monetizing social media
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TRANSCRIPT
Bling Bling: Marketing and Monetizing Through Social Applications August 2008
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Common Perceptions of Social Media
“You can’t make material money through social media”
“You can’t effectively promote yourself on social media”
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Social Media Social Media Ad NetworkAd Network
Social Gaming Social Gaming ProviderProvider
• Leading ad network for social media (FB, MySpace)
• 9B+ impressions per month
• 90M monthly unique visitors global
• Largest social application provider on the web (FB, MySpace, Hi5, Bebo, Orkut)
• 1.5B+ PVs per month
• 60M+ monthly unique visitors global
• Leading social games (pets, autos, poke)
• 700M PVs per month
What is RockYou?
Our mission is to engage the world with social applications
RockYou has massive reach and scale, 6x larger than its next largest competitor, and the opportunity for growth is only beginning.
Social Social ApplicationsApplications
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A Dominant Facebook Presence and Growing
Super Wall 38M 18.6M
Hug Me 22M 4.0M
Likeness 20M 5.2M
Pieces of Flair 13M 4.3M
Birthday Cards 7M 3.3M
Horoscopes 7M 0.3M
Likeness Unrated 5M 1.0M
Speed Racing 5M 1.2M
PetrolHead 4M 0.3M
Total Facebook Users
Application Monthly Active Users
RockYou has over a dozen applications with over 1 million users – below are some of the largest:
Social Media Introduction
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Examples of Social Media
Multimedia– Photo-sharing: Flickr– Video-sharing: YouTube– Audio-sharing: imeem
Entertainment– Virtual Worlds: Second Life– Online Gaming: World of Warcraft
News/Opinion– Social news: Digg, Reddit– Reviews: Yelp, epinions
Communication– Microblogs: Twitter, Pownce– Events: Evite– Social Networking Services: Facebook,
LinkedIn, MySpace
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Who Are The Major Players? More To Come…
Social Networking Websites:– MySpace– Facebook– Hi5– Orkut– Bebo– Friendster– LinkedIn
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Le Distribution Géographique
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How Much Has The Market Been Tapped?
Explosive growth…
…But still a long way to go
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What Are Social Networks Used For?
Monetization Opportunities with Social Applications
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Online Advertising Growing
$27
$36
$45
$52
$61
2006 2007 2008 2009 2010
Source: eMarketer
CAGR: 22%
Global Online Media Advertising($Bn)
$480
$1,225
$2,145
$2,883
$3,559
2006 2007 2008 2009 2010
Global Social Networking Advertising($MM)
CAGR: 65%
Social Advertising Growing 3x Faster
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Context is the key to social media monetization
Virality /Hyper-targeting
Contextual targeting
High contextLow virality
Search is not viral
Lower context High virality
Low context from photo browsing
High contextHigh virality
Apps add context to social networks.
Social apps are viralSocial Applications
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Monetizing Social Media
Application Cross-promotion– CPI (Cost per Installation), CPC = $0.30-$0.50 – Select Customers:
Agency-sourced Branded Advertising– CPM (Cost per Impression) = $2.00 - $10.00– Type of Ads Using CPM: Branded Ads, Takeovers, App Integration– Select Customers:
Direct Response and Lead Generation– CPA (Cost per Action)– Type of Ads Using CPA: Mobile Offering, Education, Finance– Select Customers:
Virtual Goods, Micro-transactions & Subscription
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Application Cross-Promotion
Publishers place ad units to standard formats. Advertisers pay on a CPI, CPC or CPM (cost per install) basis. New FB profile helps on IAB standards.
646x60 => 728x90 300x250
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Application Cross-Promotion
3rd party ad networks on Facebook, MySpace serve as the foundation of both promotion and revenue generation for most social applications
– RockYou– Socialmedia– Lookery
Revenue from ad networks ranges from $0.10 - $1.50 eCPM
RockYou’s app pages range from $0.40 to $1.50 eCPM
Largest individual publishers on RockYou network generate $20K to $100K a month
Actively optimizing ad network ad inventory can multiply revenue – RockYou.com eCPM increased from $0.20 to $0.85 in 3 months
Services like Rubicon Project and Pubmatic can automate ad network inventory optimization
– Pubmatic generating $0.50 eCPMs for one RockYou app
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Agency-Sourced Branded Advertising
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Agency-Sourced Branded Advertising
Direct selling is required - limiting scope of potential advertising partners – Facebook, MySpace, Linkedin– RockYou, Slide, Zynga, SGN
Many other developers work with ad rep companies to help source agency relationships
– Alloy Media & Marketing– Clearspring– Appsavvy
Agencies are looking for new, materially impactful experiences for their clients (same as the regular web)
– Application takeovers– Niche demographic reach or custom content– Performance
Productize the offerings of your application/site
Agency-sourced campaigns range from $30K to $150K spend
International brand marketing can be significant
Internal resources are needed to support agency work– Ad operations & reporting
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Lead Generation, Direct Response
Lead generation, DR and performance marketing currently makes up a significant volume of advertising on social media
Leverage affiliate network providers at first (best offers w/ best payouts)– Affinity Labs– MyOfferPal– Neverblue Ads
Vet opportunities based on demographic mix of the application/site – increased context
Successful lead gen/direct response campaigns on social media include:– Mobile offers (SendMe, Thumbplay)– Dating (True, eHarmony, Match, SinglesNet)– Education (UPheonix)
Given unlimited funding for lead gen, effective way to fill remnant inventory at higher CPMs
Be prepared to process multiple lead gen offers to maximize performance – 10s to 100s
Lead generation campaigns may burn through quickly; active management and tracking is required
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Virtual Currency
Fastest growing segment of social media monetization
New services allow transactions for youth demographic (13-21)
Virtual currency monetization providers are key
– OfferPal Media (alternative payments)– SuperRewards (alternative payments)– SpareChange (microtransactions)– Echovox, Mobillcash (mobile)
For a high volume app (1M uniques+ a month), revenue generated ranges from $100K - $1M per month
10M usersMobsters
8M usersOwn Your Friends!
8M usersMafia Wars
3M usersSuperPets
3M usersTexas Holdem
2M usersHeroes
Top MySpace Game Apps (after 2-3 months live)
Successful Marketing on Social Media: Social Applications
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Wikipedia.org
Alexa Global Traffic Rankings
Why? Potential for Social Apps is Exploding
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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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Viral Marketing and Engagement is key to success
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Key Takeaways for Initial Viral Growth
New User focus
Simplicity
Novelty
Universal Applicability
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Building Viral Engagement
User
3. Indirect friends => focus on messaging• Focus on messaging to invite/notification receivers to drive CTRs and more efficient/effective invitations/notifications• 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 inherent to the 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
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Marketing Opportunities with Social Applications
Successful marketing for social media should include social applications:
1. Application content integration– Integrating brand or product as part of user experience– Example: Likeness quiz, virtual gifts, greeting cards, virtual actions, etc
2. Sponsorships or branding of applications– App takeover or skinning w/ possible promotion– Example: Skin application w/ sweepstakes or contest
3. Custom social application building & distribution– Build a social app for advertiser and/or distribute it through social network
specific ad networks– Example: Build, viral tune, launch, and seed an app recruiting users from
RockYou’s leading ad network jumpstarting viral spread of app
4. Rich Media
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Application Integration: Custom Advertiser Quiz
Custom size pop-up w/ additional info appears upon mouse rollover on relevant quiz choice
646x90 banner clicks through to advertiser’s website
Text link clicks through to advertiser’s website
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Application Integration: Custom Advertiser Quiz
Advertiser’s quiz promoted on Available Quizzes section throughout duration of campaign (100% SOV)
Advertiser’s quiz featured and cycled through Brand New Quiz placement throughout duration of campaign
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Application Integration: Viral Impact & Spread
News Feed
Mini-News Feed on Profile pages
Profile box
Notifications
Email Message
An advertiser’s custom Likeness quiz virally spreads through the a social network platform’s communication channels.
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Application Integration: Sweeney Todd
0.01% CTR for banner alone
65x better
0.65% CTR with integration
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Application Integration – SuperWall Card
Featured two custom-designed greeting cards on SuperWall for StepBrothers
Results:
• 8M impressions on application pages
• 6M cards sent
• Immeasurable viral impressions through association of content to friend and his/her network
Card appears in user’s profile
Greeting cards in top placement, pre-selected, and expansion upon roll-over
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Application Sponsorship
Applications can be skinned or branded with prominent placement for an advertiser with additional opportunities for sweepstakes, contests, streaming video units, and other custom programs.
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Resident Evil: Extinction sponsored the popular Zombies app for 3 weeks leading up to the theatrical release and users could enter the sweepstakes to win a weekend trip to Vegas by ‘biting’ their friends.
100x goal
Contest Registrations
Application Sponsorship
10K expected
1M achieved
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Application Integration & Application Takeovers
0.004%
0.13%0.20%
0.28%
30%
Social Networks (1) Web (1) Average RockYou
Ads
Click-Through Rate
BestRockYou
Ad Campaigns
(1) Business Week (2/7/2008)
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Application Development and Promotion
Frictionless: simple, less is more
Audience: on Facebook for their friends
Communication: integrate into the viral channels
Engagement: hook users to return regularly
Business model: design with monetization in mind
Objective: establish goals and success metrics
Obvious: make each page’s purpose clear
Keep working: develop, test, repeat
Some rules of thumb from Context Optional.
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Application Development and Promotion
Over two months since launch, over 250K users have sent over 2M branded pokes generating tens of millions of branded impressions.
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Application Development and Promotion
3rd party ad networks on Facebook can radically accelerate Facebook application adoption
– RockYou– SocialMedia– Lookery
From RockYou’s experience, advertisers can generate between 1000 – 20,000 installs/users a day
Cost ranges from $0.10 - $0.30 CPC and $0.15 - $0.60 CPI
Viral tuning is key to taking advantage of paid campaigns– 2x to 10x impact
Behavioral and interest based ad targeting forthcoming
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Acuvue adjusted viral flow of Wink application and promoted the application on RockYou network— 200 installs grew to 150K users within a month.
646x60Ad
Application Development and Promotion
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Stylefeeder is the largest fashion/shopping Application on Facebook with over 1MM installs
StyleFeeder able to convert double digit percentage of Facebook users into StyleFeeder.com users
Based on high conversion, Stylefeeder drives app installs from RockYou to StyleFeeder app
Stylefeeder.com is successfully driving website traffic through marketing of a social application mirroring site functionality
Application Development and Promotion
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Consider potential throughput of the ad network
Quality of ads => Requires constant tuning to maintain high CTR
Ad copy => Make it actionable and personally identifiable
Viral tuning => Work with a team that knows viral engagement/growth
Successful applications require ongoing investment
Application Development and Promotion
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Rich Media on Social Applications
2x interaction rate, 2x activity rate
Who is RockYou?
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Who is RockYou?
Most popular applications/widgets across Facebook, hi5, Bebo, Orkut and MySpace
Over 700K RockYou apps installed daily and over 100 million apps live across social networks
Over 16 million registered users
Over 90 million monthly unique visitors across RockYou network
Over 1B pageviews a month on RockYou apps and 6 billion pageviews per month across our ad network
Our mission is to engage the world with social applications
6B
16M
100M
90M
700k
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Most Million User Applications across Social Networks
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Leverage RockYou’s massive outreach in social media (90M uniques, 6B PVs) for Coke product placements and media
Build integrated campaigns on RockYou’s top applications on Facebook and MySpace
– Superwall (30M users, 20M monthly uniques)– Likeness (20M, 5M)– HugMe (15M, 4M)– Pieces of Flair (8M, 4M)– Speed Racing (6M, 2M)– Birthdays (8M, 1M)– SuperPets (2M, 1M)
Work with RockYou and partners on Coke applications for design/development and distribution
– Context Optional – FaceIt!
Opportunities with RockYou
You rock!
Engage the world.