Organic and Paid Strategies on Facebook v2.0

Ro Choy

10/6/07

Agenda

• Why all the hubbub?

• Organic Growth on Facebook: RockYou’s Story

• Paid Growth on Facebook: Ad Networks

• Q&A

• Live walk-throughs

Rise of the Social Networks

Google/Yahoo/MySpace/Facebook/hi5 Social Network Comparison (Comscore U.S.)

Open social networking platforms are a massive opportunity. The social web is its result.

What is RockYou?

- over 50 million widgets live across social networks

- over 150 million views per day across

network of widgets- over 35 million monthly unique visitors

- over 15 million registered users growing 900K new users a month

- over 700K widgets embedded daily

Widget Creations/day

0

100000

200000

300000

400000

500000

8/2

5/20

06

10/

25/2

006

1/3

/200

7

6/8

/200

7

RockYou is the leading provider of widgets on the web with massive awareness and penetration of social network users (Myspace, Facebook, hi5, Bebo, Friendster)

Leadership across widgets

Slideshows• 24 transitions• Animated captions• Music

Other Services• Glitter Text• Fun Notes• PhotoFX• Voicemail• Countdown Timer• Corkboard• Voice Comment• Scratcher• Gizmoz• Games

Monetization• Sponsored content

RockYou offers some of the most popular photo, text and voice-based widgets on the web.

Increasing Traffic on RockYou

Users: 15M

Marketing: None

Cost: $0

“the top sites among teens have shifted to those providing assistance with social networking profiles”

Nielsen/NetRatings

F8 Platform LaunchedF8 Platform Launched

Self Expression (MySpace, Bebo, Friendster, et. al.)

Casino Royale, Sony Pictures75K created (30 days)

Leigh Nash, Nettwerk Records150K created (30 days)

Horoscope, Frengo300K created (30 days)

Engagement (Facebook and others coming soon)

Horoscope, Frengo2000K created (30 days)7x more

Music Videos, Yahoo!900K created (30 days)

Distribution Methods

0

200,000

400,000

600,000

800,000

1,000,000

Self Expression(MySpace, Bebo)

Engagement(Facebook)

Creations

Networks with engagement (access to friends) give you 7x more distribution

Leadership on Facebook

Superwall 10.0M ~70,000

XMe 9.0M ~50,000

Likeness 9.1M ~100,000

Zombies/Vampires 9.0M ~100,000 Werewolves

Horoscopes 5.6M ~12,000

Slideshows 1.9M ~5,000

Emote 1.7M ~10,000

Number of Facebook Users

Application Number of New Users per Day

RockYou has over 15 Facebook apps with 40M live installs and 10 out of the top 40 applications on Facebook (all with 1MM+ users).

Complete Cycle: Super Wall

Concept: Friday 6/15Design: Friday 6/15Implementation: 6/15-6/17Deployed: Monday 6/18, 4AMAdvertising: Tuesday 6/18, 118K usersViral growth: 3 weeks

2 Million Users! Cross Promotion is key!

Key Takeaways for Viral Growth

• Viewer focus

• Simplicity

• Novelty

• Universal Applicability

Building Viral Engagement

User

3. Indirect friends => focus on messaging• Focus on messaging to invite/notification receivers to drive more friends invites• Deliver increasing AND simply understood value to app w/ every friend invited (Zombies)

1. New users => build clean flows • New users absolutely key to viral engagement (vs returning user)• Focus on linear, one-action flows to maximize activation for new users• Forget registration

2. Direct friends => deliver clear value prop• Provide clear value proposition to new user for inviting friend network (Likeness)• Ensure invitation is first/second step of new user flow to maximize viral value of user (Superlatives vs Superlatives)

4. Interested parties => allow universal use• Enable simple tools (comments, ratings, answers) that allow interaction w/o requiring full engagement w/ application (My Questions)

Direct Friends

Indirect Friends

Interested Parties

Ad Networks on Facebook

• 3rd party ad networks on Facebook can radically accelerate Facebook application adoption– RockYou– SocialMedia– Cubics– AppFuel

• From RockYou’s experience, advertisers can generate between 100 – 10,000 installs a day

• Cost ranges from $0.10 - $0.30 CPC and $0.15 - $0.60 CPI

• Behavioral and interest based ad targeting

Things to Consider

• Total potential throughput of the ad network

• Quality of ads

• Ad copy => Make it actionable

• Viral tuning is still key

• Multiplier effect on Facebook from purchase

Music Videos (Yahoo!)

Music Videos (Yahoo! and RockYou)

1. Promotion on RockYou Ad Network

2. Viral tuning3. Integration with major apps

Complete Cycle: Yahoo! Music

Design: Monday 7/23

Implementation: 7/23-7/29

Deployed: Monday 7/30

Advertising: Tuesday 7/31 100K users

Growth: 6 weeks

1.15M Users

Over 100x more than original

Key Takeaways for Growth

• Self-expression vs Engagement (Destination vs Service)

• Cross promotion is key

• Integration is a good proxy

• First (viral) mover advantage

• Build w/ new users in mind

• Engagement can generate virality