Week 7 post - Activating network effects

INTRODUCTION

Currently it is key to activate network effects as part of modern mass communication. That is what creates the core value to the platform and it’s win-win for both users and developers. To around your interest in this hot topic, I choose Blued in particular to describe the concept in detail. In addition, some famous counterparts like Jackd and Grindr will be discussed to compare with each other to help you form a better understanding.

You may not have known that Blued, as the top one gay social app in China(sorry for introducing a local platform once again) with an increasingly growing user base of over 15 million gays or would-be, has already been the most influential platform in this field. Noticing that mobile users in the next five years will keep growing at a higher speed, this figure is likely to double by 2020. ‘People are more in the closet and less open about it, but thebeautiful thing about smartphone is that it’s a private device.’ said the co-founder of Blued David Chao. It’s interesting that there are plenty of supporters as well as objectors of this app but undoubtedly both of them have made great contribution to activating its network effects.

DIRECT EFFECTS

To start with, direct network effect is easy to understand that the value of a platform increases as long as more users use it. There are dozens of similar dating apps such as Jackd now playing a huge part in approaching like-minded partners or just pure strangers, but only a very few of them have the opportunity to be put on top of the list in app store. The cruel fact reveals that how important it is to take advantage of user growth to foster a solid network. Think of that if you’re a potential user, once you’ve joined in you’ll notice that 8 gays out of 10 around you are using the same app, and that’s how you’ll immediately be dragged into it as they used to be. The online community of Blued is undergoing a positive cycle where more users pour in and more value is generated either intentionally or unintentionally, which in turn leads to more access for new users.

INDIRECT EFFECTS

Unlike platform itself, indirect network effects come from complementary goods or services. A latest example referred to a fashionable Thai TV series funded by Blued named ‘Lady Boy Friends’. The series set a new record of audience rating and made Blued known by a larger range of user group as a result. Here it is assumed that the series itself was extraordinary(literally it was) and I’m not about to go into details. For those who used Blued before they were indulged into the series and in return became more faithful to it than ever. For those who didn’t or were even straight they got to know it due to the success of the series, which added value to Blued likewise. To be more specific, think of the situation where you might be into one of the leading actors and it would be perfect when his Blued account was displayed on the screen(it did happen actually). How could you control yourself not to get in use with it in this case? Like I said before, both compliments and critiques help activate the network effects.

CROSS-NETWORK EFFECTS

Obviously inside the gay community we have several groups depending on who you are and what you are aiming for. In terms of activating cross-network effects, Jackd has set a good example that thanks to embedded Google Map plug-in users can feel free to find someone globally although given the priority that we always are keeping an eye on people nearby. The core feature is that it’s built for cross-platform so that generally when the usage of users who are enthusiastic in sharing selfies increases the value of users who enjoy looking at someone else’s photos nonetheless aren’t willing to show theirs will catch up as well. Basically if two groups have some degree of corelation this cross-network magic can be applied to it.

LOCAL EFFECTS

Like every social app instant messaging forms the basic framework of what we call as local network effects. Your activities as part of your daily life will be influenced if you’re asked to start a chat frequently by different gays. Though most of the users don’t count on a stable relationship, it doesn’t mean they don’t mind. The dream scenario of this effect is that someone ends up with a true love for the rest of his life.

WHAT’S MORE

It’s a shame to say none of the platforms I mentioned above has been accepted universally. Blued dominates domestic market but internationalization is still far away with built-in Baidu Map which only supports users in mainland. Jackd and Grindr both have more in functionality but they can only display nearby users within a short distance centered from your coordinate. However, all of them understand what users need primarily and that’s why the first tab down the interface is always for finding someone instead of a chatting room. What’s worth mentioning is that there’s another tab in Blued where the latest news that gay men care about will be seen. Anyway, I believe the future development still lies in helping a user find his Mr Right. Hopefully that day will come earlier in the era of mobile.

References:
Pic_1: http://www.blued.cn/v4/en-US/img/banner.jpg
Pic_2: http://ww1.sinaimg.cn/large/9c8d3235jw1er3q66tvoej20k00zkdr2.jpg
Pic_3: http://img.wdjimg.com/mms/screenshot/2/88/2563d2e8c8014edb336c61e39f5c3882_320_533.jpeg
Pic_4: https://lh3.googleusercontent.com/adh5cXgJ9oZhb66MNvdt2d0kJhuGFv77OMnQ_SKvK84BkofNBqH_3h4IiHyX1eLf36L9=h900