The Social Internet

Lou Kerner, The Social Internet Fund, April, 2012, @loukerner

The Innovator’s Delimma

Source: “The Innovators Dilemma”

Emergence of The Siloed Internet

Started: September 1993(“Eternal September” –

AOL Connected to The Internet)

1995Amazon Launched

Walmart Entered It’s 50th State

2001Walmart.com launched

Sources: Wikipedia, Walmart

Emergence of The Social Internet

Emergence of The Social Internet

Started: September 2006

Facebook Introduced the Newsfeed

Massive User Rebellion

May 2007

Facebook Opens It’s API

Sources: Wikipedia

Attributes of a Social Internet Company

• They are BORN Social• They are “intertwined” with the leading

Social Internet companies• They are authentic, enabling the customer

to “own” the brand• They enable the customer to create,

curate, & comment on content/commerce• They leverage real-time data to iterate in

real-time • “Platforms” will create the most value

Per Capita GDP Correlates to Social Network Penetration

Source: The Pew Center, Jan. 2012

The New Media Paradigm

The Meteoric Rise of CityVille

Source: AppData, Dec 2010-Jan 2011

Largest Brand Owned Audiences

Source: FanPageList, April 2012

Largest Celebrity Owned Audiences

Source: FanpageList, April 2012

People Rule on The Social Internet

Lebron/Dwayne NBA Miami Heat0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.015.0

12.5

5.3

Facebook Fans

Source: FanpageList, April 2012

Facebook Dominates (Almost) Everywhere

Source: ComScore, Jan. 2012

Facebook Tracking to 1 Billion Users

Source: iCrossing, Jan. 2012

Facebook Leads In Engagement Too

Facebook is Dominating Time Spent

Zuckerberg’s Law

Facebook’s Frictionless SharingIntroduced at f8 Sept., 2011

Immediate Impact of Frictionless Sharing on Spotify

MAUs

Source: Appdata, Sept. 2011

Long Term Impact of Frictionless Sharing on Spotify MAU’s

Many Sites Are Benefitting From Frictionless Sharing

Facebook is NOT an Echo Chamber

Source: Etyan Bakshy, Facebook Data Scientist, Jan. 2012

eCommerce Sites Born of the Siloed Internet

Source: Internet Retailer, Top 25 eCommerce Sites, 2011

The Purchase Funnel - Consensus

Stores on Facebook Have Had Limited Success

The Purchase Funnel - Reality

eCommerce Sites Born Social

Source: Alexa, April 2012

Fab Threadless ModCloth Etsy0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

28.1%

18.5%17.4%

13.3%

24.1%

20.5%

24.6%

22.4%

Facebook

Google

Upstream Traffic

Pinterest Is Quickly Becoming Part of the Social Internet Fabric

Source: Alexa, April 2012

Fab Threadless ModCloth Etsy0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

28.1%

18.5%17.4%

13.3%

24.1%

20.5%

24.6%

22.4%

4.3%

1.7%

10.8%

7.1%

Facebook

Google

Pinterest

Upstream Traffic

Other Social Networks Are Also Soaring

• YouTube• Google+• SlideShare.net• LinkedIn• Tumblr• Foursquare

What Is Twitter?

Twitter Is Growing Rapidly

Source: Twitter, Wikipedia

Twitter By Country

Source: Addthis Data

Top All Time TPS Events

Source: Twitter, March 2012

Weibo vs. Twitter

Source: Tweibo, FanPageList, March 2012

Corporate Usage is Pervasive & Twitter Leads

The Customer Owns The Brand

Add Value = Link to Outside Sources

Tumblr – “Building The Perfect Platform For Self Expression”

Source: Tumblr, Jan, 2012

Tumblr – Creative Freedom

Badoo – Meet People……NOW

Source: Badoo, March, 2012

Google+ - 115mm “Members”

Source: Leon Halland,

Google+ - Countries Ranked By Penetration

Source: CircleCount, March 2012

Google+ - Limited Engagement

Source: Social Statistics , March, 2012

Google+ - Brands Just Starting To Get Traction

Top 10 Google+ Brands Circled - Growing Rapidly off Small Bases

Source: Simply Measured , Feb., 2012

Machinima – Social Television

Source: Machinima, comScore

Pinterest – A Virtual Pinboard

Pinterest – The Fastest Growing Site Ever

Source: Alexa, April, 2012

Pinterest Exhibits Remarkable Stickiness

Fab.com = Social Commerce

Fab.com = 2011 Best Pivot(s)

• 4/10 -Fubilis launches a gay Facebook • 1/11 - more like a gay Yelp• 2/11 - more like a gay Groupon• The Big Pivot – 3 Criteria

– 1) Passion about it, 2) Can be the best in the world at it, 3) Can be a $100mm+ business

– Flash site sale synonymous with DESIGN– Super use of social…. In their DNA

Source: Jason Goldberg, Fab.com CEO

Fab.com = Accelerating Growth

Social Network Usage Is Global

Source: ComsScore, Jan. 2012

Social Network Usage Is Increasingly Mobile

Source: Pandora S-1, Twitter, Facebook, KPCB

Tumblr Traffic By Device

Source: Tumblr, Jan, 2012

Mobile Means Mobile Apps

Foursquare Explore

Source: Forusquare, Jan. 2012

Android Is The Dominant Mobile OS

Big Data is Coming

”We create more data every two days, then from the beginning of time thru 2003”. Eric Schmidt, 2010

Management of unstructured data is the new frontier, with significant wealth creation for the

winners  

Palantir and Cloudera are among the early leaders in the race to monetize the need for unstrucutred

data analysis 

Lou Kerner

@loukerner

loukerner@gmail.comDisclosure: Lou Kerner owns shares of Facebook and Klout