Organic & Paid Strategies On Fb v4

Slide 1: Organic and Paid Strategies on Facebook v2.0 Ro Choy 10/6/07

Slide 2: Agenda • Why all the hubbub? • Organic Growth on Facebook: RockYou’s Story • Paid Growth on Facebook: Ad Networks • Q&A • Live walk-throughs

Slide 3: Rise of the Social Networks Open social networking platforms are a massive opportunity. The social web is its result. Social Network Comparison (Comscore Google/Yahoo/MySpace/Facebo U.S.) ok/hi5

Slide 4: What is RockYou? RockYou is the leading provider of widgets on the web with massive awareness and penetration of social network users (Myspace, Facebook, hi5, Bebo, Friendster) - over 50 million widgets live across Widget Creations/day social networks 500000 - over 150 million views per day across 400000 network of widgets 300000 - over 35 million monthly unique visitors 200000 - over 15 million registered users growing 900K new users a month 100000 - over 700K widgets embedded 0 daily 07 07 6 06 00 20 20 20 /2 3/ 8/ 25 5/ 1/ 6/ /2 8/ 10

Slide 5: Leadership across widgets RockYou offers some of the most popular photo, text and voice- based widgets on the web. Slideshows • 24 transitions • Animated captions • Music Other Services • Glitter Text • Fun Notes • PhotoFX • Voicemail • Countdown Timer • Corkboard • Voice Comment • Scratcher • Gizmoz • Games Monetization • Sponsored content

Slide 6: “the top sites among teens have shifted to those providing assistance with social networking profiles” Nielsen/NetRatings Increasing Traffic on RockYou Users: 15M F8 Platform Launched Marketing: None Cost: $0

Slide 7: Self Expression (MySpace, Bebo, Friendster, et. al.) Casino Royale, Sony Pictures 75K created (30 days) Leigh Nash, Nettwerk Records 150K created (30 days) Horoscope, Frengo 300K created (30 days)

Slide 8: Engagement (Facebook and others coming soon) Music Videos, Yahoo! 900K created (30 days) Horoscope, Frengo 2000K created (30 days) 7x more

Slide 9: Distribution Methods 1,000,000 800,000 600,000 Creations 400,000 200,000 0 Self Expression Engagement (MySpace, Bebo) (Facebook) Networks with engagement (access to friends) give you 7x more distribution

Slide 10: Leadership on Facebook RockYou has over 15 Facebook apps with 40M live installs and 10 out of the top 40 applications on Facebook (all with 1MM+ users). Number of Number of New Application Facebook Users Users per Day Superwall 10.0M ~70,000 XMe 9.0M ~50,000 Likeness 9.1M ~100,000 Zombies/Vampires 9.0M ~100,000 Werewolves Horoscopes 5.6M ~12,000 Slideshows 1.9M ~5,000 Emote 1.7M ~10,000

Slide 11: Complete Cycle: Super Wall Concept: Friday 6/15 Design: Friday 6/15 Implementation: 6/15-6/17 Deployed: Monday 6/18, 4AM Advertising: Tuesday 6/18, 118K users Viral growth: 3 weeks 2 Million Users! Cross Promotion is key!

Slide 12: Key Takeaways for Viral Growth • Viewer focus • Simplicity • Novelty • Universal Applicability

Slide 13: Building Viral Engagement 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 User Superlatives) Direct Friends 3. Indirect friends => focus on messaging • Focus on messaging to invite/notification receivers to drive more friends invites Indirect Friends • Deliver increasing AND simply understood value to app w/ every friend invited (Zombies) Interested Parties 4. Interested parties => allow universal use • Enable simple tools (comments, ratings, answers) that allow interaction w/o requiring full engagement w/ application (My Questions)

Slide 14: Ad Networks on Facebook • 3rd party ad networks on Facebook can radically accelerate Facebook application adoption – RockYou – SocialMedia – Cubics – AppFuel • From RockYou’s experience, advertisers can generate between 100 – 10,000 installs a day • Cost ranges from $0.10 - $0.30 CPC and $0.15 - $0.60 CPI • Behavioral and interest based ad targeting

Slide 15: Things to Consider • Total potential throughput of the ad network • Quality of ads • Ad copy => Make it actionable • Viral tuning is still key • Multiplier effect on Facebook from purchase

Slide 16: Music Videos (Yahoo!)

Slide 17: Music Videos (Yahoo! and RockYou) 1. Viral tuning 2. Integration with major apps 1. Promotion on RockYou Ad Network

Slide 18: Complete Cycle: Yahoo! Music Design: Monday 7/23 Implementation: 7/23-7/29 Deployed: Monday 7/30 Advertising: Tuesday 7/31 100K users Growth: 6 weeks 1.15M Users Over 100x more than original

Slide 19: Key Takeaways for Growth • Self-expression vs Engagement (Destination vs Service) • Cross promotion is key • Integration is a good proxy • First (viral) mover advantage • Build w/ new users in mind • Engagement can generate virality