RockYou! Snap Summit 3-25-08

Slide 1: Metrics: Where Users Come From 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: The RockYou Mission “To engage the world through social applications” 3

Slide 4: Fastest growing company ever by reach 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) 4

Slide 5: How did we grow so fast? Rise of open platforms + laser-like focus on metrics and viral channels Flash Widget Era - Profile - Profile - Profile - Bulletin - Requests - Messages - Notifications - Notifications - Email - Email - News Feed - Activity stream - Profile action - Home surface 5

Slide 6: RockYou approach to product design  Apply advertising principles to user-facing web design – Each touch point equivalent to an ad pageview – Grow by increasing number of touch points and maximizing conversion on each touch point – Must consider implications for long-term user experience  Build fast and launch asap – Super Wall coded in a weekend  Iterate on original design – A/B test when in doubt  Let data guide product decisions – There are no user experts (we’re all too old) – Do user studies when you don’t have web metrics 6

Slide 7: Tenets of social application development  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  Viral channels should drive product concept and feature development – Not the other way around!  Have a plan to maximize use of every channel  Tune the viral loop…then keep tuning to stay ahead of the competition  Build new features to keep users engaged and happy! 7

Slide 8: Launching winning application concepts  Half art, half science – Intersection of psychology & web analytics  Develop your concept around high-converting calls to action – Simplicity – Universal – Social persuasion – Novelty (art)  Potential for sustainable long term engagement  Nail down a killer viral loop  Timing is key – Be the first to market – Launch with maximum virality so competitors can’t carbon copy quickly 8

Slide 9: 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! 9

Slide 10: 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! 10

Slide 11: 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 11

Slide 12: 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 12

Slide 13: Using metrics to drive product decisions X% user dropoff Y invites sent/user Z% invites accepted Flow A An new users Flow B Bn new users  A/B test entire user flows  A/B test calls to action  Base decisions off of statistically significant data 13

Slide 14: Making the most of viral channels  Graph and compare activity metrics over time to analyze trends  Focus resources on tuning the largest traffic drivers  All viral channels eventually decay – why? – Invites sent decreases due to saturation – Response rate decreases due to user conditioning  So keep tuning to stay ahead of the curve!  …and when you’ve exhausted your primary channels it might be time to explore some creative alternatives 14

Slide 15: Developer created growth channels  Advertising – Many ad networks exist to promote and monetize your application  Partner – Trade clicks with another app developer  Create your own! – Cross promote your own applications in creative ways – Super Wall API – Deep feature integration 15

Slide 16: Does it work in practice?  RockYou! worked with Yahoo! on the re-launch of the Music Videos application on Facebook. – After viral tuning—consultation on application flow and design—and cross promotion on the RockYou Ad network, app grew to 1.5M+ users 16

Slide 17: Questions? Email: eric@rockyou.com