The Wisdom Of Crowds

CROWDSOURCING FOR PRODUCERSBlaine Graboyes – April 30, 2012 – The New School

The crowdsourcing phenomenon has had many success stories in the entertainment industry in recent years, from Yair Landau’s crowd-sourced animation project in 2008, to

the phenomenal rise of Kickstarter for crowd funding.

Now, crowdsourcing is being used by major brands to make marketing decisions; motivate feature film and t.v. audiences, and create dedicated distribution channels.

This session will examine different angles of crowdsourcing.

How do you make decisions from crowds?

Metrics!

Let’s examine one of the most powerful metrics...

K-Factor

K-Factor = Crowds

K-Factor defines theviral rate of social growth

K-Factor

How did CityVille reach 70MM players?

How did Pinterest acquire 20MM new users?

How did Draw Something grab 35MM players?

How did Instagram inspire 1B photos?

K-Factor ...is also known as the viral coefficient and is borrowed from epidemiology where it

describes the spread of actual viruses

Image From: Spreading Patterns of Mobile Phone Viruses

K-Factor = Distribution x Infection

Excerpt From: Wikipedia

"Infection" measures how likely a person is, on average, to also become infected after contact with a viral host

K-Factor is the product of distribution and infection

"Distribution" measures how many people, on average, a host will make

contact with while still infectious

K-Factor = Distribution x Infection

"Infection" measures how likely a person is, on average, to also become infected after contact with a viral host

K-Factor is a product of the rates of distribution and infection for an app (or virus)

"Distribution" measures how many people, on average, a host will make

contact with while still infectious

K-Factor Rules Of Thumb

< 1 than your in decline and need to make improvements= 1 than your in a ‘steady state’ with no growth> 1 than you are experiencing some degree of viral growth≥ 1.5 than you are minting your own gold coins : )

If K-Factor is....

Example OfDramatic Growth

via K-Factor

CityVille GrowthIn One Month!

Data From: Silicon Alley Insider

Example OfDistribution Activity

40-60% Of PinnersAre Active Hosts!

Data From: RJ Metrics

Example OfDramatic Growth

via K-Factor

Draw SomethingIn One Month!

Data From: AppData.com

Example OfDramatic Growth

via K-Factor

Instagramvs. Facebook & Flickr

Data From: mattryall.net

If you are not currently tracking these metricsSTOP EVERYTHING

and implement a basic metrics program today!

Sketch From: VisionHelp

K-Factor = Distribution x Infection

Participants

450,000

Actions

10x

Contacts

4,500,000=

Fundraising

$59,000,000

Donation

$10÷

Donors

5,900,000=

=

1.3

Donors

5,900,000

Contacts

4,500,000

÷

K-Factor = Distribution x Infection

Participants

450,000

Actions

10x

Contacts

4,500,000=

Fundraising

$59,000,000

Donation

$10÷

Donors

5,900,000=

Donors

5,900,000

Contacts

4,500,000

÷

=

1.3Each Distribution Resulted In 1.3 Infections

K-Factor = 1 x 1.3

K-Factor = 1.3

Example From: Movember.com

“If you don’t have any facts, we’ll just use my opinion.”

– Jim Barksdale (former president and CEO of Netscape)

Excerpt From: Data Driven Decisions For Startups

blaineglobal

For Tips On Improving K-Factor Download:blaineglobal.com/metrics.pdf