Attract the right people – Instagram

Recruit the right newcomers for your web 2.0 platform

Recruiting newcomers to your web 2.0 platform

When establishing a new web 2.0 platform it is important to consider who it is you want to recruit. When thinking about your target market there are a number of key design claims that should be followed in order to make adoption of your web 2.0 platform easy for new comers.

These design claims are;

1) Active Recruitment leads to a larger community of prospective members.

2) Word-of-mouth recruiting is substantially more powerful than impersonal advertising.

3) Recruiting new members from the social networks of current members increases the number of new members more than impersonal methods.

4) Making it easy for users to share content from a community site with their friends (e.g., via easy email, Twitter, Facebook, and similar links) will increase the visibility of the community among the users’ friends and thereby increase the likelihood of them joining.

5) Identifying the most influential members of a community and encouraging them to recruit others in their social networks is more effective than soliciting referrals from members at random.

6) Impersonal advertising can effectively increase the number of people joining an online community, especially among potential members with little prior knowledge of the community.

7) Recruiting materials that present reasons to join and endorsements by credible sources and sites attract people who are actively searching for and evaluating communities.

8) Recruiting materials that present attractive surface features and endorsements by celebrities attract people who are casually assessing communities.

9) Emphasizing the number of people already participating in a community motivates more people to join than does emphasizing the community need.

10) Placing the name of a community in front of people will often activate the familiarity heuristic and their liking of the community and thus their willingness to try it.

The Celebrity power of Instagram

Instagram is a photo sharing website that allows people to follow their friends, family, companies and even celebrities everywhere they go through pictures. A picture can tell 1000 words and Instgram is telling millions of users around the world what is going on. Users have the ability to share the pictures they have taken on a web based platform which can be shared across other social platforms.

Source: http://pandodaily.files.wordpress.com/2014/03/ellen_selfie.jpg?w=900&h=530

One of the success stories behind Instagram is the ability attract ‘the right people’: celebrities!

The ability to attract Justin Bieber (16 million followers), Kim Kardashian (14.5 Million followers), Beyonce (12.4 Million followers), Cristiano Ronaldo (5 Million followers) and Barack Obama is going to bring people to your platform. Instagram is a great way for fans to reach out and feel part of their favorite celebrities life. The best thing for them; they can enjoy a coffee without the crowds and the crowds. The most famous photo of all time has to be Ellen DeGeneres photo which smashed the record on twitter. Ellen decided to take a selfie with some of the top celebrities on the planet, the picture was retweeted 3.5 Million times and favorited just over 2 million times. This smashed the record previously held by President Obama.

Lets look at the 3 main design claims and how Instagram has implemented these design claims

 

1) Active Recruitment leads to a larger community of prospective members.

While the creators of instagram may not have set out seeking celebrity power to push their product forward they certainly latched on to that niche market. They were able to gain access to enough celebrities to begin the process of the network effect. This meant that when celebrities jumped on board they often brought their large and diverse followers with them.

2) Word-of-mouth recruiting is substantially more powerful than impersonal advertising.

Word of mouth was implemented a number of ways for instagram as adopting celebrities saw the value added from the platform and shared it with their friends. ultimately that led to an ‘arms’ race where celebrities would fight for the top place on the platform by getting the most followers. It also had a bottom up approach as fans told their friend “hey check this out, Beyonce is on instagram”. Recruiting in this way makes it easier to adopt for new users and helps them to overlook any initial flaws and be less critical to the learning curve. This is mainly due to the fact that new users see the value that is already in place within the platform. They see that their friends, and pop stars are there and no matter how buggy the platform is, or how long it takes to learn “I just want it”.

This brings me to the next design claim.

3) Emphasizing the number of people already participating in a community motivates more people to join than does emphasizing the community need.

Instagram has not always been the market player it currently is, but now that it has harness the network effect, overcome the inflection point and adapted to users needs Instagram has indeed become one of the largest social platform on the web. They have continued to recruit due to the celebrity power, but also because of the OTHER people who are on the platform. People see their friends on instagram and want to get involved. Their friends share images that have been modified through the instagram app shared across other social platforms and want to do the same. It has become a large part of day to day life as people share their life through pictures, these pictures are not just photos but stories of their life.

 

 

 

 

 

 

How Dropbox Scaled From 2,000 to 200 Million Users

Lightweight Models & cost-effective scaleability 

Hi Blogesphere!

 

This week we will be looking at the importance of cost-effective scaleability in a web 2.0 platform. As always we will be looking at O’Rieleys patters and how they apply to a specific example. Lets take a look at O’Rielys patterns

(1) Scale with demand

(2) Syndicate business models

(3) Outsource whenever practical and possible

(4) Provide outsource infrastructure, function, and expertise

These key design patterns assist a web 2.0 platform to have scalability and flexibility and also increase cost-efficiency. We will be focusing on the key design patters 1 & 4.

Scale with demand

Cloud technology has given web 2.0 platforms the ability to scale up their operations, bandwidth and storage according to the number of users on the system. This level flexibility has allowed web 2.0 platforms to focus on more important aspects such as functionality, features, user added value and development of their platform. This also means that these platforms can be delivered to end users with much more reliability, accessibility and with very little if any downtime. This becomes more important as more users begin using the platform and the network effect starts to kick in.

With new start ups its is normal to experience slow but gradual growth in the early stages. But in every successful web 2.0 platform there comes a time when an inflection point occurs and the platform experiences exponential growth. That is the main reason why a  web 2.0 platform should consider designing (from the beginning) a scaleable system that can cope with the exponential growth that may occur latter in its life.

The Network Effect

Due to the nature of the Network effect, there can only be one dominate player in the web 2.0 space. We can see this in Facebooks takeover of mySpace, and the failed attempt by Google to establish a viable alternative. The network effect simply means that as more and more people use the platform it gets better and better. However when we add the element of time we see that these platforms and the ‘time we take making them better’ are actually mutually exclusive. Time spent of facebook is time not spent on mySpace or Google +. This means the more time we spend on facebook the better it comes to know the users, the way they work and the direction they should go in the future. Ultimately this means that every minute you spend on facebook the more competitive it gets and the gap is widened between it and its competitors.

With that in mind I want you to consider what kind of hold facebook has on the market;

Google + 

Active monthly users: 300 million

Unique mobile users: 20 million

Average MONTHLY time spent on Google +: 7 mins

Number of Adults that visited Google+ > 1 per month = 22%

Facebook

Active monthly users: 1.31 Billion

Unique mobile users: 680 million

Total number of mins spent of Facebook each month: 640bn

Which = 488 mins PER USER!!!  = 8hrs a month per USER

% of Facebook users who log on any given day = 48%

 

Now lets look at the power of the network effect again, if Facebook has twice as many active monthly users as Google +  and those users are spending 7 hours and 53 mins on the platform longer each month then the average Google + user how much closer to the users needs are Facebook than Google +.  it is something to consider.

Inflection Point

It is easy to see with established companies but how did they gain this dominate position in the market. Well this has come about because of something called the inflection or ‘Tipping point’. It is the point at which the platform receives viral adoption and begins to experience exponential growth.  This inflection point is the difference between Facebook and Google +, Facebook continued up the green line and Google + continued down the red line. Remember that in a web 2.0 market there can only be one dominate player. The only way to survive as a dominate player to is listen to your users, adapt and change according to their needs and how they use the system or establish a SIGNIFICANT point of difference. Whereby you can enter a separate niche of the market.

Source: Forbes.com

Now that we have looked at the theory behind scalebility in web 2.0 platforms lets look at an example.

Dropbox

Dropbox scaled from a single bedroom operation to over 175 million monthly users. What contributing factors do they believe helped them to achieve this success?

1. They Used Python

99% of their code was python, they used it on their server backend; desktop client website , website controller logic, API backend and analytics. The benefits from doing this was it was easy to learn, read, write an teach new people to the business. Some of the drawbacks include memory usage, memory fragmentation issues and coding existing in a mixed environment.

While it may seem like these drawbacks are significant the adaptability of Python gave them the ability to transition from an in-house storage model to a cloud storage model which allowed access to large scale storage which has led to exponential growth in the number of users.

2. Just Work

‘Just work’ refers to the ability for a platform to work across a number of OS systems.  Python gave dropbox the ability to iterate fast through the various errors they experienced across the diverse range of platforms they support.

3. Release Early

Code something in a day, python makes that easy. Because of the ease of use of python dropbox was able to adapt to customers needs and make a dynamic platform that was always changing, moving and becoming better. This has been shown recently with its ability to save screen shots straight to the platform. Users had a need and dropbox was quick to respond. This meant that many users needs were identified and implemented.  This benefit was also magnified by the network effect and as the user base increased dropbox was able to gather more information and adapt their system even better. This occurs until dropbox achieved the greatest portion of market share and has reached and leveraged the reflection point.

4. Use C for Inner Loops

Using C for inner loops allows CPU processing power to be optimised. This feature was very helpful for mobile adopters as they had significantly reduced processing power than desktop users. It not only reduces the power needed to complete the process but also reduces the time it takes to process.

 

 

Scale with demand

¨Era driven by network effects

¨Nearly every aspect of your business should be designed to start small and scale with demand: technology model, revenue model, and the human resources model

¨Critical mass / Viral adoption

¤we see gradual early growth with a potential inflection point from which exponential growth kicks in

¨On the supply side

¤New lower cost economics allow for greater flexibility in scaling the technology, the marketing, and staff

¨Digg started with $2,000, a single hosted server ($99 per-month), free open source software, and an outsourced $10 per-hour developer from Elance.

¨Grew to serving more than 100 million page views a day and more than 90 servers, but had a staff size of only 15

 

 

References

http://mashable.com/2013/07/30/dropbox-scaling/

http://eranki.tumblr.com/post/27076431887/scaling-lessons-learned-at-dropbox-part-1

http://www.infoq.com/news/2013/08/scaling_dropbox

http://eranki.tumblr.com/post/27076431887/scaling-lessons-learned-at-dropbox-part-1

Leveraging the long tail

Hello Blogosphere!

 

This weeks blog post will be on leveraging the long tail. Again we will be analysing a specific web 2.0 platform against the best practices mentioned in O’Rielieys 8 principals of a web 2.0 platform. One of the driving factors behind leveraging the long tail is the digitalisation of products. Now that books, movies and games are available in digital form the game has significantly changed. Especially for those who rely solely on the distribution of these digital products.

The Book Store

Source: Art and Cetera 12 May 2014

In the traditional brick and mortar book store a store manager must assess the store storage space, shelf space and window space available to the store location. They must work out what products are selling the most and give them ‘prime property’ within the store. If items are not selling it there must be an opportunity cost paid as more popular or even classic books or new releases could use that same space more effectively to generate an increased rate asset turnover. The basic economic theory stands; “finite resources are available.”

With the digitization of eBooks, online retailers simply do not have this problem. How much storage space does amazon have for all the eBooks they sell….. As many Hard Drives as they need. While amazon does still have limited prime property (Home Page and Advertising Banners) they have seemingly unlimited shelf space. Any book they have in their database can be searched, refined and grouped by category, author or year. With an online store there is no limit to shelf space, the only restriction is whether they have it available in their database.

This significant shift has brought about a great change in the way books and other products are sold and distributed. This change has also impacted the popularity of older books. After looking at the top 100 book sales on Amazon.com it was interesting to see that 6 of the top 100 books on Amazon were actually published BEFORE the year 2000.

#5 Oh the places you’ll go#43 A very hungry Caterpillar#46 Love you forever#53 win friends and influence people#56 The going to bed book & #84 The Four Agreements

Retrieved from: Amazon.com 8 May 2014 (10am)

While 6% representation may not seem like a significant amount it is important to realise that Amazon a book distributor gets significant revenues from these titles, which are over 15 years old. There is not a brick and mortar store around that could afford to stock all current top sellers as well as these classics in the same store. Applying business logic would you chose to stock a children’s book that is over 15 years old? When that same shelf space could be dedicated to a new top seller. Amazon does and can due to the digitalisation of its shelf space.

The 5th best selling book (on the 8th of May) was “Oh the places you’ll go” by Dr Seuss. This book is aimed at children between 4-8, it is 11 inches wide by 8 inches tall and was published on the 22 January 1990. This book is essentially 24 years old, yet it ranks in the top five for book sales on Amazon.

Look at the example of the book store, lets look now at another industry; The gaming industry. This will demonstrate this paradigm shift even more.

 

Steam – The Digital Distributor 

Source: Steam Community

Steam is a digital distributor, digital rights management, multiplayer and communications platform developed by Valve Corporation. It is used to distribute games and related media online, from small small independent developers to larger software houses. It was

Forces behind the the long-tail

There are three key forces behind leveraging the long tail; Accessibility, Reducing the Cost of consumption and Connecting Supply and Demand. These three key factors have a direct effect on how the long tail will look, and how effective it can be leveraged to make profit.

 

Source: http://www.longtail.com/about.html

Accessibility

The level of Accessibility that steam has is directly proportionate to the number of titles they have available in their database. This title range is represented in the length of the tail, the more titles the longer the tail.  To put it in perspective Steam has over 2,000 titles in its database, while its nearest competitor Origin only has around 500. This means that Steams tail is over 4 times longer than origins. This means that they have a wider range of titles, which encompass new, old, popular and indie titles. This means that the users of steam have access to more titles, and often have larger libraries than those on origin.

Reducing the Cost of Consumption

The cost of consumption is related to the sales of older titles or the thickness of the tail. When you have over 2,000 titles in your library it becomes a numbers game. If we are choosing to store this title in our database how can be get sales of this unit. Steam is well known for its outrageous discount rates that it offers on its products.  This is perfectly demonstrated on its “Top Sellers” list; 4 out of the best selling titles are discounted over 60% off (Retrieved 12 May 2014 12.33pm).

Where Steam really excels is often their top selling items are also the items on sale, this means that steam pricing strategies often dictate the sales of games. The pricing strategy that is often employed by steam is to discount “pacakges” these are games that have the sequels and prequels or created by the same developer. Doing this not only allows customers to get value for money but also allows steam to sell titles that are old and may not be getting the desired sales volume. It is also a virtuous cycle, as more users buy more old games steam can at some point later down the road offer bigger discounts on that title.

Ok so these titles are being sold, but are they being played. Currently there are 4,030,533 users logged into steam, there are  886,571 users playing games (retrieved 12 May 2014 12.42pm). The following list demonstrates just how users are still playing games as far back as 2006 right now;

 Dota 2  – 275,003 current players (CP), released 2013

Counter-Strike: Global Offensive – 48,401 CP, released 2012

Team Fortress 2 – 41,469 CP, released 2007

Civilization V – 34,372 CP, released 2010

Dark Souls II – 25,633 CP, released 2014

 Garry’s Mod – 24,122 Cp, released 2006

Elders Scrolls V: Skyrim – 21,571 CP, released  2011

Football Manager 2014 – 16,710 CP, released 2014

Terraria – 15,721 CP, released 2011

DayZ– 11,855 CP, released 2013

Source: Steampowered.com retrieved 12 May 2014 1:02pm

New forms of connecting supply and demand

Above we discussed how discounting was used to bring life to older products to broaden the long tail, but steam has also adopted a number of other methods when it comes to leveraging the long tail. These include; package sales, paid beta, DLC packages and developer packages, all of which play a significant part in leveraging the long tail.

Steam while not initially a web 2.0 platform has certainly taken on many of the characteristics that have made web 2.0 platforms successful. It has connected gamers in the community and allowed them to share content between each other. It has been a way to connect friends, make friends and gather groups of people together that have common interests.

Steam has also given new life to classic games that  were dead as well as indie developers a chance to get their product out there. I believe it has successfully leveraged the long tail.

 

Tell me what you think in the comments below!

 

Software Above the Level of a Single Device

Hi blogosphere!

One of Tim O’Reilly 8 patterns of a web 2.0 platform is the importance of having software above the level of a single device. This topic will be the central focus of this weeks post. We will be looking at the technological drivers behind this principle as well as the best practices that should be considered when developing a web 2.0 platform. Finally we will be analysing an application which has successful demonstrated what it means to have a software application above the level of a single device.

Device landscape

 

Firstly what does the phrase “software above the level of a single device mean”? It means that developers of a web 2.0 platform should consider building an application which is not restricted to a single device such as a Personal Computer (PC). Instead a web 2.0 platform should be accessible across a variety of devices; from PCs, tablets, mobile phones and even wearables. Facebook is one of the most successful web 2.0 platforms ever developed, imagine if it was only available on desktop computers, the adoption rate would certainly would not be as high or rapid. Being accessible across a number of devices in the early years gave Facebook a distinct advantage over its biggest competitor – myspace.

The technical driver behind software above the level of a single device was cloud computing. Cloud computing allowed developers the freedom to develop applications which stored the data in a central location and could be accessed by a variety of devices. With the emergence of mobility as a key technological trend developers had an established platforms they could launch their applications from. Cloud computing also allowed most of the processing and storage to occur on the cloud. This meant that even heavy recourse applications could be used on a mobile device because on a small percentage of the processes and storage was done on the mobile device.

When establishing a web 2.0 platform there are a number of best practices that should be followed in order to realise the potential of the platform. When it comes to software above the level of a single device there are six best practices that should be followed in order to achieve the highest results. The following section will list, describe and apply three principles to Skype. skype Design from the start to share data across devices, services and networks. Skype in the beginning used peer-to-peer technology to broadcast voice calls around the world, as they offered a seemingly free service to users many people saw it as an opportunity to make calls to friends, and family for free. This was also adopted heavily in rural or country areas who were able to benefit from bridging the geographical gap between their residence and the nearest city centers. Because of this technological foundation it has allowed Skype to be adaptable and flexible to developing trends.

Think location aware – find opportunities for presence enabled and location aware social interaction

Think location aware is a principal of developing social interactions despite geographical location. Skype would be considered a benchmark to other web 2.0 platforms on this principle. They have embraced the rural market, delivered a service that penetrates country boarded and spans the globe. Skype enables users to nurture relationships with friends and family like never before. It has also developed a platform for multinational companies to stay in contact with every location they work in. It is the rural market however that has been an area that has greatest benefited from Skype as it has brought small country towns closer to the city centers. One example of this is the development of telemedicine. This is where patients who live a great distance from down are able to visit with their doctor to discuss any problems they may be facing. To a rural community this has added to the social interaction that each patient had with their doctors as they are able to visit more regularly and has reduced the time taken to talk with medical staff. Before telemedicine a visit to the doctor was a whole day event, now it is just the time of the appointment. Through this development patients also have access to specialist who may live thousands of kilometers away. Extend 2.0 to device Skpye has transcended the all devices that technological users have embraced. They have developed their applications for gaming consoles, smart TVs, smartphones, tablets and even fridges. While doing this they have also broadened the functionality of their application by adding social media integration, document collaboration and teleconferencing. Just looking at the integration of Skype into the Xbox One can demonstrate the ability to seamlessly integrate Skype has been on the fore front of technological trends as they have build applications for smartphones, tablets, wearables, TVs, gaming consoles and even fridges.

 

Welcome

Welcome to my Blog about the power of Web 2.0!

This started as an assignment for INB 347 but I hope it will flourish into a place where I can share the power and influence of Web 2.0 and how businesses can financially benefit from it. In the subsequent weeks and months I will be share with you (my avid followers) the things that I have learnt in class as well as other beneficial information that I believe will be of most use to you. I will be posting links to articles, videos, sites and even other blogs that I believe will ad the greatest value. As this blog is about web 2.0 I encourage you to share your thoughts, offer suggestions and provide references that may be able to help me in this en devour. May this be a place where everyone’s views can be heard.

Thank you for spending the time to find this blog.

Kind Regards

Benjamin John Laughren

Author