Posts Tagged ‘applications’

Booze Mail: Over 100 million served

October 12, 2007

Few applications on Facebook have experienced the growth of Renkoo’s Booze Mail. Check out these numbers:

  • Virtual drinks sent: 100 million+
  • Facebook app rank based on installs: #20
  • Weekly active users: 350,000+
  • Valuation*: $4.3 million
  • Mentions on App-Camp’s When Apps Attack! video: 1
  • Periodic table of Booze for sale on Zazzle: 1
  • Not bad for an application that launched on June 29 – and the growth rate remains strong and steady. It came as no surprise when I saw job openings listed on their website, but growing that fast isn’t easy. There can be a lot of headaches along the way, and with hundreds of thousands of people trying to be merry and send virtual drinks to the people they love (to intoxicate), there is little room for mistakes.

    Joyce Park, CTO and co-founder of Renkoo, is going to be a discussion leader at App-Camp. While the job descriptions on Renkoo describe the company as dedicated to helping their users have fun, Joyce will be able to offer insight on some of the not-so-fun challenges of maintaining Booze Mail from the technical perspective of a CTO, while still having a co-founder’s desire to grow as quickly as possible.

    * Valuation based on Adonomics

    The value of Facebook applications

    October 9, 2007

    At the Graphing Social Patterns conference in San Jose, I’ve overheard more conversations about the accuracy of application valuations than I’ve been Rick Rolled in the past week. It is safe to say that much of the discussion around the value of apps is because app analytics company, Adonomics, publicly shows what they feel an app is worth on their website. So, of course, we asked Lee Lorenzen, the CEO of Altura Ventures, the Facebook fund that acquired Adonomics in August, to be a discussion leader at App-Camp.

    The Adonomics website states the following factors are used to value an application:

  • Facebook-reported numbers
  • Standard web metrics such as pageviews, uniques, visitors, etc.
  • Computed data, such as sudden changes in your growth profile or the age of your application.
  • Estimated growth of your application and Facebook in general
  • Optimal monetization strategies across all possible services, including CPM/CPC/CPI advertising, potential sponsorships, and
    cross-promotion deals.
  • Using that data the following three applications are valued at:

    1) Vampires – $2,678,670
    2) My Aquarium – $2,629,780
    3) (fluff) Friends – $1,629,290

    Are these apps worth that much? Are they worth more? All three of these application developers are leading discussions at App-Camp in addition to Lee Lorenzen, so those attending will have the opportunity to understand application valuations from two unique perspectives.

    How much should web destinations focus on apps?

    October 8, 2007

    At the Graphing Social Patterns conference in San Jose one major point of discussion is how to bring your existing web presence into Facebook. Linked In CEO, Reid Hoffman, stated in his keynote speech this morning that although he acknowledges the economic opportunity of having an application within Facebook, it still isn’t clear with current restraints that anyone can build an app with enough functionality to monetize it as much as a pre-existing and successful website counterpart. On the other hand, Rock You!‘s Ro Choy, said that once his company stopped focusing on their web site/destination and focused on apps, their user base increased seven-fold.

    Both Linked In and Rock You!’s web destinations have been experiencing phenomenal growth in the past year yet both are faced with the question of how much to focus on applications during this significant shift in the social media landscape. Understanding that this is a question many companies are struggling with right now, we are pleased that the CEO of Netvibes, Tariq Krim, is attending App-Camp to share with us his point of view.

    Netvibes, with their web destination also in a period of growth, has an application on Facebook that is unique in that it falls somewhere between the Linked In and the Rock You point of view – it is a Facebook application in that it is downloaded through Facebook, but it brings part of your Facebook experience to your Netvibes page (see below). Is creating applications that take you out of the “walled garden” of Facebook the answer, or is the answer “if you can’t beat em’, join em’?” There are a lot of metrics to take into consideration: growth rate, interactivity, new users vs. existing, advertising opportunities, etc. It will be interesting to get Tariq’s point of view.

    My Facebook profile info on my Netvibes page:
    Photo Sharing and Video Hosting at Photobucket
    (more...)

    Applications, advertising, and engagement

    October 4, 2007

    David Goodrich, a discussion leader for App-Camp, is the West Coast Director for OMD Digital. He knows that Facebook is the buzz around media planners today the way user-generated content was two years ago, or video-on-demand before that. Yet despite the opportunity advertisers have to reach Facebook users while inside its influential social environment, there has been only a handful of campaigns that truly leverage applications beyond simple banner-style and text-based advertising.

    With such simplistic advertising being the norm, it comes as no surprise that advertising executive, Andrew Chen, was quoted in the New York Times today as saying, “precisely because Facebook is such an appealing and engaging environment, Facebook users click on ads significantly less frequently than elsewhere on the Web.” That may be true on average, especially if he is including the skyscraper ads on profile pages, but that isn’t true with all types of advertising on Facebook – and it most definitely doesn’t have to be that way if your ad campaign is innovative. In fact, Facebook applications present an opportunity to be far more effective than most web advertising.

    With media fragmentation comes fragmentation of metrics and success measurements. The days of standardized metrics across the web are long gone, and that is a good thing. Advertisers can now care less about metrics such as click-thru rates and can pay closer attention to user engagement with their brand; this is especially true with applications within social networks like Facebook, which offer both interactive and viral components. The trick to a successful advertising campaign that leverages an application is for the developer and the advertiser to understand each others expectations and limitations – and creativity, of course.

    • Application creators that want to monetize their applications using advertising need to understand what advertisers are looking for so they can build their application accordingly. That means holistically understanding brands’ objectives (which isn’t necessarily going to be just a large number of users on your app), and more precisely understanding how a specific brand wants to measure engagement. This will help application creators develop better demographic-targeted applications and create a level of engagement that is just enough to deliver the brand message, but not too much to turn off the user.
    • It is also incumbent upon savvy media planners and brands to understand what is actually feasible while working with applications. Then they’ll have to establish their own engagement success metrics depending on how they envision their advertising woven into the application.

    OMD is the world’s largest media planning firm, and David Goodrich works with multiple brands to understand their needs. He’ll bring his insight to help application creators understand what advertisers want so they can develop more advertising-friendly applications that are equally appealing to users.

    See you there!

    September 24, 2007

    App-Camp 2007 is a Saturday gathering focused on the development of applications within open API environments. This will be an opportunity to discuss everything from user behavior and best practices to technical solutions. There will also be plenty of food during the day plus an after party with even more food – and entertainment to boot! The camp is free and will be hosted at VideoEgg’s office, but space is limited.

    To lead up to the event, we’ll be blogging App-Camp updates and industry related news here. You can also check here for a post-event recap. If you have any questions, or if you’d like to be involved, let us know. We can be reached at info [@t] app-camp [d.t] com.