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Building Massively Viral Apps for Facebook and OpenSocial Eric Yieh, Director of Product Management
What is RockYou? RockYou is the leading provider of widgets on the web—we provide tools for people to express individualit...
Who is RockYou? Over 50 Applications and Widgets
<ul><li>“ To engage the world through social applications”  </li></ul>The RockYou Mission
Stats! <ul><li>Invented the Space </li></ul><ul><li>Double Digit  penetration across leading social networks  (MySpace, Fa...
Agenda <ul><li>Opportunity in Social Apps </li></ul><ul><li>Designing a Killer Viral Loop </li></ul><ul><li>Measuring and ...
The Opportunity
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 ...
Social Applications Increase Site Traffic Over 150%  Growth! <ul><li>Over 18,000 applications </li></ul><ul><li>95% have a...
<ul><li>Source:  eBay Investor Presentation, RockYou </li></ul><ul><li>eBay starts Q2 98, PayPal starts Q1’00, Yahoo! star...
The Viral Loop
Design a killer viral loop! <ul><li>An effective viral loop has three critical components </li></ul>Conversion Funnel Dist...
Viral loop – distribution channels <ul><li>Develop your concept around available channels </li></ul><ul><ul><li>Viral chan...
Viral loop – distribution channels <ul><li>Come up with a high-converting call to action </li></ul><ul><ul><li>Half art, h...
Viral loop – distribution channels <ul><li>Channels vary from network to network but tactics remain the same </li></ul>Fla...
Viral loop – conversion funnel <ul><li>Reduce the flow to the bare minimum </li></ul><ul><ul><li>Expect > 20% dropoff for ...
Viral loop – end user value <ul><li>Provide users with a compelling reason to keep your application installed </li></ul><u...
Tuning the Viral Loop
Metrics for your viral loop User Call to action to invite friends x = invited friends Accept? Yes y% = invite accept rate ...
Hypothetical viral numbers <ul><li>Install flow </li></ul><ul><ul><li>x = 5 (friends invited on average) </li></ul></ul><u...
Combine multiple flows and channels <ul><li>Install flow </li></ul><ul><ul><li>x = 5  </li></ul></ul><ul><ul><li>y = 10% <...
<ul><li>What to track </li></ul><ul><ul><li>Requests sent & request CTR </li></ul></ul><ul><ul><li>Notifications sent & no...
Tuning the viral loop – watch your metrics
Jump start your viral growth <ul><li>Advertising </li></ul><ul><ul><li>Many ad networks exist to promote and monetize your...
Product development at RockYou! <ul><li>Build fast and launch asap </li></ul><ul><ul><li>Super Wall coded in a weekend </l...
OpenSocial
What is OpenSocial? <ul><li>Common set of APIs for building social applications across multiple large destination sites </...
OpenSocial containers Now Playing Coming Soon!
Key differences between OS containers and Facebook <ul><li>Use model </li></ul><ul><ul><li>Profile vs. feed </li></ul></ul...
Myspace <ul><li>Audience </li></ul><ul><ul><li>109 M monthly uniques </li></ul></ul><ul><ul><li>Majority U.S. traffic </li...
Myspace
Hi5 <ul><li>Audience </li></ul><ul><ul><li>38 M monthly uniques </li></ul></ul><ul><ul><li>Strong penetration in Latin Ame...
Hi5
Orkut <ul><li>Audience </li></ul><ul><ul><li>27 M monthly uniques </li></ul></ul><ul><ul><li>Majority usage in Brazil and ...
Orkut
Choosing a Platform
So many platforms…what to do? How do you decide which platform to start on?
Picking a platform <ul><li>Size of user base </li></ul><ul><li>Growth of user base </li></ul><ul><li>Value of user base </...
Picking a platform <ul><li>Development efficiency </li></ul><ul><ul><li>Required programming skills </li></ul></ul><ul><ul...
Developing on Facebook vs. OpenSocial <ul><li>Facebook  </li></ul><ul><ul><li>Anyone who’s ever coded a basic website befo...
Where should a first time app developer start? <ul><li>PHP, JSP, Rails </li></ul><ul><li>New app idea </li></ul><ul><li>Bu...
Sound Interesting? <ul><li>Actively hiring in engineering and product management </li></ul><ul><li>Looking to partner with...
Questions?   Email: eric@rockyou.com
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RockYou 4-22-08

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  • Transcript of "RockYou 4-22-08"

    1. 1. Building Massively Viral Apps for Facebook and OpenSocial Eric Yieh, Director of Product Management
    2. 2. What is RockYou? RockYou is the leading provider of widgets on the web—we provide tools for people to express individuality and interact with friends. <ul><li>Self Expression </li></ul><ul><li>Slideshows </li></ul><ul><li>Glitter Text </li></ul><ul><li>Fun Notes </li></ul><ul><li>PhotoFX </li></ul><ul><li>Voicemail </li></ul><ul><li>Countdown Timer </li></ul><ul><li>Corkboard </li></ul><ul><li>Voice Comment </li></ul><ul><li>Scratcher </li></ul><ul><li>Gizmoz </li></ul><ul><li>Games </li></ul><ul><li>Social Interaction: Connection & Discovery </li></ul><ul><li>Super Wall </li></ul><ul><li>Horoscopes </li></ul><ul><li>Hug Me </li></ul><ul><li>Likeness </li></ul><ul><li>Likeness Unrated </li></ul><ul><li>Zombies </li></ul><ul><li>Vampires </li></ul><ul><li>Werewolves </li></ul><ul><li>Emote </li></ul><ul><li>MyGifts </li></ul>
    3. 3. Who is RockYou? Over 50 Applications and Widgets
    4. 4. <ul><li>“ To engage the world through social applications” </li></ul>The RockYou Mission
    5. 5. Stats! <ul><li>Invented the Space </li></ul><ul><li>Double Digit penetration across leading social networks (MySpace, Facebook, Bebo..) </li></ul><ul><li>105 Million Uniques </li></ul><ul><li>1.5 Billion Pageviews </li></ul><ul><li>150+Million Widget views a day </li></ul>
    6. 6. Agenda <ul><li>Opportunity in Social Apps </li></ul><ul><li>Designing a Killer Viral Loop </li></ul><ul><li>Measuring and Tuning Virality </li></ul><ul><li>OpenSocial – New Opportunities (and Challenges) </li></ul><ul><li>Picking a Platform </li></ul>
    7. 7. The Opportunity
    8. 8. 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
    9. 9. Social Applications Increase Site Traffic Over 150% Growth! <ul><li>Over 18,000 applications </li></ul><ul><li>95% have an application </li></ul><ul><li>60%+ have a RockYou app </li></ul>RockYou Integration
    10. 10. <ul><li>Source: eBay Investor Presentation, RockYou </li></ul><ul><li>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 </li></ul><ul><li>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) </li></ul>(2) Registered Users (MM) How do you get exponential growth like this? Facebook platform launch
    11. 11. The Viral Loop
    12. 12. Design a killer viral loop! <ul><li>An effective viral loop has three critical components </li></ul>Conversion Funnel Distribution Channels End User Value
    13. 13. Viral loop – distribution channels <ul><li>Develop your concept around available channels </li></ul><ul><ul><li>Viral channels should drive the product and features, not the other way around! </li></ul></ul><ul><li>Accept the fact that channels >> features </li></ul><ul><ul><li>Channels bring in new users and keep them coming back </li></ul></ul><ul><ul><li>Only the top 0.1% of features can accomplish this alone </li></ul></ul><ul><li>Have a plan to maximize use of every channel </li></ul>
    14. 14. Viral loop – distribution channels <ul><li>Come up with a high-converting call to action </li></ul><ul><ul><li>Half art, half science </li></ul></ul><ul><ul><li>Prerequisite for large scale growth </li></ul></ul><ul><li>Keys to success </li></ul><ul><ul><li>Simplicity </li></ul></ul><ul><ul><li>Universal </li></ul></ul><ul><ul><li>Social persuasion </li></ul></ul><ul><ul><li>Novelty (be creative!) </li></ul></ul>
    15. 15. Viral loop – distribution channels <ul><li>Channels vary from network to network but tactics remain the same </li></ul>Flash Widget Era <ul><li>Profile </li></ul><ul><li>Bulletin </li></ul><ul><li>Profile </li></ul><ul><li>Requests </li></ul><ul><li>Notifications </li></ul><ul><li>Email </li></ul><ul><li>News Feed </li></ul><ul><li>Profile action </li></ul><ul><li>Profile </li></ul><ul><li>Messages </li></ul><ul><li>Notifications </li></ul><ul><li>Email </li></ul><ul><li>Activity stream </li></ul><ul><li>Home surface </li></ul>
    16. 16. Viral loop – conversion funnel <ul><li>Reduce the flow to the bare minimum </li></ul><ul><ul><li>Expect > 20% dropoff for every click </li></ul></ul><ul><li>A/B test user flows </li></ul><ul><li>A/B test calls to action </li></ul>Flow A Flow B A n new users B n new users X% user dropoff Y invites sent/user Z% invites accepted Lots of work!
    17. 17. Viral loop – end user value <ul><li>Provide users with a compelling reason to keep your application installed </li></ul><ul><ul><li>Or they will uninstall </li></ul></ul><ul><li>Build virality into your engagement flow </li></ul><ul><ul><li>Many more opportunities to acquire users over time </li></ul></ul><ul><li>Have a plan to generate sustainable long term engagement </li></ul><ul><ul><li>Inactive users can’t make money for you! </li></ul></ul>
    18. 18. Tuning the Viral Loop
    19. 19. Metrics for your viral loop User Call to action to invite friends x = invited friends Accept? Yes y% = invite accept rate x * y > 1 gives you viral growth!
    20. 20. Hypothetical viral numbers <ul><li>Install flow </li></ul><ul><ul><li>x = 5 (friends invited on average) </li></ul></ul><ul><ul><li>y = 22% (acceptance rate for invites) </li></ul></ul><ul><ul><li>Viral factor = 5 * 0.22 = 1.1 VIRAL! </li></ul></ul><ul><li>Engagement flow </li></ul><ul><ul><li>Repeat users can generated additional virality! </li></ul></ul>
    21. 21. Combine multiple flows and channels <ul><li>Install flow </li></ul><ul><ul><li>x = 5 </li></ul></ul><ul><ul><li>y = 10% </li></ul></ul><ul><ul><li>Viral factor = 5 * 0.1 = 0.5 </li></ul></ul><ul><li>Engagement flow, request channel </li></ul><ul><ul><li>x = 3 (invites) </li></ul></ul><ul><ul><li>y = 10% (acceptance rate for invites) </li></ul></ul><ul><ul><li>Viral factor = 3 * 0.1 = 0.3 </li></ul></ul><ul><li>Engagement flow, notification channel </li></ul><ul><ul><li>x = 6 (notifications) </li></ul></ul><ul><ul><li>y = 5% (acceptance rate for notifications) </li></ul></ul><ul><ul><li>Viral factor = 6 * 0.05 = 0.3 </li></ul></ul>0.5 + 0.3 + 0.3 = 1.1 VIRAL!
    22. 22. <ul><li>What to track </li></ul><ul><ul><li>Requests sent & request CTR </li></ul></ul><ul><ul><li>Notifications sent & notification CTR </li></ul></ul><ul><ul><li>Feed events & feed CTR </li></ul></ul><ul><ul><li>Adds / removes </li></ul></ul><ul><ul><li>And everything else…platform tracking is not 100% reliable </li></ul></ul><ul><li>How to track </li></ul><ul><ul><li>… if you’re tight on resources (aren’t we all) </li></ul></ul><ul><ul><li>Paid or home grown if you’re serious about growing big </li></ul></ul><ul><ul><ul><li>Get stats in real time instead of waiting a day </li></ul></ul></ul><ul><ul><ul><li>Store events that can’t be tied to a page (i.e. number of requests sent) </li></ul></ul></ul><ul><ul><ul><li>Slice and dice data however you want </li></ul></ul></ul>Tuning the viral loop – watch your metrics
    23. 23. Tuning the viral loop – watch your metrics
    24. 24. Jump start your viral growth <ul><li>Advertising </li></ul><ul><ul><li>Many ad networks exist to promote and monetize your application </li></ul></ul><ul><li>Partner </li></ul><ul><ul><li>Trade clicks with another app developer </li></ul></ul><ul><li>Cross promote your own applications in creative ways </li></ul><ul><ul><ul><li>Super Wall API </li></ul></ul></ul><ul><ul><ul><li>Deep feature integration </li></ul></ul></ul>
    25. 25. Product development at RockYou! <ul><li>Build fast and launch asap </li></ul><ul><ul><li>Super Wall coded in a weekend </li></ul></ul><ul><li>Iterate on original design </li></ul><ul><ul><li>A/B test when in doubt </li></ul></ul><ul><ul><li>Tune the viral loop…then keep tuning to stay ahead of the competition </li></ul></ul><ul><li>Let data guide product decisions </li></ul><ul><ul><li>Don’t Be Emotional, numbers don’t lie </li></ul></ul><ul><ul><li>There are no user experts </li></ul></ul><ul><ul><ul><li>60%+ female, 15-25 </li></ul></ul></ul><ul><ul><li>Do user studies when you don’t have web metrics </li></ul></ul><ul><li>Listen to your users! </li></ul><ul><ul><li>Build the features users want to keep them engaged and happy! </li></ul></ul>
    26. 26. OpenSocial
    27. 27. What is OpenSocial? <ul><li>Common set of APIs for building social applications across multiple large destination sites </li></ul><ul><li>Technical spec </li></ul><ul><ul><li>Client-side javascript + server-side REST </li></ul></ul><ul><ul><li>Write once, run everywhere *sort of* </li></ul></ul><ul><li>200 M+ users </li></ul><ul><ul><li>Unprecedented distribution opportunity </li></ul></ul><ul><li>A great reason to build apps! </li></ul>
    28. 28. OpenSocial containers Now Playing Coming Soon!
    29. 29. Key differences between OS containers and Facebook <ul><li>Use model </li></ul><ul><ul><li>Profile vs. feed </li></ul></ul><ul><ul><li>Number of friends </li></ul></ul><ul><ul><li>Entertainment vs. utility </li></ul></ul><ul><ul><li>Focus on self expression </li></ul></ul><ul><ul><li>Novelty of widgets/apps </li></ul></ul><ul><li>Distribution channels </li></ul><ul><ul><li>Home surface (permanent engagement) </li></ul></ul><ul><ul><li>Viral channels not as well developed </li></ul></ul><ul><ul><li>User conditioning to existing channels </li></ul></ul>
    30. 30. Myspace <ul><li>Audience </li></ul><ul><ul><li>109 M monthly uniques </li></ul></ul><ul><ul><li>Majority U.S. traffic </li></ul></ul><ul><ul><li>Promiscuous user interactions </li></ul></ul><ul><ul><li>Heavy on pop culture </li></ul></ul><ul><li>Platform status </li></ul><ul><ul><li>100% rollout </li></ul></ul><ul><ul><li>Has yet to do mass promotion </li></ul></ul><ul><ul><li>1-to-1 communication through native channels </li></ul></ul><ul><ul><ul><li>Comments </li></ul></ul></ul><ul><ul><ul><li>Messaging </li></ul></ul></ul><ul><ul><ul><li>Bulletin </li></ul></ul></ul><ul><ul><ul><li>Blog </li></ul></ul></ul>
    31. 31. Myspace
    32. 32. Hi5 <ul><li>Audience </li></ul><ul><ul><li>38 M monthly uniques </li></ul></ul><ul><ul><li>Strong penetration in Latin America </li></ul></ul><ul><li>Platform status </li></ul><ul><ul><li>100% rollout </li></ul></ul><ul><ul><li>Prominent front page promotion </li></ul></ul><ul><ul><li>Strong viral channels </li></ul></ul><ul><ul><ul><li>Invite request </li></ul></ul></ul><ul><ul><ul><li>Notification </li></ul></ul></ul><ul><ul><ul><li>Activity stream </li></ul></ul></ul>
    33. 33. Hi5
    34. 34. Orkut <ul><li>Audience </li></ul><ul><ul><li>27 M monthly uniques </li></ul></ul><ul><ul><li>Majority usage in Brazil and India </li></ul></ul><ul><li>Platform status </li></ul><ul><ul><li>10% rollout in India </li></ul></ul><ul><ul><li>Promoting apps to users through feed </li></ul></ul><ul><ul><li>Activity stream is only viral channel </li></ul></ul>
    35. 35. Orkut
    36. 36. Choosing a Platform
    37. 37. So many platforms…what to do? How do you decide which platform to start on?
    38. 38. Picking a platform <ul><li>Size of user base </li></ul><ul><li>Growth of user base </li></ul><ul><li>Value of user base </li></ul><ul><li>Strength of viral channels </li></ul><ul><li>Strength of competition </li></ul>How BIG is the opportunity? Potential Revenue = Total Users x Pageviews/User x Revenue/Pageview
    39. 39. Picking a platform <ul><li>Development efficiency </li></ul><ul><ul><li>Required programming skills </li></ul></ul><ul><ul><li>Interface with container </li></ul></ul><ul><ul><li>Platform stability </li></ul></ul><ul><ul><li>Adapting to API changes </li></ul></ul><ul><li>Localization </li></ul><ul><ul><li>Language </li></ul></ul><ul><ul><li>Cultural differences </li></ul></ul>What’s it going to cost?
    40. 40. Developing on Facebook vs. OpenSocial <ul><li>Facebook </li></ul><ul><ul><li>Anyone who’s ever coded a basic website before can build an app </li></ul></ul><ul><li>OpenSocial </li></ul><ul><ul><li>Based on Google Gadgets, completely new paradigm for most developers </li></ul></ul><ul><ul><li>Can be ported between multiple containers at a basic level, all distribution channels are container-specific </li></ul></ul><ul><ul><li>Will require entire rewrite if coming from Facebook </li></ul></ul>
    41. 41. Where should a first time app developer start? <ul><li>PHP, JSP, Rails </li></ul><ul><li>New app idea </li></ul><ul><li>Build on stable platform </li></ul><ul><li>Newbies ok </li></ul><ul><li>Get out to market quickly </li></ul><ul><li>Strong javascript skills </li></ul><ul><li>Proven concept </li></ul><ul><li>Occasional outages acceptable </li></ul><ul><li>Experienced team </li></ul><ul><li>Invest significant resources </li></ul>
    42. 42. Sound Interesting? <ul><li>Actively hiring in engineering and product management </li></ul><ul><li>Looking to partner with other leading app developers </li></ul><ul><li>Open to strategic relationships with high potential apps </li></ul>Work with RockYou!
    43. 43. Questions? Email: eric@rockyou.com

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