The Power of Play and Social Media: Connecting the Magic Circle and App Growth

The Power of Play and Social Media: Connecting the Magic Circle and App Growth

Introduction:

In today's digital age, the internet serves as our community theatre, where social ties are formed and culture is transmitted through play. From Victorian parlour games to TikTok videos, play has always been a powerful tool for creating lasting social connections. However, with the rise of social media and its ability to transform everyday circumstances into fantasies, we face the challenge of maximizing its benefits while minimizing its risks. In this article, we will explore the concept of the magic circle in social activities and its connection to the benchmarking of social apps for growth.

The Magic Circle and Social Play:

The Dutch historian Johan Huizinga coined the term "magic circle" in his book Homo Ludens. He described play as creating a lasting feeling of being "apart together" in an exceptional situation, where individuals share something important and reject the usual norms. This concept can be seen in amateur theatricals and other forms of play, where individuals come together to form social groupings that extend beyond the game itself. Similarly, social media platforms have become our modern-day magic circles, where people gather to connect, share, and play.

Imitating Behaviors and Social Media Risks:

One aspect of play is our tendency to imitate what others do. This can be seen in the way people imitate popular TikTok videos or engage in online challenges. While this imitation can be harmless fun, it also has the potential to perpetuate negative behaviors. The challenge in the management of social media lies in maximizing its benefits while minimizing its risks. By being mindful of the content we consume and create, we can ensure that we contribute positively to the social fabric of these platforms.

Benchmarking Social App Growth:

Moving on to the world of social apps, benchmarking growth is crucial for success. The core metric for most consumer social apps is daily active users (DAUs). The goal is to have people using the app every day, creating a sense of regularity and engagement. For apps with less frequent use cases, weekly active users (WAUs) can also be a starting metric. However, to secure a coveted spot on the home screen, upgrading to DAUs becomes essential.

When it comes to user growth, benchmarks can help determine the success of a social app. For monthly user growth in seed-stage consumer social companies, the following benchmarks can be considered:

• OK: 20% growth
• Good: 35% growth
• Great: 50% growth

Organic growth is desirable in social apps, as they should be inherently viral, with users inviting their friends to enhance the experience. If a significant portion of users is acquired through paid sources, it may indicate the need to rethink the acquisition strategy.

Retention and the L-ness Curve:

Retention is another crucial aspect of social app growth. The primary metric for retention is n-day retention, which looks at the percentage of users from an original cohort who enter the app on specific days. Benchmarking n-day retention can provide insights into the app's stickiness and user loyalty. Here are some benchmarks for n-day retention:

• OK: d1 50%, d7 35%, d30 20%
• Good: d1 60%, d7 40%, d30 25%
• Great: d1 70%, d7 50%, d30 30%

Additionally, the L-ness curve, which represents the regularity of app usage, can indicate the app's value in users' lives. A "smiling" or "crooked smile" L-ness curve, where more users engage with the app regularly, is a positive sign. Benchmarking L5+ performance, which measures users' near-daily use behavior, can help evaluate the app's success:

• OK: 30%
• Good: 40%
• Great: 50%+

Cohorts and Network Effects:

To get a comprehensive view of app performance, evaluating cohorts over time is essential. Stable or improving metrics cohort by cohort indicate strong network effects, where the app becomes more valuable as more users join. This growth is a testament to the power of social play and the magic circle created by social media platforms.

Conclusion:

The power of play and social media lies in their ability to create lasting social ties and transmit culture. By understanding the concept of the magic circle and leveraging it in the management of social media, we can maximize its benefits while minimizing its risks. When it comes to social app growth, benchmarking core metrics and retention rates can guide success. Three actionable advice to consider are:

1. Foster organic growth by creating inherently viral experiences that encourage users to invite their friends.
2. Prioritize user retention by focusing on n-day retention metrics and aiming to improve cohort by cohort.
3. Embrace network effects by evaluating cohorts over time and ensuring that the app becomes more valuable as more users join.

In the end, the magic circle of social play and the growth of social apps go hand in hand, shaping our digital communities and influencing the way we connect and share.