Reflections & analysis about innovation, technology, startups, investing, healthcare, and more .... with a focus on Minnesota, Land of 10,000 Lakes. Blogging continuously since 2005.

Tag: social networks

GSP West 08: Hot and Cold

It’s a hot conference, and what do I get?  A damn cold!  And I just had a doozer back in January, too.  Is this the worst, hellish year for colds and flu that you can remember, or what?  It sure is for a lot of people I know….

Anyway, I’m sucking it up (oh, god, that’s bad), tryin’ to keep up…. I did my live-Twittering thing yesterday, after getting well practiced at DEMO. Gspopeningscene
See my 40 or 50 something tweets (I lost count) here.  Then chatted over wine with Aaron Fulkerson (MindTouch), Dan Carroll (Somr.org, former Twin Citian, now Mountain View), Chris Messina (DISO guy), Maria Sipka (Linquia, a fellow Aussie and surfer), Chris Gammill (a buddy from LA), and others — all while uploading my pix on Flickr. Gspplatformwars

Afterwards, attended part of AppNite (couple of cool ones!), then managed to hear most of Tim O’Reilly’s keynote at 8:00 — it was good, very inspired. Tim is amazing. Took a lot of notes, but was all out of Twitter juice by that time. So, dragged myself back to my hotel (a very cool little boutique place called the Sophia). Now it’s Tuesday morning, and I’m seriously looking for a Walgreens so I can load up on cold medicine…  🙁

LinkedIn’s Growth Beats Facebook’s

So you think Facebook’s growing rapidly, huh?  Well, check this out. Nielsen just released its latest ranking of the top social networks (for the month of October 2007), and it shows LinkedIn grew at a significantly faster clip than any of the top ten — even oh-so-hip darling Facebook. Of course, these numbers reflect usage at both home and work, and the latter is the traditional stronghold of professional network LinkedIn. Socntwksgrowth
But Facebook’s made no secret about expanding its user base into the adult working world, too — not just college kids passing around party pix.

What’s surprising is that, even with all the rapid — and rabid — Facebook adoption lately by us professionals (yes, I’m hooked, too), LinkedIn is growing even faster. Hipness is not everything, it seems — functionality matters, too. And LinkedIn has built up a pretty good stronghold in the professional networking/recruiting/job search space. (And you have to love founder Reid Hoffman also having a nice stake in Facebook as an early investor.)

Another reason LinkedIn may be scoring bigger growth: I’m not aware of companies banning it at work, but I certainly have heard that to be the case with Facebook inside some firms.
What’s your experience?  Should either of these sites be banned at work?  [The nerve of these employers, thinking people shouldn’t be searching for new jobs or sharing party invites when they’re supposed to be working…  :-)]

UPDATE (Thanksgiving Day, 11/22): Oh, this is too funny. GigaOM just posted Giving Thanks for…Facebook?

UPDATE (11/23): You have to love this juicy tidbit via TechCrunch UK…. Rumour: NewsCorp to Buy LinkedIn.  I think it could very well be true — I agree with one of the commenters that LinkedIn + the WSJ could be a great combo.

 

Widget Summit, Day 1 Finale: Facebook Developers Panel

It was a full day of panels and speakers, but it almost seemed to fly by. Lots of content! But it sure as hell held my attention. The last panel of Day 1, as it turned out, was the first chance to focus on The Big FB — the elephant in the room, shall we say? We didn’t get to hear yet from anyone at the company itself (that would come the next day), but we did from three very well known external developers of Facebook apps: one big company (eBay) and two smaller/startup firms (Renkoo and Openhive).

Renkoo’s success with its "Boozemail" app was accidental, said CTO Joyce Park. Her company first thought its functionality was too sophisticated for Facebook. But they decided to give it a try and reasoned there was a common interest out there in one big thing — drinking!  Boozemail
They had modest expectations for their app, but, in a litle more than three months, it’s been used — are you ready? — 120,000,00 times.  Now, Park said, her firm is even looking to "export it everywhere" — meaning, beyond Facebook(?). Yes, as you might imagine, they’re developing "branded drink icons" for the liquor industry (for use only by people aged 21 and above, of course).  One problem, though: the liquor companies don’t like the word "booze," so the implication was that, wherever else the app may be used, it may have a different name.  Park also showed a brand-new app Renkoo was introducing at Widget Summit: "HaikuZoo," which is an app for sharing virtual pets. Yes, friends, you can even buy decorations for your pets’ profiles.  Is this a great country, or what?

Rolf Skyberg of eBay jumped in next — the guy with the best darn title at the whole place: "Disruptive Innovator."  Rolf talked about his firm’s ‘eBay To Go’ Facebook app, which lets you personalize your Facebook profile with something you want to share that’s on eBay; he said "we’re now calling this one a widget." Ebaytogo
He also talked about ‘eBay Marketplace’ — an app that displays what I’m looking for (interested in buying), what I’m selling, and who my friends are on Facebook.

"Widgets are part of our strategy to put eBay where the people
are," said Skyberg. He noted that his firm is now publishing APIs, and
even paying people to develop apps. That appears to be the case with a new one Rolf mentioned, called Giftbay.Ebaymarketplace

The remaining panel member was Ryo Chijiiwa, CEO of Openhive, who
was a late add. He showed an app that lets people share their book
collections. He said he launched it within a week of the Facebook
Platform launch. But he said it wasn’t viral enough — for three
reasons. The app wasn’t inherently social, it lacked lightweight
features, and it was too complicated.  So, I’ll be damned if I know why
he was on the panel if this was the case — but he talked so softly I
couldn’t understand a thing he said from this point on. So, you figure it
out. I couldn’t even find his app on Facebook. Maybe it
self-destructed? …dying that oh-so-painful death of (hush) non-virality.

Naill Kennedy started asking followup questions: "Joyce, yours isn’t the only drinking app on Facebook — what’s your differentiation?" To which the CTO of Renkoo responded: "I think maybe Happy Hour (another app) went overboard with virality. They force you to spam a lot of your friends." How are eBay’s apps different? "We’re looking for people who are active on both sites," said Skyberg. "There’s lots of ‘stuff’ that defines people."

Moderator Kennedy: "Are you worried about brand dilution on Facebook?" (a reference to the many eBay-related third-party apps there now)  "Most of the the apps now are about search," said Skyberg. "We wanted to add things that will really bring the two communities together."

In the audience questions later, someone asked about commerce apps. "I don’t think there are many good apps on Facebook for that," said Renkoo’s Park. "I mean, isn’t it kind of creepy to buy your friends’ stuff?"  Yeah, I guess how do you ask for a refund if it isn’t as-advertised… But the best audience question of them ALL was the last one: "Have you thought about cross-integration of your apps?  For example, can you send booze to your virtual pets?"  To which Rekoo’s Park, seemingly missing the humor, answered: "No, that disturbed people."  Making it sound like they actually did consider it… 🙂

In a brief session following, three new companies/services gave quick pitches:  WebWag did a cool demo of its Widget-On-Demand feature, grabbing a stock section off the MarketWatch site (GOOG, of course) and creating a widget of it for his home page — in about five seconds. Gydget creates cool fan widgets — great for bands, sports teams, and the like (here’s some coverage). And NetVibes, a sponsor of the event, announced it now supports more widget platforms (including iPhone), so your can write your NetVibes widgets once and run them everywhere. Graemenetvibes
They also let you localize for different languages. Their new widget for Facebook is pretty cool, too — I put it on my NetVibes start page. (Right side of creenshot.) NetVibes was sponsoring the reception, which we were all now ready to bolt for….

UPDATE (10/17, 7:40 am Pacific): To add link to story about Gydget.

UDATE (10/17, 3:25 pm Pacific): To add more content.

It Won’t Just Be Facebook Getting Personal With Ad Targeting

So, the Wall Street Journal screams out this morning, on top of page B1, that ad targeting is coming to social networking site Facebook. See the article here (may require subscription). It seems, in order to justify the $10 billion valuation some of its investors are touting, they’re realizing that — oh, yes — we need to monetize this baby! Yeah, that’s right, before we go IPO…. 🙂 Facebooktargets So, let’s start giving advertisers the ability to pinpoint their ads at just the specific individuals on Facebook, within certain very narrow demographics, that will most be interested in the product or service they’re advertising. Such, after all, is the Holy Grail of marketers everywhere. And, by golly, Facebook sure does seem to be a place where a glorious experiment like this could be carried out.

But, if Facebook needs more monetization of its service, think how much all the other, lesser social networks must, too. There are literally hundreds of thousands of these networks already set up, and more coming online every day. A typical site may only have a few thousand members. Ning alone will soon have 100,000 sites using their social networking platform. And an increasing number of firms offer such platforms for anyone to set up a social network, with basic levels of service that are free. See this recent TechCrunch post, which reviews several of them, and this accompanying chart that compares these offerings in great detail.

Sure, Facebook and MySpace, and a handful of other second-tier sites most people couldn’t name, account for a huge percentage of social networking web traffic today. But the long-tail of social networking sites promises to have traffic at least that big, collectively, ongoing. Have you ever stopped to think how these small players are supposed to monetize their sites? Meaning, get advertiser revenue that can support the cost of running a social network, paying for bandwidth, adding new features and original content, and so forth. The way things stand, there is little they can do now to pay for their sites. Some may be charging members for subscriptions, but that model is surely not one that can gain much traction.

Thus, I say longtail monetization via targeted advertising is the bigger story in social networking, with advertisers getting their ads (or sponsored editorial content) only to the specific demographics they want to reach, out in the long tail. Say, only males 20-30 interested in water sports, living in urban areas in the southest U.S. Perhaps a given ad would appear on hundreds or even thousands of sites, as opposed to a media buy that’s a huge swath of readers on just a single large site. So, for example, instead of buying exposure to 2 million people, the ad may only be seen by 200,000. But the idea is that ad performance will be much better because the audience is more interested in the ad, and more likely to act on it.

I think this latest news of Facebook starting the ball rolling with targeted social networking advertising is great. A large, innovative site like this should rightfully lead the way. But, with specialized ad targeting technology becoming available from new startups, I think it marks the beginning of what could be a much larger trend toward monetization of the entire social networking landscape. And I will surely be following this space very closely.

UPDATE (8/23): To add these links to the latest Hitwise social network rankings….for the U.S. and for the rest of the world.

2nd UPDATE (8/24): Online Media Daily posted a story this morning, by Gavin O’Malley, that attributes quite a statement to Forrester analyst Josh Bernoff — that Facebook’s ad targeting plan “could represent the most significant move in the world of online advertising since the advent of AdSense.”