Surprise: Facebook apps may help grow home sites

Slide, Rockyou and HotorNot, three companies with the largest number of users on Facebook, are showing continued traffic growth on their own sites.

quant2.jpgThe finding, reported by Quantcast, a service that tracks traffic trends for Web sites, suggests that sites failing to embrace Facebook may be missing out on potential growth.

For some, this is also encouraging evidence that Facebook’s platform, launched in May, isn’t necessarily weening users entirely off their own Web sites. While Facebook allows third-party sites to advertise on their applications on Facebook, many sites prefer to maintain control over their users’ experience, and are hesitant to trust Facebook’s promise that it will remain hands-off. Despite the pledge by Facebook’s executives that sites are free to make money on their apps within Facebook, its terms of service says Facebook can change its policy at any time.

Slide, Rockyou and HotorNot have their own Web sites, and have also launched multiple Facebook applications. Some boast millions of users, foremost among them Slide’s Top Friends, which is the most popular Facebook application, nearing ten million users on Facebook. Top Friends lets you display your favorite Facebook friends in a box on your Facebook profile.

quantcast1.jpg These graphs show the rate of growth that each company experienced to its .com site since . We’ve been hearing the same thing from developers of other successful Facebook applications who also have freestanding sites. Example: a Facebook application for anonymous gossip, Socialmoth has been driving traffic to its previously launched Socialmoth.com.

However, Slide also tells us that they’ve been seeing double-digit growth to Slide.com for months — that site whent from 117 million unique viewers in April to 129 million in May; Facebook’s platform didn’t launch until late May. Also, HotorNot.com has been undergoing some major changes over the past couple of months.

Each of these companies make money by running ads on their freestanding sites. They are also already experimenting with new ways to monetize both in and out of Facebook.

RockYou, for example, has been running ads in Facebook, within its casual gaming application “Games.” Slide, meanwhile is working on big plans to use the data it collects about what its users like in order to develop better tools for predicting other things they will like.

Then again, some sites don’t seem to care. iLike is another company with both leading Facebook apps and a quality, free-standing site. Its chief executive, Ali Partovi, says he doesn’t seek to drive traffic to iLike.com from Facebook. That’s because ads in Facebook may in fact be more targeted and thus more lucrative. Facebook pages include basic personal information on people, such as age, location, gender. To this end, iLike has made changes to its free-standing site that it knows will slow growth in order to boost growth on Facebook.

This data also justifies these companies’ land-grab approach to Facebook. Each has been launching as many apps as possible, cross-selling their users internally between their own applications to drive up overall growth, and buying other applications or hiring those applications’ developers into their companies.

It also may add more fuel to the fire driving many developers to build applications within Facebook. (For a more heart-on-sleeve explanation of how it makes developers feel, see this post.)

So what’s happening on other sites that these companies are pulling in users from, such as Myspace? RockYou’s traffic throughout all other social networks has been holding steady “in comparison to Facebook where it has been exploding,” company chief executive Lance Tokuda told us.

Where does this leave Facebook? Are these companies driving additional traffic to Facebook through their sites and their apps? Facebook tells us this is may be one of many factors. It is now at 32 million active users, and still doubling every six months — it attributes its recent growth not only to the platform launch, but becoming more of a hit with international audiences (London recently overtook Toronto as the city with the most Facebook users). It has also been introducing ways to more easily import contacts from other sites. For example, its AOL contact list importer, which was introduced only earlier this month.

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About the Author, Eric Eldon

Eric currently covers digital media technology and business news, especially what's happening on social networks and their platforms. He also writes and edits stories about venture capital, and lots of other stuff, too. He started at VentureBeat in the spring of 2007, half a year or so after Matt Marshall left his reporting job at the San Jose Mercury News to found the site. Eric previously cofounded a startup called Writewith, that was building editorial software for newspapers and other groups of writers. The startup didn't work out, but he learned a lot.

  • that's me... heart on sleeve, feet in mouth.

    (thx eric)
  • If anyone needs help building a facebook app/getting a facebook strategy get in touch. We're based in San Francisco.

    www.lightboxit.com
  • i think these are revealing stats / good indicators, however i would also say that top-line app install #'s & unique visitor #'s are probably not the best ways to measure overall business impact.

    in particular, while you may be able to convert Facebook users over to site visitors, in order to justify the effort of doing customer acquisition via FB app development, you probably want to measure user engagement at some deeper level conversion where it has obvious benefit to your core business features/services & monetization.

    i'm pretty sure this is the case for all of the companies noted, however it might not be clear from just top-line UV's that the converted traffic is beneficial.

    for more thoughts on this, see recent post:
    User Engagement is a Breadth, not a Depth, Metric
    http://500hats.typepad.com/500blogs/2007/07/use...

    - dave mcclure
  • Dave
  • we put a little app up, we have yet to enable any so called "viral" aspects to it ad still we get a pretty steady stream of new users each day ---based on this we have epanded our efforts and prepared more easy viral features and expect to unleash them soon, clearly the app approach is a nice way to get the word out to those interested!!! pk
  • Dave, iLike and Flixster both built relatively standalone apps, with not much need to go back to home base, or to sync with the destination site accounts. The relative destination site growth data between sites that take the "teaser" approach and sites that build standalone apps is a fascinating subject. Has anybody answered the question of what an app publisher gets out of the deal if they are not getting destination site users?
  • @Lawrence. I think that's the question a lot of people are asking. Problem is, this whole thing has only been going for two months or so -- everyone is still watching the data roll in.

    One thing I haven't heard about: people making a lot of money, per se, directly because of their apps.
  • getting data into Facebook.com is easy.
    The hard part is getting your data OUT of Facebook.com

    They don't allow apps which export data other than very limited amounts...eg: they allow an app which lets you export your friends birthdays so you can add the dates to your external program.

    But at this stage the only way to get the data which you've spent so much time building up OUT of Facebook.com is to go manually to each page and copy and paste...

    Well, except for the email address that is, because that is an image, so you can't even copy and paste.

    On that field you have to manually retype it.

    A couple of parties have developed apps to export data - the longest I have heard of any of them being able to stay in Facebook was 24 hours.
  • Hello! Good Site! Thanks you! okkieztpicx
  • Ian from www.thenewsroom.com
    These guys are trying that strategy...http://apps.facebook.com/thenewsroom
  • Grow Box Hydroponics Guru
    I was surfing the internet Monday afternoon during my break, and found your blog by searching MSN for grow a box. This is a topic I have great interest in, and follow it closely. I liked your insight on Surprise: Facebook apps may help grow home sites very much, but I don't quite aggree with everything you said. However it is still good reading, and makes some good points. Keep up the good work...
  • I live in Toronto and I agree...almost everyone (if not everyone) uses facebook.
  • jagannath behera
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  • jeremiah99
    Yes everyone uses Facebook and good applications i have found here..thanx!

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