TechCrunch is reporting that Facebook is opening up their mini-feed to third party services. What does this mean?

Let’s say you’re a Del.ico.us user, and you just added a new bookmark. If you choose to, that news will now show up in your news feed and your friends will be able to see it. The web just got a whole lot smaller.

This also marks Facebook’s first move outside of Facebook, and it could even have been urged forward by new COO Sheryl Sandberg (read Fortune’s report on her moves to make Facebook profitable here).

More on the move soon.

Tags: Advertising, Facebook, Marketing, Social Network, Usability by Neil
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The article is a year old, but senior editor David Kirkpatrick hits all the right notes in trying to understand the significance of Facebook as a communication and business tool.

“It’s not all rosy for business, though. You think we’ve had transparency on the Internet so far? The ramifications for marketers could be frightening if someone builds tools that enable Facebook users to get more efficient at communicating among themselves about products and services they use. It could become just as easy to learn if someone you know was overcharged by a credit card as to find out what concerts they are attending. Up until now most online sources of product information have been unreliable. But if it’s your friend telling you not to buy that shampoo, you’re likely to listen.”

Full article here: Facebook’s plan to hook up the world - May. 24, 2007

Tags: Advertising, Applications, Facebook, Marketing, Social Network, Usability by Neil
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If you’re a Facebook developer, user, or even an avid reader of this site, you probably know that Facebook is gearing up to revamp the visual and functional design of the basic Facebook profile. I evangelize about it daily, but this post isn’t about how widespread of an effect it’s going to have (it will be watercooler talk for days). Rather, it’s about how Facebook’s approach to this change demonstrates the pioneering of the next generation of large web companies.

Just take a look at their latest post: An Update on the State of the Profile Redesign. In short, it’s saying one thing: We’re listening to you. How? They held a few ’roundtables’, where developers and users of all types were able to get together and talk about what they like/don’t like about the upcoming changes. Then, they’ve been posting weekly updates on their design process, and keenly scouring the comments left by the 39,011 fans that have joined the Profile Redesign Fan Page. Finally, they also mention that there will be ample time for application developers to modify their applications before they release the profile to the public.

Say what you will about some of their Beacon moves and default privacy policies, but from the perspective of a user of the Facebook tool, I trust Facebook to make the right decision to enable me to communicate with my friends easiest. From the perspective of a developer, they have been smart and quick to upgrade as long as they’ve had the Platform available.

IMHO, it’s the use of a company’s ears that will enable a company to succeed in Web 2.0, 3.0 and beyond, and Facebook is definitely on the right path. While people are constantly extolling the virtues of a social web, in truth there are only a handful of companies (Digg is another great example) that truly leverage their social feedback. Even the prolific Google doesn’t make it this simple to let them know how you feel about their interfaces. And we won’t start into MySpace.

This goes farther than web businesses. It’s rare for even an individual to listen, but if you look carefully, the ability to consume and utilize feedback is the hallmark of any true success story. And when a service-provider of any type and size can hear and understand the thousands of users that truly love their offerings, they have the key to keep people smiling.

This clearly should have happened long ago, as a capitalist system would dictate. If a company isn’t listening to their consumers, then a company who does have the ears will open up, and produce a better product. However, the resources necessary to support these vast lines of communication feedback are a recent phenomenon, and we’ll feel the effects of this business style more over the next half-decade. While older corporations will stumble to understand the importance of having their ears to the web, young dynamic startups will spark a trend of iterative, evolving creations based on user feedback. Just like any modern day Engineering design must incorporate feedback, any web business expecting to succeed in the future is going to need to structure a social feedback system for their web presence.

Rant over.

Tags: Advertising, Applications, Facebook, Marketing, Social Network, Usability by Neil
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I just ran across one of the most interesting blog posts I’ve read lately speculating on Web 3.0 over at Master of 500 Hats.

Not to steal Dave’s thunder, but there are a couple points I want to highlight.  The Microsoft bid to buy Yahoo is primarily to shore up it’s dominance in the Email/Instant Messaging online sectors.  Sure there are side benefits like buying up Yahoo’s advertising, search and traffic, but the winner of the Internet will be he who controls the user.

But with the battle to own the user comes the battle to own the user’s social graph, currently controlled by Facebook/MySpace/Bebo/hi5/could continue to list ad nauseum.  I keep referring to it, but all future web advertising will be contextually driven by your social graph, where brands are providing social relevance to users.  Ie. “Your friend Katie just saw (insert cookie-cutter Will Ferrell movie) and rated it 5 stars!” (ok I kid, it will be impossible for a Will Ferrell movie to be rated as excellent again… the days of Old School and Anchorman are over).

I think it’s also highly important to note the fact that we as users on the Internet now have hundreds of logins/passwords for every individual site on the net.  This is a problem that needs to be solved, and while attempts have been made (Microsoft Passport or the community driven OpenID), nothing will happen until one company owns enough of the user’s Internet life to make it beneficial for the user (really, what’s the difference in consolidating your logins from 60 to 50?).  Alternatively, if the smaller communities can build enough momentum around the OpenID concept, it could be viable, but whether that is a possibility remains to be seen.

The final piece of the puzzle are the e-commerce/payment conglomerates.  Look for the Microsoft/Google duopoly to put pressure on eBay (and their very valuable PayPal) and Amazon for merger/acquisitions in the next few years.

Where do the small players stand in this heated battle?  Well, I sort of compare it to the open source community who has not only weathered giants like Microsoft’s attempts to push them out, but actually blossomed in the modern Internet era.  If the small guys can provide real value to users, by churning out innovations while being completely flexible to quickly capitalize on new ideas, they will have a direct line to sink their (small) teeth into the necks of Google and Microsoft.  And instead of a one-sided parasitic relationship, Microsoft and Google will leverage these small-time players to come up with new innovations and either partner or swallow them up for big money when it makes sense.  And sometimes these guys will have such momentum that they will swim past these sharks to potentially become a shark themselves (could Facebook be this shark?  That question requires an entirely new post) (and one more side point - I’m not sure whether I should perhaps be calling Microsoft and Google ‘whales’ instead).

The Internet and Web 2.0 is a playground for innovation due to the extremely low barriers to entry and it’s massive channel to instantly reach all users around the globe.  It’s an exciting time to see all the fish in the sea battle (and work symbiotically) to control the Internet.

Tags: Advertising, Facebook, Google, Marketing, MySpace, Social Network by Tim McKillican
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According to the Newspaper Association of America and referenced over at Editor&Publisher and TechCrunch,  Newspaper revenues fell 9.4% to $42 billion in the past year compared to 2006 in the US.  For reference, online ad revenues grew 19% to $3.2 billion over 2006.  What does this signal?  Well, for starters, the looming US recession has and will continue to have a definite impact on advertising revenues, as one of the first things to be cut during tight times are marketing budgets.  But is there more to it?

It’s no secret that traditional print media like newspapers are falling on hard times.  Marketing executives are being given more options with where to spend their marketing dollars, and while I don’t believe that Internet ad revenues have totally lived up to their potential, innovations in the online space are arriving that will present credible options for said Marketing execs when they determine how to optimally allocate their ad budgets.

First of all, the static ad banner on the side of every web page is starting to be replaced with interactive and engaging multimedia.  Online video ads and flash-based multimedia are becoming more and more common, attracting the user’s attention and creating a much more solid impression over and above the typical static classmates.com banner you traditionally see.

But more importantly, online ads are beginning to take advantage of demographics and eventually will leverage individual user preferences, as I alluded to earlier this month, to provide much more relevant and contextual ads that are targeted to every individual.

Finally, combine these new contextual online ads with a solid metrics and reporting system that can track every user’s interaction with the ad, and you can create an objective sales presentation to the aforementioned Marketing executive, giving him or her direct insight into how each penny spent online translates into brand impressions/interactions, and eventually, sales.  This gives the online ad realm a tremendous advantage over traditional media, because the feedback reporting mechanisms can objectively indicate the success rate of an online marketing campaign .  A complete return-on-investment can be calculated along with with every reportable stat you can imagine, so that the Marketing exec can easily gauge how to optimally allocate their online marketing spending.

Newspaper and traditional media are a one-way street.  You can get indirect feedback based on general sales lift, but nothing near what can be done through online metrics.  This gives online advertising the advantage, and with innovations still to come to provide even more creative as well as socially relevant ads to users, it appears as though online advertising is destined for continued growth.

On another note - Duncan Riley at TechCrunch wrote an interesting post last November about the need for consolidation in the Newspaper industry to improve their chances of survival in the face of increased competition for advertising dollars.

Tags: Advertising, Facebook, Marketing by Tim McKillican
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It seems that Microsoft is chasing after its own tail these days.  Only months after investing a healthy quarter billion into Facebook, their Spaces division is attempting to leverage its own friend network by introducing a friend-feed to display your Live Messenger friends’ latest actions (see screenshot).  Are they competing with Facebook?

With MySpace having jumped on the ‘friend-feed’ idea in their revamped profile and web applications such as FriendFeed and Twitter popping up, it’s quickly becoming apparent that the feed is the essential backbone of any good social network.  That must have been what Microsoft was thinking when they made this move, but the current incarnation is hardly providing me with enough relevant information to constitute a “social network” (see screenshot).  Most of my friends have never even set up their Live Spaces profile, even though it’s been around for years, and so I’m left with entries like

Judging by the latest Nielson ratings on Social Networks (see image), Live Spaces is about to lose its long hold on the fourth place.  I don’t see anything particularily wrong with the technology, but the botched release of Spaces and the consequent pillaging of the once simple-yet-effective MSN Messenger convince me that we won’t see users flocking to Spaces anytime soon.

Tags: Advertising, Applications, Facebook, Social Network by Neil
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Talking to users of Facebook of all demographics, I find that more and more young people use Facebook as their exclusive method of communication.  The archaic messaging system is at best awkward in comparison with GMail or even Hotmail, but the fact that it is embedded in the Social Graph proves its value to consumers.  Combined with the recent integration of Facebook mobile, the system provides an integrated way to ensure you have access to all your closest friends.

Well, Facebook is about to make another big move in a small way, by introducing Instant Messaging to Facebook.  As can be seen in the video, it will dock at the bottom of your browser as you use Facebook, and enable you to simply send instant messages to your online contacts.  It may be simplistic right now, but that’s always what has worked best for Facebook, and I can envision this becoming more and more popular, and eventually spreading out into an optional desktop application.  Video available courtesy of FaceReviews.com.

Tags: Advertising, Facebook, Marketing by Neil
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BusinessWeek posted an article that I think highlights the potential and uncertainty about this new social networking market. I regularly point clients and friends to it, and if you’re trying to explain this new market, I’d recommend you do too.

“Building a Brand with Widgets” by Rachael King

“It’s surpassing our expectations,” Peterzell says. A growing number of companies hope they’ll be wowed by widgets, too. Electronic Arts (ERTS), Viacom’s (VIA) Paramount Pictures, Sony Pictures, Gap (GPS), Hewlett-Packard (HPQ), Hallmark, and Blockbuster (BBI) are among the businesses hoping to spread a marketing message or raise brand awareness through these modules of content used by millions of social network users to customize profiles or communicate with friends.

The article begins optimistically, but quickly points out that many campaigns have difficulty in standing out in an overcrowded widget market.  From my chats with Nick O’Neill at AllFacebook.com, a good strategy is to supplement any social media campaign with real advertising dollars.   Companies can take advantage of the many burgeoning banner networks, like RockYou or Slide, and implement a Cost-Per-Install advertising campaign for only a few thousand dollars.  The great aspect of a CPI campaign is that it only costs the advertiser money when banner-viewers click on the banner and subsequently install the application.  That way, the general branding that goes along with each banner view is in fact, free.

Tags: Advertising, Marketing, Social Network by Neil
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Phil Edwards of Lonely CEO Media analyzes the slow movement of large corporations into the social networking sphere. Specifically, why haven’t large brands moved to associate themselves with Applications generating millions of entertained views per day.

There are of course, as many theories for this as there are terrible applications, but I feel Phil’s analysis is optimistic while simultaneously realistic.

Tags: Advertising, Facebook, Marketing, Social Network by Neil
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One of the traditional kingpins of mass marketing - the Television - is slowly beginning to see the light shining from the modern advertising revolution. The 6 big cable companies in the US are teaming up to develop a customized and targeted ad system, paving the way for potentially lucrative advertising deals that can target ads based on a viewer’s viewing habits and demographics, giving the viewer a much more relevant and contextual ad viewing experience.

Now how does this relate to Facebook? Well, the goal of any advertising platform is to produce relevant ads that are in line with each individual’s interests and demographics. It’s in the advertiser’s best interest to maximize the relevance of the ad for each user, as forcing a 25-year-old male bachelor to watch a commercial on teen fashion products is pretty damn inefficient.

But in order to optimize efficiency, the more information that is available about the user, the more the ad can be targeted to his or her interests. And who is best positioned to have a complete view into the details surrounding every individual’s life? Yes - Facebook.

Social networks are unique in that users frequently volunteer many details about their day-to-day activities and social connections, not to mention they provide detailed demographic information (education, age, political views, relationship status, etc.). Whoever owns this data has the ability to leverage it to build a very powerful advertising system. I’d imagine Facebook will first use this data to build an ad platform internal to Facebook - but there’s nothing stopping them from then going one step further to license this information to 3rd parties, whether it be CNN.com or a new TV-advertising platform (I know, I know, that privacy point again). Google’s grip on contextually-based online advertising is about to face another dimension in the advertising wars. And don’t you think Google has realized this disturbing fact?

Now to address the privacy police. Of course Facebook, Google, and anyone else who owns private customer information would not dare to release it without the user’s consent. No one is disputing that fact. But as with any market-driven solution - Facebook et al. must will come up with an incentive so that it’s in the user’s best interest to make their demographic information available (individual identities will remain private, of course, so this scenario is quite feasible). Those who choose to remain anonymous can do so, but their personal experience will be limited, and most will end up consenting so as not to disrupt their experience.

This mutually beneficial relationship will drive unmatched efficiencies in modern advertising. You’re a 25-year-old male who just bought a new pair of skis? Let me show you an ad for Whistler promoting the powdered ski slopes and the happening party scene. Swap the 25-year-old to a 55-year-old and we’ll instead contrast the powdered slopes with some fancy dining and relaxing amenities. This will all be done automatically and will drive ad relevance and positioning to new extremes.

It’s an exciting time to be a part of the modern advertising revolution.

Tags: Advertising, Facebook, Google, Marketing, Social Network by Tim McKillican
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