Insider info on Russian Social Networks Artur Sakalis Head of API department ODNOKLASSNIKI.ru

2 Industry overview Total industry audience users Annual growth revenue in 2010 – 70M USD (+230% comparing to previous year) Average monthly ARPU– 0.1 USD

ODNOKLASSNIKI.ru 3 28% МAU– 51% DAU– 30% Paying audience ~ 2% 37% 49% 51%

Platform Compare 4 Social games distribution network Social games distribution platform mix Social games platform

Challenge #1: Everybody is everything More than 200 players (~80% single title companies) About 8 publishers (2 of them really are) 2-3 players develop own gaming social network Unwillingness to choose one-two business development directions 5

Opportunity #1: Choose your role Developer Publisher Traffic manager Platform Distributor Localizer 6

Challenge #2: Most popular genres are overcrowded You will not be the first one You will need traffic to succeed 7

Opportunity #2: Rise above the crowd Uniqueness stand above the crowd Few unique hit games New games can win 8

Challenge #3: You have been cloned In some cases even high quality clones 9

Opportunity #3: You have additional stats Your cloners made mistakes you will not repeat Western developers know how to survive hazard Facebook environment All viral methods are similar to Facebook Some social networks has new entry points 10

Opportunity #4: You know how to administrate Generally all the same Different time zones Reaction time 11

But you don’t know everything Some functions will work in Russia, but not on FB Some functions will work on FB… and in Russia Culture differences (music, history, traditions, folklore) Some monetization maneuvers are risky 12

Cultural difference 13

Cultural difference 14

What will happen soon? Market roles will crystallize New hits will appear Publisher’s value will become more significant New-old genres will appear More games from Western developers Facebook will grow 15

Why Facebook position is not strong enough yet? Facebook penetration from top to bottom Isolated national environment Russia has own strong local content generators and sharing mechanisms Not yet reached critical mass for rapid growth 16

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