The Facebook Application Platform
Transcription
The Facebook Application Platform
The Facebook Application Platform An O’Reilly Radar Report By Tim O’Reilly and the O’Reilly Radar Team with Niall Kennedy and Dave McClure 2007 November, 2nd Edition Contents The Facebook Application Platform........................................1 Social networking invitation etiquette...................................2 What’s pixel share?.........................................................................2 Widgets: From Apple to Facebook...........................................4 Making money on Facebook......................................................6 Not just the platform.....................................................................7 Quantifying the Facebook application ecosystem.............8 Measuring Facebook.....................................................................8 Notes on the data...........................................................................8 How many Facebook applications are there?......................9 What are the most popular Facebook applications, measured by number installed?............................................ 10 Which Facebook applications have the most active users?............................................................... 11 Who are the most popular suppliers of Facebook applications?............................................................. 12 Which categories of applications have the most active users?............................................................... 13 Has the long tail come to Facebook already?................... 15 Best practices of Facebook application marketing......... 16 The top 200 Facebook applications...................................... 18 The social networking operating system? Not yet.......... 20 Company profile: iLike............................................................... 23 Company profile: Slide.............................................................. 26 Conclusion..................................................................................... 27 O’Reilly Radar Open Source Report 2007 ©2007 O’Reilly Media, Inc. O’Reilly logo is a registered trademark of O’Reilly Media, Inc. All other trademarks are the property of their respective owners. 70662 The Facebook Application Platform by Tim O’Reilly and the O’Reilly Radar Team, with Niall Kennedy and Dave McClure W eb 2.0 is getting crowded with me-too sites that have little chance of rising above the noise. Web 2.0 information site Techcrunch even features a “deadpool,” the obituary page for startups that didn’t make the cut. The site’s Michael Arrington privately estimates that many more of the 750-odd startups he’s written about “just faded away.” What’s an entrepreneur to do? Hang on to the coattails of the winners, who are turning their offerings from applications into platforms. These new applications-turned-platforms include the Firefox Web browser, which has given birth to an ecosystem of more than 2,500 plug-ins. It includes Web-native applications such as Yahoo!, Google, PageFlakes, and Netvibes, and most recently, social networking juggernauts MySpace and Facebook. These new platforms provide mechanisms for integrating information into user desktops or other Web pages, and for integrating web-based services into custom pages (such as MyYahoo!) via small panels called widgets or gadgets, usually written in JavaScript. There are reasons to be skeptical of the widget economy, but we’ve already seen the first financial win in the new platform ecosystems: StumbleUpon, which began as a Firefox plug-in and developed into a substantial website as well, was acquired by eBay for $75 million. Widget businesses themselves may not be defensible, but they are a quick, effective way to build data assets. Think of a widget platform as a distribution channel, and ask yourself whether an application that is just go-italone on the Web is more valuable than one that shows 1 : O’Reilly Radar Open Source Report 2007 up in multiple places. The value is still in the assets that the application collects and gathers, but inasmuch as the widget instance is just a tentacle back to the home application, there’s the possibility of significant value there. But the value of the business needs to be in the application itself (and its own stickiness), and not just in the usage on a particular widget platform. This report examines the Facebook platform. Facebook is the fastest-growing widget platform, but it’s not the only one. In late August, top widget maker Slide announced that “users are adding one million new Flash widgets daily across all non-Facebook social networks.” According to Comscore, Slide’s widgets are encountered by 134 million unique viewers per month. In late September, Amazon announced a widget program. Yet the boldest platform play to date certainly comes from social networking site Facebook. Founded in February 2004 as an in-house service for Harvard University students (no harvard.edu address, no admission), it quickly expanded to other Boston-area and Ivy League colleges, and then to all colleges and universities. By September 2006, it was available to pretty much anyone with an email address. Its success since then has been swift and impressive. It’s the most popular photosharing site on the Web and it is widely reported as being in the Top Six or Top Seven of all websites in terms of overall traffic. The site is free, has taken in minimal outside investment (although at presstime a major deal with Microsoft based on a borderline-absurd valuation of the company was reported to be under discussion), and, so far, Facebook is funded almost entirely by advertising. Social networking invitation etiquette I remember when people first started using email, and there was a flurry of publications on “netiquette,” the etiquette of how to use email. Social networking is at that stage now. There’s been a lot written about the potential for future embarrassment from photos or videos published on Facebook or MySpace, but I am focused on a humbler bit of social networking etiquette: the proper use of invitations. Someone who is well known receives hundreds if not thousands of invitations from strangers, to every social network under the sun. Most of these, relying solely on the boilerplate invitation text, go right into the trash. “I’d like to add you to my professional network on LinkedIn.” Sure. Who are you? What do you do? Why should I care? (Even if I’ve met you, I might need my mind jogged, especially if you might have the same name as other people I know.) Here are two invitations I’ve accepted recently from people who I don’t know, but who explained nicely in their invitation why they were trying to connect. As an example of how overheated the Facebook hype has become, a 2006 “study” found that Facebook was the second most “in” activity on college campuses, tied with beer and sex. Only the iPod fared better. Draw your own conclusions about that. And it’s mainstream now: more than half of Facebook users do not currently attend college—and on average they spend more than 20 minutes a day on the site. It’s so popular now that many (perhaps even you) are concerned that their inboxes are overflowing with “friend” requests, often from people they haven’t heard from in years or decades. When Facebook launched its application platform on May 24, it made a big bet that a relatively open platform strategy that provided a revenue share to developers would help it take over leadership of the social networking space. In contrast with current market leader MySpace, which permits third party applications but provides few mechanisms for monetization, Facebook introduced an innovative “pixel share” revenue model. What’s pixel share? Pixel share means that, rather than having a revenue split with application developers, which would require Facebook to insert itself as a middleman into application ad sales, Facebook simply reserves a portion of a page, referred to as the Canvas Page, for its own advertising, while developers can do anything they want on the remainder of the page, retaining 100% of the revenue they generate in their space. Think about an invitation like you would an email or a phone call. Who are you trying to reach? What do you want from them? Why should they care to respond? If you can’t practice that elementary courtesy, don’t bother to ask. 2 : O’Reilly Radar Open Source Report 2007 Pixel share is a big win for very popular applications, especially those, like Slide or iLike, that have substantial targeted user bases outside of Facebook, and thus have their own advertiser relationships. It is, of course, less of a win for smaller applications—which makes us believe that Facebook will ultimately introduce an ad network of its own, providing advertising services to the long tail of applications, much as Google AdSense for Content provides it for the long tail of searchable web pages. Expect to hear about Facebook hiring people with ad targeting experience. Unlike the News Corp.-owned MySpace, Facebook has also opened much of its core functionality to developers, such that developers can even create features that compete with Facebook’s own offerings. What’s more, Facebook has developed innovative methods, including the once-controversial Mini-Feed, for viral marketing to the 40 million plus Facebook users. More than 80 percent of them have tried at least one application. The response to Facebook opening its platform was immediate and enthusiastic, with Silicon Valley venture capitalists and entrepreneurs buzzing about new Facebook applications installed by millions of users within days of being released. Web companies such as TripAdvisor and Mozes are acquiring Facebook applications to speed time to market; Netflix learned of a popular independently created application and granted additional rights to its data. In this report, we seek to 3 : O’Reilly Radar Open Source Report 2007 explore and, based on the data available at this early date, quantify the resulting phenomenon. In the first four months after Facebook launched its platform, more than 4,000 applications were added to the service. As of late October, it’s now past 6,000. More than 19 million have loaded the most popular application, Slide’s Top Friends. Together, those applications are responsible for more than 30 million pageviews per day, more than 2 percent of all Facebook pageviews. Viral mechanisms within Facebook let users discover and adopt applications they find interesting. For example, the music sharing site iLike took six months to sign up its first million users to its Web-based service. On Facebook, iLike signed up a million users in its first week and is now the fourth-ranked application. At a recent Facebook developer conference, a t-shirt-clad Ali Partovi, iLike Co-Founder and CEO, half-jokingly referred to iLike’s Web presence as its “legacy product.” Not every application can expect this type of success and Facebook is starting to show a suspiciously dot-com-era case of possible overvaluation, but early examples show that, with the right application and clever use of Facebook’s viral mechanisms (see “Best Practices of Facebook Marketing,” page 17), the Facebook user base presents a great opportunity. It’s particularly interesting to us that the majority of the applications are still being supplied by individual Facebook users, identified on the service by names, rather than by companies. Although, to be precise, some companies, among them Yahoo!, are deploying their applications as if they were written by individuals. We expect more companies to follow Slide and iLike’s lead, and begin porting their Web applications to the Facebook platform. We also expect social networking market leader MySpace to follow Facebook’s lead and provide a more open version of their platform—even if this forces a change in MySpace’s business model. Widgets: From Apple to Facebook Widgets section by Niall Kennedy Facebook applications are a case of a much broader class of mini-applications that are often referred to as widgets. Andy Hertzfeld is generally credited with kicking off the widget phenomenon with the original Apple Macintosh (see http://folklore.org/StoryView.py?story=Desk_ Ornaments.txt). Hertzfeld’s team created Desk Ornaments, later renamed Desk Accessories, to accomplish small tasks that did not warrant a full-blown application. Plug-ins and skins for the music player Winamp reignited the customization and miniature application trend, and inspired what we now consider widgets. 4 : O’Reilly Radar Open Source Report 2007 See http://www.konfabulator.com/cartoon/partOne.html for a cartoon history of Konfabulator by Arlo Rose. Arlo Rose created an application called Kaleidoscope (see http://www.kaleidoscope.net/What_is_Kaleidoscope. html ) to customize Mac UI elements and later introduced Konfabulator widgets. Konfabulator was a tool that permitted the development of widgets that could be displayed on the Mac desktop. Konfabulator’s functionality was imitated by the Mac’s Dashboard widget platform. In November 2004, Konfabulator was released in a crossplatform version, and in 2005, its parent company was acquired by Yahoo!, which saw widgets as a strategic way to gain desktop real estate for web information products. Yahoo! briefly renamed the product the Yahoo! Widget Engine, but after a developer uprising, returned to the Konfabulator name. There are now more than 4,000 Konfabulator widgets available. A team of three developers created Start.com in February 2005 as a side-project at Microsoft. The site eventually grew into Live.com and became the center of Microsoft’s Windows Live collection of Web services. This team worked under Hadi Partovi and some followed him to iLike. In April 2005, Apple OS X 10.4 (Tiger) was the first operating system to feature widgets heavily, with their own spot on the default dock bar. The breakthrough moment for widgets on the web, however, was on August 21, 2005, when YouTube launched its HTML embed code for video. Suddenly, embedded Web content was viral, and widgets were the means by which that content was distributed. In June 2006 Adobe released the Flash 9 Player. The new player contained features specifically requested by MySpace for its widget platform. Within weeks, MySpace required Flash 9 for all widget content, causing a major web tool upgrade. (For more detail, see http://www. niallkennedy.com/blog/archives/2006/07/myspaceupgrade.html ) Google created the first widget Integrated Development Environment (IDE) to help Windows developers create content for Google Desktop. Microsoft and Apple have since introduced their own IDEs: Expression Web and Dashcode, respectively. Google was the first company to offer free widget hosting, and the company has also released Google Maps as YouTube-style embeddable widgets. Adobe’s $100 million investment fund is the first widget venture initiative. It was created to fuel AIR, Adobe’s Rich Internet Application architecture. Google also invests in successful widgets on its platform—and Facebook itself has recently opened a $10 million application-specific investment fund. 5 : O’Reilly Radar Open Source Report 2007 Web widgets are typically written in JavaScript, and are often very thin “skins” on a web services API (and, as such, they have the same security vulnerabilities as JavaScript). For platform vendors, widget platforms provide several benefits: Increased user satisfaction and stickiness provided by user customization ■ Additional visibility (and viral marketing) for platform services either on the desktop or on other web sites ■ For developers, the benefits have been less apparent. Until recently, widgets were primarily a marketplace for amateurs who built tiny applications just for fun or personal utility. As is so often the case in new markets, barriers to entry were low, and as a result, innovation thrived away from the pressures of revenue expectations. At first, widgets were used primarily for data display. However, as they began to provide more complex functions, user registration, preferences, and other data began to flow the other way. And as we’ve learned on the Web itself, in the Web 2.0 era, this data is the foundation for company value. A Web 2.0 application harnesses network effects to build data assets such that the application gets better the more people use it. Widgets, which at least in theory can be syndicated across multiple websites and Web platforms, provide an unprecedented opportunity for viral distribution and the acquisition of large, connected user bases. And of course, social networks have proven in a short time to be among the most viral of Web platforms, at least so far. These data assets will prove valuable in many ways. In the short term, as on the external Web, advertising is the first and—for now— the most powerful revenue source. Making money on Facebook Facebook’s Canvas Page is an application’s primary vehicle for monetization. Facebook retains the right to place advertising on particular parts of the page; the rest can be used by the application developer for any purpose, including advertising. For now, at least, Facebook is not hogging the best spots on the page. Facebook’s “pixel share” model is a radical simplification of the business relationship between online platform and application. It requires no tracking by Facebook of application monetization, and no explicit revenue share. Everyone wins: Facebook avoids a huge amount of logistical and analytical overhead, developers have access to millions of users, and Facebook, as aggregator, gets the pageviews. Application developers we spoke to highlighted Facebook’s support for application monetization as one of the key differentiators of the Facebook platform. MySpace has let third-party applications embed widgets, but because their terms of service prohibited anyone but MySpace itself from making money on the site, applications such as YouTube that were widely deployed by MySpace users were forced to drive traffic back to their own sites in order to create any commercial benefit for themselves. Of course, this “you sell your ads and I’ll sell mine” approach primarily benefits developers such as Slide and iLike that have advertising relationships in place already, as well as the scale to successfully sell targeted advertising. It is, we believe, inevitable that Facebook will eventually also offer an AdSense-like model in which they themselves place advertising on application pages. Facebook is widely reported to be working on a targeted advertising program. The question is 6 : O’Reilly Radar Open Source Report 2007 whether that program will address advertising only on Facebook’s pixel share of the page, or will be offered to application developers as well. We believe that it will ultimately be offered to application developers, allowing even long tail applications to take part in the Facebook economy. Meanwhile, application developers VideoEgg and RockYou are each trying to build their own ad networks within Facebook. It’s not just advertising. iLike receives affiliate commissions on music sales via Amazon and ticket sales via TicketMaster. Meanwhile, ad networks, Amazon, and Ticketmaster provide monetization services. Could pay-to-access Facebook applications be next? Slide’s Max Levchin points out that there is now an internal economy in Facebook user attention, in which applications are selling users to each other on a “cost per acquisition” basis. A successful Facebook application can ask its users to try another Facebook application, which will pay the first application for each user who tries out the new one. Developers we have spoken to estimate that costs per acquisition have ranged from seven cents per user acquisition to as high as 50 cents, with a consensus view emerging of a price of approximately 20 cents per user. Levchin notes that this internal economy will only last if external monetization of these applications is sufficient to justify the user acquisition cost. Now there’s a race to gain as many users as possible—and to use those users to acquire other users via Facebook’s viral marketing mechanisms. The race is built, in part, around fear for the future. There is Facebook burnout (please, no more friend requests!), and already people have been uninstalling applications. Each new application has more applications to fight for attention. That’s part of why there is, as we will show later in this report, a slowdown in the release of new applications. Not just the platform... The Social Graph and the News Feed are the Secret Sauce The process of adding an application indicates just how much of its own (and the user’s) data Facebook is willing to expose. While there is user control over whether or not personal data is passed on to the application provider, the default is that it is. In addition, the application can appear not just on the Facebook user’s profile page, but also in the Mini-Feed, a news feed that has become increasingly important to Facebook users. The platform and API provide a terrific (if relatively simple and currently constrained) method of enabling a wide variety of third-party applications. Installation of Facebook applications is fairly simple, making it easy for new users to adopt via point-and-click installs. In this area, Facebook has not only beaten MySpace and LinkedIn, but it’s also gotten ahead of Google, Yahoo, AOL, and Microsoft. The only significant competitor here is Amazon, with its very easy to use Web services such as S3, and EC2. The Social Graph is the fundamental map of social network connections for all individuals within Facebook. While competing services also have this map, they have as yet failed to do much with it. Neither have Google, Yahoo, AOL, or Microsoft, all of which have tremendous social graph assets due to their email, instant messaging, and account systems. In Facebook, the Social Graph enables the Feed. (At presstime, word filtered out that Google does have a competing plan underway.) Many people are emphasizing the Facebook platform and API as the critical success component, but they are missing the other two pieces: the Social Graph and the Facebook News Feed. Other social networking services have the Social Graph connection information, but Facebook is the only company thus far that has captured the viral distribution mechanism available in the “social event stream,” that is, the Feed. 7 : O’Reilly Radar Open Source Report 2007 The Feed provides a virtual river of social events that let people discover what everyone else is doing. The Feed records what everyone is doing and makes the information visible, while the Social Graph provides the path and vectors of distribution for others to see (and copy) what their friends are doing via the Feed. Finally, the Facebook Platform and API enables simple installation of a plethora of the third-party apps that people discover their friends are using. The combination of these elements is why Facebook is so amazing. —Dave McClure Measuring Facebook Notes on the data Facebook is releasing more data in its developers area about how its applications are being used, and there are plenty of new services seeking to make sense of it. Three we’re watching: In late August, Facebook shifted from raw users to an “engagement”-based approach in displaying application data. The application information now includes the total number of active users and percent of all users who were active the previous day. Here’s how Facebook Application Platform head Dave Morin describes the new statistics: “We want to make sure that you completely understand how we will be measuring engagement. We define engagement as the number of users who touch your application every day (measured from midnight to midnight each day). These touch points are Canvas Page views, link clicks, mock-Ajax form submission, and click-to-play Flash. The number of engaged users is calculated by putting all of these touch points together. We display this as the number of Daily Active Users. Next to it we also show what percentage that is of the application’s total number of users.” Appsaholic is a Facebook application that tracks application installs and serves as an advertising marketplace. ■ Adonomics (formerly known as “Appaholic,” with no “s”) is a Web-based service that also tracks Facebook application use and seeks to help developers monetize applications. ■ Socialistics is a Facebook application that lets individual users examine how they use Facebook and present sundry visualizations for their use. It does for Facebook use what Xobni aims to do for email use. ■ And, by the time this report is published, we suspect there will be more worth following. Quantifying the Facebook application ecosystem In the pages that follow, we provide detail on the installed base of the top 200 Facebook applications and their growth rates, as well as information on the top developers (aggregate numbers for those who have more than one application). We also provide profiles of two of the most successful Facebook application developers, Slide and iLike, and pointers on how to increase the virality of Facebook applications. We captured user counts by application weekly, on Sunday nights, starting 7/29/2007. The 9/2/2007 feed included the new engagement-based data showing active users. On 9/4/2007, we began collecting data daily. We were able to infer an estimate of the total user installs from the new data (estimate because the percentage of installs is given as an integer). For historical and rate-of-change data and charts we use the total installs, to assess the current state of Facebook application we use the active user data. The data for this updated report goes up to 10/28/2007. The historical data only shows whether a user placed an application on his or her Facebook page. Until the most recent data feed, we had no application usage data. There is no user grain data available, i.e., data that shows how many users have installed what number of applications or what applications are installed or used in tandem. Rough measures of install adoptions are based on the number of installs divided by the total estimate of Facebook users. The category data and charts in the report reflect that an application can appear in multiple categories. This means that any totals by category are not additive: You can’t add up the totals by category to get the total for Facebook as some applications will be counted many times. Facebook doesn’t ensure that applications have unique names. We use the application and supplier name to distinguish application with the same name. The name of the application suppliers tend to change over time, we always display the most recent supplier name we have available. —Roger Magoulas 8 : O’Reilly Radar Open Source Report 2007 How many Facebook applications are there? The number of Facebook applications, counted weekly, has more than tripled since the last week of July, the first week for which numbers are available. Starting in late September, the white-hot increases in percentages began to slow down, although the absolute number of new applications has remained in a small range. Number of Facebook Applications Date App Count Percentage Increase from Previous Week 7/29/2007 2092 8/5/2007 2309 10% 8/12/2007 2504 8% 8/19/2007 2667 7% 8/26/2007 2887 8% 9/2/2007 3208 11% 9/9/2007 3892 21% 9/16/2007 4043 4% 9/23/2007 4358 8% 9/30/2007 4839 11% 10/7/2007 5235 8% 10/14/2007 5688 9% 10/21/2007 6228 9% 10/28/2007 6595 6% App Counts: different extraction methodoloy used after 9/4/07 9 : O’Reilly Radar Open Source Report 2007 What are the most popular Facebook applications, measured by number installed? Application Parent Supplier Review Count Active Users % Active ROC / Week Active Share Install Share User Installs 10/28/2007 Top Friends Super Wall Slide 2,874 2,855,031 RockYou! 1,564 1,309,719 15% 4% 6% 43% 19,597,850 10% 14% 3% 28% 12,561,864 Video Facebook 1,697 1,137,132 FunWall Slide 1,123 2,665,568 9% 6% 3% 27% 12,258,269 22% 14% 6% 27% 12,056,344 SuperPoke! Slide 3,947 1,287,665 X Me RockYou! 2,457 702,170 11% 9% 3% 27% 12,038,352 7% 8% 2% 24% 10,706,623 Likeness RockYou! 2,060 iLike iLike 3,895 590,543 6% 8% 1% 23% 10,380,927 677,562 7% 5% 2% 23% 10,321,798 Movies Flixster My Questions Slide 1,693 716,009 7% 11% 2% 23% 10,302,751 1,205 515,449 5% 2% 1% 22% 9,795,203 Graffiti Compare People Mark Kantor 5,763 471,930 6% 2% 1% 18% 8,244,643 Chainn 8,323 364,483 5% 4% 1% 17% 7,783,516 Free Gifts Zachary Allia 5,306 334,155 5% 2% 1% 16% 7,109,955 Causes Blake Commagere 1,439 350,836 5% 9% 1% 15% 6,647,238 Moods Drew Lustro 973 420,068 7% 4% 1% 14% 6,130,044 A guide to the charts on this page and the next Reviews indicates the number of reviews, a measure of engagement. Active User ROC: the average of the daily rates of change from 9/4/2007 until 10/28/2007. The count of active users drops during the weekend, serving to reduce the ROC. Consider RockYou!’s Super Wall for what a viral increase in active users looks like, even with less weekend usage. Active Share: number of active users /Facebook user population Install Share: number of installs /Facebook user population 10 : O’Reilly Radar Open Source Report 2007 Which Facebook applications have the most active users? Application Vendor (display) Review Count % Active Installs Active User ROC Active Share Install Share Active Users 10/28/2007 Top Friends Slide 2,874 15% FunWall Slide 1,123 22% 19,597,850 8% 6% 43% 2,855,031 12,056,344 225% 6% 27% 2,665,568 Super Wall RockYou! 1,564 SuperPoke! Slide 3,947 10% 12,561,864 216% 3% 28% 1,309,719 11% 12,038,352 106% 3% 27% 1,287,665 Video Facebook Movies Flixster 1,697 9% 12,258,269 52% 3% 27% 1,137,132 1,693 7% 10,302,751 54% 2% 23% 716,009 X Me iLike RockYou! 2,457 7% 10,706,623 51% 2% 24% 702,170 iLike 3,895 7% 10,321,798 8% 2% 23% 677,562 Likeness RockYou! 2,060 6% 10,380,927 38% 1% 23% 590,543 My Questions Slide 1,205 5% 9,795,203 -12% 1% 22% 515,449 Graffiti Mark Kantor 5,763 6% 8,244,643 -18% 1% 18% 471,930 Moods Drew Lustro 973 7% 6,130,044 42% 1% 14% 420,068 Quizzes Eric Diep 1,526 8% 5,071,135 53% 1% 11% 418,838 Scrabulous Rajat Agarwalla 4,435 33% 1,160,703 92% 1% 3% 382,911 Compare People Chainn 8,323 5% 7,783,516 -23% 1% 17% 364,483 Whichever way you look at it, Slide is the big winner here. It has three of the top five applications when measured by number of installs and three of the top four when measured by number of active users. Its Top Friends application is by far the most popular application when measured either way. In our first report, My Questions was #2 in installs and #10 in active users, the fastest-growing of the top ten Facebook applications. It has fallen to #10 in installs and stayed at #10 in active users. 11 : O’Reilly Radar Open Source Report 2007 Who are the most popular suppliers of Facebook applications? Supplier Installs Avg % Active Avg ROC Active Users Slide 64,118,426 6% 50% 7,642,159 RockYou! 47,378,379 4% 80% 2,882,076 Facebook 14,577,937 2% 36% 1,484,929 Blake Commagere 19,355,567 10% 59% 1,296,174 Flixster 10,302,751 7% 54% 716,009 iLike 10,321,798 7% 8% 677,562 Keith Schacht 5,669,071 8% 97% 553,718 11,422,707 4% 32% 550,302 Mark Kantor 8,260,643 3% -18% 471,970 Eric Diep 7,303,080 4% 39% 459,183 Drew Lustro 6,159,158 5% 42% 420,650 Chainn 7,960,274 27% -17% 391,649 Rajat Agarwalla 1,160,703 33% 92% 382,911 Watercooler 5,824,035 7% 86% 352,738 Zachary Allia 7,109,955 5% -12% 334,155 Esgut All data current as of the 10/28/2007 snapshot. “Average ROC” is the average of the daily rate of change from 9/4/2007 to 10/28/2007 As you’d expect from the previous tables, Slide is by far the most popular supplier. Its seven-million-plus active users is more than double the nearest competitor, RockYou!, although RockYou! has a higher growth ROC during the study period. Especially worth noting here (and in other charts) is the large number of top Facebook applications credited to individuals rather than companies. 12 : O’Reilly Radar Open Source Report 2007 Which categories of applications have the most active users? Average % Active by Category (10/28/07) Gaming, Sports, and Messaging have the applications with the highest average number of active users, by which we mean the average application in each of these categories is used by an average of more than 10 percent of the users who have installed the applications. That’s a good measure of users engagement with applications by category. Facebook provides no aggregate adoption or usage data by category. Our analysis provides that missing dimension. Facebook is, however, rolling out more information for developers, as you can see at http://developers. facebook.com/news.php?blog=1&story=34. 13 : O’Reilly Radar Open Source Report 2007 The Adoption rate chart below shows the most popular categories. It is not a surprise that Dating dominates a site originally aimed at college students. What’s interesting on the chart is that the Food and Drink and Travel applications have significant adoption rates and have applicability beyond the college crowd. With the fast growing 25+ demographic, we expect the Business and Money categories to gain more interest. Average Adoption Rate by Category The ever-growing total number of applications competing for the user’s attention affects the adoption rate. Some of the trends we’ve seen: Dating is an outlier that attracts relatively high usage, but has few applications competing for users. ■ Just for Fun is a catchall category that includes by far the most applications, including many popular ones. However, the large number of applications brings the average for the category down. ■ Chat and Messaging are both high usage categories with many overlapping applications. ■ 14 : O’Reilly Radar Open Source Report 2007 The Food & Drink and Video categories both generate high average usage but relatively few developers. These may be areas to watch. ■ The Average Active User Share by Category takes the average of all active users for all the apps in the category and divides that by the total population of Facebook users. The large number of users makes the percentage share numbers small; it's most useful to focus on the difference in share, e.g., the average Dating app has more share than the average Messaging app. ■ Has the long tail come to Facebook already? It might be an “empty tail.” Like so many other forms of entertainment, Facebook is developing into a hit-driven business. In our initial report, we found that the top one percent of the applications (the top 42 applications) generate 74 percent of active usage, and the top two percent of applications (the top 84 applications) generate 87 percent of active usage. The top has consolidated even more since then. Even among the top developers, you can see a steep drop in just the top 10, from more than six million active users to less than one million. As Top 50 Facebook developers, ranked by number of users 15 : O’Reilly Radar Open Source Report 2007 in other parts of the entertainment industry, a Facebook developer needs to build a huge viral hit to get anywhere near the top. As the aggregator, the company that benefits the most from niche applications is Facebook itself. Many people are familiar with Pareto’s 20/80 rule. The concentration of active usage in top applications is even more extreme than Pareto’s 20/80 rule. The top 20 percent of Facebook applications generate more than 98 percent of active usage. Best practices of Facebook application marketing Search Engine Optimization (SEO) has become a staple of Web 2.0 business thinking. Blogger (http://500hats.com), business analyst, and Facebook conference organizer Dave McClure recently helped outline some ideas in the new field of Social Media Optimization (SMO). Here are some of his thoughts on how to optimize for uptake on the new Facebook platform. There are several basic ways people discover new Facebook applications and add them: They browse through the directory of applications on Facebook and discover an interesting new application; they receive an application invite directly from a friend and accept it; they see a new application on a friend’s profile and add it; or they browse a Feed, read an application-related message, and add the application The first two ways started as the most popular but are fading. In particular, the second method of spreading an application, inviting people to it, was quite successful until late June, when Facebook started putting limits on how many people could be invited to an application simultaneously. In essence, Facebook cut back on what was “invite spam”. After Facebook limited invites to 10-ata-time, and then further to only 10 per day, this has become a significantly less viral growth opportunity. Discovering an application on a friend’s profile is perhaps the most obvious means for growth. It’s certainly not as fast as the spam method, but it is a more reliable vetting mechanism as the number of potential applications continues to increase faster than any individual user can keep up. Over time, this can be a pretty powerful opportunity—if the call-to-action messaging on the profile is self-evident and the workflow after the click is easy to follow. Facebook applications are free, but they’re also impulse purchases. Developers have to make it as simple as possible to locate and install them. 16 : O’Reilly Radar Open Source Report 2007 When users discover applications on a friend’s Feed, the overt marketing message is even more subtle. Herein lies the beauty of the Facebook feed. Early Facebook users may remember that when Facebook introduced the News Feed and Mini-Feed back in September 2006, the company received a tremendous amount of criticism for not educating the community as to what was coming. But the Feed is crucial to Facebook’s success. It’s likely that company execs were planning how to rollout the Feed knowing they would soon be launching the Platform at a later point. That’s part of why Facebook was so adamant about not pulling back in the face of the criticism. Company executives knew this was going to be their big viral advertising engine. In a way, Facebook adding the feeds is like Google introducing paid search results. So, what are the best ways to make sure your Facebook application is seen and adopted by the most people? 1. Optimize the application directory listing and the application’s “about” page. With so many applications on Facebook, it’s likely most people don’t spend a lot of time on these pages. So make them decent, and present a clear call-to-action, but get this done and go on with more important practices. 2. Get all your new users to spam their friends. Well, this might be successful in the short term, but realize that due to Facebook policy you will likely only get up to 10 invites sent out at a time—and each user will probably only go through that process once. If you can get high conversion on those 10, perhaps your application will spread virally just from the invite. Perhaps. And, before you put effort into this, do you really want to be a spammer? 3. Optimize the look and feel of your application on the user’s profile page. This is effort well-spent: Your users will probably see it many times, and their friends will browse the page and see it many times. Be sure to plant a compelling call-to-action somewhere on the application to bring in new users. It’s also important to differentiate between the use cases for the profile page owner and friends of the profile page owner who are dropping by. The techniques for doing this are not that dissimilar from standard conversion optimization practices on normal websites and landing pages. Know your audience, write compelling copy, create a catchy graphic or some kind of hook, and then use a clearly placed link or highcontrast button that catches attention. Don’t do this just once. A-B test it, tweak based on what you learned, and repeat. 4. Use the “Share” button to let users distribute applications and content within Facebook. The “Share” button is basically Facebook’s version of Digg or del.icio.us. It’s a one-click way for users to share content, links, and applications. “Share” can enable users to send content and links to their friends quickly and easily, as well as to post information directly to their profile— which then shows up in other people’s Feeds. 17 : O’Reilly Radar Open Source Report 2007 5. Cross-market your Facebook application via other Facebook applications. This technique has become popular with the leading platform developers. Just as a television network uses hit shows to help promote newer and less-well known shows, these companies can use their “best-selling” apps to help drive distribution for newer and less well-known apps. 6. Optimize the Feed notification messages and application events that generate News Feed and Mini-Feed messages. This may be the single most important element of marketing a Facebook application. People on Facebook check their Feeds all the time. When they do, they see what their friends are doing— and they see what many of their friends’ apps are doing too. Consistent and creative application marketing and event notification via the Feeds is the key to unlocking the viral power of Facebook. The available inventory of feed notification messaging for your app—that is, your advertising inventory— is essentially limitless (assuming people keep your application installed). Indeed, as long as users have your application running, their actions combined with application events will create Feed messages and notifications that serve as constant marketing opportunities for your applications. The top 200 Facebook applications Rank Application Supplier Categories 1 Top Friends Slide Dating; Just for Fun Review Count Active Users PCT Active Total Installs Rank Change 2,924 2,657,083 13% 20,219,468 0 2 FunWall Slide no category 1,228 2,529,123 20% 12,743,593 0 3 Super Wall RockYou! Photo; Video 1,695 1,612,806 12% 12,968,336 0 4 SuperPoke! Slide Alerts; Chat 4,010 1,294,692 10% 12,801,837 0 5 Video Facebook Messaging; Video 1,733 1,061,295 8% 12,632,670 0 6 iLike iLike Events; Music 3,925 618,855 6% 10,856,396 1 7 X Me RockYou! Alerts; Chat 2,503 614,473 6% 11,050,455 -1 8 Movies Flixster Just for Fun; Video 1,735 547,436 5% 10,986,290 1 9 Likeness RockYou! Dating; Just for Fun 2,174 538,141 5% 10,788,803 -1 10 My Questions Slide Chat; Events 1,225 455,619 5% 9,980,538 1 11 Graffiti Mark Kantor Just for Fun; Messaging 5,836 410,552 5% 8,286,452 -1 12 Scrabulous Rajat Agarwalla Gaming; Just for Fun 4,919 404,421 32% 1,247,536 6 13 Compare People Chainn Gaming; Just for Fun 8,551 386,305 5% 8,232,800 3 14 Vampires Blake Commagere Gaming; Just for Fun 2,607 379,550 8% 4,829,147 3 15 Quizzes Eric Diep Education; Just for Fun 1,563 365,699 7% 5,245,231 -3 18 : O’Reilly Radar Open Source Report 2007 Rank Application Supplier Categories 16 Causes Blake Commagere Education; Politics 17 Mobile Facebook Mobile; Photo 18 Moods Drew Lustro Alerts; Just for Fun 19 Free Gifts Zachary Allia Chat; Messaging 20 (fluff)Friends Mike Sego Gaming; Just for Fun 21 Entourage Esgut Messaging; Photo Review Count Active Users PCT Active Total Installs Rank Change 1,477 341,818 5% 7,308,840 6 951 339,558 15% 2,331,585 -4 993 338,631 5% 6,429,435 3 5,353 329,140 5% 7,258,575 -5 33,103 325,171 11% 2,958,453 -1 107 309,070 9% 3,430,381 7 22 Hatching Eggs Keith Schacht Just for Fun; Messaging 1,330 303,718 10% 2,921,309 4 23 Grow-a-Gift Keith Schacht Just for Fun; Messaging 2,264 294,782 9% 3,382,609 1 1,639 267,922 10% 2,602,404 14 287 257,743 16% 1,609,629 80 24 Bumper Sticker Harris Tsim Just for Fun; Utility 25 Circle of Friends Ephraim Luft Just for Fun; Messaging 26 Jetman Simeon Dorsey Gaming; Just for Fun 905 248,042 24% 1,017,840 31 27 Booze Mail Renkoo Food and Drink; Just for Fun 2,216 246,931 5% 4,959,859 -12 28 Zombies Blake Commagere Gaming; Just for Fun 2,954 237,315 5% 4,891,226 -1 29 Superlatives Esgut Dating; Messaging 617 232,905 4% 6,559,667 -6 30 Honesty Box Dan Peguine Chat; Dating 4,652 224,687 6% 3,751,445 -10 31 Are YOU Interested? eTwine Holdings Dating; Just for Fun 810 223,329 8% 2,901,986 1 32 WereWolves Blake Commagere Gaming; Just for Fun 1,427 216,622 8% 2,710,451 3 33 Slayers Blake Commagere Gaming; Just for Fun 1,123 215,437 15% 1,466,611 33 34 Fight Club SocialNetGames Gaming; Just for Fun 999 203,905 19% 1,090,470 3 35 Sticky Notes J-Squared Media Just for Fun; Messaging 1,366 197,210 4% 4,475,635 -6 2,796 183,870 5% 3,488,108 0 275 172,865 5% 3,785,050 -6 36 Texas HoldEm Poker Eric Schiermeyer Gaming; Just for Fun 37 Nicknames Adam Gries no category 38 My Aquarium Greg Thomson Just for Fun; Messaging 3,454 164,026 4% 4,447,207 -13 39 PetrolHead Team Moulin Just for Fun; Travel 1,822 159,889 16% 989,046 742 40 Advanced Wall Phil Gibbons File Sharing; Utility 198 141,972 3% 4,237,591 -6 41 Naughty Gifts Going Gaming; Just for Fun 1,730 140,655 4% 3,787,260 -11 42 HOT or NOT HOTorNOT Dating; Just for Fun 5,144 137,267 6% 2,237,077 -1 43 Fortune Cookie Slide Just for Fun 1,326 130,316 2% 5,488,961 -10 44 PacMan thewurld Gaming; Just for Fun 1,329 129,207 7% 1,741,810 -5 45 My Christmas Tree Angeline Low Events; Messaging 221 124,965 18% 707,136 246 46 WarBook Freewebs Gaming; Just for Fun 7,965 119,894 23% 515,500 6 47 Cities I’ve Visited TripAdvisor Travel; Utility 1,003 110,738 3% 3,539,837 -1 48 IQ Test profile.to Education; Gaming 441 106,383 7% 1,564,929 26 49 Pirates vs. Ninjas Austin AustinOne Gaming; Just for Fun 4,239 102,526 4% 2,722,157 16 50 Oktoberfest Lives On Hungry Machine LLC Food and Drink; Just for Fun 243 94,257 5% 1,947,300 -7 51 Name Analyzer Bemmu Sepponen Just for Fun 411 88,489 5% 1,919,824 22 52 Raki Sofrasi Gokhan Piskin Food and Drink; Just for Fun 869 87,930 27% 323,977 214 53 Favorite Peeps! Slide Just for Fun; Messaging 2,612 86,350 3% 2,654,280 -13 19 : O’Reilly Radar Open Source Report 2007 The social networking operating system? Not yet. Ali Partovi, CEO of popular Facebook application iLike, notes, “If your application can benefit from social networking features, it’s just easier to build on Facebook. It’s almost like a social network operating system.” An operating system. Those are strong words. In fact, Partovi notes, “My brother [Hadi, president of iLike] was the lead product manager for Internet Explorer from version 2.0 to 5.0, in the heart of the browser wars. Our CTO created OLE [later COM and ActiveX] while still in college. And they completely buy into this operating system idea. This is as significant a shift in computing as Windows versus DOS or the introduction of the Web.” Strong words indeed. Max Levchin, founder of Slide, the top application developer on Facebook, concurs. He too brought up the operating system analogy, saying that he regards all of the social networking platforms as operating systems of a sort. They all provide data storage, APIs that let developers use that storage, and they control the means of communication with the user and with other actors in the system. Levchin sees the location of the user’s data as central to the success of operating systems. Having data on a PC in local file storage is the core component that keeps the desktop as the dominant paradigm. Applications that have merely sought to replicate desktop functionality on the Web aren’t enough. But applications that rely on Web-native data, such as the social data captured in social networking platforms, are poised, he thinks, to finally challenge the dominance of the desktop. The divide between social network native users and outsiders can perhaps already be seen in the divide between users who find it irritating that they receive an email asking them to go to Facebook to retrieve a message sent to them by another user. Facebook natives think nothing of it, and quite possibly never even see that external email. They are already living in the new social platform. (Of course, an application, Email Me Instead, has been released to serve those who haven’t yet gone native, although it’s too cumbersome to be useful.) At O’Reilly Media, we’ve long been tracking the emergence of what we’ve called the Internet operating system, with subsystems that provide access not to devices, like a traditional operating system, but to particular classes of data, such as location, identity, events, products, and so forth. As such, the idea of Facebook as an operating system has resonance. However, we believe that even the most successful Web 2.0 platforms so far are only components of operating systems, parts of what will one day be a more fully integrated Internet operating system. Google Maps, the leading platform for third-party location-based appli- 20 : O’Reilly Radar Open Source Report 2007 cations, is well on its way to becoming the location subsystem; various social networks (including open source projects like Brad Fitzpatrick’s elsewhere.im) are competing to provide the social network subsystem (though we believe that other applications with identity style subsystems, including payment systems, will need to be integrated with social networks before they provide a full identity subsystem). Google’s search and advertising platforms are also clearly key components of the future network operating system. Meanwhile, Amazon’s S3 and EC2 are providing widely used lowerlevel storage and compute subsystems. If we are to think of the new Web platforms as operating systems, one question that immediately raises its ugly head is the risk of competition between the platform provider and the application developer. Many developers on both Windows and Mac OS platforms have painful memories of once-happy open arcades turning into closed company towns. Both Partovi and Levchin acknowledge the risk, but think that it is not high for the short term. Partovi notes “You can’t say forever, but the current management has clearly made a commitment to an open platform for developers.” Levchin says, “For the short term, it would be problematic for them to change course.” Partovi notes that before Facebook launched the platform, iLike had made a bid to be the exclusive music application for Facebook, but were turned down on the basis that Facebook didn’t want to give exclusivity to any application. “Lots of people are building applications—Top Friends, Superpoke, and My Questions, for instance—that compete with Facebook’s own core applications. That sends a strong message that they really are trying to build a platform.” What’s more, when Facebook has introduced new applications of their own, such as Video, it is using the same developer APIs, and showing up in the same listings as third party applications, rather than being given special status. Levchin notes that Facebook will compete, just as any other application developer would, to be the best at what it does. For example, Facebook did launch multimedia attachments to its Wall application after Slide introduced an application with that feature. The strongest argument for Facebook’s platform neutrality is one mentioned by neither Partovi nor Levchin: As long as Facebook’s competition is primarily with other social network platforms, its commitment to open the platform to commercial activity by thirdparty developers remains one of its strongest business advantages. As was the case with Microsoft, competition with application vendors and the hollowing out of the developer ecosystem didn’t happen until the platform itself became dominant. In short, the specter of platform competing with application remains, but for now, it appears a distant future threat. Rank Application Supplier Categories Review Count Active Users PCT Active Total Installs Rank Change 54 Fighters’ Club Atif Nazir Alerts; Gaming 9,182 86,178 5% 1,832,870 -6 55 Where I’ve Been Craig Ulliott Travel; Utility 4,303 85,977 2% 3,843,333 -10 56 Friend Block Robby Campano Just for Fun; Photo 209 83,087 12% 668,264 -3 57 Sketch Me Fendoo, Ltd Just for Fun; Photo 43 79,611 5% 1,603,825 26 58 My Room Social Emotions Just for Fun; Messaging 2,174 67,820 6% 1,163,655 -7 59 Rock Paper & Scissors Acubix SB Gaming; Just for Fun 62 67,632 10% 698,372 10 60 Pirates Brian Phillips Gaming; Just for Fun 9,394 65,780 4% 1,539,059 -6 61 Sports Bets kickflip Money; Sports 324 63,314 16% 406,570 39 62 ScrapBox (GlitterBox) ScrapBox Just for Fun; Messaging 340 63,210 6% 1,105,809 -12 63 WATER FIGHT! Matt Lorenzen Just for Fun 44 61,505 7% 886,097 23 64 My Garden Tim Saberi Just for Fun; Messaging 1,912 61,460 3% 2,048,675 -17 65 Twisted Christmas Jared Nickerson Gaming; Just for Fun 442 58,440 17% 352,587 444 66 Reputation FrozenBear Just for Fun; Utility 19 57,942 19% 306,068 770 67 Astrology Astrolis Dating; Fashion 1,249 56,844 5% 1,177,292 1 68 What’s Your Stripper Name? Sue Zann Toh Just for Fun 1,177 56,812 2% 2,840,607 -12 69 Poke Pro Adam (London) Just for Fun; Messaging 1,006 56,325 2% 2,645,800 -20 70 TV Show Trivia Mesmo.TV Gaming; Video 385 56,188 3% 1,978,223 -28 71 Magic 8 ball Slide no category 244 53,085 3% 1,769,519 -13 72 Pet Dragons Danny Olefsky Gaming; Just for Fun 2,289 53,053 26% 203,288 59 73 We’re Related FamilyLink Alerts; Just for Fun 423 50,894 10% 504,522 73 74 Hockey Pool Ben Nevile Gaming; Sports 548 50,866 16% 324,026 27 75 ATTACK! Eric Schiermeyer Gaming; Just for Fun 394 49,225 11% 448,399 131 76 GridView Michael Plasmeier Just for Fun; Photo 426 48,934 15% 329,204 1 77 How Sexy Is Your Name Calculator WishAFriend Just for Fun 108 48,760 6% 855,672 36 78 Horoscopes RockYou! Dating; Just for Fun 14,198 48,342 1% 4,834,285 -18 79 Jack O’Lantern Greg Thomson no category 805 47,887 5% 890,229 -24 80 Slideshows RockYou! Photo 553 45,966 2% 2,172,840 -13 81 PuzzleBee Robert Clarkson Gaming; Just for Fun 102 45,679 5% 943,950 -15 82 Socialmoth Paul McKellar Chat; Just for Fun 3,653 45,063 5% 990,045 -21 83 Traveler IQ Challenge TravelPod Just for Fun; Travel 823 45,015 4% 1,021,828 -13 84 Define Me Alan Christopher Thomas Just for Fun; Utility 128 43,932 3% 1,293,609 4 85 Big Photo Jerome Poichet Photo; Utility 304 43,920 5% 829,969 4 86 Holiday Gifts Trippert Chat; Messaging 140 43,881 7% 615,402 7 87 Friend Wheel Thomas Fletcher Just for Fun 335 43,367 5% 801,953 -3 88 Daily Babe Eric Kirse Dating; Photo 139 42,860 14% 303,191 23 89 My Music Qloud File Sharing; Music 18 41,833 4% 981,669 5 90 Human Pets Patrick Shyu Dating; Fashion 4,309 40,929 9% 441,754 8 21 : O’Reilly Radar Open Source Report 2007 Review Count Active Users PCT Active Total Installs Rank Change Fashion; Just for Fun 1,042 40,695 1% 4,069,500 -47 Gaming; Just for Fun 6,599 40,659 4% 1,102,479 -28 Rank Application Supplier Categories 91 HotLists HOTorNOT 92 Jedi vs Sith thewurld 93 MyGifts RockYou! Alerts; Just for Fun 42 39,159 7% 600,603 93 94 Hot Potato Hungry Machine LLC Gaming; Just for Fun 19 37,536 4% 887,783 -23 95 HoboWars HellBored Pty Ltd Gaming; Just for Fun 614 36,629 17% 212,463 58 96 KissMe Joel Darnauer Dating; Just for Fun 18 36,267 32% 108,433 96 97 Make A Baby Ben Savage Dating; Just for Fun 485 36,100 24% 156,717 161 98 Crushes itMayBe Media LLC Dating; Just for Fun 332 34,285 5% 708,150 -16 99 Countdown Calendar Paperade Alerts; Events 305 33,528 9% 384,630 -4 100 Tribün Okay Tuğ Sports 232 33,112 20% 175,256 100 101 iDescribe Yazeed Al Oyoun Just for Fun; Messaging 106 33,094 7% 474,243 31 102 Gingerbread Cookies Greg Thomson no category 134 32,752 26% 133,398 102 103 Blackjack Eric Schiermeyer Gaming; Just for Fun 104 32,692 5% 653,845 -7 104 Dogbook Poolhouse Just for Fun; Photo 1,490 31,854 4% 860,012 -28 105 Instant Messaging Digital Standard Chat; Mobile 78 31,446 2% 1,758,914 -27 106 True or False? Macho Pink Gaming; Just for Fun 44 31,396 6% 550,872 -3 107 My Purity Test Kavin Mickey Asavanant Dating; Just for Fun 108 Tetris Tournament fbgames no category 109 Tattoos kickflip Messaging 110 Vampires vs. Werewolves Austin AustinOne Gaming; Just for Fun 111 Pets James Lin Gaming; Just for Fun 8,867 112 Poppy Appeal Maria Lewis Education; Events 19 113 What Drug Are You? Pogostick! Education; Just for Fun 114 Food Fight! Discoball Studio Food and Drink; Just for Fun 115 Visual Bookshelf Hungry Machine LLC 116 FaceDouble Celebrity Look-alike FacéDouble 117 Emote 118 119 409 31,364 2% 1,757,007 -48 1,450 31,085 10% 302,414 2 326 30,331 2% 1,516,585 -30 2,821 29,914 4% 815,915 29 29,673 4% 741,835 -39 29,227 44% 52,490 112 23 29,167 37% 80,310 113 7,781 28,392 1% 2,839,257 -51 Education; Just for Fun 869 27,784 5% 609,873 -3 Fashion; Mobile 124 27,523 5% 536,635 5 RockYou! Alerts; Chat 256 26,249 2% 1,837,435 -27 Daily Horoscope DailyHoroscopes.net Dating; Just for Fun ScoreMe Mark Rose Just for Fun; Messaging 120 Starcraft Cows Patrick Shyu 121 Famous Quotes David Young 1,125 25,802 5% 566,797 -11 24 25,326 11% 240,501 79 Gaming; Just for Fun 1,217 25,219 37% 71,381 120 Education; Just for Fun 1,195 24,651 2% 1,285,107 -29 122 Crowd Cloud Congoo Just for Fun; Messaging 123 Free Condoms Alex Page Just for Fun 124 Love Ice Cream Angeline Low Food and Drink; Just for Fun 125 Counter Strike: Red Team Go Steven Bayhack Gaming; Just for Fun 126 My Sexy Halloween Costume Robert Clarkson 127 My Graveyard Tim Saberi 22 : O’Reilly Radar Open Source Report 2007 42 24,582 68% 40,905 1,026 316 24,495 7% 346,403 41 82 24,413 8% 301,340 3 2,478 23,921 10% 243,308 34 Fashion; Just for Fun 35 23,532 8% 287,810 126 Gaming; Just for Fun 203 23,507 5% 496,878 -47 Company profile: iLike iLike is a Seattle-based social music site, founded in 2002 by twin brothers Ali and Hadi Partovi to acquire the assets of Garageband.com. Investors include legendary Silicon Valley VC Vinod Khosla (who is also an investor in Slide), former AOL head Bob Pittman, and strategic investor Ticketmaster. iLike’s promise is to help people find music they like. It provides a platform for fans to share iTunes playlists with friends, get new music recommendations and free MP3s, and receive notifications when their favorite performers are playing nearby. For performers, iLike provides a platform to connect with fans. iLike achieved wide notice recently when it announced that it had acquired as many users in its first week on Facebook as it had acquired in nine months on the open Web. iLike is the fifth most popular application on Facebook. We caught up with Ali Partovi, co-founder and CEO of iLike, to ask about the impact of Facebook on his business. iLike.com already had millions of Web users before it launched its Facebook application, but, Partovi says, “Facebook is just a better place to do business.” iLike has artist pages on both iLike.com and on Facebook, but on Facebook, it’s easy to see which of your friends like the same artists, you can connect with them, or let them know you want to go to an upcoming concert. iLike was building social features like these for its Web site, but it’s far easier to do so on Facebook. What’s more, features are adopted more quickly. As a result, while the initial effort was to port the external iLike application to Facebook, new features are now developed on what Partovi refers to as Facebook’s “social network operating system,” and then ported back to iLike.com. “A better place to do business” refers to Facebook’s innovative business model for application developers. The pixel share revenue model lets iLike monetize its application on Facebook in exactly the same way it monetizes the iLike.com site, through advertising and 23 : O’Reilly Radar Open Source Report 2007 iLike on the Web iLike inside Facebook affiliate revenue (Amazon, iTunes, TicketMaster, etc.). However, Facebook provides additional demographic data, making Facebook users even more valuable to advertisers. Revenue literally doubled “overnight” when iLike launched its Facebook application. (iLike’s primary Web competitor, last.fm, was much slower to move to the Facebook platform and suffered for it.) Because Facebook provides additional demographic information, iLike’s customers on Facebook are potentially more valuable to iLike’s advertisers. In addition, Partovi notes, Facebook’s openness in allowing developers to access that user information helps build value for iLike. “Facebook shares information with us, but not the other way around,” Partovi notes. “This means that an application is able to build its own proprietary value, which they can exploit both on and off Facebook. That’s one more part of what makes Facebook attractive as a platform.” Rank Application Supplier Categories Review Count Active Users PCT Active Total Installs Rank Change 128 Talking Smileys Webfetti Just for Fun 130 23,163 3% 955,675 128 129 Chinese Zodiac Horoscope Pluckysoft Dating; Just for Fun 461 23,115 4% 653,587 -1 130 Fantasy Stock Exchange HedgeStop Business; Money 131 My Heritage Stuzo Just for Fun; Utility 661 23,106 13% 173,720 -21 1,130 23,104 3% 758,403 42 132 MindJolt Games MindJolt Gaming; Just for Fun 47 23,094 20% 116,382 118 133 Project Playlist Ram Prayaga Music 247 22,357 9% 256,875 -13 134 Premier League Picks Fantasy Moguls Gaming; Sports 128 22,297 10% 229,858 -26 135 Friend Grid Surojit Niyogi Just for Fun; Utility 199 22,205 4% 555,137 135 136 Trick-or-Treat Halloween Patrick Hankinson Events; Just for Fun 202 21,763 18% 119,716 496 137 Neighborhoods Point2 Technologies Classified; Events 880 21,566 4% 606,791 -8 138 AceBucks Buddy Media Just for Fun; Money 452 21,526 8% 259,769 312 139 Red Sox Nation Red Sox Nation Just for Fun; Sports 3,186 21,315 5% 413,736 -64 140 Chess Jamie Holding Gaming; Just for Fun 1,536 21,304 16% 134,255 20 141 Mardi Gras Hungry Machine LLC Events; Just for Fun 284 20,934 1% 2,093,428 -56 142 Send SMS - Text Messaging Josh Yudaken Messaging; Mobile 411 20,858 2% 1,164,200 -80 143 Osmanlı Pokesi Tolga Saygı Alerts; Messaging 461 20,542 12% 165,303 143 144 Addicted to Grey’s Anatomy Watercooler Chat; Video 27 20,198 7% 301,603 -19 145 Sex Appeal Pollection Dating; Just for Fun 74 19,730 4% 556,923 -31 146 Boombox Adam Mosseri File Sharing; Music 667 19,723 12% 168,639 -12 147 My Solar System Tim Saberi no category 244 19,666 2% 983,321 -66 148 My Personality David Stillwell Dating; Just for Fun 391 19,548 2% 1,363,378 -44 149 What Drink Are You? Pogostick! Food and Drink; Just for Fun 41 19,064 9% 203,380 296 150 Drink Recipes RockYou! Food and Drink; Just for Fun 151 Books iRead Social Wizards Education; Utility 152 Bible Verses RockYou! 153 Are You Normal? Kinzin 154 Chuck Norris RockYou! 155 I Wanna Get Leid Hungry Machine LLC 156 Lick My Frog 157 Doodle Friends 158 159 436 19,048 2% 1,047,735 -44 1,198 18,582 3% 570,261 -27 no category 570 18,092 3% 608,370 -29 Just for Fun 87 17,655 18% 101,117 350 Photo; Utility 1,817 17,521 4% 425,273 -32 Just for Fun 172 17,479 2% 823,876 -58 Dorian Lux Gaming; Just for Fun 105 17,379 14% 128,763 467 Angeline Low Messaging; Photo 48 17,267 20% 87,246 201 Know Me Well? Chris Sim Dating; Just for Fun 29 17,209 42% 40,229 158 Interview Eric Diep Education 423 17,142 2% 857,114 -21 160 South Park Character Creator Lindsey Magi Photo 381 16,731 3% 514,535 -15 161 Trick or Treat ArcaMax Gaming; Just for Fun 30 16,305 7% 229,001 161 162 Super Mario Game WEB CARTOONS, LLC Gaming; Just for Fun 21 16,080 25% 68,477 162 163 Music Videos RockYou! Music; Video 279 16,069 1% 1,606,900 -45 164 10 Second Interview Grant Goodale Just for Fun 315 16,034 5% 331,944 -7 165 Magnetic Words Adam (London) Just for Fun; Messaging 201 15,933 4% 402,362 5 24 : O’Reilly Radar Open Source Report 2007 Review Count Active Users PCT Active Total Installs Rank Change Gaming; Just for Fun 759 Gaming; Sports 231 15,870 1% 1,314,092 -50 15,866 10% 163,926 -37 Erman Güner Alerts; Politics Dank Apps Gaming; Just for Fun 1,512 15,846 5% 355,400 168 382 15,659 8% 209,130 -43 FB Addict - are you hooked on FB? Adam (London) Just for Fun; Utility 83 15,657 10% 158,865 170 171 Picnik Bitnik 172 LOLcats Brian Phillips Photo; Utility 630 15,636 6% 273,051 -15 Just for Fun; Photo 382 15,462 9% 180,861 -10 173 Chocolate Fantasy Social Wizards Food and Drink; Just for Fun 174 Countdown Brewster Jennings Web Services Just for Fun; Utility 62 15,441 3% 546,202 -58 101 15,418 9% 176,715 -22 175 Superlatives Eric Diep Education; Just for Fun 214 15,252 1% 1,525,285 -88 176 Profile Counter Robert Clarkson 177 Halayperest 41? 29! Just for Fun 15 14,995 5% 284,473 -57 Just for Fun 361 14,915 23% 69,902 177 178 Social Chat 179 Trick or Treat Eric Schiermeyer Chat; Just for Fun 234 14,784 3% 492,804 -36 Coolapps Just for Fun; Messaging 2 14,711 16% 93,971 179 180 181 Addicted to Scrubs Watercooler Chat; Video Catbook Poolhouse Just for Fun; Photo 182 Free Hug Rob Brennan Just for Fun; Messaging 183 Greek Family Tree Chapter Communications Just for Fun; Utility 184 Live It Up Esgut 185 Addicted to Friends Watercooler 186 More About Me Blue Semantics, LLC 187 Nuri Alço Kazim Etiksan 188 Addicted to The Simpsons 189 Blind Date 190 191 Rank Application Supplier Categories 166 Harry Potter Magic Spells Social Wizards 167 Pro Football Pick’em Pickspal 168 Terore Hayir 169 The Lotto 170 23 14,561 6% 243,952 -34 953 14,427 4% 390,732 -46 17 14,249 14% 108,910 364 426 14,117 7% 215,770 -7 Just for Fun; Messaging 58 14,091 2% 664,445 -93 Chat; Video 34 13,978 5% 281,138 -35 Just for Fun; Utility 40 13,919 4% 347,992 -28 Chat; Just for Fun 152 13,851 30% 40,214 187 Watercooler Just for Fun; Video 29 13,649 4% 385,871 -47 Betsy Kend Dating; Just for Fun 60 13,221 5% 273,378 -53 Movie Message Razz Just for Fun; Messaging 30 13,115 26% 45,691 783 Freebee Gifts freebee Just for Fun; Money 36 13,101 3% 384,229 5 192 Fantasy Football Sport Interactiva Just for Fun; Sports 848 12,926 7% 190,107 -37 193 Atatürk Köşesi Tolga Saygı Education; Events 136 12,617 23% 54,934 193 194 Double Dare Esgut Dating; Messaging 48 12,568 1% 1,256,857 -92 195 YouTube Video Box Craig Bovis File Sharing; Video 128 12,527 5% 231,667 -26 196 PurePlay Cash Poker PurePlay Gaming; Just for Fun 390 12,439 3% 382,078 -33 197 Circle of Trust Chainn no category 33 12,411 8% 164,824 197 198 Tarot Astrolis Gaming; Just for Fun 84 12,380 2% 619,007 -14 199 Games RockYou! Gaming; Just for Fun 210 12,288 2% 778,342 -66 200 Daily Hunk Maria Lewis Just for Fun; Photo 54 12,206 6% 194,893 -34 25 : O’Reilly Radar Open Source Report 2007 Company profile: Slide Slide was founded in 2004 by Max Levchin, a cofounder of Paypal. Investors include Mayfield Fund, Khosla Ventures, BlueRun Ventures, and Founders Fund. The Slide.com website was already the 22ndth most trafficked site on the Web, when the company launched on Facebook, according to Levchin. But Slide’s position as the top application developer on Facebook is no small addition to its business. Levchin estimates that as many as two-thirds of all Facebook’s 30 million plus users have installed at least one of Slide’s apps, which include Top Friends, Superpoke, and My Questions. Levchin notes that the number of installs is just the start of the game. What the company is focused on now is engagement, with the goal of having daily reach equal to monthly reach. “All of the smartest application developers are focused on this,” he notes. “It isn’t how many users you have. It’s engagement: from users, to usage.” Slide on the Web Slide’s strategy has been to launch many small applications, each providing a single feature. In addition to developing its own applications, Slide has acquired several, most notably Superpoke, an application developed by three college students, who have now joined the Slide team. Slide’s most popular application, Top Friends, the top application on Facebook, provides more control over which friends you interact with, and allows an “inner circle,” helping organize a broader circle of Facebook acquaintances than would be possible otherwise. Top Friends addresses the issue found on many social networks, of the social pressure to add as “friends” anyone you know. This degrades the performance of social networking features such as the Mini Feed, which helps you to keep up with your friends’ activities and whereabouts. However, we believe that even Top Friends doesn’t go far enough. Social networks are a kind of consumer relationship management system (the new “CRM”?), and as such will eventually need to provide management features for many overlapping networks. 26 : O’Reilly Radar Open Source Report 2007 Slide inside Facebook The Slide.com website now is positioned as a kind of image waystation between all of the social networks. From a single application, you can upload your images from MySpace, Facebook, Bebo, and Friendster, not to mention other image hosting sites like Flickr and Photobucket (now part of MySpace.) Right now, the image transfer is one way, into Slide, but it’s possible, as these sites provide richer APIs, that the site could become a central hub for image management across multiple sites. Conclusion Facebook’s open platform appears not just to be successful at attracting users and application developers, it also seems to be capturing buzz and mindshare. The Facebook numbers and stories are resonating with venture capitalists, start-ups (contemplating distribution options), established companies, and technology savvy folks based on discussions and industry events over the last few weeks. Does Facebook’s relatively open platform for applications help Facebook become the major player in the social network arena? The analysis isn’t deep enough to show causal relationships, but we do see concurrent relationships between the rise in users and the adoption of popular applications. People are joining Facebook, they are using the applications, and developers continue to add to the application pool. Viral network effects appear to drive application adoption. Now the question for Facebook is critical mass—and how open its platform will be. Already we’re seeing the company cracking down on developers who are digging too deeply into Facebook’s API. Providing a genuinely open application platform that helps developers make money would distinguish Facebook from the coming competition. ©2007 O’Reilly Media, Inc. O’Reilly logo is a registered trademark of O’Reilly Media, Inc. All other trademarks are the property of their respective owners. 70772