Emergence Media

CommunityNext Viral Marketing: That’s Dave McClure moderating

Last Saturday, I attended the CommunityNext Viral Marketing conference in Silicon Valley. The Conference, by Noah Kagan and Adam Kalamchi, brought together an interesting array of speakers to talk about Viral Marketing - from tactics, strategy, philosophy to viral marketing as Facebook widgets to community building.

Most of the speakers ranged from the experienced serial entrepreneurs (Dave McClure: PayPal, SimplyHired) to founders of accidental start-ups (Eric Nakagawa of icanhascheezurger). The atmosphere was very much on the casual side, with some point reaching nearly 1990s dot-com humor with of Adam Rifkin of Booze Mail making a cocktail during a talk to clearly very sharp and serious with Keith Rabois of Slide.

Below are my notes on:

1. Widgets - Metrics, Key Points on Facebook Widgets
2. Notes from Keith Rabois, one of the most impressive speaker at CommunityNext (Definitely Read This)
3. Flickr Photos: Including PowerPoint Slides given by Speakers. Plus: All Photos of the event
4. Feedback for the next CommunityNext Conference

** General Notes by Theme **
The Power of Leveraging Existing Networks: iLike v. last.fm

• The long established music discovery service from 2002, Last.FM, has been quickly overtaken by iLike which grew quickly once it launched the iLike widget for Facebook. (Tom Conrad of Pandora)
• Leveraging Existing Off-site Networks: It is a simple feature for your product to ask if the user if wants to import her Gmail Address book (or Yahoo, etc) and see who else is on the site and to “friend” existing contacts.

The Appeal of Widgets on User Profiles – Unique, Media, not Technology (From Jia of RockYou)

• “It’s like the first day of highschool” and you want to show-off how you’re different.
• Think of Widgets as a Media tool and a product, not a technological gadget
• It is not about “being technologically cool” but “being cool to use”

Facebook v. MySpace Widget Marketing Channels (Flickr Slide)

• There are 14 channels (opportunities) for spreading widgets, such as from the mini-feed, refer a friend (shown when adding a widget) and the profile page. (From Jia from Rock You).
• MySpace channels were mainly focused on In-Profile, Profile Comments, Bulletin Messages (e.g. “Your Friend Daniel has added Widget X”), and Forums (not often talked about, but highly effective).

MySpace v. Facebook Differences, Openness (From Jia of Rock You)

• FaceBook: Users do not necessarily browse around by visiting profiles, they have more reliance on using the FaceBook Mini-Feed on keeping touch on their friends
• In FaceBook, you need to rely on the Mini-Feed to place your call to action, e.g. “Daniel Riveong has just added the widget ZYZ, you should too”
• In Facebook, a user can only invite 10 friends a day to add a widget, making the friends feel more special

UGC Challenges

• With Yelp.com: Debate the use of paid-reviews to seed reviews. How authentic is it?
• Use MyBlogLog, Friendster and Others: Spam. Black-Hat marketers will always look for cheap tricks to hijack a platform for spam marketing tactics.
• From Friendster: The need to constant “prune” bad content to help develop the culture of the community and thus the brand

Miscellaneous Viral and Widgets Metrics

• Booze Mail on Facebook was able to grow its userbase at 30% per day
• RocketYou achived 9 million users in Facebook in 1.5 months
• Friendster: For every 1 (Exhibitionist) profile, there is 5,000-10,000 (Voyeurs) viewers
• Development of Widgets: ranged from 2 days to 4 weeks, using 1-2 programmers.

** Keith Rabois of Slide **

Lesson 1: “Viral Growth is Really Hard”
A very, very good reminder that Viral marketing and growth (user adoption) is just not magic and not just putting a YouTube video of a “funny video” and expecting traffic. It’s a mix of luck and strategy.

Examples:
Only 1 really great viral video every 6 months
Facebook Widgets: LinkedIn and Yelp.com have 2 widgets each, all have so far failed to reach beyond 4000 users each.

Lesson 2: Knowing the Value of a User: Viral Marketing v. E-Commerce Projection
E-commerce (Online Retailers) have data on the “tangible of users”, and so there is no real need for viral marketing. They know how much they are willing to spend for each user.

In a space where the value of each new user value is unknown viral marketing becomes very attractive; it has potentially the “lowest marginal cost for user acquition”. It is the safe choice to go far, when you don’t know how much you should spend, so you spend as little as possible.

Lesson 3: Is PR helpful in Viral Marketing? Not Really.
Keith felt that the best PR is done in-house, based on his experience and from talking to others. He cites the story that out of 5-6 start-ups in a room, only 1 company raised their hand when asked if they were happy with their PR firm. Other speakers repeated a similar theme.

Lesson 4: Viral/Social Network Structures & Business Model Changes
Yelp was originally an “Ask a friend where to eat tonight” referral service. YouTube was more focused as a dating service, but changed after utterly failure in the Los Angeles market. Slides was originally desktop-based before going into the Widget space with Facebook.

** For Next Time: Suggestions for Improvements **

Noah, Adam and the rest of the CommunityNext gang pulled off a heck of a conference. So I’m providing suggestions here, but in no way are they intended to criticize either the CommunityNext team or their invited speakers. This is stuff both CommunityNext and the speakers will hopefully (I hope that is) find constructive and useful.

Overall, I think a quick 30 minute session on refreshing one’s presentation skill will go a long way in making many of the speaker’s performance. We all need reminders! Also, maybe invite folks from the Marketing Agency world too to talk about their experience, especially working with a client to understand the viral/social-media space…of course, I’m not suggesting merely me. :)