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Bling Bling: Marketing and Monetizing Through Social Applications April 2008

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Page 1: Rock You Web 2.0 Expo

Bling Bling: Marketing and Monetizing Through Social Applications April 2008

Page 2: Rock You Web 2.0 Expo

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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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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 70 million monthly unique visitors across RockYou network

Over 800M pageviews a month on RockYou apps and 2 billion pageviews per month across our ad network

Our mission is to engage the world with social applications

2.0B

16M

100M

70M

700k

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Most Million User Applications across Social Networks

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Successful Marketing on Social Media: Social Applications

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Wikipedia.org

Alexa Global Traffic Rankings

Why? Potential for Social Apps is Exploding

2008

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10

2005

(U.K.)

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0

10

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30

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50

1 3 5 7 9 11 13 15 17 19 21 23

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)

(2)

Reg

iste

red

Use

rs (

MM

)R

egis

tere

d U

sers

(M

M)

Viral Marketing is key to success

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Key Takeaways for 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 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

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Marketing Opportunities with Social Applications

Successful marketing for social media should focus on 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 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 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

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Monetization Opportunity

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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 application monetization

Virality /Hyper-targeting

Contextual targeting

High contextLow virality

Search is not viral

Low 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) = $0.30-$0.50 – Selected Customers:

Agency-sourced Branded Advertising– CPM (Cost per Impression) = $2.00 - $10.00– Type of Ads Using CPM: Branded Ads, Takeovers, App Integration– Selected Customers:

Direct Response and Lead Generation– CPA (Cost per Action)– Type of Ads Using CPA: Mobile Offering, Education, Finance– Selected 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.

646x60 300x250

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Application Cross-Promotion

3rd party ad networks on Facebook serve as the foundation of 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 $60K 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 - 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– UK/Europe– Canada– South America

Internal resources are needed to support agency work– Ad operations– Reporting

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Lead Generation and Direct Response

Leverage affiliate network providers at first (best offers w/ best payouts)– Affinity Labs– MyOfferPal– Neverblue Ads– Commission Junction

Vet opportunities based on demographic mix of the application/site

Successful lead gen/direct response campaigns on social media include:– Mobile offers (SendMe)– Dating (True, Match, SinglesNet)– Education (UPheonix)

Given unlimited funding for lead gen, effective way to fill remnant inventory at higher CPMs

Actively research performance via discussion boards and directories

Be prepared to process multiple lead gen offers to maximize performance

Lead generation campaigns may burn through quickly; active management and tracking is required

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Questions

Questions?

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You rock!

Engage the world.