impression) = $2.00 - $10.00
      • Type of Ads Using CPM: Branded Ads, Takeovers, App Integration
      • Selected Customers:
    • Direct Response and Lead Generation
      • CPA (Cost per Action)
      • Type of Ads Using CPA: Mobile Offering, Education, Finance
      • Selected Customers:
    • Virtual Goods, Micro-transactions & Subscription
  • 30. Application Cross-Promotion
    • Publishers place ad units to standard formats. Advertisers pay on a CPI, CPC or CPM (cost per install) basis.
    646x60 300x250
  • 31. Application Cross-Promotion
    • 3 rd party ad networks on Facebook serve as the foundation of revenue generation for most social applications
      • RockYou
      • Socialmedia
      • Lookery
    • Revenue from ad networks ranges from $0.10 - $1.50 eCPM
    • RockYou’s app pages range from $0.40 to $1.50 eCPM
    • Largest individual publishers on RockYou network generate $20K to $60K a month
    • Actively optimizing ad network ad inventory can multiply revenue
      • RockYou.com eCPM increased from $0.20 to $0.85 in 3 months
    • Services like Rubicon Project and Pubmatic can automate ad network inventory optimization
      • Pubmatic generating $0.50 eCPMs for one RockYou app
  • 32. Agency-Sourced Branded Advertising
  • 33. Agency-Sourced Branded Advertising
    • Direct selling is required - work with ad rep companies to help source agency relationships
      • Alloy Media & Marketing
      • Clearspring
      • Appsavvy
    • Agencies are looking for new, materially impactful experiences for their clients (same as the regular web)
      • Application takeovers
      • Niche demographic reach or custom content
      • Performance
    • Productize the offerings of your application/site
    • Agency-sourced campaigns range from $30K to $150K spend
    • International brand marketing can be significant
      • UK/Europe
      • Canada
      • South America
    • Internal resources are needed to support agency work
      • Ad operations
      • Reporting
  • 34. Lead Generation and Direct Response
    • Leverage affiliate network providers at first (best offers w/ best payouts)
      • Affinity Labs
      • MyOfferPal
      • Neverblue Ads
      • Commission Junction
    • Vet opportunities based on demographic mix of the application/site
    • Successful lead gen/direct response campaigns on social media include:
      • Mobile offers (SendMe)
      • Dating (True, Match, SinglesNet)
      • Education (UPheonix)
    • Given unlimited funding for lead gen, effective way to fill remnant inventory at higher CPMs
    • Actively research performance via discussion boards and directories
    • Be prepared to process multiple lead gen offers to maximize performance
    • Lead generation campaigns may burn through quickly; active management and tracking is required
  • 35. Questions
    • Questions?
  • 36. You rock! Engage the world.