I’m at Foursquare listening to Facebook’s Mark Zuckerberg in the one on-the-record session. Asked why Facebook chose not to be involved, Mark replies, “Who says we didn’t choose to be a part of it? We didn’t really find out about it until right at the end there.” When? “Maybe an hour after it launched.” Will Facebook be involved? Mark said they’ll see how it works and then evaluate. If it add values to users then they would be involved, he said.
He’s also talking about his new ad system, announced yesterday. I haven’t gotten my head around the full implication of the system but it seems like a customer advocacy platform without the conflict of paying those advocates (see: Pay Per Post). This is an extension of what I wrote about in my Business Week piece on Dell: customers as the best marketers. The recommendations of peers matter more than the spam of advertisers.
Jeff Pulver asks whether we’ll be able to segment business v. personal friends. Mark says they are trying to map out all the connections and that will get more and more granular; some will be manual and some will be agorithmic. He says that “realtive soon” they’re going to release things that help people organize. Soon, that will be lists of friends you can make so you decide what to share with what groups. He also said that they are considering raising the limit on friendships.
In today’s Telegraph (and this month’s Vogue), Conde Nast UK head Nicholas Coleridge admits that he’s trapped in the new British class system: Facebook.
I know people – adults, that is, busy people with jobs – who spend two or three hours every single day tending their virtual roster of acquaintances, “poking” people, adding applications, trawling friends’ lists of friends to find new ones to poach, or approaching complete strangers to boost their score.
The second half of 2007 has seen the renaissance in England of social competitiveness. Who has more friends on Facebook, me or you? Or, more pressing, who has the most glamorous friends on Facebook? We have turned into a nation of social-stamp collectors.
As I posted on his page on Facebook, I am relieved to both be his friend and have more than he does.
So when someone came along who actually managed to compete with and even frighten Google — namely, Facebook — how is Google competing? By going open. There’s a lesson in that for the rest of us.
I keep saying that media companies should ask WWGD — what would Google do — in formulating their digital strategies. Well, in Google’s Open Social, we see that the best competition against a growing monopoly is openness.
So how should we compete with Google or at least challenge its monopoly? Openness. I’ve argued for sometime that we need an open-source ad infrastructure. If the rest of the world other than Google — that is, those who have the other half of advertising Google doesn’t yet have — can gather together and create standards, then Google would be faced with the same decision Facebook is now faced with: whether to use those standards. What organized Facebook’s foes? Ironically, it was Google. Who could organize the nonGoogle ad universe? I see no one on the horizon. That’s why Google keeps growing. We’re letting them.
$15 billion for Facebook doesn’t sound so crazy when you consider this: A Deutsche Bank analyst says that a newspaper reader in 2004 was worth $964 a year. Today, that’s $500. Facebook’s 50 million active users translates to $300 per at that valuation. And newspapers are shrinking while Facebook is growing by 200,000 new users a day. A day. And those users spend an average of 20 minutes each day inside the site vs. 41 minutes a month on newspaper sites, says DB.
By the way, the analyst says newspapers will come back into the black in 2012 but I see no rationale in theh E&P story for that prediction.
(Link corrected. Thanks, friends.)
You know a platform is gaining traction when it spawns an ancillary economy. The Facebook platform has not only supported apps companies that are, in turn, supported by venture capital, but now it yields conferences that can charge $400 at the door. I don’t see why such a conference is needed when Facebook developers have been gathering in hackathons thanks to Meetup, which is a helluva lot cheaper, or thanks to organizing on Facebook itself, which is free. But this is capitalism at work. Next we’ll be seeing the equivalent of SEO: app optimization consultants and conferences and books and new job descriptions and ads for them.