So unless you’ve been living under a rock for the past few days, Facebook launched it’s chat application to the masses, maintaining it’s rapid rollout of new features and enhancements that solidify Facebook’s place at the forefront of the social web.

What will be interesting to see, however, is how big an impact this launch will have on the usage of Windows Live Messenger, AIM, and other IM applications. Back in the old days when Instant Messaging was the hot web application, keeping in touch with new acquaintances was done through exchanging IM addresses (around the time when you thought you were cool if you had a 6-digit ICQ number). But as social networks have become the medium of choice for maintaining and creating new connections (ignoring Twitter for now), it remains to be seen whether MSN/AIM can hold on, given that their core functionality is now being built into the Facebook platform. I’d surmise that until Facebook launches a standalone IM client, there will still be a role for traditional IM applications, but their day in the spotlight will soon fade as Facebook IM begins to flourish (for the average consumer, at least).

Which brings me to my next point – where is Facebook headed next? Well, their Messaging system is pretty laughable right now and as many are saying, is completely due for a major overhaul. By leveraging your social graph, Facebook has the capability to come up with an innovative email platform that will have the potential to completely disrupt Google/Microsoft/Yahoo’s grip on email. Since Facebook knows your social relationships and who you frequently communicate with, it can begin to automatically prioritize messages and enable you to more efficiently manage the increasing amount of emails and other electronic messages that we see on a daily basis. Top this off by then integrating your existing Facebook account and features into the Email application (ie. Event Calendar), and allowing 3rd-party developers to create applications that extend your email functionality even more, and you have an email platform leaps and bounds above the ever-stagnant Hotmail’s of the world.

Tags: Facebook, Google, Microsoft, Social Network, messenger by Tim McKillican
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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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