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Arch Viral: Creating Social Apps for Social Platforms (Lance Tokuda, Startonomics SF 2008)
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Transcript of Arch Viral: Creating Social Apps for Social Platforms (Lance Tokuda, Startonomics SF 2008)
Arch Viral
Creating Social Apps for Social Platforms
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Wikipedia.org
Alexa Global Traffic Rankings
Market for Social Apps is Exploding
2008
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2005
(U.K.)
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Web 1.0 Website Growth
Year 0 Year 10
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Web 2.0 Application Growth
Year 0 Year 10
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Top Growth Categories
Messaging and Gifting
Social games and quizzes
Other
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Top Growth Categories
Social games and quizzes
Messaging and Gifting
No channel for being notified when friends do something
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Million User Applications on Facebook
FACT: only 1% of all applications reach 1M installs
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Referral traffic is key for viral growth
Primary sources of referral traffic
Install flow
Engagement flow
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Install flow example for Bumper Sticker
You don’t have to be grammatical to be a
top 10 app!
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Engagement flow example for Friends for Sale
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Metrics for viral loop
UserCall to action to
invite friends x = invited friends
Accept?
No
Yes
y% = accept rate
x * y > 1 gives you viral growth!
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Typical 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– x = 20 (friends invited on average)– y = 6% (acceptance rate for invites)– Viral factor = 20 * 0.6 = 1.2 VIRAL!!!
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Use multiple flows and channels
Install flow– x = 5 – y = 10%– Viral factor = 5 * 0.1 = 0.5
Engagement flow, invite channel– x = 3 (invites)– 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
0.5 + 0.3 + 0.3 = 1.1
VIRAL!!!
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Supplement with Ads
Install flow– x = 5 – y = 10%– Viral factor = 5 * 0.1 = 0.5
Engagement flow, invite channel– x = 3 (invites)– y = 10% (acceptance rate for invites)– Viral factor = 3 * 0.1 = 0.3
0.5 + 0.3 = 0.8
NO GROWTH
Paid ad for 30% additional flow– Growth factor = 0.3
0.5 + 0.3 + 0.3 = 1.1
GROWING!!!
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Important tips
Install flow should generate most of your referrals– everyone installing will use that flow so make it good– user test different calls to actions
Engagement flows supplement virality– not everyone will engage, generally weaker than install flow– left nav and profile action should link to the primary engagement flow– consider having the primary engagement flow invite new friends– user test different calls to actions
Decay– invite rate decreases as you saturate– acceptance rate decreases as you saturate– engagement tends to decay– continuous improvement required!
The End
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Months (1)
Source: eBay Investor Presentation, RockYou(1) 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(2) 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)
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Who is the fastest growing company ever?
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Months (1)
Source: eBay Investor Presentation, RockYou(1) 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(2) 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)
Facebook platform launch
(2)
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RockYou is the fastest growing company ever!