DST14500 - Indicators of when there is a Main Purpose of Promoting User Interaction

Many of the platform types listed in the intended scope in DST14300 will clearly have a main purpose of promoting interaction between users. The ability to interact with other users is a key feature of these online services. However, there may be some cases where it is more difficult to determine whether an online service is promoting interaction between users or is only facilitating it.

The following indicators are not exhaustive but show some of the factors which may help to decide which side of the boundary these cases fall on.

  • The importance of interaction with other users to the user experience
  • The way the online service is monetised
  • Whether the service encourages users to create or expand user networks (e.g. through unlocking new content)
  • Whether users are rewarded for providing content to other users
  • The extent to which communication between users is public or semi-public as opposed to private
  • Whether the service viewed holistically could be said to be intended to be caught by the social media definition
  • The reasons why users use the service
  • The extent to which the business invests in promoting user engagement

Importance of interaction with other users to the user experience

It is often useful to consider how users perceive the service. In many social media services, the ability to interact and engage with other users and their content is the main reason they use the service. In some cases, the service simply would not exist without other users. For example, the concept of a dating or social network depends upon there being other users.

It can be helpful to compare the features enabling users to interact with each other with other features of the online service. If the former are a small or insignificant part of the user’s overall experience, it is less likely the online service promotes interaction (or that such promotion is a main purpose of the service). Cases where this may be relevant include comment features in online newspapers where the ability to comment with other user’s is likely to be subordinate to the journalistic content.

Equally, the presence of active online communities is more likely to indicate the online service promotes interaction between users.

The way the online service is monetised

The social media definition does not test how the online service generates its revenues. Consequently, an online service can meet the definition regardless of how it monetises its services.

However, the way the online service is monetised can be a useful indicator whether promoting interaction between users is a main purpose of the online service. In particular, online services that are monetised through an advertising model (where the service is provided to users for free) are more likely to have a main purpose of promoting interaction between users.

When an online service is monetised through online advertising, it suggests the business generates value from the number of users on the platform, the length of their engagement with the platform and the data that can be inferred from their interactions and their active provision of content. It also indicates the business is seeking to maximise the number of users on the platform, and benefits from network effects.

This should not be taken to mean online services that do not sell targeted advertising are out of scope. Many dating networks, for example, operate on a subscriptions model but nonetheless clearly have a main purpose of promoting interaction between users.

Whether the service encourages users to create or expand user networks

Services which enable users to join networks or build close relationships with other users are more likely to promote interaction with other users. Similarly features which are designed to provoke emotional or psychological responses from communicating with other users tend to indicate the condition is met.

Whether users are rewarded for providing content to other users

Some online services provide incentives to users to provide content or to introduce new users to the service. For instance, some services will provide rewards or unlock new content for users who create content or who invite other users to join the service. This may indicate the growth of the user base is a central part of the service’s growth strategy and suggest the service is actively promoting users to interact with one another.

The extent to which communication or content shared between users is public or semi-public as opposed to private

Many social media platforms encourage users to share content either publicly or to a defined set of other users. This is often important to reaching new users and generating large scale network effects. While this is not a requirement in the social media definition, online services which display content to multiple users are more likely to be promoting interaction between users.

Business investment in promoting user engagement

Although the purpose test applies to the purposes of the service, it can be useful to consider the importance of the service and improving user engagement to the business providing the service.

The main purpose test is more likely to be satisfied if the business expends significant resources understanding how users behave or interact on the online service and devotes significant time and energy understanding how to increase user engagement.

It may also be relevant to consider how investors regard the importance of user interaction to the service. The online service is likely to have a main purpose of promoting user engagement if the business’ performance metrics include indicators of user engagement like time spent on the platform.