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

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

Why all the hubbub?

Organic Growth on Facebook: RockYou’s Story

Paid Growth on Facebook: Ad Networks

Q&A

Live walk-throughs

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

What is RockYou? - over 50 million widgets live across social networks - over 150 million views per day across network of widgets - over 35 million monthly unique visitors - over 15 million registered users growing 900K new users a month - over 700K widgets embedded daily Widget Creations/day 0 100000 200000 300000 400000 500000 8/25/2006 10/25/2006 1/3/2007 6/8/2007 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

social networks

- over 150 million views per day across

network of widgets

- over 35 million monthly unique visitors

- over 15 million registered users

growing 900K new users a month

- over 700K widgets embedded daily

Leadership across widgets 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 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

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

Users: 15M

Marketing: None

Cost: $0

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)

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

Distribution Methods Networks with engagement (access to friends) give you 7x more distribution

Leadership on Facebook 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 Number of Facebook Users Application Number of New Users per Day RockYou has over 15 Facebook apps with 40M live installs and 10 out of the top 40 applications on Facebook (all with 1MM+ users).

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

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!

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

Key Takeaways for Viral Growth Viewer focus Simplicity Novelty Universal Applicability

Viewer focus

Simplicity

Novelty

Universal Applicability

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

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)

Ad Networks on Facebook 3 rd 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

3 rd 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

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

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

Music Videos (Yahoo!)

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

Viral tuning

Integration with major apps

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

Design: Monday 7/23

Implementation: 7/23-7/29

Deployed: Monday 7/30

Advertising: Tuesday 7/31 100K users

Growth: 6 weeks

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

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