RockYou 4-22-08

Slide 1: Building Massively Viral Apps for Facebook and OpenSocial Eric Yieh, Director of Product Management

Slide 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. Self Expression Social Interaction: Connection & Discovery  Slideshows  Super Wall  Glitter Text  Horoscopes  Fun Notes  Hug Me  PhotoFX  Likeness  Voicemail  Likeness Unrated  Countdown Timer  Zombies  Corkboard  Vampires  Voice Comment  Werewolves  Scratcher  Emote  Gizmoz  MyGifts  Games 2

Slide 3: Who is RockYou? Over 50 Applications and Widgets 3

Slide 4: The RockYou Mission “To engage the world through social applications” 4

Slide 5: Stats!  Invented the Space  Double Digit penetration across leading social networks (MySpace, Facebook, Bebo..)  105 Million Uniques  1.5 Billion Pageviews  150+Million Widget views a day 5

Slide 6: Agenda  Opportunity in Social Apps  Designing a Killer Viral Loop  Measuring and Tuning Virality  OpenSocial – New Opportunities (and Challenges)  Picking a Platform 6

Slide 7: The Opportunity

Slide 8: Market for Social Apps is Exploding 2005 2008 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 (U.K.) 8 9 9 Wikipedia.org 10 10 Alexa Global Traffic Rankings 8

Slide 9: Social Applications Increase Site Traffic Over 150% 66MM RockYou Integration Growth! 26MM Pre-f8 Active Users Active Users Today  Over 18,000 applications  95% have an application  60%+ have a RockYou app 9

Slide 10: How do you get exponential growth like this? 50 Registered Users (MM) 40 Facebook platform 30 launch 20 10 (2) 0 1 3 5 7 9 11 13 15 17 19 21 23 (1) Months Source: eBay Investor Presentation, RockYou (2) 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 (3) 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) 10

Slide 11: The Viral Loop

Slide 12: Design a killer viral loop! An effective viral loop has three critical components Conversion Funnel Distribution Channels End User Value 12

Slide 13: Viral loop – distribution channels  Develop your concept around available channels – Viral channels should drive the product and features, not the other way around!  Accept the fact that channels >> features – Channels bring in new users and keep them coming back – Only the top 0.1% of features can accomplish this alone  Have a plan to maximize use of every channel 13

Slide 14: Viral loop – distribution channels  Come up with a high-converting call to action – Half art, half science – Prerequisite for large scale growth  Keys to success – Simplicity – Universal – Social persuasion – Novelty (be creative!) 14

Slide 15: Viral loop – distribution channels Channels vary from network to network but tactics remain the same Flash Widget Era - Profile - Profile - Profile - Bulletin - Requests - Messages - Notifications - Notifications - Email - Email - News Feed - Activity stream - Profile action - Home surface 15

Slide 16: Viral loop – conversion funnel X% user dropoff Y invites sent/user Z% invites accepted Flow A An new users Flow B Bn new users  Reduce the flow to the bare minimum – Expect > 20% dropoff for every click  A/B test user flows Lots of work!  A/B test calls to action 16

Slide 17: Viral loop – end user value  Provide users with a compelling reason to keep your application installed – Or they will uninstall  Build virality into your engagement flow – Many more opportunities to acquire users over time  Have a plan to generate sustainable long term engagement – Inactive users can’t make money for you! 17

Slide 18: Tuning the Viral Loop

Slide 19: Metrics for your viral loop Call to action to User invite friends x = invited friends Yes Accept? y% = invite accept rate x * y > 1 gives you viral growth! 19

Slide 20: Hypothetical 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 – Repeat users can generated additional virality! 20

Slide 21: Combine multiple flows and channels  Install flow – x=5 – y = 10% – Viral factor = 5 * 0.1 = 0.5 0.5 + 0.3 + 0.3 = 1.1  Engagement flow, request channel – x = 3 (invites) VIRAL! – y = 10% (acceptance rate for 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 21

Slide 22: Tuning the viral loop – watch your metrics  What to track – Requests sent & request CTR – Notifications sent & notification CTR – Feed events & feed CTR – Adds / removes – And everything else…platform tracking is not 100% reliable  How to track – …if you’re tight on resources (aren’t we all) – Paid or home grown if you’re serious about growing big – Get stats in real time instead of waiting a day – Store events that can’t be tied to a page (i.e. number of requests sent) – Slice and dice data however you want 22

Slide 23: Tuning the viral loop – watch your metrics 23

Slide 24: Jump start your viral growth  Advertising – Many ad networks exist to promote and monetize your application  Partner – Trade clicks with another app developer  Cross promote your own applications in creative ways – Super Wall API – Deep feature integration 24

Slide 25: Product development at RockYou!  Build fast and launch asap – Super Wall coded in a weekend  Iterate on original design – A/B test when in doubt – Tune the viral loop…then keep tuning to stay ahead of the competition  Let data guide product decisions – Don’t Be Emotional, numbers don’t lie – There are no user experts – 60%+ female, 15-25 – Do user studies when you don’t have web metrics  Listen to your users! – Build the features users want to keep them engaged and happy! 25

Slide 26: OpenSocial

Slide 27: What is OpenSocial?  Common set of APIs for building social applications across multiple large destination sites  Technical spec – Client-side javascript + server-side REST – Write once, run everywhere *sort of*  200 M+ users – Unprecedented distribution opportunity  A great reason to build apps! 27

Slide 28: OpenSocial containers Now Playing Coming Soon! 28

Slide 29: Key differences between OS containers and Facebook  Use model – Profile vs. feed – Number of friends – Entertainment vs. utility – Focus on self expression – Novelty of widgets/apps  Distribution channels – Home surface (permanent engagement) – Viral channels not as well developed – User conditioning to existing channels 29

Slide 30: Myspace  Audience – 109 M monthly uniques – Majority U.S. traffic – Promiscuous user interactions – Heavy on pop culture  Platform status – 100% rollout – Has yet to do mass promotion – 1-to-1 communication through native channels – Comments – Messaging – Bulletin – Blog 30

Slide 31: Myspace 31

Slide 32: Hi5  Audience – 38 M monthly uniques – Strong penetration in Latin America  Platform status – 100% rollout – Prominent front page promotion – Strong viral channels – Invite request – Notification – Activity stream 32

Slide 33: Hi5 33

Slide 34: Orkut  Audience – 27 M monthly uniques – Majority usage in Brazil and India  Platform status – 10% rollout in India – Promoting apps to users through feed – Activity stream is only viral channel 34

Slide 35: Orkut 35

Slide 36: Choosing a Platform

Slide 37: So many platforms…what to do? How do you decide which platform to start on? 37

Slide 38: Picking a platform How BIG is the opportunity?  Size of user base  Growth of user base  Value of user base  Strength of viral channels  Strength of competition Potential Revenue = Total Users x Pageviews/User x Revenue/Pageview 38

Slide 39: Picking a platform What’s it going to cost?  Development efficiency – Required programming skills – Interface with container – Platform stability – Adapting to API changes  Localization – Language – Cultural differences 39

Slide 40: Developing on Facebook vs. OpenSocial  Facebook – Anyone who’s ever coded a basic website before can build an app  OpenSocial – Based on Google Gadgets, completely new paradigm for most developers – Can be ported between multiple containers at a basic level, all distribution channels are container-specific – Will require entire rewrite if coming from Facebook 40

Slide 41: Where should a first time app developer start?  PHP, JSP, Rails  Strong javascript skills  New app idea  Proven concept  Build on stable platform  Occasional outages acceptable  Newbies ok  Experienced team  Get out to market quickly  Invest significant resources 41

Slide 42: Sound Interesting? Work with RockYou!  Actively hiring in engineering and product management  Looking to partner with other leading app developers  Open to strategic relationships with high potential apps 42

Slide 43: Questions? Email: eric@rockyou.com